A plan to levy a fee on new home construction to fund city parks is set for a public hearing at the Shelbyville Common Council meeting on Monday.

Based on a study by Lehman & Lehman Inc. of Mishawaka, the city would impose a fee of $1,005 on each new home built in Shelbyville if the council votes in favor of the proposal.

Proceeds from the fee would go toward future park needs; priorities include softball fields, park shelters, multi-use nature trails and open space areas.

Shelbyville Mayor Tom DeBaun noted that only those who build new homes would have to pay the impact fee, and it would be a small part of the overall construction cost.

“I think again the key is that people need to understand it's not a tax on an existing home. It's not a tax that's assessed when you buy a home or sell a home. It's only assessed when you build a home. And we looked at, and I said this on the record last time, our average single-family permit values last year were over $170,000. So I think looking at this, it was less than one-half of 1 percent of the total budget,” he said.

DeBaun said he's had no negative input from home builders or members of the public about the park impact fee. 

However, he asked the City Council to move its meeting on Monday to the evening from its regular time in the morning to make it easier for people to attend.

The council granted the request. Monday's Common Council meeting is due to begin at 6:30 p.m. in City Hall, 44 W. Washington St.

Other items on the council's agenda include an additional appropriation of $1.4 million in racino funds to pay for upgrading East Washington Street from the Public Square to the railroad tracks just beyond Noble Street. 

The project is due to begin this spring. It's the first phase of the mayor's overall downtown redevelopment plan. 

Also the City Council is to consider proposals to spend $44,000 to build a dog park, and $45,000 for supplies to equip an ambulance for the fire department.