Communities charge impact fees to recover the added costs to provide municipal services brought about by development. The fee, typically figured on a per-dwelling basis, is used for such items as land acquisition for parks or to extend water or sanitary sewer mains.
State law requires impact fee ordinances to be written with a specific use in mind.
The Brookfield-based Metropolitan Builders Association has successfully challenged the legality of impact fees imposed in some communities because they were used for projects not directly related to the developments being charged the fee. Builders also argue that higher fees reduce housing affordability because the cost is merely passed on to buyers. In March, Menomonee Falls tripled its impact fees, as did the Town of Merton last summer. Gridley said Cedarburg could charge fees to help pay for the new police station completed last year because it was designed to accommodate increased services related to the city's growth. Likewise, a portion of any new library might be paid for with fees because it, too, will most likely be built in anticipation of growth in the city and town of Cedarburg.