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AGENDA ITEM REVIEW FORM |
6.J.
Regular City Council Meeting
- Meeting Date:
- 05/28/2025
- Department Head:
- Jose A. Guzman
- Submitted By:
- Jose A. Guzman, Director of Development Services, Development Services
Action Requested:
Discussion Item - No Action to be Taken
Motion
Public Hearing
Motion
Public Hearing
ITEM:
Public hearing followed by discussion on any and all matters regarding the Development Fee Update as required by the Arizona Revised Statutes. (Jose A. Guzman, Director of Development Services)
A. Staff presentation
B. Open Public Hearing
C. Call to the public on this item
D. Close Public Hearing
E. Action on possible direction to staff
A. Staff presentation
B. Open Public Hearing
C. Call to the public on this item
D. Close Public Hearing
E. Action on possible direction to staff
SUMMARY:
Under Arizona Revised Statutes § 9-463.05, 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:
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 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.
CURRENT ACTION:
Tonight's public hearing provides 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 on July 9, 2025. If approved, the new development impact fees would go into effect on September 22, 2025, as required by statute.
STAFF RECOMMENDATION:
Under A.R.S. § 9-463.05(C), the only action the City Council may take at this time is to direct staff to either proceed with the development fees as proposed or make specific changes.
Staff recommends that the City Council hold this public hearing to receive public comment on the proposed Development Impact Fees.
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:
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 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.
CURRENT ACTION:
Tonight's public hearing provides 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 on July 9, 2025. If approved, the new development impact fees would go into effect on September 22, 2025, as required by statute.
STAFF RECOMMENDATION:
Under A.R.S. § 9-463.05(C), the only action the City Council may take at this time is to direct staff to either proceed with the development fees as proposed or make specific changes.
Staff recommends that the City Council hold this public hearing to receive public comment on the proposed Development Impact Fees.
RECOMMENDATION / SUGGESTED MOTION:
A. STAFF PRESENTATION
B. MAYOR NIEVES RIEDEL TO OPEN THE PUBLIC HEARING
C. MAYOR NIEVES RIEDEL TO CALL THE PUBLIC ON THIS ITEM
D. MAYOR NIEVES RIEDEL TO CLOSE THE PUBLIC HEARING
E. I MOVE TO DIRECT STAFF TO PROCEED WITHOUT CHANGE.
or
I MOVE TO DIRECT STAFF TO MAKE THE FOLLOWING CHANGES: _______________________________________.
B. MAYOR NIEVES RIEDEL TO OPEN THE PUBLIC HEARING
C. MAYOR NIEVES RIEDEL TO CALL THE PUBLIC ON THIS ITEM
D. MAYOR NIEVES RIEDEL TO CLOSE THE PUBLIC HEARING
E. I MOVE TO DIRECT STAFF TO PROCEED WITHOUT CHANGE.
or
I MOVE TO DIRECT STAFF TO MAKE THE FOLLOWING CHANGES: _______________________________________.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- N/A
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
N/A
Attachments
- San Luis Land Use Assumptions, Infrastructure Improvement Plan, and DRAFT Development Fee Report
- Fees Comparison