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Council adopts tentative $222.5 million FY2027 budget; consultant warns of higher development-impact fees
Summary
The council adopted a tentative Fiscal Year 2027 budget of $222.5 million and a 10-year capital improvement plan; consultant Rafelis presented proposed increases to development impact fees, citing lower growth projections and rising construction costs, and set public hearings ahead of a possible January 2027 implementation.
Prescott Valley's council authorized the mayor to sign the tentative Fiscal Year 2027 budget, which staff presented at $222.5 million, and set a public hearing for June 25, 2026. The resolution to approve the tentative budget passed with a recorded vote of 5 to 2.
Town staff also presented a draft 10-year Capital Improvement Program (CIP) with a first-year CIP total of about $74 million and a 10-year plan total cited as approximately $481 million; council adopted the CIP as a long-range planning document subject to annual appropriation (the transcript records the final adoption vote as passing '6-2').
In a separate presentation on development impact fees (DIFs), consultant Todd Cristiano (Rafelis) told the council that updated land-use assumptions and higher construction-inflation estimates mean maximum supportable DIFs will increase across streets, police and parks. Cristiano emphasized the methodology and noted that Prescott Valley's population-growth projection for the next decade had been reduced (presented as about 1.15% annual growth in the study) compared with the 2022 assumptions. Using current assumptions and project lists, Cristiano presented a proposed combined fee for a typical single-family residence of about $9,343 compared with the town's current composite fee of $6,133; he stressed that the presented numbers represent maximum supportable fees and the council may adopt lower values.
Council members discussed possible reallocations of planned capital funds (one member suggested moving certain Glassford Dells or park project allocations to update the general plan), and a councilmember urged closer oversight of spending and return on investment for large items, including consultants and fleet choices. Staff clarified that only trail development and some engineering for a Southgate parking lot were included in next year's CIP for Glassford Dells; larger amenities would require separate future approvals.
Next steps and public process: Rafelis and staff scheduled an Aug. 13 public hearing on the DIFs and additional council review sessions in the fall, with a target implementation date of Jan. 26, 2027, if council adopts new fees. The tentative budget moves to the required public hearings and final adoption process later in June.
