The use of impact fees and facilities taxes in Franklin, Tennessee

Growth has traditionally been seen by communities in the United States as improving both the economic well being of its residents as well as their quality of life. However, many local governments find themselves in dire fiscal situation amid rapid growth. Paying for infrastructure necessitated by new development is a primary cause of the financial strain on growing communities Federal and state governments once contributed considerably to local governments for the provision of infrastructure but these contributions are now largely absent. Many local governments have turned to a relatively new method of financing infrastructure: impact fees and facilities taxes levied upon new development.

After a decade of unprecedented growth, and with no sign that growth would slow. Franklin Tennessee adopted impact fees and facilities taxes m 1988. As of December 1999, Franklin has been used this revenue to fund over $17,000,000 in capital improvements for streets, police and fire departments,parks,and sanitation. When first proposed in Franklin, the measures met with considerable opposition from developers and business leaders. However, impact fees and facilities taxes are now largely considered within the community to be a successful method of financing public infrastructure and their future appears to be secure