What is an Impact Fee?
An impact fee is a fee that is imposed by a local government on a new or proposed development project to pay for all or a portion of the costs of providing public services to the new development. Additionally, impact fees need to be tied to a growth plan the city has adopted in order to make sure the revenue is being used correctly and effectively.
Existing businesses will not need to pay an impact fee because, in theory, they would have already paid it when their facility was built. A new business will not need to pay impact fees if they move into an existing facility, assuming the same level and type of use. However, if an existing business wants to expand their facility, they would have to pay impact fees on the new portion.
Since impact fees are associated with providing service, there are various impact fees. American Fork assesses fees for public safety, parks, streets, and other utilities like culinary water, pressurized irrigation, sewer, and storm drain.
2017 Impact Fee Update
Because impact fees are driven by development and based on projected growth in the city, it is important to update this information regularly. Currently, the City is revising their Impact Fee Facility Plan and Impact Fee Analysis to make sure it meets all current standards. This process will revise all impact fees, including Police, Fire, Parks, Streets, Culinary Water, Pressurized Irrigation, Sewer, and Storm Drain. See below for the impact fee analysis. These are draft documents until City Council approval on July 11.