Hurricane staff urges review of street impact fees; council eyes interim increase and new study

City staff told the Hurricane City Council on Nov. 3 that street impact fees set after a 2006 study were later adopted at 68% of the recommended level in 2012 and that the annual inflationary adjustments were paused.

"The current fee for residential is $2,294," staff said, and noted that if the city restored the 100% level and applied the prior inflation indexing, "the current fee would be $6,493." The staff member emphasized they were not necessarily recommending an immediate jump to that figure but urged the council to commission an updated impact-fee study.

The council and staff discussed a two-step approach: consider a temporary or interim adjustment to the fee to more closely match historic recommendations while a formal engineering-and-finance impact-fee study is completed. Staff estimated the study could take about a year to complete and said they would provide comparables and a spreadsheet for council review before the next meeting.

Council members also asked staff to examine building and planning fees, which staff said have not been adjusted in many years and are among the lowest in the state. "We have some of the lowest fees in the state and so we're also going to be proposing increased planning fees to be more in line with our neighboring communities," staff said, adding the city should show both the fee comparisons and the department's actual planning costs.

Council members asked staff to provide data on current planning and permit revenues, the department’s costs, and any additional positions or equipment that fee changes would fund, such as an additional inspector. Staff committed to return to the council with a presentation and supporting materials at the Nov. 17 or Nov. 20 meeting pipeline so members could review the options ahead of a formal vote.

The council did not take a formal vote on fee changes at the Nov. 3 meeting; members agreed to pursue the study and to consider interim measures that would remain temporary until the formal study is complete.