What is a discount rate?

The Development Impact Fee Study Report for Fort Mill was used to determine the maximum per capita and per employee replacement cost for the four impact fee categories, and the fees for each category are calculated based on the actual replacement cost for all new development.
As a matter of policy, the Fort Mill Town Council elected to discount the maximum allowable fees to provide a reasonable fee for residential and non-residential investments and to ensure that the impact fees collected do not exceed the cost to provide capital facilities and equipment that accommodate new development.
Effective July 1, 2020, the Fort Mill Town Council adopted the following discount rates in the impact fee ordinance: parks and recreation (10%), fire protection (10%), and municipal facilities and equipment (10%). These discount rates will be automatically applied to any impact fees charged for new development.

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1. What are impact fees?
2. Why did Town Council adopt an impact fee ordinance?
3. When will the town start collecting impact fees?
4. How are impact fees calculated?
5. What is a discount rate?
6. How and when are impact fees paid?
7. Do impact fees apply to all types of construction?
8. How will the fee be calculated if my intended use is not on the impact fee schedule?
9. Can an impact fee assessment be appealed?
10. Do I need to pay an impact fee if I am opening a business in an existing structure?
11. How can I receive an impact fee credit?
12. Are impact fees refundable?
13. Can the impact fee amounts be changed in the future?
14. How will the town spend revenues collected from impact fees?