2025 Development Impact Fees Program Updates
Published on December 04, 2024
The City currently imposes impact fees on new developments to cover their fair share of infrastructure costs necessary to support growth. These fees are exclusively allocated to enhancing streets, parks, and police and fire facilities. A.R.S. § 9-463.05(D)(3), requires cities to update their Land Use Assumptions (LUAs), Infrastructure Improvements Plans (IIPs), and make necessary adjustments to impact fee schedules at least every five years. The City’s Development Impact Fees program was last updated on June 9, 2020. This year the City engaged TischlerBise as consultants to assist City staff in preparing the necessary updates to the LUAs and IIPs for Mayor and Council consideration.
Land Use Assumptions (LUAs) The LUA will provide essential information, including growth projections for population and housing unit construction in the City over a 10-year timeframe. Per state statute, LUAs are the “projections of changes in land uses, densities, intensities, and population for a specified service area over a period of at least ten years and pursuant to the general plan of a municipality.” The City’s impact fee consultant prepared current demographic estimates and future projections for both residential and nonresidential development. Demographic data from January 1, 2024 is used to calculate levels of service provided to existing development in the City of Tucson. Although longrange projections are necessary for planning infrastructure systems, a shorter time frame of five to ten years is critical for the development impact fees analysis.
Infrastructure Improvements Plan (IIP) As part of the City’s Development Impact Fees program, state statute requires the adoption of an Infrastructure Improvements Plan (IIP). In collaboration with City staff for whom impact fees are assessed, namely, Fire, Police, Parks and Recreation, and Transportation and Mobility, a comprehensive list of projects has been developed and is included in the draft Infrastructure Improvements Plan (IIP) report prepared by TischlerBise. Once refined, this list will be included in the final IIP report and considered for adoption by Mayor and Council. Upon adoption, the IIPs will be fixed until amended, currently on a 5-year cycle. The draft infrastructure project list identifies projects which should be: 1. Eligible for impact fee funds necessitated by growth 2. Distributed citywide, with concentration in growth areas 3. Designed to benefit the immediate area as well as contribute to a citywide system.
Next Steps – In accordance with statutory provisions, the Development Impact Fees program schedule is outlined below.
