More than $106,600 in impact fees were disbursed at the March 24 Huntley Village Board meeting. My Huntley News contacted Cathy Haley, Village Director of Finance, for an explanation of the fees.
Haley explained that “Impact fees are added to each new residential and new commercial construction permit and are paid by the developer.” She continued, “The Village is just a pass-through for these fees for the other taxing districts.”
According to Haley, “Municipalities assess impact fees on property developers to pay for infrastructure improvements that must be built due to new property development. New development brings new residents, which can put strain on a city’s infrastructure and services, including schools, libraries, water and sewerage, police and fire protection services.”
She continued, “Impact fees are designed to offset the additional cost of maintaining these services.”
The residential fees are basically a flat rate. The Huntley Fire District receives $500 per permit while the library receives $250. Both the Huntley Park District and School District 158 have fixed rates based on number of bedrooms and if the permit is for a detached house, an attached house or an apartment. The Park District fees range from $2,325 for a one-bedroom apartment to $4,988 for a 5-bedroom detached home. District 158 fees range from $21.74 for 1 bedroom apartment to $6,457 for a 4-bedroom detached home.
My Huntley News contacted Mark Altmayer, School District 158 Chief Financial Officer (CFO), and asked how the district planned for the impact fees income and how, in turn, the District spends the funds.
Altmayer responded, “Impact fees support the overall district budget and are used specifically in the education fund.”
“We do a trend analysis and have good cooperation from the various villages on potential new construction” he continued. “New homes mean new students in the District” he explained. “New students are not part of our student population projections,” he concluded.
The district received $85,000 in March in impact fees. Altmayer added that “in years past the annual impact fees were in excess of $1,000,000 but are now much less since new residential construction has slowed.”
Commercial property impact fees are based on square footage of the project and vary depending upon the size and purpose of the building.
Haley reported that “only the Fire Department collects impact fees on commercial permits.” The rates range from six cents to 10 cents per square foot depending on the type of building.
The Village Ordinance on the Fire Department fees states, “The fee paid under this section shall be held in a separate account by the Village Fire Protection District for the equipment and manpower needed for life safety, rescue, fire protection and suppression purposes.”
