| | | | | | | | CITY OF PEORIA, ARIZONA
COUNCIL COMMUNICATION | Agenda Item: 26R. |
| Date Prepared: 7/28/2025 | Council Meeting Date: 8/5/2025 |
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| | | | | | | | | FROM:
| Mike Faust - Deputy City Manager
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| | | | | | | | SUBJECT:
| Code Amendment, Chapter 27 Fee Tables 27-1 through 27-19(h) |
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| | | | | | | | Purpose:
Discussion and possible action to adopt ORD. 2025-21 to amend Chapter 27, Fee Tables 27-1 through 27-19(h) |
| | | | | | | | Summary:
Council Policy (CP) 1-11 and 1-12 requires Staff to review fees on an annual basis ensuring general fund fees and development services user fees recover costs consistent with the policy methodologies. General fund fees were broadly addressed during the FY25 budget cycle whereas development services user fees were last reviewed and amended in 2018.
Staff launched an improvement project to standardize the fee review process consistent with Council Policy and incorporate standard requirements as part of the annual budgeting process. The standardized process was created such that each major fee type (Development, General Fund; and Administration) are reviewed in detail every third year allowing for a thorough review of one category per year. This cycle development services user fees was the focus, and some additional outdated administrative and general fund fees were also included.
Given the 7 year duration since development service user fees were last updated, significant efforts were made to evaluate the initial basis for the current fees as well as consider additional costs associated with the services that influence achieving the cost recovery goals set by council in CP 1-12. Overall Staff found that costs associated with Site Development and Building Services rose 15% in 7 years, and Planning increased 20%. Fire Prevention Services actual costs are 100% greater than the current fund recovery. Staff felt an increase of this magnitude was too significant for one fee cycle and recommended a 50% increase in these fees.
Following the draft fee determination, Staff complete a sensitivity analysis by comparing current and proposed fees against other West Valley jurisdictions. The new fees were found to be consistent with neighboring cities. Recommended fee changes were prepared and posted consistent with State Statute and City Code.
To codify this new tri-annual process, Staff are finalizing an Administrative Policy and Procedure governing the review and updates to effectuate the requirements of CP 1-11 and 1-12. |
| | | | | | | | Previous Actions/Background:
Summary of proposed Development Fee changes were presented to Council during the annual budget workshop on March 26, 2025. |
| | | | | | | | Staff Recommendation:
Staff recommends adoption of the Ordinance amending Chapter 27 Table 27-1 through 27-19(h). |
| | | | | | | | Fiscal Analysis:
Staff complete a thorough revenue and cost analysis for all development-related fees, and recommended fee adjustments to remain consistent with Council Policy. |
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