Orange City Town Hall 3.JPG

Orange City Town Hall

Building a home or commercial building in Orange City now costs more, following the City Council’s decision to increase the town’s impact fees.

The council Aug. 27 approved the increases in the city’s pre-construction charges for public safety, parks and roads. The new, higher impact fees, which are already in effect, push the price tag of a new single-family house up by almost $1,500.

The new charges are 11 percent higher than the prior charges, which had not been changed since 2014.

“The planning for new and upgraded infrastructure improvements for police, fire, parks and transportation is needed to serve new growth and development that generate additional impacts on these services. It is the responsibility of the City and in the best interest of health, safety, and welfare of the citizens of the City to plan for the new growth,” a memorandum on the fee hikes reads.

The resolution increasing the fire, police, park and road impact fees does not cover the upfront charges for water and sewer connections to new homes, businesses, industries and institutions.

In the case of a single-family home, Orange City’s own impact fees add up to $1,452.08.

The increases in Orange City’s impact fees reflect the higher cost of construction of municipal infrastructure, including materials, labor and equipment, the memo also notes.

Revenues derived from the impact fees may be used only for capital outlays, such as buildings, vehicles and equipment. The monies derived from impact fees may not be used to pay operating or recurring expenses, like costs for city employees.

The resolution passed by the Orange City Council also does not apply to Volusia County’s impact fees, namely the ones for thoroughfare roads and schools. The county’s road impact fees are allocated for roads the county maintains, while Orange City’s road fees apply to streets and roads the city maintains.

Thus, for a new home, the county’s road impact fee is $4,034.25, and the school impact fee is $3,000.

The combined amount of impact fees, city and county, for a new home built in Orange City is now $8,486.33, payable when a builder receives a building permit. The school impact fee, however, may be deferred until the owner of the new home receives a certificate of occupancy, or permission to move into his/her new home.

The impact fees for parks are payable only on residential development.