Council Dismisses Gradual Fee Plan, Opts for Sudden Major Hike

After extensive discussions regarding proposed increases to Sedona’s development impact fees, the Sedona City Council voted 4-3 on December 10 to implement the full fee increases as outlined by city staff and their consultant. This decision comes after projections that the fees could rise by an estimated 106% to 139%, prompting concerns among various council members who deemed the increases excessive.

Prior to the vote, council members sought alternatives for a phased implementation of the fees. City Manager Anette Spickard presented three options, allowing for a gradual increase over three or four years. Each option starts at 50% of the full fee, subsequently increasing to 75% and then reaching the full amount.

During the meeting, Councilman Derek Pfaff questioned the council’s ability to halt the increase after the first year. Spickard confirmed that future councils would have the authority to adjust the fee levels at their discretion.

Councilwoman Melissa Dunn expressed her support for the full fee proposal, highlighting its significance despite being labeled “small money.” Councilman Brian Fultz echoed her sentiments, favoring immediate implementation of the proposed fees.

Conversely, Vice Mayor Holli Ploog opposed the increases, arguing they would negatively impact the community while noting that the general fund could cover related expenses. She pointed out that Sedona’s fees are already higher than those in other Verde Valley locations.

Pfaff voiced concerns about discouraging certain types of development in Sedona, particularly that which does not align with workforce housing needs. He favored a gradual increase in fees instead of an immediate hike. Councilwoman Kathy Kinsella also expressed her reservations, stating that she could not support any change based on what she called a “faulty formula.”

Mayor Scott Jablow, though leaning against the fee increase, was uncertain about the impacts of raising them and acknowledged the complex nature of the situation. This internal conflict culminated in a proposal from Fultz, supported by Dunn, to implement the full fee increases, leading to the narrow council approval.

The finalized fees will need to pass one more public hearing scheduled for January 14, where residents will have another opportunity to voice their opinions before a final decision is made.