About
A Development Impact Fee provide for the costs of expanding public utilities and services to the new development. This one-time fee is charged to new development to cover the costs of water and sewer systems, roads, stormwater service, schools, libraries, etc.
Development impact fees should pay for the full cost of adding the additional development to the public utilities. However, development impact fees cannot be used for the operation or maintenance of capital facilities. Determining the impact fee structure and zoning requires sound planning, and should be used in tandem with the capital improvement plan.
Sometimes development impact fees are called impact fees, benefit assessments, user feeds or connection charges.
Development impact fees may be attractive in communities where existing residents are resistant to increasing other taxes, fees or rates to help cover the cost of new facilities that serve new people.
Impact fees shift the costs of financing public facilities from the general taxpayer to those that benefit from the new facilities. Some local governments have used impact fees instead of a general property tax increase.
Consult with your municipality’s legal counsel prior to establishing a development impact fee system.
Project Examples
Arnold, MO has a robust development impact fee structure that is posted online and details what the fee covers. More info
Springfield, MO assesses a Sewer Impact Fee based on water usage, Trunkline Connect fees, sewer extension cost recovery, and special connection agreements. More info