City of Franklin, TN
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Concern: Developers need to contribute to Franklin’s roads and infrastructure
Franklin’s Approach: Responsible Fiscal Management and Focus on: Road Impact Fees
The primary purpose of road impact fees is to ensure that the burden of infrastructure costs is equitably distributed. As new developments, whether residential, commercial, or industrial, place additional demands on existing road networks, it becomes necessary to expand or improve these networks to accommodate increased traffic. Without road impact fees, the cost of such improvements would fall on the public or existing property owners, leading to potential inequities.
Road impact fees serve several key functions:
- Equity: They ensure that those who create the need for new infrastructure pay for it.
- Efficiency: They provide a mechanism for local governments to fund road improvements in a timely manner.
- Revenue Generation: They generate significant revenue, which can be used to improve road infrastructure.
- Growth Management: They help manage urban growth by directing development towards areas where infrastructure can support it.
In 1987, the City of Franklin obtained authority from the Tennessee legislature to enact road impact fees. These fees have been periodically updated to account for inflation. Implementing infrastructure projects across the entire city would not be feasible without such a mechanism. Road impact fees allow the City to require developers to dedicate right-of-way and build the necessary infrastructure to accommodate growth and development. As construction costs continue to rise, it is essential to regularly update our road impact fees to maintain effective partnerships with developers. These partnerships will ensure the delivery of needed projects to our citizens and business owners. Without these fees, the alternative would be to subsidize infrastructure costs from other funding sources.
Figure O and Figure P are a 10-year list of completed and ongoing projects funded by road impact fees and executed through partnerships with private developers. The City of Franklin has a longstanding history of requiring development to build required infrastructure to ensure we maintain the quality of life our citizens expect. As the City continues to grow and evolve, road impact fees will play a crucial role in shaping our infrastructure and development patterns.
Figure O.
Figure P.