EUSTIS, Fla. – The Eustis City Commission is considering a significant increase in impact fees, with a discussion of the proposed changes scheduled for later this week.
For the first time in nearly 20 years, city officials are reviewing impact fees with a study recommending an increase to more than $8,000 by 2029.
“When you look at our capital improvement program and the amount of development we’ve been getting, we thought it was time to take a look at it and update the impact fees,” said Tom Carrino, Eustis City Manager.
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Currently, Eustis’ impact fees for a single-family home are $4,698. These fees, paid by developers, help cover the cost of city projects, including a new public safety complex, parks, and water and sewer infrastructure.
The study recommends raising that fee to $8,534 over the next four years.
“We want to be development friendly,” Carrino said. “We want to have residential units that are affordably priced in the city of Eustis. That said, these improvements need to get made in order to serve our incoming residents, our incoming businesses with water and sewer and with other improvements. Police, fire, library and recreation.”
Some of the fees would take effect immediately, while others would phase in over the next two to four years.
“We look at our spending plan, we look at what improvements we need to do, but we also look at what other folks are doing, Carrino said. “And again, the trend has been impact fees are going up.”
The Lake-Sumter Home Builder’s Association has warned that the fee increase will make new homes less affordable. In a letter to the Eustis City Commission, the association said:
Dear Commissioners,
The Home Builders Association of Lake & Sumter Counties understands the City’s need to fund infrastructure and recognizes that impact fees are an essential tool to support growth-related capital improvements.
At the same time, we respectfully challenge the proposed use of “extraordinary circumstances” to bypass the statutory phase-in. The factors cited in the study—20-year lapse since prior updates, 2.3% annual population growth, major capital facility needs, and insufficient revenues—are predictable trends. Regular planning and phased updates exist precisely to address these needs.
A 20-year catch-up, predictable population growth, and planned capital improvements do not constitute “extraordinary circumstances.” Using this provision in this way appears to function as a tool to slow growth, which can limit housing supply, drive up costs, and reduce the economic benefits of new construction, including jobs, tax revenue, and support for local businesses.
While the reported $2,763 per-home increase may seem modest, when combined with rising interest rates, labor and material costs, and other development fees, it makes new homes less attainable for families in an already unaffordable market. Home builders are running businesses that require time to plan and implement new fees, and any additional costs are ultimately passed on to the consumer—the very families and constituents the City serves.
We urge the City to phase in all fees, including Police and Fire, over four years, as allowed by statute. This approach funds critical infrastructure, addresses legitimate community concerns about growth and traffic, and preserves access to new housing for families. Skipping the statutory phase-in shifts a disproportionate burden onto home builders and buyers, which is both unfair and inconsistent with the intent of Florida law. If you have any questions or would like to discuss further, please let me know.
Thank you for your time and consideration. This message is sent on behalf of the Board of Directors of the Home Builders Association of Lake & Sumter Counties.
The Eustis City Commission has scheduled a special workshop about the study and its recommendations at 5:30 p.m. on Thursday, ahead of the city commission meeting where the impact fee ordinance will have its first reading.