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City of Apache Junction Development Services Department Date: October 20, 2026 To: Honorable Mayor and City Council Members Through: Bryant Powell, City Manager Rudy Esquivias, Development Services Director Sidney Urias, Development Services Deputy Director Subject: City Council Public Hearing – October 20, 2026: Land Use Assumptions, Infrastructure Improvements Plan and Development Impact Fee Update Background Development fees are governed by Arizona Revised Statutes § 9-463.05, which requires municipalities to update their Development Fee Study, which includes the Land Use Assumptions and Infrastructure Improvements Plan, at least every five years. The Land Use Assumptions (LUA) identify the City’s projected growth in population, housing, and employment, and where that growth is expected to occur, while the Infrastructure Improvements Plan (IIP) outlines the public facilities and capital improvements needed to support that projected growth. Together, these documents are used to evaluate and develop recommended updates to the City’s Development Fees, which may result in increases or decreases based on projected growth and infrastructure needs. Development fees are one-time charges on new developments that help pay for the infrastructure and services needed to support growth for Streets, Parks & Recreation, Libraries, and Police. They ensure that growth pays for growth rather than placing the burden on existing taxpayers, help maintain current levels of service, and provide a fair and consistent way to fund needed improvements. Development Fees also support sustainable, planned growth, improve the accuracy of capital planning and budgeting, and ensure that fees reflect the actual costs of the facilities and services new development requires. As part of the Development Fee update, the City has hired consulting firm TischlerBise to assist with reviewing and recommending any adjustments to the current fees. Upon adoption of the updated LUA, IIP, and updated Development Fees, Staff will process a text amendment to formally incorporate the new fees into City Code, Volume II, Land Development Code, Chapter 7: Development Fees. Development Fee Update October 20, 2026 City Council Memo City Council Work Session On April 20, 2026, Ben Griffin of TishlerBise presented an overview of the proposed Development Impact Fees study to the City Council. The presentation included a detailed summary of the research conducted, demographic and growth analyses, population projections, and the methodology used to calculate the proposed fees. Mr. Griffin explained how anticipated growth and future infrastructure needs were evaluated to determine an equitable fee structure that would ensure new development contributes its proportionate share toward public facilities and services. The discussion also included a comparative analysis of development impact fees assessed by neighboring Valley municipalities. This provided context for the proposed fee schedule and demonstrated how the City's proposed rates align with those of comparable communities. City Council Public Hearing On July 7, 2026, Ben Griffin of TishlerBise presented an overview of the proposed Development Impact Fee Study to the City Council. Mr. Griffin discussed how projected growth and future infrastructure needs were evaluated to ensure new development contributes its proportionate share toward the cost of public facilities and services. No opposition or concerns were expressed by members of the public or the development community. Following the July Public Hearing, on September 1, 2026, the Land Use Assumptions and Infrastructure Improvements Plan was formally adopted in accordance with Arizona Revised Statutes and all applicable statutory requirements and mandatory timeframes. City Council Public Hearing On October 20, 2026, Ben Griffin of TischlerBise will present an overview of the proposed Development Impact Fee Study to the City Council. Mr. Griffin will discuss how projected growth and future infrastructure needs were evaluated to ensure that new development contributes its proportionate share toward the cost of providing public facilities and services. Following the October 20, 2026, Public Hearing, the proposed Development Impact Fees are anticipated to be formally adopted by the City Council on December 1, 2026. The new Development Impact Fees will become effective on February 15, 2027. Development Fee Update October 20, 2026 City Council Memo Sidney Urias ________________________ Prepared by Sidney Urias Development Services Deputy Director Attachments: -Exhibit #1 – Draft Apache Junction Land Use Assumptions, Infrastructure Improvements Plans, and Development Fee Report -Exhibit #2 – City Council Memo Development Fee Update October 20, 2026 City Council Memo