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1. What are Impact Fees?

An impact fee is a charge on new development to pay for the construction or expansion of capital improvements that are needed by and benefit new development. The majority of cities and counties nationwide use some form of impact fees. The fee is calculated proportionately based on current and projected growth of the community. Las Cruces rotates the evaluation of the need for impact fees based on categories such as parks, utilities and public safety. Las Cruces is currently in the Public Safety cycle for impact fees.

2. What is the purpose of Public Safety Impact Fees?

Public Safety impact fees are intended to charge new development for the increased demand on services new buildings create for police and fire personnel.

3. Who pays Public Safety Impact Fees?

Any new building or addition to an existing building that is constructed within the City of Las Cruces is assessed a fee. The fee is paid when the construction permit is issued.

4. Since the fee is paid when a construction permit is issued, does that mean only developers and contractors pay the fee?

Developers and contractors usually pay the fee, but in some cases the cost may end up being passed along to the end user which could mean an increase in the cost of a new home.

5. What are the fees used for?

The fees that are collected can only be used to pay for new buildings, land or equipment that has a value of $10,000 or more and a life expectancy of 10 years or more. Some examples are as follows:

• New buildings used for police or fire stations.
• Addition to existing fire or police buildings.
• Fire engines, ladder trucks and other large specialty vehicles.
• Specialized police vehicles such as the Mobile Operations Center or tactical response vehicles.

6. Do impact fees require a new development to pay for all improvements in Public Safety?

Impact fees do not pay for all improvements to public safety services, only a fair share. Taxes, bond funding, grants and other sources of revenue still pay for the lion’s share of costs related to police and fire protection.

7. What has the City of Las Cruces done with the Public Safety Impact Fees that have been collected so far?

collected so far?

As an example, the City has purchased a new fire engine for Fire Station 8 and paid a portion of the debt service for the East Mesa Public Safety Complex.

8. Are Public Safety Impact Fees paid every time someone buys a home?

Impact fees are only assessed when the home is built. If you purchase a pre­-existing home that has already been lived in, there usually are no impact fees.

9. Could impact fees increase?

They could. By law the City must review and update impact fees every five years. The City Council will evaluate the information gathered and decide to increase the fee, keep it the same, reduce the fee or do away with it all together.

10. Who decides how the money raised through Public Safety Impact Fees is spent?

Only items that are part of the approved Impact Fee Capital Improvement Plan are eligible to be funded with impact fees. The Las Cruces Police Department and Las Cruces Fire Department work with the Office of the City Manager to prioritize the projects with the greatest need.

11. Does the City have to pay Public Safety Impact Fees when it builds a new facility?

Yes. The City must pay the same amount as other commercial buildings for the same type of use.

12. How can I find more information about impact fees?

If you are interested in more information, would like to be placed on the meetings invitation list or have additional questions, feel free to contact Las Cruces Fire Department Chief Jason Smith (575) 528-3473 or email at jasmith@las-crucess.org and provide your contact information.