The City Council will be provided with an overview of the update of the City's development impact fees.
RECOMMENDATION
Receive an update of the City's development impact fees. (Jared Askelson, Deputy Finance Director)
FISCAL IMPACT
Development impact fees are used as a funding source for growth related infrastructure in the City's Capital Improvements Plan. An update will allow the fees to properly include the most up-to-date growth estimates and anticipated construction costs. State statute requires that a qualified outside consultant completes the update. The cost of those services is $128,000 and is already included as a part of the budget in the development impact fees.
BACKGROUND AND PREVIOUS ACTIONS
The City currently assesses development impact fees at the time of building permit issuance for Fire, Parks and Recreation, Police, Streets, Water, and Wastewater infrastructure. The Land Use Assumptions (LUA) and Infrastructure Improvement Plan (IIP) are two components of a development fee update required by Arizona Revised Statute (ARS) 9-463.05. A full citywide LUA and IIP were last adopted on October 22, 2018. ARS further requires that the LUA and IIP are updated every five years. Though an update to a portion of the fees occurred on October 28, 2019, it did not cover the entire City. Therefore, an update is required by October 2023.
STAFF ANALYSIS
In order to meet the timeline required by ARS, the process for updating the development impact fees is beginning on March 20, 2023, with the publishing of a public notice of the update and draft LUA and IIP. After the public notice, City staff will conduct outreach meetings with the development community as well as the community at large prior to a public hearing on May 22, 2023, and adoption of the LUA and IIP on June 26, 2023. That will allow for the fee update to begin in July and result with new fees implemented on January 1, 2024.
