Discussion and possible action to adopt ORD. 2024-14 amending Chapters 20 and 27 of the Peoria City Code pertaining to the 2024 Development Impact Fee update.

Under authority of Arizona Revised Statutes Section 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. Per statute, the City is required to update its development impact fees every five years to adjust to growth patterns, infrastructure costs and changes to land use assumptions.

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.  A minor amendment to the IIP, as allowed by A.R.S. §9-463.05, was completed, which involved minor adjustments to projects based on the timing and realities of development. 

Therefore, Chapter 20 of the City Code must be amended to align with the newly adopted IIP and LUA by establishing and updating the standards and procedures for creating and assessing development impact fees and administering the city’s development impact fee program. Furthermore, Chapter 27 of the City Code will also be amended to reflect the fee recommendations from the amended study which has resulted in lower development impact fees.

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.

Staff recommends adoption of ORD. 2024-14 amending Chapters 20 and 27 of the Peoria City Code pertaining to the 2024 Development Impact Fee update.

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.