Council Memo

Resolution No. 2019-1689 Declaring the document titled "Chapter 3-14: Development Fees" a public record, and
Ordinance No. 2019-1662 Amending the IIP and LUA, and adopting updated Development Impact Fees.


Category:Ordinance Adoption


  1. Printout
  2. Resolution No. 2019-1689 (This file has not yet been converted to a viewable format)
  3. Resolution No. 2019-1689, Exhibit A (This file has not yet been converted to a viewable format)
  4. Ordinance No. 2019-1662 (This file has not yet been converted to a viewable format)

Document Comments

Recommended Action: 1. MOVE to adopt Resolution No. 2019-1689; and 2. MOVE to adopt Ordinance No. 2019-1662.



Item Summary


This item is the adoption of the amended land use assumptions (LUA) and infrastructure improvement plan (IIP), as well as the adoption of the updated development impact fees (DIFs).




The DIFs process, required by state law, is a 225 day process. Council started this update on August 28, 2018, with a presentation from Raftelis, consultant, regarding updating the Development Impact Fees for Water Resources, Water System Impacts and Wastewater System Impacts. The study also included reviews and recommendations for adoption of new Development Fees related to Streets, Police, Fire and Parks.


A Mayor’s Commission comprised of the following members, who work in the development community, was formed.


·         Brian Bombardieri, B’s Contracting / YCCA

·         David Grounds, Dorn Homes

·         Dean Lyon, P.E., Lyon Engineering

·         Michael Taylor, Taylor Architects

·         Michael Yarnes, Rent Right Management Services


The Commission met with City staff and the consultant on October 9th, November 7th, November 28th, and January 9th.  The Commission provided feedback and helped form the proposed Infrastructure Improvement Plan and Land Use Assumptions. 


As required by law (A.R.S. §9-463.05, et seq.), the public hearing on the City’s Land Use Assumptions (LUA) and Infrastructure Improvement Plan (IIP) was held on January 22, 2019. All the presentations and documents related to the fee setting process are available on the City’s website at:


The IIP and LUA were adopted by Council on February 26, 2019.  The amendments that are proposed are related to the growth share of water and wastewater projects.  At the April 9, 2019, presentation, these amendments and the following proposed DIFs were discussed.




The Full DIFs process is outlined below:



Meeting History

May 14, 2019 3:00 PM Video City Council Voting Meeting
draft Draft

Finance Director Mark Woodfill provided a presentation to Council regarding the DIF and amending the City code. He reminded Council that this is only on new construction and projects, and not infill type of issues and introduced Andrew Raheem with Raftelis to provide one final review of the process over the last nine months and what is up for adoption today.

Mr. Raheem continued the presentation with an overview of the DIF process and discussed the recommendations that have been presented to Council previously.

DIF Recommendations:

*Utility DIF Service Areas

-Water System DIF - consolidate from 10 to 2

-Wastewater System DIF - consolidate from 9 to 1

-Maintain 1 Water Resource DIF

*Proposed Non-Utility DIFs for




He also provided a review of comparisons Prescott's current rates, the new proposed rates and Prescott Valley's rates. He discussed the timeline moving forward and stated that these proposed rates, pending approval today will go into effect August 1, 2019.

Councilman Goode asked if the new fees for Fire and Police project would go into the General Fund.

Mr. Woodfill stated that there will be a separate capital funds project for these items.

Mayor Pro Tem Orr emphasized that this is the one way we have to allow growth to pay for growth.

MOVER:Steve Sischka, Councilman
SECONDER:Billie Orr, Mayor Pro Tem
AYES:Greg Mengarelli, Billie Orr, Steve Blair, Phil Goode, Jim Lamerson, Alexa Scholl, Steve Sischka