Casa Grande staff, consultant present proposed update to development impact fees; fees rise largely from higher construction costs

City of Casa Grande staff and a consultant from Tishler & Baez presented a proposed update to the city’s development impact fees at a study session, explaining the plan, projections and the lengthy adoption timeline.

"Municipalities in Arizona may assess development impact fees to offset infrastructure costs to a municipality for necessary public services," Stephen, a city staff member, told the council as he introduced the study. Ben Griffin, the consultant from Tishler & Baez, led the presentation of the land use assumptions, the infrastructure improvement plan and the proposed fee schedule.

The update uses 10-year growth projections and the incremental methodology for most service areas, meaning fees are calculated to maintain the city’s existing level of service rather than raise it. Griffin said the study shows increases across most fee categories largely because construction, vehicle and equipment costs have risen since the last update. "Level of service is important to impact fees because you can't charge future development for a higher level of service than existing development receives unless you've identified an outside funding mechanism to raise your current level of service," Griffin said.

Key figures presented in the study include an estimated 10-year increase of about 11,400 housing units (about 3,000 people per year), and a projected…