Budget Primer: Impact Fees

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There are a number of funds used by Oro Valley for Public Services.  "Impact Fees" are among these. 

An impact fee is a fee that is imposed by Oro Valley on a new or proposed development project to pay for all or a portion of the costs of providing public services.  Impact fees are a charge on new development to help fund and pay for the construction or needed expansion of offsite capital improvements.

Historically, impact fees in the Town of Oro Valley were from construction sales taxes. These sales taxes impact fees were primarily allocated to the General Government Fund, Library Fund, Parks and Recreation Fund, and Police Fund. The FY2012/2013 budget makes some changes.

There are seven impact fees discussed in this posting:

General Government Impact Fee Fund
This Fund was used to manage the collection and expending of development impact fees dedicated to general government purposes. General government impact fees are assessed on both residential and commercial development within the Town.  It is no longer collected in 2012-13.

Library Fund
This Fund is used to manage the collection and expanding of development impact fees dedicated to the Oro Valley Public Library.  Library impact fees are assessed on residential within the Town.

Parks and Recreation
This Fund is used to manage the collection and expending of development impact fees dedicated to parks and recreation purposes. Parks and Recreation impact fees are assessed on residential development within the Town.

Police
This is used to manage the collection and expending of development impact fees dedicated to public safety purposes.  Police impact fees are assessed on both residential and commercial development within the Town.

AWRD
The Alternative Water Resources Development Impact ("AWRD") Fee Fund accounts for expenditures for alternative water resource capital costs and any related debt service. Specific activities include analysis, planning, design and construction of infrastructure required to deliver alternative water resource (Central Arizona Project (CAP) and reclaimed water) to the Town.  

Potable Water
The Potable Water System Development Impact Fee Fund accounts for potable water capital improvements that are growth related and debt service. Revenues are received from impact fees which are collected and used for repayment of bonds sold to finance the capital projects. Specific activities includes design and construction of infrastructure required to deliver potable water to meet the needs of future customers

Roadway Development
This Fund is used to manage all Roadway Capital Improvement Projects (CIP) from planning, design,, and construction. This process includes consultant selection and preparation of the Request for Proposal (RFP) process, review of traffic control plans, and contract administration. This fund is managed by Development and Infrastructure Services staff.

Here's the impact fees for 2012-13:

Amounts	General Gov't	Library	Parks and Recreation	Police	AWRD	Potable Water	Roadway Development
Beginning Balance:	135,430	116,046	451,499	103,488	1,758,770	6,495,976	715,863
Revenues:	-	37,641	92,001	49,840	2,676,000	118,755	6,412,618
Expenditures:
Operations and Maintenance	-	-	400,000	-	224,875	-	-
Capital	25,000	-	-	89,066	1,974,756	632,744	6,154,000
Total Expenditures:	25,000	-	400,000	89,066	2,199,631	632,744	6,154,000
Change in Fund Balance:	(25,000)	37,641	(307,999)	(39,226)	476,369	(513,989)	258,618
Ending Fund Balance:	110,430	153,687	143,500	64,262	2,235,139	5,981,987	974,481

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