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 effective August 1, 2014. The following documents and time frame outline the Town's process for updating and adopting new fees based on the new state statute:

Below are reports required to be posted to the Town's website, including the Annual Report and Biennial Audit

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 Civic Circle
    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 Civic Circle
    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 Civic Circle
    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