TITLE
The Mayor and City Council shall hear public comment regarding the proposed development fees which serves as the basis for development impact fees proposed to be effective February 2, 2020.
AGENDA ITEM DESCRIPTION
Development Impact Fees are fees assessed to fund infrastructure improvements required due to new growth. These fees are accumulated to construct specific improvements or portions of specific improvements, within the municipality, based on Development Fee Studies.
In order to continue collecting Development Impact Fees, the City must comply with Arizona Revised Statute (ARS) §9-463.05, by updating the Land Use Assumptions (LUA) and Infrastructure Improvement Plan (IIP) prepared in 2014 by TischlerBise. TischlerBise was selected to prepare this update. The LUA section of the report incorporates information provided by City staff to establish current land use and projected land use in 10 years. Single-family, multi-family, commercial/retail, office, industrial and institutional uses of land have been projected to establish the need for growth-related infrastructure. The IIP section of the report is incorporated into the discussion of each fee category (Parks & Recreation, Libraries, Police, Fire and Streets).
The following three components must be included as part of adopting and collecting development impact fees. These components must be updated at least every five years.
1. Land Use Assumptions - Projections of changes in land uses, densities, intensities, and population for a specified service area over a period of at least ten years and pursuant to the general plan of the municipality.
2. Infrastructure Improvement Plan - A written plan that identifies each necessary public service or facility expansion that is proposed to be the subject of a development fee that complies with the requirements of ARS §9-463.05. This is based on the City's Capital Improvements Plan.
3. Development Fees - The fees to fund the infrastructure made necessary due to development.
The DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report contains all three elements, the Land Use Assumptions and Infrastructure Improvement Plan (1 and 2, above) which were adopted by Council on September 3, 2019, and the Proposed Development Fees which are proposed to be adopted November 19, 2019, with a proposed effective date of February 2, 2020.
The DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report was reposted on the City's website on September 4, 2019, to provide interested parties with a minimum of 30 days notice of the planned Public Hearing. An email was sent to stakeholders with a link to where the DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report could be obtained as well as City staff contact information for additional questions.
Brenda Hasler, Senior Financial Analyst will present this item. Carson Bise, President, TischlerBise will be available for questions.
STAFF RECOMMENDATION
Staff recommends Mayor and City Council hear public comment regarding the DRAFT - Land Use Assumptions, Infrastructure Improvements Plan, and Development Fee report, which serves as the basis for development impact fees proposed to be effective February 2, 2020.