Sherwood board adopts development impact fees to help pay future water and sewer upgrades

The Village of Sherwood adopted Ordinance 05-90 on May 9, 2005, establishing development impact fees intended to help fund future water and wastewater infrastructure tied to new growth.

At a May 9 meeting, utility commissioners recommended the ordinance and asked the Village Board to adopt a schedule and meter-size collection method. The board held a public hearing where builders and landowners expressed concern that new fees would reduce housing sales and increase costs for small-lot developers. Trustee Roger Kaas moved adoption with an effective date of June 1, 2005; the motion passed unanimously on a roll-call vote.

Village staff said the fees were designed to cover a share of capital needs identified in the facilities needs assessment adopted earlier in 2005. Coordinator Josh Van Lieshout described the methodology and noted the ordinance allows periodic adjustment of fees based on the underlying cost model. The ordinance’s methodology documents specified example amounts for a 5/8- or 3/4-inch meter of $2,500 for water and $1,500 for sewer as starting points subject to adjustment under the ordinance’s formula.

The board and staff emphasized that impact fees are intended to fund future capacity and capital projects tied to growth rather than to pay for existing system deficiencies. The ordinance includes a defined appeals process for property owners or developers who believe fees should be reduced or waived in specific circumstances.

What happens next: the new ordinance is effective June 1, 2005; the Utility Commission and village staff will apply the fee schedule to future development permits and process appeals according to the ordinance language. The village also signaled it will continue seeking grant and loan funding where feasible to reduce reliance on fees and rates.