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Commission discusses Vermillion Cliff special service district fees; agrees to remove new-resident charge pending impact-fee study
Summary
Kane County commissioners agreed to remove a proposed "new resident" fee from a service agreement with Kanab/municipal partners and directed staff to progress the remainder of the draft, while recommending the district pursue an impact-fee study to set legally defensible new-development charges.
The Kane County Commission on May 27 reviewed a proposed service agreement for the Vermillion Cliff Special Service District and directed staff to remove a proposed "new resident" fee clause from the draft contract, citing legal constraints on charging development fees without an impact-fee study.
County counsel explained that while a city can negotiate service charges by contract, a special service district could not lawfully collect a development-style "new resident" fee and transfer it without following impact-fee statutes. Impact fees must be tied to documented costs of infrastructure impacts and require a facilities plan, notice and other legal steps. If the SSD wanted a charge that functions like an impact fee, the district would need the statutory process and supporting analysis.
Commissioners discussed options including a temporary grace period to permit an impact-fee study. One commissioner suggested removing the new-resident charge from the contract and launching an impact-fee analysis to determine lawful, defensible amounts; another noted that the proposed agreement already provides Kanab City with a revenue stream tied to assessed value increases that will likely grow as property values and new development occur.
City and county attorneys were copied into the conversation; the commission instructed staff to send the draft agreement to Kanab with the new-resident fee removed and to continue work toward a longer-term impact-fee solution that complies with state law.
Provenance: The discussion began during agenda item 8 regarding the Vermillion Cliff special service district service agreement (transcript excerpt: "Discuss feasibility of charge from Kanab City to future Vermillion Cliff Special Service District ..."). The commission concluded with direction to remove the new-resident fee clause and send the revised draft to Kanab City (transcript excerpt: "So I guess, based on majority, of the county commission, we're saying to that we plan to remove that portion of the contract.").
