Hurricane Council sets minimum residential street impact fee, raises commercial and industrial rates pending study

Hurricane City Council voted to amend the city’s street impact fee ordinance to account for inflation, approving recommended commercial and industrial rates and setting a residential minimum of $3,898 while the city secures an updated impact‑fee study.

City staff presented the timeline of past studies and a spreadsheet showing that applying the Turner index inflation factor to the original 2006 recommendations would produce a residential fee as high as about $6,498.26 per unit. Staff said the recommended commercial and industrial fees align with neighboring cities and that the requested change is an interim measure “until we can get an updated impact fee study,” to be started soon and expected to take up to a year.

Council members who supported the motion said increasing development’s contribution to road costs keeps the burden off current residents. Council discussion focused on timing for a new study, revenue projections and whether the city could immediately adopt the adjustment under state law. Staff said the ordinance change could take effect 90 days after approval if the legal thresholds for an interim change are met.

The council approved the recommended commercial and industrial per‑1,000‑square‑foot amounts and established the residential floor of $3,898. Council members asked staff to pursue an updated impact‑fee study as soon as possible and to return with final numbers and a timeline.

The decision will increase the per‑project impact fee revenue the city can plan for capital projects; staff estimated future street projects identified on the five‑year plan could total in the tens of millions of dollars and said the city will need additional annual revenue to meet growing road needs.