| | | | | | | | CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION | Agenda Item: 29R. |
| Date Prepared: 6/9/2019 | Council Meeting Date: 6/18/2019 |
|
| | | | | | | | | TO: | Jeff Tyne, City Manager
|
|
| | | | | | | | | FROM:
| Katie Gregory, Deputy City Manager
|
|
| | | | | | | | SUBJECT:
| Public Hearing - Development Impact Fees |
|
| | | | | | | | Purpose:
No council action required. |
| | | | | | | | Summary:
Under the adoption procedures outlined in the Development Impact Fee Statute, the City is required to hold a Public Hearing on the proposed Development Impact Fee Ordinance. In addition to establishing the updated impact fees, the ordinance sets the standards and procedures for creating and assessing development impact fees, and administering the city’s development impact fee program including mandatory offsets, credits and refunds.
The City Council approved the Utility and Non-Utility Impact Fee studies on April 16, 2019. These studies along with the adopted infrastructure Improvement plans, growth projections and defined service areas were used to calculate updated fees.
The purpose of this Hearing is to provide an opportunity for the public to comment on recommendations related to the proposed development impact fees. Notice for this public hearing was published in the Peoria Times on May 9 and May 16, 2019. The proposed fees were posted on the City’s website on May 13, 2019. No council action is required at the Public Hearing. Council will take action on the formal adoption of the fee ordinance on August 13, 2019. If approved, the adopted impact fees would go into effect on October 28, 2019.
Development Impact Fees are assessed by the City of Peoria to help pay for the one-time capital infrastructure costs resulting from new developments in the City. These fees, assessed at the time of building permit, may be collected for the following categories:
General Government Fees
- Parks
- Transportation
- Police
- Fire
- Libraries
Utility Fees
- Water
- Wastewater
- Water Resources
In areas of the city where little or no development exists, significant infrastructure requirements are required, and carry considerable costs to provide that infrastructure. Substantial capital investments for roads, parks, water and wastewater facilities, and public safety facilities are necessary to service new growth demands at the existing levels of service. With this in mind, the revenues generated from impact fees are a significant source to support these demands.
The City has been working with two firms, Duncan Associates and Raftelis Financial Consultants to update the General Government and Utility impact fee studies. During this time, City staff has put forth efforts to keep stakeholders involved with the review of the impact fee studies and the updated fees.
Impact Fee Ordinance
In 2014, the city updated its impact fee ordinance to conform to the new requirements of SB 1525. The ordinance clarifies certain aspects of the law and ensures consistent application of impact fees among cities. Staff is not recommending any changes to the ordinance except for the inclusion of the updated fee schedules.
Summary:
Adoption procedures outlined in the Development Impact Fee Statute, require the city to hold a public hearing on the proposed impact fee ordinance, which sets the standards and procedures for creating and assessing development impact fees, and administering the city’s development impact fee program including mandatory offsets, credits and refunds. The final ordinance and impact fees will be brought to council for formal adoption on August 16, 2019. |
| | | | | | | | Previous Actions/Background:
April 16, 2019 – Council adopted the updated Impact Fee studies which included the infrastructure improvement plans, growth projections and service area recommendations.
February 19, 2019 – Public Hearing on the proposed Land Use Assumptions and Infrastructure Improvement Plan.
February 5, 2019 – Stakeholder meeting to review and discuss the non-utility impact fee study.
January 22, 2019 – Council Study session to review legal requirements, fee methodologies and service area considerations.
January 16. 2019 – Stakeholder meeting to review and discuss the Utility Impact Fee Study.
December 20, 2018 – Draft reports were made available on the City’s Impact Fee webpage.
May 15, 2018 – Developer Stakeholder Meeting to review planned methodologies and policy recommendations. |
| | | | | | | | Staff Recommendation:
Staff recommends that Council review the proposed fee levels and provide comments related to policy considerations. |
| | | | | | | | Fiscal Analysis:
Projects related to new growth in the City comprise a significant portion of the city’s Capital Improvement Program. Impact fee revenues help offset a portion of the costs related to these projects. Without these revenues, existing residents would carry the full burden of the costs related to new growth. |
| | | | | | | | Contact Name and Number:
Katie Gregory, (623) 773-7364 |
|