Per the provisions of the Development Impact Fee Statute, A.R.S. §9-463.05, the City is required to hold a Public Hearing on the proposed impact fee schedules developed as part of the 2024 Development Impact Fee update.

Under the adoption procedures outlined in the Development Impact Fee Statute, A.R.S. §9-463.05, the City is required to hold a Public Hearing on the proposed development impact fee schedule.

On June 11, 2024, City Council approved the Land Use Assumptions, Infrastructure Improvements Plan and Development Fee Report. The report included the adopted infrastructure improvement plans (IIP), growth projections (LUA) and defined service areas which are used to calculate updated fees.  Staff will be completing a minor amendment to the IIP, as allowed by A.R.S. §9-463.05, that involves minor adjustments to projects based on the timing and realities of development.  This minor amendment will result in lower impact fees that will be incorporated into the final fee ordinance to be considered by City Council on October 1, 2024.

On July 18, 2024, the City published a notice of Public Hearing in the Peoria Times and posted A Notice of Intent to Assess Development Impact Fees on the City Website.  The purpose of this Public Hearing is to provide an opportunity for the public to comment on recommendations related to the proposed development impact fees.  No council action is required. Council will take action on the formal adoption of the fee ordinance on October 1, 2024.  If approved, the adopted impact fees would go into effect on December 15, 2024.

Stakeholder meetings have been held throughout this process and feedback has been received.  Numerous questions were submitted and responses to these questions were issued and posted on the City’s website. Staff has spent a considerable amount of time working with stakeholders, addressing comments, and the LUA/IIP study has been updated several times to incorporate stakeholder feedback.

Under the authority of Arizona Revised Statutes §9-463.05, municipalities in Arizona may assess development fees to offset infrastructure costs to a municipality associated with providing necessary public services to development. Development impact fees are one-time charges that are assessed at the time of building permit issuance. It is important to note that these fees are meant to offset the costs associated with providing necessary public services to new developments, including the costs of infrastructure and other improvements. These are fees charged directly to the developers and are not taxes to current residents.

• February 20, 2024 - Developer Stakeholder Meeting #1 was held to review planned methodologies, discuss projects included within the proposed IIPs and review the LUA.  Multiple stakeholders attended and provided feedback.
  
  
• March 7, 2024 - The draft Land Use Assumptions, Infrastructure Improvements Plan and Development Fee Report was made available on the City’s Impact Fee webpage.  This report includes all the required components to provide a full understanding of the assumptions, projects and fees associated with the update.
  
  
•  March 7, 2024 - Published Notice of Intent and Public Hearing in the Peoria Times. 
  
  
• April 8, 2024 - Developer Stakeholder Meeting #2 was held for further discussion on planned methodologies, projects included within the proposed IIPs and review the LUA. Again, multiple stakeholders attended and provided feedback.
  
  
• April 16, 2024 - City Council Study Session to provide an overview on the Development Impact Fee update. 
  
  
• May 7, 2024 - A Public Hearing was conducted regarding the draft Land Use Assumptions, Infrastructure Improvements Plan and Development Impact Fee Analysis.
  
  
• June 11, 2024 - City Council adopted the Land Use Assumptions, Infrastructure Improvement Plan, and Development Impact Fee Report.
  
  
• July 18, 2024 - A Notice of Intent to Assess Development Impact Fees was posted on the City’s website and published in the Peoria Times. 
  
  
• July 23, 2024 - Developer Stakeholder Meeting #3 was held to discuss the proposed maximum supportable development impact fees.

Impact fees are an important source for funding one-time capital infrastructure related to growth.  Adjustments in fees are necessary and required to address changes in land use assumptions, development patterns and project costs.  Funding options for growth related infrastructure is affected by the type and amount of fee revenue generated.