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ITEM #: 9.
DATE: 11/27/2023
AI #:1654
CITY COUNCIL ACTION REPORT
SUBJECT:
PROPOSED DEVELOPMENT IMPACT FEES
STAFF PRESENTER(S):
Jared Askelson, Deputy Finance Director
SUMMARY
The public hearing on the proposed development impact fees is the third of four Council items related to the update of development impact fees and is consistent with state requirements.
STRATEGIC PLAN ALIGNMENT
RECOMMENDATION
Review and discuss the proposed development impact fees that were posted on October 16, 2023. (Jared Askelson, Deputy Finance Director)
FISCAL IMPACT
There is not an immediate budget impact related to holding this public hearing.
This is a step in the process of updating development impact fees. The updated fees and associated reports will help form revenue forecasting for capital projects and the resulting capital improvement 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.
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 DIFs is outlined in Arizona Revised Statute 9-463.05. One requirement is a review of existing Land Use Assumptions (LUA) and Infrastructure Improvement 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. On September 11, 2023, a public hearing was held to receive public comments on the draft documents. The LUA and IIP document was adopted by Council on October 16, 2023. On that same day, a public notice for this public hearing was posted.
STAFF ANALYSIS
A public hearing and subsequent adoption of the LUA and IIP document occurred on September 11 and October 16, respectively, satisfying the first two requirements for Council action in the update of DIFs. This public hearing on the proposed fees is the third of four Council items related to the DIF update.
The following table summarizes the next steps to adopting the fees and fee implementation:
Date
Activity
January 8, 2024
Adoption of Fees
April 1, 2024
Effective Date of Fees
Attachments
LUA, IIP and Development Fee Report
Presentation
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