The DeKalb County Commission is considering imposing impact fees on new residential and commercial construction in the county. As the population grows, some commissioners say the fees are needed to help offset the cost of school construction or expansion as more and more houses are built in the area.

The proposal was brought up by Seventh District County Commissioner Bruce Malone during a workshop meeting last Thursday evening. “This is something that is being done in other counties. This is for new homes, residential and commercial property only. This wouldn’t affect farming or agriculture in any way, or existing homes in rehabilitation or remodeling. I think it’s a fair way to garner revenue that doesn’t punish or affect taxpayers here in the county. My goal is to use the revenue toward school construction projects.”

Malone’s proposal would set a one-time impact fee of $1.00 per square foot for new residential construction, and $2.00 per square foot for new commercial construction in county areas only. The impact fee would also include a $500 per plan fee. The fees would not apply to construction inside the City of Smithville, who has their own set of codes and regulations. Malone said he would like to see the new fees enacted on April 1, 2022.

“Several counties in Middle Tennessee are incorporating impact fees in their revenue planning,” Malone said. “I think this is an excellent way to benefit from growth and it does not penalize taxpayers in any way,” said Commissioner Malone. “It is a one-time fee. I have discussed this with several developers and builders as well as DeKalb County Community Planner Tommy Lee with the Upper Cumberland Development District who has stated that impact fees if properly adopted and maintained can benefit a growing community. Impact fees adopted should reflect communities’ per capita income. These fees I have proposed are right in line with a community of our size and income. For example, a 1,500 square foot home, and right now there are about 90 starts this month alone, that’s a small home but that would generate $2,000 per home.” With Malone’s estimates that would generate $180,000 with an average of 1,500 square feet per home.

The proposal would fall in line with impact fees set in surrounding counties, like Cannon County which has a 95 cents per square foot for new residential and $1.95 per square foot for commercial construction.

Fifth District Commissioner Jerry Adcock had concerns about the proposed impact fees and whether the funds being set for schools constituted a maintenance of effort. “You’re going to give these funds to the schools, then this thing (housing boom) is going to die. It’s going to. Look at the world right now with all the inflation and gas prices. You’re still going to be giving to the schools. Is this going to count towards maintenance of effort?” Adcock asked.

Commissioner Malone and others said they do not believe impact fees would go toward maintenance of effort funding for schools, as they would specifically be set aside for school construction.

The County Commission may address the proposal at their next regular monthly session.