One of the benefits of becoming incorporated is the right of the
new Village to establish and impose impact and transition fees.
Builders and developers in unincorporated Kane County do not now
contribute enough money to offset the added costs of new
development. This means that current residents are taxed to
cover the remainder of the costs.
Impact fees
are one-time charges imposed by municipalities on residential
builders to recover part of the costs of capital improvements
needed by reason of new development. A municipal ordinance
passed by Campton Hills, based on principles set forth by
Illinois cases, establishes the amount of the impact fee per new
home. Impact fees may also be established by annexation
agreements upon annexation of property into the Village. These
fees are used for capital expenses necessitated by new
development. The fee is determined by the municipality and is
added to the cost of a new house by the builder and then turned
over to the appropriate taxing body that is impacted by the
development, such as schools, fire district and the Village.
In addition, transition fees can be assessed on new
residential construction to provide funds to taxing bodies,
especially schools, to cover the gap between the time when the
taxing body is burdened by providing services to the new
residents and the date of first receipt of taxes from the new
homes.
Examples of what Impact Fees are used for:
-
Schools
-
Future Village Park Land
-
Village buildings (e.g. Village Hall)
Why should your taxes subsidize new residential buildings?
Impact fees are just one example of why incorporating into a
village will benefit you. The Village of Campton Hills will be
able to establish ordinances and charge appropriate fees to
offset these additional costs. One of the Village’s main goals
is to work with the other taxing bodies to determine how much
they need from new residential building to offset the costs of
new development, as permitted by law. |
