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Audit finds Scottsdale's water/wastewater impact-fee program in legal compliance; council holds public hearing on proposed fee increases
Summary
A Willdan Financial Services audit presented May 20 found Scottsdale's development-impact fee program for water and wastewater to be in compliance with state law; staff also held a public hearing on proposed fee increases that would nearly double the combined impact fee per EDU.
A Willdan Financial Services audit presented May 20 found that Scottsdale's development impact-fee program for water and wastewater "is consistent with and in compliance" with Arizona law requiring certified audits of land use assumptions, infrastructure improvement plans and use of impact-fee revenues.
Kevin Burnett of Willdan told the council the firm reviewed land-use assumptions adopted in 2021, the infrastructure improvement program and two years of revenues and expenditures covering fiscal years 2022'23 and 2023'24. Burnett reported some variances between projected and actual development in the two-year snapshot but said that was expected given the original reports cover a 10-year horizon. Burnett said all expenditures reviewed were spent on impact-fee-eligible projects, and permit-sample testing did not find systemic mischarges.
Separately, staff held the statutorily required public hearing on proposed changes to water and wastewater development fees. Interim Water Resources Executive Director Kevin Rose presented a proposed fee schedule that would increase the combined water and wastewater development fee for a standard one-inch meter EDU from roughly $7,700 to about $14,864'an increase of approximately 93 percent. Rose said the new water fee would be "a little under $9,000" per EDU and the wastewater fee "a little over $6,000" per EDU; if adopted the new rates would take effect Sept. 15, with council adoption scheduled for June 24.
Council did not vote on the fee adoption on May 20; the hearing was procedural and staff said they will return to council on June 24 with an adoption item. Rose noted the fees reflect the city's land use assumptions and an infrastructure-improvement plan that was adopted April 8.
The audit presentation referenced Arizona Revised Statutes governing development impact fees (A.R.S. —S 9-4-6305). Burnett said the audit team reviewed level-of-service definitions, capital projects, and permit charges and concluded the program met statutory requirements.
The public hearing on proposed fees drew no immediate public action; councilmembers asked procedural questions and staff indicated they will return with ordinance language and an effective date for council adoption in June.
