(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 subchapter. 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 plan-based cost per EDU calculated pursuant to § 150.086(A)(12).
(2) Development impact fees shall be assessed against all new commercial, residential, and industrial 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. No development impact fee shall exceed the plan-based cost per EDU for any 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 § 150.086(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 City’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) Except for any fees included on interim fee schedules, all development impact fees charged by the City must be included in a “fee schedule” prepared pursuant to this subchapter and included in the fee report; example versions of all fee schedules are provided in § 150.095.
(8) All development impact fees shall meet the requirements of A.R.S. § 9-463.05.
(B) Costs per EDU. The fee report shall summarize the costs of capital facilities necessary to serve new development on a per EDU 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 City. The actual impact fees to be assessed shall be disclosed and adopted in the form of impact fee schedules described in § 150.095.
(C) Carry-over of previously established development impact fees and grandfathered facilities. Notwithstanding the requirements of this subchapter, certain development impact fees adopted by the City prior to the effective date of this subchapter shall continue in effect as follows.
(1) Until August 1, 2014 or the date a new development impact fee is effective for the applicable category of necessary public services in a service area pursuant to this subchapter, whichever occurs first, development impact fees established prior to January 1, 2012 shall continue in full force and effect to the extent that the development impact fee is used to provide a category of necessary public services that is authorized by § 150.086. 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 City 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 toward the repayment of financing or debt incurred by the City to provide a capital facility; and
2. 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(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.
(Prior Code, § 8-11-4) (Ord. 14-06, passed 7-7-2014)