The adoption of the Land Use Assumptions (LUA) and Infrastructure Improvement Plan (IIP) is the second of four Council items related to the update of development impact fees and is consistent with state requirements.

ADOPT RESOLUTION NO. 2023-2324 ADOPTING THE LAND USE ASSUMPTIONS AND INFRASTRUCTURE IMPROVEMENTS PLAN (IIP), PROVIDING FOR CORRECTIONS, SEVERABILITY AND AN EFFECTIVE DATE. (Jared Askelson, Deputy Finance Director)

There is not an immediate fiscal impact related to adopting the LUA and IIP, but it is a required step in the process for updating development impact fees.

Development impact fees allocate the appropriate cost of new infrastructure to growth related development. These updated reports and associated fees will help form revenue forecasting for capital projects and the resulting capital improvements plan (CIP). It is anticipated that the updated fees will be effective on April 1, 2024, with a state mandated fee moratorium beginning at that time, as applicable.

Development impact fees (DIF) are established to ensure that new construction pays for an appropriate share of growth related infrastructure. The process for updating DIFs is outlined in Arizona Revised Statute 9-463.05. One requirement is a review of existing LUA and IIP at least every five years. The current fees became effective in April 2019 and the underlying LUA and IIP were approved in October 2018.  

As required by state law, a consulting firm, TischlerBise, Inc., was selected to perform the update. Staff from several departments worked with the consultant to develop ten year growth assumptions, assess current infrastructure service levels, and to identify and prepare costs for the infrastructure needs associated with growth projections. City staff and the consultant have held five stakeholder outreach meetings to gather feedback from the development community.  The result of this work is an updated draft LUA and IIP document. The document was posted to the City's website on July 13, 2023, also in accordance with state law. On September 11, 2023 a public hearing was held and a presentation was made to provide updates and receive input on the impacts of both residential and non-residential fees. 

The adoption of the LUA and IIP is the second of four Council items related to the update of Development Impact Fees.  The attached report represents the finalized Land Use Assumptions and Infrastructure Improvements Plan, but the development impact fees are considered draft until the fee adoption process is completed on January 8, 2024.

The following table summarizes the next steps to adopting the plans, fees, and fee implementation.

Date	Activity
November 27, 2023	Public Hearing on fee adoption
January 8, 2024	Adoption of Fees
April 1, 2024	Effective Date of Fees