Farragut, Tennessee

Roads and Parks Impact Fee Study
   

The Town of Farragut is a suburban community of about 20,000 residents located in southwest Knox County, eight miles west of downtown Knoxville. The Town does not levy a local property tax, and, instead, relies on the local sales tax and state revenue sharing for both operating and capital expenditures. The Town is expected to continue growing rapidly, and one of the challenges it faces is how to fund infrastructure and capital facilities required to serve new development without reducing the levels of service provided to existing residents. In 2006, the Town retained Duncan Associates to develop road

and park impact fees. The study provided two options for the road impact fee, one fee based on total cost of road construction and the other excluding right-of-way costs. A modified consumption-based methodology was used to calculate the potential road impact fees. The maximum potential fees for a single-family home in Farragut were approximately one-half of the national average total fee and about the same as the average total fee for the State. The Town ultimately decided not to proceed with the adoption of the proposed road and park impact fees.