Mesa, Arizona

Multi-Facility Impact Fee Studies
   

Mesa is the largest city in the nation with no municipal property tax. In 1997, Duncan Associates embarked on a two-phase project for the City of Mesa. The first phase analyzed local growth-related infrastructure costs and evaluated alternative financing techniques, including development taxes as well as impact fees. In 1998 the firm prepared an impact fee study for water, wastewater, arterial roads, drainage, park, cultural, library, fire and police facilities. While the City had kept its local sales taxes, utility rates and development fees among the lowest in the region, new growth was not paying its way. The study calculated the capital cost

to provide existing levels of service to new development at about $8,800 per single-family unit. At then current growth rates, this amounted to about $50 million per year. The study also looked at alternative financing techniques. The initial project was completed in July 1998, when the City adopted impact fees for water, wastewater, parks, libraries, cultural, fire and police facilities. Subsequently, the firm assisted in updating these fees and explored additional fees for drainage and general governmental facilities. The firm completed a third update in 2007.