(A) The town, for each category of public facility for which development fees are imposed, shall establish a development fee account. The account shall clearly identify the category, account or fund for which the development fee has been imposed.
(B) Sub-accounts may be established for individual development fee districts. All development fees collected by the town shall be deposited into the appropriate development fee account or sub-account, which shall be interest bearing. All interest earned on monies deposited to the account shall be credited to and shall be considered funds of the account. The funds of each account shall be capable of being accounted for separately from all other town funds, over time. The town shall establish and implement necessary accounting controls to ensure that the development fee funds are properly deposited, accounted for and appropriated in accordance with this chapter, A.R.S. § 9-463.05, and any other applicable legal requirements.
(C) Development fees shall be appropriated only:
(1) For the particular public facility for which they were imposed.
(2) Within the development fee district where collected unless the development fee funds will be appropriated for a public facility necessitated by or serving new development.
(D) Development fee funds may be appropriated for a public facility located outside of the district where collected only if the demand for the public facility is generated in whole or in part by the new development.
(E) The town shall each year identify public facility projects anticipated to be funded in whole or in part with development fees. The council may include development fee-funded public facilities in the town’s annual budget and capital improvements program or at any other time throughout the year, as deemed necessary. The council shall verify that adequate development fee funds are or will be available from the appropriate development fee account for the particular public facility.
(F) Eligibility for refund.
(1) An applicant who has paid a development fee for a new development for which the necessary building permit has expired or which the building permit has been revoked may be eligible to apply for a refund of development fees paid.
(2) An applicant who has paid a development fee for a new development for which a building permit has been issued, and pursuant to which construction has been initiated, but which construction is abandoned prior to completion and issuance of certificate of occupancy, shall not be eligible for a refund.
(3) Applicant must request the refund in writing and must do so within 30 days following the expiration. Full documentation must be provided along with any documentary evidence. The town manager or designee(s) shall review the application and information provided that is deemed relevant, and make a determination as to whether a refund is due. Additionally, applicant must be the property owner or designated agent of the property owner. Proof of fees paid must be provided with the request for refund. The town shall pay no interest on the funds refunded.
(a) A 5% administrative fee shall be deducted from the amount of any refund granted and shall be retained by the town to defray the administrative expenses associated with the processing of a refund application.
(b) The town may, at its option, make refunds of development fees direct payment, by offsetting the refunds against other development fees due for the same category of public facilities for new development on the same property, or by other means subject to agreement with the property owner.
(G) An appeal from any decision of a town official pursuant to this chapter shall be made to the council by filing a written appeal with the Town Clerk within 30 days following the decision which is being appealed; provided, however, that if notice of appeal is accompanied by a cash bond or letter of credit in a form satisfactory to the Town Attorney and the Finance Director in an amount equal to the development fee calculated to be due, a building permit may be issued to the new development. The filing of an appeal shall not stay the imposition or the collection of the development fee calculated by the town unless a cash bond or other sufficient surety has been provided.
(1) The burden of proof shall be on the appellant to demonstrate that the decision of the town is erroneous.
(2) All appeals shall detail the specific grounds therefor and all other relevant information and shall be filed on a form provided by the town for such purposes.
(H) Petitions for exemptions or waivers from specific development fee shall be filed with the Town Manager or designee and must be done so in writing.
(I) Nothing herein shall be deemed to limit the town's authority or ability to enter into development agreements pursuant to A.R.S. § 9-500.05 with applicants for new development who may provide for dedication of land, payments in lieu of development fees, or actual infrastructure improvements. The development agreements may allow offsets against development fees for contributions made or to be made in the future in cash, or by taxes or assessments or dedication of land, or by actual construction of all or part of a public facility by the affected property owner.
(2001 Code, Art. 16-4) (Am. Ord. 04-588, passed 12-9-2004)