March 2020 Newsletter

March 17, 2020by Matt Fitterer0
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Adequate Facility Tax Increase

The Adequate Facility Tax is a tax charges to all new residential and commercial development. It is not charged to existing development or property owners.

 

For the past 14 years, Spring Hill has charged a rate of $0.50 per square foot, plus a $500 base fee. So a 2,500 sq foot house would be charged $1,750 at the time building permits are pulled (2,500 x $0.50 = $1,250 + $500 = $1,750).

 

A proposal to amend the existing rates was deferred for later action this past Monday. The new proposed rates would be $1.00 per square foot for new residential development and $2.00 per square foot for new commercial development. So the same 2,500 sq foot house in our earlier example would now be charged $2,500 – a 30% increase.
BOMA decided to defer action given the current national economic uncertainty. BOMA will act upon this item once the national economic picture has come into focus.

 

The $1.00/$2.00 per square foot is the maximum rate allowed under current state law.

 

It should be noted that spending of Adequate Facility Taxes is limited. The City can spend the funds collected on some new roads, public buildings or spaces (fire/police stations, library, parks, etc) or public safety equipment (new fire trucks). The City CANNOT spend the monies on arterial roads (examples: Hwy 31, either Buckner, Kedron) or on operational costs (hiring new staff, re-occurring expenses, etc).

 

 

Northfield

Update on Northfield Building

During a Special Called Meeting on March 2nd, BOMA elected to enter into a sales agreement on the Northfield Building.

 

Entering into the agreement is not the end of the story. The potential buyer now has a period of time to inspect the property and perform other due diligence. Upon the completion of the due diligence period, the buyer will then have 90 days to close on the transaction. Just like any other real estate transaction, this sale will not be final until closing.

 

BOMA voted 5-4 to enter into the sales agreement. Myself, along with Aldermen Allen, Canepari, Gavigan, and Nieves voted in favor of the sale.

 

Mayor Graham and Aldermen Fuqua, Graves and Wurth oppose the sale.

 

Bonds

Update on Interchange Borrow

As I shared last month, Spring Hill BOMA will voted to issue $25M worth of bonds to fund the local portion of the new Buckner Rd Interchange project. The Federal BUILD grant of $25,000,000 certainly relieves a significant financial burden, but local funding will be needed to complete the project.

 

If you’ve been paying attention to financial news the past 10 days or so, Wall Street has seen stocks tumble, bond rates have dropped, the Federal Reserve cut interest rates, and the White House and Congress have approved emergency spending.

 

There is some good news for Spring Hill in all of this financial turmoil. Since the issuance of the Buckner Interchange had not been finalized, the City was able to take advantage of the lower interest rates. The $25,000,000 borrow will take place a full percentage point lower than originally approved.

 

Bottom line – the City will save about $2,600,000 in interest over the life of the bonds.

 

The new interchange is scheduled to open May 31, 2024

 

2020 Federal Census

As you all know; Article 1, Section 2 of the US Constitution requires the Federal government to conduct a national census every 10 years. That time is now.

 

Spring Hill’s portion of the state sales and gas tax, along with other state revenues are population based. The only way for Spring Hill to receive our fair share of state funds is to ensure our census is accurate. Take a moment and complete the census for your family today.

 

You can complete the census here.

 

Thank you for reading!

Please connect on Facebook or email Matt@MattFitterer.com with any questions, comments or feedback.

 

Feel free to share this newsletter with any neighbor’s or friends. Your neighbor’s and friends can visit MattFitterer.com  or text FittNewsletter to 22828 to sign up to receive the next email newsletter.

 

Thank you for reading!

Matt

 

 

 

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