(A) Title. This section shall be known as the Development Impact Fee Ordinance of the Town of Florence and may be cited herein as “this section.”
(B) Intent and purpose. This section is adopted for the purpose of promoting the health, safety and general welfare of the residents of the town by:
(1) Requiring new development to pay its proportionate share of the costs incurred by the town that are associated with providing necessary public services to new development.
(2) Setting forth standards and procedures for creating and assessing development impact fees consistent with the requirements of A.R.S. § 9-463.05.
(3) Setting forth procedures for administering the development impact fee program.
(C) Definitions. For the purpose of this section the following definitions shall apply unless the context clearly indicates or requires a different means. Singular terms shall include their plural.
APPLICANT. A person who applies to the Town for a building permit.
APPURTENANCE. Any fixed machinery or equipment, structure or other fixture, including integrated hardware, software or other components, associated with a capital facility that are necessary or convenient to the operation, use, or maintenance of a capital facility, but excluding replacement of the same after initial installation.
AQUATIC CENTER. A facility primarily designed to host non-recreational competitive functions generally occurring within water, including, but not limited to, water polo games, swimming meets, and diving events. The facility may be indoors, outdoors, or any combination thereof, and includes all necessary supporting amenities, including but not limited to, locker rooms, offices, snack bars, bleacher seating, and shade structures.
BUILDING PERMIT. Any permit issued by the town that authorizes vertical construction, increases square footage, authorizes changes to land use, or provides for the addition of a residential or non-residential point of demand to a water or wastewater system.
CAPITAL FACILITY. An asset having a useful life of three or more years that is a component of one or more categories of necessary public service provided by the town. A capital facility may include any associated purchase of real property, architectural and engineering services leading to the design and construction of buildings and facilities, improvements to existing facilities, improvements to or expansions of existing facilities, and associated financing and professional services. Wherever used herein, INFRASTRUCTURE shall have the same meaning as CAPITAL FACILITIES.
CATEGORY OF NECESSARY PUBLIC SERVICE. Any one of the following types of capital facilities for which the town assesses development impact fees: road facilities, water facilities, wastewater facilities, park facilities, library facilities, fire facilities and police facilities.
CATEGORY OF DEVELOPMENT. A specific category of residential, commercial, or industrial land use against which a development impact fee is calculated and assessed. The town assesses development impact fees against the following categories of development: single-family, multi-family. commercial, institutional and industrial.
COMMERCIAL LAND USE. A nonresidential use other than institutional or industrial as herein defined. Typical uses include shopping centers, office buildings, medical offices, banks, hotels, discount stores, supermarkets, home improvement stores, pharmacies, restaurants, bars, nightclubs, automobile sales and service, movie theaters, amusement arcades, bowling alleys, barber shops, laundromats, funeral homes, private vocational or technical schools, dance studios, health clubs, gasoline station stations, convenience stores, recording and broadcasting studios, veterinarian clinics and kennels, and business offices of private companies, utility companies, trade associations, unions and nonprofit organizations.
CREDIT. A reduction in an assessed development impact fee resulting from developer contributions to, payments for, construction of, or dedications for capital facilities included in an Infrastructure Improvements Plan.
CREDIT AGREEMENT. A written agreement between the town and the developer of subject development that allocates credits to the subject development pursuant to division (L). A CREDIT AGREEMENT may be included as part of a development agreement pursuant to division (M).
CREDIT ALLOCATION. A term used to describe when credits are distributed to a particular development or parcel of land after execution of a credit agreement but are not yet issued.
CREDIT ISSUANCE. A term used to describe when the amount of an assessed development impact fee attributable to a particular development or parcel of land is reduced by applying a credit allocation.
DEVELOPER. An individual, group of individuals, partnership, corporation, limited liability company, association, municipal corporation, state agency, or other person or entity undertaking land development activity, and their respective successors and assigns.
DEVELOPMENT AGREEMENT. An agreement prepared in accordance with the requirements of A.R.S. § 9-500.05, and any applicable requirements of the Town Code.
