Here's why those homes west of Pasco won't pay $2M in school fees

Six years after Pasco schools began charging a $4,700 impact fee on new homes to help pay for schools, more than $1.1 million remains uncollected.

That figure is expected to top $2 million as more homes are built in subdivisions in an unincorporated sliver of Franklin County to the west of Road 100 and Broadmoor Boulevard.

Under pressure from the city of Pasco, which collects impact fees from all developers in the city, the district says it has a new process to legally compel developers and builders to pay up.

Sarah Thornton, the district's deputy superintendent for legal affairs, said new legal language will allow it to collect fees on all subdivisions that go through the state's environmental review process, which typically applies to subdivisions with more than four lots.

"We are extremely committed to righting that process," she told the city council during a recent workshop.

Mayor Matt Watkins said it's critical the district live up to its 2012 pledge to collect the fee equally from developers in the city and county.

"We were tough on our friends," he said.

The school district established the fee after declaring it could not handle the explosive growth filling its schools.

Pasco signed on, agreeing to collect the money from builders when they get permits. To date, it has collected $8 million to $10 million on the school district's behalf.

But Franklin County does not collect the fees when it approves subdivisions or issues building permits.

Thornton said the district believed it had workable agreements with builders to pay the fees independent of the county.

But when it attempted to collect, developers resisted and threatened to fight the district. One developer told the Herald it was up to builders and their home buyers to pay the money, not the land developers.

"It's a mess," he said.

The net result: Of the 254 homes homes built in 11 subdivisions west of Road 100 and north of Burns Road, the district collected just $47,000. Ten homes in the Steele Corner subdivision paid the fees.

According to data released by the city, that leaves $1.1 million uncollected for homes in Archer Estates, Spencer Estates, Eagle Crest and others.

"That's a significant amount," Watkins said.

The number will climb by at least $900,000. The subdivisions have another 196 unbuilt home sites. Thornton said the district doesn't expect to collect fees associated with those lots because they're covered by the disputed agreements.

But the new language should be enforceable on all future subdivisions, she said.

Thornton said the district will ask Franklin County to collect the fees as part of the permitting process later this year.

It is probably a long shot.

Keith Johnson, Franklin County Administrator, said he doesn't expect the commission to consider changing its policy. And commissioners aren't friendly to raising fees.

"It's just another tax. I don't know that we need more taxes," said Commissioner Bob Koch.

Pasco is still collecting the school impact fee, pending review as part of its comprehensive plan this fall. In the interim, it is waiting to see if the school district's fresh attempt to close the county loophole works.

"We really want the school district to succeed and not leave a million dollars on the table," Watkins said.

The school district uses the impact fees to accommodate growth, including paying for portable classrooms and moving them between schools as needed. Impact fees help pay for new projects as well, reducing the amount the district borrows to fund capital projects.

This story was originally published June 7, 2018 at 7:16 PM with the headline "Here's why those homes west of Pasco won't pay $2M in school fees."