§ 7-1-7 AUTHORITY FOR DEVELOPMENT FEES.
   (A)   The city may assess and collect a development fee for costs of necessary public services, including all professional services required for the preparation or revision of an Infrastructure Improvements Plan, Development Fee Report, development fee, and required reports or audits conducted pursuant to this Chapter. Development fees shall be subject to the following requirements:
      (1)   The city shall develop and adopt a Development Fee Report that analyzes and defines the development fees to be charged in each service area for each capital facility category, based on the Infrastructure Improvements Plan, pursuant to A.R.S. § 9-463.05.
      (2)   Development fees shall be assessed against all new residential, commercial, office, institutional, and industrial developments, provided that the city may assess different amounts of development fees against specific categories of development based on the actual burdens and costs that are associated with providing necessary public services to that category of development. No development fee shall exceed the cost per service unit for any category of development.
      (3)   No development fees shall be charged, or credits issued, for any capital facility that does not fall within 1 of the categories of necessary public services for which development fees may be assessed as identified in Vol. II, § 7-1-10 of this Chapter.
      (4)   Costs for necessary public services made necessary by new development shall be based on the same level of service provided to existing development in the same service area. Development fees may not be used to provide a higher level of service to existing development or to meet stricter safety, efficiency, environmental, or other regulatory standards to the extent that these are applied to existing capital facilities that are serving existing development.
      (5)   Development fees may not be used to pay the city's administrative, maintenance, or other operating costs.
      (6)   Projected interest charges and financing costs can only be included in development fees to the extent they represent principal and/or interest on the portion of any financing or debt used to finance the construction or expansion of a capital facility identified in the Infrastructure Improvements Plan.
      (7)   All development fees shall meet the requirements of A.R.S. § 9-463.05.
   (B)   The Development Fee Report shall summarize the costs of capital facilities necessary to serve new development on a per service unit basis as defined and calculated in the Infrastructure Improvements Plan, including all required offsets, and shall recommend a development fee structure for adoption by the city. The actual development fees to be assessed shall be disclosed and adopted in the form of development fee schedules described in this Chapter.
   (C)   Defined terms in any previously established fee schedule shall be interpreted according to the ordinance in effect at the time of their adoption.
(Ord. 1521, passed 8-16-2022)