DEVELOPMENT UNIT. A unit of development within a particular category of development, defined in terms of a standardized measure of the demand that a unit of development in that category of development generates for necessary public services in relation to the demand generated by a detached single-family dwelling unit. For all categories of necessary public services, the DEVELOPMENT UNIT factor for a detached single-family dwelling unit is one, while the DEVELOPMENT UNIT factor for a unit of development within another category of development is represented as a ratio of the demand for each category of necessary public services typically generated by that unit as compared to the demand for such services typically generated by a detached single-family dwelling unit. A DEVELOPMENT UNIT shall be a service unit for purpose of A.R.S. § 9-463.05(T)(10).
DIRECT BENEFIT. A benefit to a development unit resulting from a capital facility that:
(a) Addresses the need for a necessary public service created in whole or in part by the EDU; and
(b) That meets either of the following criteria:
1. The capital facility is located in the immediate area of the development unit and is needed in the immediate area of the development unit to maintain the level of service; or
2. The capital facility substitutes for, or eliminates the need for a capital facility that would have otherwise been needed in the immediate area of the development unit to maintain the town’s level of service.
DWELLING UNIT. A room or group of rooms in a residential building intended for occupancy as separate living quarters by a person or household, complete with cooking facilities.
EQUIPMENT. Machinery, tools, materials, and other supplies, not including vehicles, that are needed in conjunction with a capital facility to provide services, but excluding replacement of the same after initial development of the capital facility.
EXCLUDED LIBRARY FACILITY. Library facilities for which development impact fees may not be charged pursuant to A.R.S. § 9-463.05, including that portion of any library facility that exceeds 10,000 square feet, and equipment, vehicles or appurtenances associated with library operations.
EXCLUDED PARK FACILITY. Park and recreational facilities for which development impact fees may not be charged pursuant to A.R.S. § 9-463.05, including amusement parks, aquariums, aquatic centers, auditoriums, arenas, arts and cultural facilities, bandstand and orchestra facilities, bathhouses, boathouses, clubhouses, community centers greater than 3,000 square feet in floor area, environmental education centers, equestrian facilities, golf course facilities, greenhouses, lakes, museums, theme parks, water reclamation or riparian areas, wetlands, or zoo facilities.
FEE REPORT. A written report developed pursuant to this section that identifies the methodology for calculating the amount of each development impact fee, explains the relationship between the development impact fee to be assessed and the net cost per service unit calculated in the Infrastructure Improvements Plan, and which meets other requirements set forth in A.R.S. § 9-463.05(E).
FINANCING OR DEBT. Any debt, bond, note, loan, interfund loan, fund transfer, or other debt service obligation used to finance the development or expansion of a capital facility.
FIRE FACILITIES. A category of necessary public services that includes fire stations, fire equipment, fire vehicles and all appurtenances for fire stations, as well as fire department administrative facilities. FIRE FACILITIES does not include vehicles or equipment used to provide administrative services, or helicopters or airplanes. FIRE FACILITIES does not include any facility that is used for training firefighters from more than one station or substation.
GENERAL PLAN. Refers to the overall land use plan for the town establishing areas of the town for different purposes, zones and activities.
GROSS FLOOR AREA. The total area of all floors of a structure measured from the outside surface of exterior walls, including for example halls, stairways, and elevator shafts, but excluding enclosed vehicle parking areas.
GROSS IMPACT FEE. The total development impact fee to be assessed against a subject development on a per unit basis, prior to subtraction of any credits.
INDUSTRIAL LAND USE. An establishment primarily engaged in the fabrication, assembly or processing of goods, or in the display, storage and sale of goods to other firms for resale, as well as activities involving significant movement and storage of products or equipment. Typical uses include manufacturing plants, welding shops, wholesale bakeries, dry cleaning plants, bottling works, wholesale distributors, storage warehouses, moving and storage firms, trucking and shipping operations and major mail processing centers.
