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Impact Fee Update Process

​​​​One of the most common questions regarding impact fees is, "Why are you always changing the fees?" The general answer is because variables used to calculate these fees are always changing. Land costs, construction costs, labor costs, materials costs all change frequently, as well as development patterns and technology. Development Impact Fees, therefore, need to be examined at regular intervals to ensure the Specific Infrastructure Financing Plan continues to meet future capital facility needs.

The Development Impact Fee Ordinance(Chapter 29 of the City Code), states that each impact fee shall be updated no later than five years from the previous update (in accordance with State statutes).

The Infrastructure Financing Plan (IFP), which is the collective document containing the Impact Fee Report, Land Use Assumptions (LUA) and Infrastructure Improvements Plans (IIP) for each category of necessary public service (impact fee type), was last updated in accordance with Senate Bill 1525, and was effective January 1, 2012. However, Phoenix has typically followed a 3-year update cycle for the IFP and the next up-date is anticipated to be effective in March of 2015. The Water Resource Acquisition (WRA) fee​ has a separate report and infrastructure financing plan, which is also being revised with this update cycle.

Check this page regularly for new information, or contact the Impact Fee Program Manager.

Impact Fee Program Update 2015

Phoenix has begun the process of updating impact fees with an anticipated effective date of March, 2015. The anticipated schedule is provided below, with links to review documents, as required by A.R.S 9-463.05.

June 27, 2014                    Notice of Public Hearing (8.27.14)

                                                Posting of Draft IFP (with LUA and IIPs)

                                                IFP Public Review Draft 6.27.14

                                                Supplemental Report, Major Arterials (Kimley-Horn)

                                               WRA IFP, Public Review Draft 6.27.14

July –August 2014          Impact Fee Update Ad Hoc Committee Meetings

August 27, 2014              Public Hearing for Draft IFP and WRA Fee Update (City Council Formal Meeting)

September 9, 2014        Presentation of Ad Hoc Committee findings to the Transportation, Infrastructure, and Sustainability (TIS) Subcommittee.​

October 1, 2014              Proposed Approval of Draft IFP and WRA Fee Update (City Council Formal Meeting)

November 17, 2014      Notice of Public Hearing (12.17.14)

                                              Posting of Final IFP and Final WRA Fee Update

                                              Final Infrastructure Financing Plan (IFP) 2015​​​

                                              Final WRA Fee Update

December 17, 2014       Public Hearing for Final IFP and Final WRA Fee Update (City Council Formal Meeting)

January 21, 2015            Proposed Adoption of Final IFP and Final WRA Fee Update​  (Council Resolution)

                                               Proposed Adoption of RevisedCity Code Chapter 29, Impact Fees (City Council Formal Meeting)

April 6, 2​​​​​015       ​​​​​               Effective date of revised 2015 Impact Fees and WRA fees.**

**Per A.R.S. 9-463.05, certain developments which obtain final plat or final site plan approval with the 24 months preceding the effective date will be charged the lesser of 1) existing impact fees, or 2) revised impact fees, for a period of 24 months following the final plat or site plan approval. Contact the Impact Fee Program Manager ​​for more details regarding this provision.

 

 

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