Development Impact Fees

Arizona has experienced tremendous growth in past decades. To ensure new growth pays its proportionate share of infrastructure costs, development impact fees are collected by cities and towns to evenly and fairly distribute the burden of facility capacity to serve new development. These 1-time charges are assessed to new development by local governments to recover the proportional cost of facilities benefiting new development based on specific calculations using standardized assessment schedules. Each development project pays a proportionate share of the cost of new infrastructure or necessary public services needed to support the new development.

Arizona Revised Statutes (ARS) §9-463.05 provides a framework for cities and towns to assess, collect and administer development fees. In April of 2011, statutory revisions were made by the approval of Senate Bill (SB) 1525 that significantly changed the requirements for development impact fees.

As required by law, the Town of Prescott Valley retained the services of an outside consultant, Raftelis Financial Consultants (RFC), to complete an update of the Town's development impact fees for compliance with the requirements of ARS 9-463.05. 

The following documents and time frame outline the Town's process for updating and adopting Development Impact Fees in 2022/2023:

• Land Use Assumptions (LUA) & Infrastructure Improvement Plan (IIP) - Presented to Town Council - August 11, 2022
• LUA & IIP - Posted August 12, 2022
• LUA & IIP Public Hearing - Scheduled October 13, 2022
  • Library Auditorium, 7401 E Skoog Blvd, Prescott Valley, AZ 86314 @ 5:30pm
• LUA & IIP Adoption - Scheduled for December 8, 2022
• Development Impact Fee Report (DIF) Public Hearing - Scheduled January 12, 2023
  • Library Auditorium, 7401 E Skoog Blvd, Prescott Valley, AZ 86314 @ 5:30pm
• DIF Adoption - Scheduled for February 23, 2023
• New fees effective - May 15, 2023

The following documents were used in 2013/2014 to adopt DIFs:

• Land Use Assumptions (LUA) (PDF) - Posted November 22, 2013
• Infrastructure Improvement Plan (IIP) (PDF) - Posted November 22, 2013
• Development Impact Fee Study (DIF) (PDF) - Posted February 27, 2014

The following are reports required to be posted to the Town's website

• Annual Reports and Biennial Audits Can Be Found Here
• Infrastructure Improvement Plan (IIP) Amendment (2017) - Posted June 22, 2017 (PDF)
• Infrastructure Improvement Plan (IIP) Amendment #2 (2018) - Posted Aug 24, 2018 (PDF)
• Determination of No Change to IIP, LUA, and Fee Report - Published on November 6, 2018 (PDF)

Adoption Process

November 21, 2013

• Council Meeting to Present Draft Infrastructure Improvement Plan (IIP)
• Draft Land Use Assumptions (LUA)
• 5:30 p.m.
• Library Auditorium
  7401 E Skoog Boulevard
  Prescott Valley, AZ 86314

November 22, 2013

• Post Notice of Public Hearing for IIP/LUA on website

January 23, 2014

• Public Hearing for Infrastructure Improvement Plan (IIP) and Land Use Assumptions (LUA)
• Town Council Meeting - 5:30 p.m.
  Library Auditorium
  7401 E Skoog Boulevard
  Prescott Valley, AZ 86314

February 27, 2014

• Adoption of Infrastructure Improvement Plan (IIP) and Land Use Assumptions (LUA)
• Town Council Meeting - 5:30 p.m.
  Library Auditorium
  7401 E Skoog Boulevard
  Prescott Valley, AZ 86314
• Release Notice of Intention to adopt Development Impact Fees

April 3, 2014

• Public Hearing for Development Impact Fee Study

May 15, 2014 

• Adopt Impact Fees

Aug 1, 2014

• New fees in effect