Canton opens public hearing on updated impact fee methodology; consultant recommends higher parks and transportation fees, lower police fees

Canton opened a required public hearing Nov. 20 to consider an update to the city's impact fee methodology and fee schedule, a staff-led effort intended to tie new development's share of infrastructure costs to the city's capital plan.

Henry Thomas, senior vice president with Raftelis Financial Consultants, told the council that Georgia's law narrowly limits what capital costs can be recovered through impact fees and requires a dual "rational nexus" between the projects listed in a capital improvement element and the fees collected. "When we're talking about impact fees, it's really a fee charged to new development or redevelopment that requires an increase in service capacity," Thomas said, adding that the methodology focuses on police, parks and recreation, and transportation services.

Thomas said the firm collapsed Canton's prior property classifications into seven broader categories and refined residential tiers by dwelling size to reflect differing persons-per-household assumptions. Under the proposed update, police fees would drop substantially from the existing $76 per unit to roughly $17 per unit for a baseline dwelling because many equipment costs (vehicles) are ineligible and major facility spending reflected in the plan is replacement rather than expansion. "If you wanted a new standard of, say, 2 officers per thousand, that would...be a general-fund decision," Thomas said.

By contrast, Thomas said parks and recreation and transportation fees rise, driven by planned mobility and trail projects in the capital plan and the recent adoption of a SPLOST allocation. The consultant said the includable transportation projects total roughly $51.58 million, of which about $20.68 million would be allocated to new development under the methodology. He recommended adoption of the calculated fees as the "highest valid fee" but noted the council could phase in transportation fees or adopt a percentage of the calculated rate.

Darrell Rice, who served on the advisory committee that reviewed the study, urged the council to adopt the recommendations, saying the increases are consistent with what other growing municipalities are beginning to implement and that the fee impact measured against project cost is moderate in his example. "If you approve these impact fees, it dramatically increases... but we're on the front end of this curve," Rice said.

Council members pressed staff and the consultant on multifamily calculations, comparability with nearby towns, and affordability concerns. One councilmember said the smaller residential tiers in the proposal would help preserve attainable housing by lowering fees for smaller units.

The hearing was the first of two required public hearings; staff said a second hearing will occur at a later council meeting (the item will return in December) and that the city anticipates needing time to implement any adopted changes, with a target implementation window discussed for March 2026. Staff also said updated fee schedules reflecting recent SPLOST allocations will be circulated before the next meeting.

Next steps: Council will hold the second statutorily required public hearing before considering final adoption. No final vote was taken on Nov. 20.