§ 151.43 AUTHORITY FOR DEVELOPMENT IMPACT FEES.
   (A)   Fee report and implementation. The town 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 town 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, calculated pursuant to § 151.46(A)(12).
      (2)   Development impact fees shall be assessed against all new commercial and residential developments, provided that the town 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.
      (3)   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 § 151.46(A)(1).
      (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 town's administrative, maintenance, or other operating costs.
      (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)   All development impact fees charged by the town must be included in a fee schedule prepared pursuant to these provisions.
      (8)   All development impact fees shall meet the requirements of A.R.S. § 9-463.05.
   (B)   Costs per service unit. The 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 impact fee structure for adoption by the Town Council.
   (C)   Carry-over of previously-established development impact fees and grandfathered facilities. Notwithstanding the requirements herein, certain development impact fees adopted by the town prior to July 1, 2019, shall continue in effect as follows:
      (1)   Development impact fees collected prior to January 1, 2012, shall be expended on capital facilities within the same category of necessary public services for which they were collected.
      (2)   The town may continue to collect and use any development impact fee 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:
            1.   Prior to June 1, 2011, the development impact fee was pledged towards the repayment of financing or debt incurred by the town to provide a capital facility.
            2.   The applicable capital facility was included in the town's infrastructure improvements plan, or other town planning document prepared pursuant to applicable law, prior to June 1, 2011.
         (b)   Before August 1, 2014, the town used the development impact fee to finance a capital facility in accordance with A.R.S. § 9-463.05(S). Defined terms in any previously established fee schedule shall be interpreted according to the ordinance in effect at the time of the fee schedule's adoption.
(Res. R2019-07, passed 5-6-19; Am. Ord. O2019-03, passed 5-20-19)