Village of Estero Impact Fee Revenue Analysis
The Village of Estero uses land use model data to confidently budget for future growth and capital projects.
New roads, parks, and schools require thorough planning and significant funding. One of the funding sources for new public infrastructure is impact fees collected from new development projects. This is the mindset of “growth pays for growth”. A forecast of how quickly or slowly impact fees will be paid by developers is an essential part of budgeting, especially in high-growth areas with limited land available. Impact fee revenues can vary widely from year to year as different kinds of development takes place. For example, residential developments generally pay school and park impact fees where commercial development do not. Most developments, regardless of type, pay road and utility impact fees. Assuming a steady stream of funds from impact fees can lead to budget shortfalls and stalled capital projects.
The Estero Interactive Growth Model forecasts every type of development by location according to its future land use. By using accurate and specific data, the impact fee revenue forecast was based on a likely development scenario which accurately reflects development’s impact on public infrastructure. Long-range plans coupled with an impact fee revenue forecast provided the perfect ingredients for a successful budget.
