A. Fee Report and Implementation. The city may assess and collect a development impact fee for costs of necessary public services, including all professional services required for the preparation or revision of an infrastructure improvements plan, fee report, development impact fee, and required reports or audits conducted pursuant to this chapter. Development impact fees shall be subject to the following requirements:
1. The city shall develop and adopt a fee report that analyzes and defines the development impact fees to be charged in each service area for each capital facility category, based on the infrastructure improvements plan and the cost per SMU calculated pursuant to Subsection 4.01.080.A.12 of this chapter.
2. Development impact fees shall be assessed against all new commercial, residential, industrial and other developments, provided that the city may assess different amounts of development impact 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. The amount of a development impact fee shall be as set forth in the fee schedules adopted by council, which shall not exceed the maximum supportable fee set forth in a fee report.
3. Except as set forth in Subsection C of this section or otherwise set forth in this chapter, no development impact fees shall be charged, or credits issued, for any capital facility that does not fall within one of the categories of necessary public services for which development impact fees may be assessed as identified in Subsection 4.01.080.A.1 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 impact 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 impact fees may not be used to pay the city's administrative, maintenance, or other operating costs for providing the level of service.
6. Projected interest charges and financing costs can only be included in development impact 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. Development impact fees charged by the city must be included in a fee schedule prepared pursuant to this chapter, and must be based on information and calculation of supportable fees included in the fee report;
8. All development impact fees shall meet the requirements of A.R.S. § 9-463.05.
B. Costs per SMU. The fee report shall summarize the costs of capital facilities necessary to serve new development, on a per-SMU basis as calculated in the infrastructure improvements plan, including all required offsets, and shall recommend a development impact fee structure for adoption by the city. The actual impact fees to be assessed shall be disclosed and adopted by council resolution in the form of impact fee schedules, noting the date the fee will become effective.
C. Carry-over of Previously-Established Development Impact Fees and Grandfathered Facilities. Notwithstanding the requirements of this chapter, certain development impact fees adopted by the city prior to the effective date of this chapter shall continue in effect as follows:
1. Unless decreased by a fee schedule adopted pursuant to this chapter, development impact fees assessed pursuant to the city's adopted fee schedule prior to the effective date of this chapter shall continue in full force and effect, to the extent required to meet the provisions of A.R.S. § 9-463.05, paragraph F, for developments for which a final site plan or subdivision approval was given prior to the effective date of this chapter, and only to the extent that the development impact fee is used to provide a category of necessary public services that is authorized by Section 4.01.080 of this chapter.
2. The city may continue to assess, collect, and use any development impact fee initially established before January 1, 2012, even if the development impact fee would not otherwise be permitted to be collected and spent pursuant to A.R.S. § 9-463.05, as amended by the state legislature in SB 1525, Fiftieth Legislature, First Regular Session, if either of the following apply:
a. Both of the following conditions are met:
i. Prior to June 1, 2011, the development impact fee was pledged towards the repayment of financing or debt incurred by the city to provide a capital facility;
ii. The applicable capital facility was included in the city's infrastructure improvements plan, or other city planning document prepared pursuant to applicable law, prior to June 1, 2011.
b. Before August 1, 2014, the city uses the development impact fee to finance a capital facility in accordance with A.R.S. § 9-463.05, Subsection (S).
3. Defined terms in any previously established fee schedule shall be interpreted according to the ordinance in effect at the time of their adoption. (Ord. 1397.04.34 § 3 (part), 2013)