Mike Wright
Citrus County Commissioners, faced with unprecedented growth and millions of dollars in unfunded needs, have approved a significant uptick in impact fees.
The fees, one-time charges on new construction to offset the cost of growth, are jumping 65% to $13,109 for single-family homes. Fees for other categories rose as well.
The biggest jumps are for transportation and schools.
Commissioners lamented the new fees, while a huge jump from where they’ve been the last five years, will not be enough to handle the county’s largest transportation need: Widening County Road 491 seven miles between Beverly Hills and State Road 200 north of Hernando, roughly estimated at $175 million.
“This impact fee is not going to be enough for 491,” Commissioner Jeff Kinnard said.
Even with the increase, commissioners learned they’re leaving money on the table. The impact fee study, which in part uses construction costs in determining transportation fees, did not take into account right-of-way costs.
Peter Napoli, senior manager with consultant Stantec, estimated that adding property acquisition costs would bump the single-family impact fee another $3,800.
The county sets the rate based on a percentage of the fees a consultant recommends. Historically, commissioners have shied away from enacting fees at 100% of the consultant’s recommendation, based on economic concerns. Builders have long argued against higher impact fees, saying they push home prices to unaffordable levels.
While Commissioners said they supported the new fee schedule, they weren’t comfortable with all of it.
For example, the total multi-family fee is $7,161 per unit. However, a subcategory — multi-family, age restricted — is $2,139. Commissioners said that will encourage development of 55-plus age-restricted apartments, while pricing out the work force from traditional multi-family housing.
Indeed, Katrina Leturno, president of the Citrus County Building Alliance, said as much.
“These impact fees will directly affect that community,” she said.
However, Commissioner Diana Finegan argued it made better sense to bump impact fees, which generally affect only new residents, than increase the millage, the rate collected as part of property taxes.
Chuck Dixon, Director of Planning and Growth Management for the Citrus County School District, said imposing impact fees will not cause the housing sky to fall.
“We always hear the same thing: ‘Impact fees are going to slow growth.’ That never happens,” Dixon said. “The growth pressure is not going to go away.”
Kinnard agreed. He said the goal is to find a balance between growth and paying for it.
“We’re not keeping up with each permit issued,” he said. “We’re falling further and further behind.”
Commissioners opted to vote for the new fee schedule, rather than delay a vote to include the right of way costs. They may review the transportation fees in a year.
The new fees passed 4-1. Commissioner Janet Barek voted no, arguing the fee schedule isn’t complete.
“I can’t vote for something like that,” Barek said. “It’s gotta be right the first time. And it’s gotta be what the county needs.”
New fees take effect 90 days after the county notifies builders of the change.
One comment
Johnny
July 29, 2025 at 7:30 pm
Maybe if citrus county would not spend 10 millions on a dog pound they would have enough funds to fix the infrastructure and roads.