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Leonardtown reinstates school impact fee at $2,135 per home, effective July 1
Summary
Council adopted Ordinance 234 to reinstate a school impact fee of $2,135 per new residential building permit, effective for permits issued after July 1, 2026; the fee will be placed in a restricted fund for growth‑related school expenses and will exclude recorded 55+ covenant communities.
The Leonardtown Town Council voted June 8 to adopt Ordinance 234, reinstating a school impact fee for new residential building permits. Staff explained the town previously collected an impact fee and stopped after a county excise tax change; the new ordinance proposes a single flat fee of $2,135 per home and a 3% annual escalation to account for the years when the town did not collect.
"The recommended fee is $2,135 for any townhouse any size," staff said during the presentation and noted the fee would be revisited every budget cycle. The ordinance includes an exemption for residential developments restricted by recorded covenants for residents age 55 and older.
Council discussed mechanisms for transferring funds to the school board and the possibility of working with the state delegation or county to allow direct payments to the county school system. Council approved Ordinance 234 with an effective date for any building permits issued after July 1, 2026.
Staff said fees will be tracked in a separate fund, similar to the town's water and sewer impact fees, and restricted for growth‑related school expenditures only. The ordinance returns to staff for implementation details and coordination with county/state processes about payment mechanisms.
