The towns of Schererville and St. John have both moved forward with new recreation impact fees.
Revenue collected in residential developments through building permits, allows the park systems to grow by funding additional land, trails, playgrounds, shelters, public restrooms and other amenities.
More Top Picks Yo Yo
It is a fee that only affects future development and can only be used on new facilities, officials said. Current residents and current projects are not affected.
Taghi Arshami, principal of The Arsh Group, the consultant hired by both towns to do the fee analysis, said the fee is function of total assets divided by the total number of park service units (households.) If the assets rise proportionally higher than the number of households, then there will be an increase per service unit cost (higher level of service).
“In the case of Schererville and St. John, both communities have invested in their parks for the last five years,” he said. “Thus, the increase in the total assets and justification for higher cost per park service unit.”
The authority to establish recreation impact fees was enacted by the Indiana General Assembly to create an alternative funding source for infrastructure improvements to growing communities. State statute requires a formula update every five years.
Schererville’s fee increased from $1,365 in 2013 to $2,172 this year. Adopted by the Town Council in July, the fee is the second highest in the state after Carmel and its fee of $2,702.
“The fees have really been instrumental for us using as a match for grants as well as other projects and improvements,” Parks Superintendent John Novacich said.
At its July meeting the St. John Town Council approved a fee of $1,886, up from $1,735 in 2013.
Municipalities in the area that collect revenue from a recreation impact fee include Chesterton at $889. Crown Point in 2017 adopted its first park fee at $1,159 per new residential development.
Valparaiso has had the impact fee since 2005. For a single-family dwelling unit the fee is $1,288. Parks Superintendent John Seibert said the city is a little different than others in that it uses a graduated fee.
“Most places have a fee that is one set fee per dwelling unit,” he said.
In Valparaiso the fees are $1,094 for duplexes, $811 for an apartment building (per unit) and $644 for assisted living facilities (per unit).
“Not many in that state that have this,” Seibert said. “We thought it made sense for us.”
Rob Earnshaw is a freelance reporter for the Post-Tribune.