| ITEM #: 7. DATE: 01/08/2024 AI #:1742 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | ADOPT THE DEVELOPMENT IMPACT FEE STUDY AND DEVELOPMENT FEES |
| STAFF PRESENTER(S): | Jared Askelson, Deputy Finance Director |
SUMMARY
Adopt the Development Impact Fee Study and Development Fees, providing for corrections and an effective date.
STRATEGIC PLAN ALIGNMENT
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RECOMMENDATION
ADOPT RESOLUTION NO. 2024-2378 APPROVING AND ADOPTING THE DEVELOPMENT IMPACT FEE STUDY; APPROVING DEVELOPMENT FEES AND THE METHODOLOGY IN THE CALCULATION OF THE DEVELOPMENT IMPACT FEE STUDY, PROVIDING FOR CORRECTIONS, AND PROVIDING FOR AN EFFECTIVE DATE.
FISCAL IMPACT
Development impact fees allocate the appropriate cost of new infrastructure to growth related development. These updated fees will result in revised revenue forecasting for capital projects and the resulting Capital Improvement Plan (CIP). The updated fees will be effective on April 1, 2024, with a state mandated fee moratorium beginning at that time, as applicable.
BACKGROUND AND PREVIOUS ACTIONS
Development Impact Fees (DIF) are established to ensure that new construction pays for an appropriate share of growth related infrastructure. The process for updating DIF's is outlined in Arizona Revised Statute 9-463.05. One requirement is a review of existing Land Use Assumptions (LUA) and Infrastructure Improvements Plan (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 and fee schedule. On September 11, 2023, a public hearing was held, and a presentation was made to receive public comments on the draft documents. On October 16, 2023, the LUA and IIP were adopted by the City Council. A Notice of Intention to assess development fees was posted to the homepage of the City's website on October 16, 2023. On November 27, 2023 a public hearing was held to receive public comments on the draft development fee report and methodology.
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 and fee schedule. On September 11, 2023, a public hearing was held, and a presentation was made to receive public comments on the draft documents. On October 16, 2023, the LUA and IIP were adopted by the City Council. A Notice of Intention to assess development fees was posted to the homepage of the City's website on October 16, 2023. On November 27, 2023 a public hearing was held to receive public comments on the draft development fee report and methodology.
STAFF ANALYSIS
This action is the final step in the update of the development impact fees. The updates to the fees and the underlying LUA and IIP are in accordance with the process outlined in Arizona Revised Statute 9-463.05.