Harford County Executive Bob Cassilly has proposed legislation that would increase impact fees for developers of new housing projects. The new fees aim to increase county revenue and cover the cost of projects that would increase school capacity to cope with population growth.

The current impact fees for single-family detached houses are $6,000 per unit; $4,200 for townhomes and duplexes; and $1,200 for all other residential units.

Cassilly’s legislation proposes the fees for single-family detached dwellings, townhomes and duplexes be increased to $10,000 per unit — the maximum fee Harford can impose, per state law. Impact fees for all other residential units are proposed to increase to $7,989.

Cassilly said in a news release that last year the county’s impact fees generated $2.7 million in revenue while last year’s school capacity projects cost $6.8 million. The $4 million difference was made up by the county’s general revenue fund, which comes from taxpayer dollars, Cassilly added.

“For too long Harford’s impact fees have failed to reflect the true cost of expanding school capacity, unfairly adding to the burden on taxpayers,” Cassilly stated in the release. “With this legislation, new home developers will begin to pay more of their fair share.”

Harford County’s impact fees have not been changed since 2005, according to the news release, yet since 2005, school construction costs have risen by nearly 300%.

In February, Cassilly assembled a working group to analyze county impact fees and compare them to other counties in Maryland and across the country. The group worked with a consulting firm.

Members of the working group included council President Patrick Vincenti, members of county government and the business community, private citizens, and Board of Education member Wade Sewell.

During Monday’s Board of Education meeting, Sewell said increasing fees would benefit Harford schools and help the county overcome school capacity challenges.

“This is very timely as we work toward building a new elementary school in the Bel Air area in the next few years,” Sewell said. “This legislation won’t fill the revenue gap completely, but it will help fill the gap we have been experiencing for many years now.”

Cassilly’s proposed legislation would raise impact fees annually based on increases in the cost of school construction, which is established by the Maryland Interagency Commission on School Construction.

According to state law, Harford’s impact fee revenue can only be used to cover costs associated with projects that increase school capacity, such as new buildings or renovations.

The Harford school system is engaged in a variety of capacity expanding projects this year, including:

Construction at Homestead/Wakefield Elementary School
Renovations at Harford Technical High School

Also, relocatable, external classroom units are being added at:

Church Creek Elementary School – 1 unit
Riverside Elementary School – 1 unit
Magnolia Elementary School – 2 units
Emmorton Elementary School – 2 units

The legislation will be introduced to the council by Council President Patrick Vincenti on a date to be determined.