OCALA, FL (352today.com) – As traffic grows heavier and roads strain to keep up with new development, Marion County leaders have taken a major step to secure long-term funding for transportation improvements. On May 23, 2025, the Board of County Commissioners approved a new ordinance that raises transportation impact fees to help cover a projected $490 million shortfall in road and infrastructure funding. The move is aimed at ensuring safer, smoother travel for residents in the years ahead – but not without debate over how it might affect housing costs.

Extraordinary circumstances and long-term planning

The ordinance was built on findings presented during two workshops held earlier this year, where county staff and consultants discussed the growing funding gap for transportation infrastructure.

“This commission has a responsibility that they are setting this community up for long-term success,” said Commission Chair Kathy Bryant.

Bryant noted that Marion County faces $1.4 to $1.5 billion in transportation and infrastructure needs over the next 20 years, but only expects to collect about $900 million in revenue.

Key highlights from the study by Benesch consultant Nilgun Kamp:

  • Shortfall range: $230 million to $248 million in capped scenarios
  • Surplus range: $140 million to $190 million if fees are implemented at full levels
  • The study’s findings and projections were entered into the county’s official record

Fee schedule: gradual increases planned

The board approved the following schedule to gradually increase impact fees over four years:

  • Oct. 1, 2025 – Fees begin at 70%
  • Oct. 1, 2026 – Increase to 80%
  • Oct. 1, 2027 – Increase to 90%
  • Oct. 1, 2028 – Increase to 100%

Heather Encinosa, outside counsel for the board, confirmed the phased increases are allowed under the extraordinary circumstances clause and will be incorporated into the final ordinance.

“We will get those numbers and incorporate them into the ordinance,” Encinosa said.

Pushback over housing affordability

The ordinance drew mixed reactions from the public and officials. Numerous letters were submitted by local governments, law firms, and the Ocala Metro Chamber and Economic Partnership. While many supported the need to fund critical infrastructure, some voiced concern about unintended consequences.

“This is a mistake, according to our own study, you’re already going to 100% and you only need 84%,” said McClain. “This hurts housing affordability for first-time homebuyers. This is raising property value which in turn raises property taxes. This only helps the big developers and the big builders. It hurts the small builders.”

Development agreements and flexibility

The new ordinance also modifies development agreement terms:

  • Developers may request 20-year agreements
  • Language was added to allow transferability, giving flexibility for project changes

County officials said the changes were necessary to maintain momentum on growth while still holding development accountable for infrastructure costs.

More news that matters to you…