A. Infrastructure Improvements Plan Contents. The infrastructure improvements plan shall be developed by qualified professionals and may be based upon or incorporated within the city's Capital Improvements Plan. The infrastructure improvements plan shall:
1. Specify the categories of necessary public services for which the city will impose a development impact fee, which may include any or all of the following if appropriate:
a. Water;
b. Wastewater;
c. Stormwater, drainage, and flood control;
d. Libraries;
e. Street facilities;
f. Fire protection;
g. Police;
h. Parks.
2. Define and provide a map or description of one or more service areas within which the city will provide each category of necessary public services for which development impact fees will be charged. Each service area must be defined in a manner that demonstrates a substantial nexus between the capital facilities to be provided in the service area and the SMUs to be served by those capital facilities. For libraries and for parks larger than thirty acres, each service area must be defined in a manner that demonstrates a direct benefit between the capital facilities and the SMUs to be served by those capital facilities. The city may cover more than one category of capital facilities in the same service area, provided that there is an independent substantial nexus or direct benefit, as applicable, between each category of necessary public services and the SMUs to be served.
3. Identify and describe the land use assumptions upon which the infrastructure improvements plan is based in each service area.
4. Analyze and identify the existing level of service provided by the city for each category of necessary public services in each service area.
5. Identify the level of service to be provided by the city for each category of necessary public services in each service area, based on the relevant land use assumptions and any established city standards or policies related to required levels of service. If the city provides the same category of necessary public services in more than one service area, the infrastructure improvements plan shall include a comparison of the levels of service to be provided in each service area.
6. For each category of necessary public services, analyze and identify the existing capacity of the capital facilities in each service area, the utilization of those capital facilities by existing SMUs, and the available excess capacity of those capital facilities to serve new SMUs, including any existing or planned commitments or agreements for the usage of such capacity. The infrastructure improvements plan shall additionally identify:
a. Any changes or upgrades to existing capital facilities that will be needed to achieve or maintain the planned level of service to existing SMUs, or to meet new safety, efficiency, environmental, or other regulatory requirements for services provided to existing SMUs; and
b. Those portions of capital facilities that will be necessary to serve any new city facility for which development impact fees will not be assessed.
7. Identify any grandfathered facilities and the impact thereof on the need for necessary public services in each affected service area.
8. Estimate the total number of existing and future SMUs within each service area, based on the city's land use assumptions and projected new SMUs in each service area.
9. Based on the above analysis, provide a summary table or tables describing the level of service for each category of necessary public services, by relating the required capital facilities to SMUs in each service area, and identifying the applicable SMU factor associated with each category of development.
10. For each category of necessary public services, analyze and identify the projected utilization of any available excess capacity in existing capital facilities, and all new or expanded capital facilities that will be required to provide and maintain the planned level of service in each service area as a result of the new projected SMUs in that service area, for a period not to exceed ten years. Nothing in this subsection shall prohibit the city from additionally including in its infrastructure improvements plan projected utilization of, or needs for, capital facilities for a period longer than ten years, provided that the costs of such capital facilities are excluded from the calculation of the plan-based cost per SMU.
11. For each category of necessary public services, estimate the total cost of any available excess capacity and/or new or expanded capital facilities that will be required to serve new SMUs, including costs of land acquisition, improvements, engineering and architectural services, studies leading to design, construction, financing, and administrative costs, as well as projected costs of inflation. Such total costs shall not include costs for ongoing operation and maintenance of capital facilities, nor for replacement of capital facilities to the extent that such replacement is necessary to serve existing SMUs. If the infrastructure improvements plan includes changes or upgrades to existing capital facilities that will be needed to achieve or maintain the planned level of service to existing SMUs, or to meet new regulatory requirements for services provided to existing SMUs, such costs shall be identified and distinguished in the infrastructure improvements plan.
12. Forecast the revenues from taxes, fees, assessments or other sources that will be available to fund the new or expanded capital facilities identified in the infrastructure improvements plan, which shall include estimated state-shared revenue, highway users revenue, federal revenue, ad valorem property taxes, construction contracting or similar excise taxes and the capital recovery portion of utility fees attributable to development, based on the approved land use assumptions. The infrastructure improvements plan shall additionally estimate the time required to finance, construct and implement the new or expanded capital facilities.
13. Calculate required offsets as follows:
a. From the forecasted revenues in Subsection A.12 of this section, identify those sources of revenue that:
i. Are attributable to new development; and
ii. Will contribute to paying for the capital costs of necessary public services.
b. For each source and amount of revenue identified pursuant to Subsection A.13.a of this section, calculate the relative contribution of each category of development to paying for the capital costs of necessary public services in each service area.
c. Based on the relative contributions identified pursuant to Subsection A.13.b of this section, for each category of necessary public services, calculate the total offset to be provided to each category of development in each service area.
d. For each category of necessary public services, convert the total offset to be provided to each category of development in each service area into an offset amount per SMU, by dividing the total offset for each category of development by the number of SMUs associated with that category of development.
e. Beginning August 1, 2014, for purposes of calculating the required offset, if the city imposes a construction, contracting, or similar excise tax rate in excess of the percentage amount of the transaction privilege tax rate imposed on the majority of other transaction privilege tax classifications in the city, the entire excess portion of the construction, contracting, or similar excise tax shall be treated as a contribution to the capital costs of necessary public services provided to new development, unless the excess portion is already utilized for such purpose pursuant to this section.
f. In determining the amount of required offset for land included in a community facilities district established under A.R.S. Title 48, Chapter 4, Article 6, the city shall take into account any capital facilities provided by the district that are included in the infrastructure improvements plan and the capital costs paid by the district for such capital facilities, and shall offset impact fees assessed within the community facilities district proportionally.
14. Calculate the plan-based cost per SMU by:
a. Dividing the total projected costs to provide capital facilities to new SMUs for each category of necessary public services in each service area, as determined pursuant to Subsection A.9 of this section, into the number of new SMUs projected for that service area over a period not to exceed ten years, considering the specific SMU factor(s) associated with such SMUs for each category of necessary public services.
b. Subtracting the required offset per SMU calculated pursuant to Subsection A.11 of this section.
B. Multiple Plans. An infrastructure improvements plan adopted pursuant to this subsection may address one or more of the city's categories of necessary public services in any or all of the city's service areas. Each capital facility shall be subject to no more than one infrastructure improvements plan at any given time.
C. Reserved Capacity. The city may reserve capacity in an infrastructure improvements plan to serve one or more planned future developments, including capacity reserved through a development agreement pursuant to Section 4.01.130 of this chapter. All reservations of existing capacity must be disclosed in the infrastructure improvements plan at the time it is adopted. (Ord. 1397.04.34 § 3 (part), 2013)