Development Impact Fees

The City of Surprise 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 one-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 city of Surprise retained the services of an outside consultant, Raftelis Financial Consultants (RFC), to complete an update of the City’s development impact fees for compliance with the requirements of ARS 9-463.05 effective August 1, 2014. The following documents and timeframe outline the City’s process for updating and adopting new fees, including the continuation of some previous fees pledged to debt, based on the new statute.

Development Impact Fee Documents

2014 Development Impact Fee Report
Draft Land Use Assumptions (LUA)
Infrastructure Improvement Plan (IIP)
Draft Development Impact Fee Study
2006 Development Impact Fee Study

Adoption Process

December 4, 2013
Notice of public hearing and release of the IIP and LUA
January 23, 2014
Stakeholder Meeting
February 4, 2014
Public Hearing for IIP and LUA
March 11, 2014 – Regular Council Meeting
IIP Adopted/Notice of Intent Development Impact Fees
March 24, 2014
Stakeholder Meeting
April 15, 2014 – Council Work Session
Public Hearing Development Impact Fee
May 20, 2014 - Special Meeting
Development Impact Fees adopted
August 1, 2014
Development Impact Fees Effective