Cottonwood Shores considers implementing impact fees
Staff photo by Maci Cottingham.
Cottonwood Shores is moving forward with a process that could establish utility impact fees, a policy change that would require developers to pay for infrastructure costs associated with new development.
City officials approved advancing the discussion during the City Council’s Feb. 5 meeting, directing staff to begin the required cost and rate analysis.
Impact fees are intended to shift the cost of infrastructure improvements from existing utility customers to developers, rather than funding those upgrades through higher water and sewer rates.
“Cottonwood Shores is at a major disadvantage because it does not have impact fees,” City Manager J.C. Hughes told DailyTrib.
The council voted to proceed with the impact fee and rate-setting process after staff completed a cost analysis of the new policy. Final approval will depend on the results of a cost evaluation, which is expected to be discussed at the council’s Feb. 19 meeting.
“Tap fees,” pay for the direct cost of connecting a property to existing water and sewer lines, while impact fees fund broader system expansions and capital improvements required by new growth.
Any proposed impact fees would be based on an engineering study identifying needed infrastructure improvements, along with auditor calculations of allowable payback costs, as required by state law.