Impact fees are charges levied against new construction, changes in land use, or an increase in water meter size to help generate revenue to build new infrastructure needed because of development. Fees for changes in land use or water meter are based upon the net increase in the impact fee compared to the previous land use or meter size. The fee is calculated based on a pre-set formula and paid at the time of, or prior to, the issuance of the building, water, and/or occupancy permit. The money is spent within the district that it was collected to build new arterial streets, water and wastewater lines, and parks..
Why were impact fees created?
Impact fees assign the cost of new infrastructure from the general public to the new construction that creates the need, reducing the need to raise utility rates and taxes.
Prior to June 2, 2003, negotiations took place between developers, builders and the City. Based on these negotiations, developers or builders were required to construct certain eligible impact fee facilities. This construction determined the categorically exempted areas. For more information, see Exemption Areas.
Are impact fees collected city-wide?
Yes, however, the arterial street and neighborhood park/trail fees have exclusion areas in which these impact fees are not collected. No impact fees are spent on improvements in these areas for the excluded category. For more information, see Exclusion Areas.
What does "district benefit area" mean?
The City has been divided into seven districts or benefit areas, and each has a separate account. Fees collected in a district or benefit area may only be used for new construction in that area.
What does "exemption" mean?
Exemptions refer to developments that are not subject to impact fees.
Does an addition/remodel of a residence have an impact fee?
If there is no change in water meter size, no. A residential remodel or addition is not subject to an impact fee.
What if I need to increase my water meter size?
Yes, a fee would be applicable to an increase in water meter size. You would receive credit for your current meter size and pay the difference.
Does an addition/remodel of a commercial facility have an impact fee?
Yes, the impact fee is based upon a pre-set formula and the land use. Please refer to the fee schedule for more information.
What is the difference between impact fees and infrastructure financing?
Impact fees are charged to new construction to assist in the funding of infrastructure. Infrastructure financing is the City's overall plan to finance new infrastructure.
What are the five impact fee categories?
The eligible costs include:
Arterial Streets - pavement, bike trails, median landscaping, street lights, storm sewer, box culverts, retaining walls
Water System - water supply, treatment, transmission mains, pumping and storage reservoirs
Water Distribution - lines 16 inches and larger
Wastewater - lines 10 inches and larger
Neighborhood Parks and Trails - site grading and drainage, landscaping, seeds and trees, sidewalks, play courts, basketball goals and poles, pre-fabricated shelter structures, picnic shelter pads, picnic tables, trash receptacles, modular play structures, benches, rubber tile play area matting, sand and labor
How are the impact fees and the database updated?
Impact fees are updated electronically through the Geographic Information System map system (GIS). The information for the database is updated with data from the County Assessor's Office, the City-County Planning Department and the City Building and Safety Department.