Title
Ordinance Amending Phoenix City Code Chapter 29, Development Impact Fees and Chapter 30, Water Resources Acquisition Fee (Ordinance G-7375) - Citywide
Description
Request to amend Phoenix City Code Chapter 29, Development Impact Fees, and Chapter 30, Water Resources Acquisition Fee to update the fee schedules based on approved Infrastructure Improvements Plans, and make other code modifications.
Summary
Development impact fees are assessed on new building permits to help cover the capital cost of certain public improvements, principally infrastructure that are necessary to serve new development. Development impact fees are reviewed and, if necessary, updated every five years. These updates are necessary to ensure infrastructure plans and funding requirements are in line with current growth projections and construction costs. Arizona Revised Statutes (A.R.S.) 9-463.05 require cities to update Land Use Assumptions (LUAs) and Infrastructure Improvements Plans (IIPs) through a series of public hearings and Council actions prior to adopting or amending development impact fees. A notice of the City's intention to assess development impact fees was posted to the City's website on December 19, 2024, following the requisite public hearing and Council approval of updated LUAs and IIPs. A public hearing on the proposed development impact fee update was conducted on February 19, 2025. The final step of the adoption process is approval of the proposed development impact fees that are specified in the Development Impact Fee Report, dated February 11, 2025, and will be considered concurrently with this item. If Council approves the Development Impact Fee Report, the proposed amendments to Chapters 29 and 30 are necessary to update the fee schedules. The fee schedules and proposed changes to Chapter 29 and 30 are attached as Attachment A.
Next Steps
When approved, Arizona Revised Statutes require that the new fees do not become effective until 75 days after City Council action. The effective date is scheduled for June 23, 2025
Location
Council District: Citywide
Previous Council Action
A public hearing on proposed LUAs and IIPs was held on November 13, 2024. City Council approved LUAs and IIPs on December 18, 2024. A public hearing on the Proposed Development Impact Fee Update was held on February 19, 2025.
Concurrence
This Ordinance is recommended concurrently with a Resolution approving the 2025 Development Impact Fee Update, Impact Fee Report, dated February 11, 2025. Additionally, an Ordinance amending Phoenix City Code Chapters 19 A, 19 B, 19 C, and 19 D related to Sewer and Water Development Occupational Fees (DOF), to limit the imposition of DOF to new service connections that are not subject to Wastewater and Water Treatment Impact Fees pursuant to the proposed Chapter 29 amendment.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Planning and Development Department.