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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.
Public Safety impact fees are intended to charge new development for the increased demand on services new buildings create for police and fire personnel.
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.
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.
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:
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.
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.
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.
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.
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.
Yes. The City must pay the same amount as other commercial buildings for the same type of use.