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1 City Council Report Date: July 20, 2026 To: City Council Through: Michael Kennington, Deputy City Manager/Chief Financial Officer From: Brian A. Ritschel, Office of Management and Budget Director Subject: Amendment to Mesa City Code, Title 5, Chapter 17, Table 1 – Discontinuance of Public Safety Impact Fee Purpose and Recommendation Staff recommends that the City Council confirm the discontinuation of the Public Safety Impact Fee on March 10, 2026 and amend the City of Mesa’s (“City”) Impact Fee Schedule to remove the Public Safety Impact Fee. Background Arizona Revised Statute § 9-463.05 affecting impact fees was amended effective January 1, 2012. The statute permitted municipalities to continue to collect development impact fees if the funds would be used to pay for existing eligible debt services. In response to this amendment, the City Council adopted Ordinance No. 5189, confirming the City’s intention to continue existing Development Impact Fees at the same rates as then assessed to repay the eligible debt amounts. The Ordinance included a provision that each impact fee would automatically cease when the City received development impact fees in an amount equal to the amount of eligible debt owed for the particular impact fee category for which the fee was pledged. Discussion On March 10, 2026, the City received Public Safety Impact Fees in the amount of the eligible pledged debt for the Public Safety Impact Fee category as set forth in the Pledged Debt Analysis for Continuation of Impact Fees. Consequently, the City discontinued the collection of Public Safety Impact Fees effective March 10, 2026 in accordance with Ordinance No. 5189 and Mesa City Code Section 5-17-3(B). Amendment to Mesa Code – Discontinuance of Public Safety Impact Fee Page 2 2 The Mesa City Code regarding Development Impact Fees schedule removes the discontinued Public Safety Impact Fee. The City is no longer charging any Development Impact Fees as the Public Safety Impact Fee was the last remaining impact fee on the schedule in Title 5, Chapter 17, Table 1. Alternatives If the Ordinance is not approved, the Public Safety Impact Fee will remain listed on the Impact Fee Schedule in the City Code, however the fee will not be assessed. Fiscal Impact There is no fiscal impact of the ordinance as no additional funds will be collected regardless of the approval of the Ordinance. Coordinated With Development Services Department and the City Attorney’s Office