The City of Prescott is considering a nearly 70% increase in home construction impact fees.
City Council held a study session earlier this week and then unanimously voted to hold a hearing in August and scheduled a vote to approve or reject the measure in its Oct. 8 meeting.
Councilmembers said the increases were necessary because Prescott has not incrementally adjusted fees over time as it could have done. Members and staff from Raftelis—the City’s financial consultant—said the increases in both utility and non-utility fees were necessary to meet needs listed in the City’s Capital Improvement Plan and to address impacts created by development in the area.
If enacted, the increases would bring the impact fee totals for a standard single-family home up from the current rate of $11,423 to a new cost of $19,341. The new average fees would be significantly higher than those in nearby communities, coming in at more than $7K more than Prescott Valley and $7.4K more than Chino Valley. (Source)