Muda69 Posted May 1 Share Posted May 1 https://www.indystar.com/story/news/local/hamilton-county/carmel/2024/05/01/carmel-plan-would-hike-new-home-fees-61-to-fund-parks/73504880007/ Quote Faced with a decrease in local income taxes, the Carmel Clay Parks and Recreation Department has proposed a 61% hike in construction fees for home builders to help pay for parks. The change would boost impact fees for new construction from $4,882 to $7,863 per home or apartment unit, a cost that is likely to be passed on to homebuyers and renters. Parks CEO Michael Klitzing said the hike would be assessed incrementally, at 11% a year, for five years and would generate an extra $924,000 for parks in that time. Collection of the fees goes entirely to the parks department for new projects to meet the recreational demands of extra residents moving into the city. It comes as the parks face a $3.5 million annual revenue loss because Clay Township's share of county income taxes will decrease when the township pays off an old bond in 2025. “There is an imminent storm on the horizon in the form of a funding shortfall to support the park system,” said Joshua Kirsh, a Carmel Plan Commission member appointed by Carmel Clay Parks. ”If all of the park's stakeholders don't address it is going to look bleak.” Options include a new bond issue, reallocation of city funds or a property tax hike. Klitzing said he makes “no apologies” for the impact fees because the parks system is part of what attracts new residents to Carmel. State law requires cities to review the impact fee every five years and adjust it according to future park needs, population growth, and assessed and projected land value, among other factors. Under the law, Carmel could raise the fee even higher, to $8,276. In 2019, Carmel raised the impact fees 64%. Steve Lains, executive director of the Builders Association of Greater Indianapolis, said the hike will add to the cost of new homes. .... Indiana. Indeed the land of taxes. Link to comment Share on other sites More sharing options...
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