Discussion and possible action on any and all matters regarding Resolution No. 2366.  A Resolution of the Mayor and City Council of the City of San Luis, Arizona, approving and adopting the Development Fees Update; declaring it as a public record, establishing an effective date; repealing any conflicting provisions; and providing for severability.   (Jose A. Guzman, Director of Development Services)

Municipalities in Arizona may assess development fees to offset the cost of providing necessary public services to accommodate new development. The development fees are based on the Land Use Assumptions (LUA) and Infrastructure Improvements Plan (IIP), which outline projected growth and the infrastructure required to support it. Development Fees are one-time payments used exclusively for system improvements and may not be used for operations, maintenance, replacement, or correcting existing deficiencies. These fees are paid when a building permit is issued and do not affect current residents. 

The City of San Luis contracted with TischlerBise, a nationally recognized consulting firm, to prepare the LUA, IIP, and update development fees to comply with Arizona law. 

LUA and IIP OVERVIEW:
The LUA and IIP are the principal planning documents needed to support changes to development fee assessments. These documents reflect updated growth projections, revised cost estimates for infrastructure improvements, and adjustments to account for inflation. The methodology ensures that new development pays a proportionate share of infrastructure costs, keeping the development fees equitable and in compliance with A.R.S. § 9-463.05.

The LUA and IIP were presented during a public hearing held by the City Council on March 19, 2025, and were formally adopted on April 23, 2025.

PUBLIC NOTICE:
In accordance with A.R.S. § 9-463.05(C), the City posted the notice of its intent to assess updated development impact fees on its official website on April 28, 2025, satisfying the statutory 60-day notice requirement prior to adoption. 

PUBLIC HEARING:
The City Council held a public hearing on May 28, 2025, as part of the process required before adopting the new fees. The public hearing is required to provide an opportunity for the City Council to receive and consider comments from members of the public before taking official action on the development impact fees.

THIS RESOLUTION:
This resolution is for the City Council to consider approval and adoption or disapproval of the proposed updated Development Fees, which are part of the document titled "Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee Report". 

STAFF RECOMMENDATION:
Various departments collaborated with the consultant to develop this document. Staff recommends approval and adoption of Resolution No. 2366.