Prescott eNews

House Bill 2008, signed into law by Governor Brewer in September, could have dire consequences for already cash-strapped Arizona cities and towns.

The bill established a moratorium prohibiting cities and towns from imposing any new development impact fees retroactive to June 30, 2009 and lasting through June 30, 2011.

Current Dewey-Humboldt development impact fees took effect on Nov. 17 and a new fee schedule took effect on Feb. 1 placing the town squarely within the bill’s purview.

The town and the Arizona League of Cities and Towns believe the law is unconstitutional and the League plans to mount a challenge to it in Superior Court.

But what does the town do in the meantime? That was the question before the council at its Feb. 2 meeting.

In a close 4-3 vote, the council voted to collect the fees and to use the revenue. Additionally, rather than put the monies in escrow until the issue is decided, the town will use the monies collected and use contingency funds to pay it back in the event of a legal challenge.

Town Manager William Emerson told the council that the impact fees owed to the town could amount to over $250,000 if Young’s Farm were to be developed in the moratorium time period.

Current impact fees are estimated to be $17,000.

Emerson explained that the town had complied with all legal requirements in imposing the fees and had acted in good faith.

Mayor Len Marinaccio wondered if the town might become a legal test case for collecting the fees but Emerson said that was unlikely since other Arizona communities such as Buckeye have far greater development and impact fees.

Emerson also said it is quite possible that the town will not be alone in either challenging the law or in being the subject of a violation.

He also said insurance would cover it if the town were to be sued.

Councilman David Niles voted in favor of collecting the fees as opposed to waiting until the moratorium expires on June 30, 2011.

“If we wait, how do you go back in time to collect the fees?” he asked.

----In other news, 1876 is the town founding date the council decided to use for Hwy 69 and Hwy 169 road signs.

1876 is the date the Aqua Fria mining smelter was established. “There is no right answer (for a town founding date) but the smelters are a nexus,” Town Manger William Emerson told the council. Councilman David Nystrom said the smelter is why the town was developed.

Mayor Len Marinaccio was in favor of using 1876 as the founding date as opposed to the 2004 date of incorporation.

“People think of character before government,” he said.

---The town is set to begin a recycling and roving dumpster program. Town residents will be able to dispose of household items such as tires, steel, appliances, furniture and paper on the first and third Saturdays of March, April, and May in zones to be determined. A recycling bin will be placed adjacent to or near Town Hall for use by town residents in the near future.