INFRASTRUCTURE IMPROVEMENTS PLAN. A document or series of documents that meet the requirements set forth in A.R.S. § 9-463.05 to cover any category or combination of categories of necessary public services.
INSTITUTIONAL LAND USE. A governmental, quasi-public or institutional use, or a non-profit recreational use, not located in a shopping center. Typical uses include elementary, secondary or higher educational establishments, day care centers, hospitals, mental institutions, nursing homes, assisted living facilities, fire stations, city halls, courthouses, civic or convention centers, post offices, jails, libraries, museums, places of religious worship, military bases, airports and bus stations.
LAND USE ASSUMPTIONS. Projections of changes in land uses, densities, intensities and population for a service area over a period of at least ten years.
LEVEL OF SERVICE. A quantitative and/or qualitative measure of a category of necessary public service that is to be provided by the town to development in a particular service area, defined in terms of the relationship between the capacity or cost of capital facilities and the demand for those capital facilities.
LIBRARY FACILITIES. A category of necessary public services in which literary, musical, artistic, or reference materials are kept (materials may be kept in any form of media such as electronic, magnetic, or paper) for non-commercial use by the public in a facility. Libraries do not include excluded library facilities, although a library may contain, provide access to, or otherwise support an excluded library facility.
MULTI-FAMILY. A residential building containing two or more other dwelling units.
NECESSARY PUBLIC SERVICES. Shall have the meaning prescribed in A.R.S. § 9-463.05(T)(5).
NET COST PER SERVICE UNIT. The maximum amount that may be charged per service unit in a service area for a category of necessary public services, based on the existing or planned level of service less offsets, as determined in the Infrastructure Improvements Plan.
NONRESIDENTIAL LAND USE. A commercial, institutional or industrial land use, as herein defined.
OFFSET. An amount that is subtracted from the cost per service unit of providing necessary public services to account for those capital components of infrastructure, associated debt or existing deficiencies that will be paid for by a development through taxes, fees (except for development impact fees) and other revenue sources.
PARK FACILITIES. A category of necessary public services including but not limited to parks, swimming pools and related facilities and equipment located on real property not larger than 30 acres in area, as well as up to 30 acres of larger park facilities. PARK FACILITIES do not include excluded park facilities, although park facilities may contain, provide access to, or otherwise support an excluded park facility.
PLAN-BASED COST PER EDU. The total future capital costs listed in the Infrastructure Improvements Plan for a category of necessary public services divided by the total new equivalent demand units projected in a particular service area for that category of necessary public services over the same time period.
PLEDGED. Where used with reference to a development impact fee, a development impact fee shall be considered PLEDGED where it was identified by the town as a source of payment or repayment for financing or debt that was identified as the source of financing for a necessary public service for which a development impact fee was assessed pursuant to the then-applicable provisions of A.R.S. § 9-463.05.
POLICE FACILITIES. A category of necessary public services, including vehicles and equipment, that are used by law enforcement agencies to preserve the public peace, prevent crime, detect and arrest criminal offenders, protect the rights of persons and property, regulate and control motorized and pedestrian traffic, train sworn personnel, and/or provide and maintain police records, vehicles, equipment, and communications systems. POLICE FACILITIES do not include vehicles and equipment used to provide administrative services, or helicopters or airplanes. POLICE FACILITIES do not include any facility that is used for training officers from more than one station or substation.
QUALIFIED PROFESSIONAL. Any one of the following:
(a) A professional engineer, surveyor, financial analyst or planner, or other licensed professional providing services within the scope of that person's education or experience related to town planning, zoning, or impact development fees and holding a license issued by an agency or political subdivision of the state;
(b) A financial analyst, planner, or other non-licensed professional that is providing services within the scope of the person's education or experience related to town planning, zoning, or impact development fees; or
(c) Any other person operating under the supervision of one or more of the above.
RESIDENTIAL LAND USE. A single-family or multi-family use, as herein defined.
ROAD FACILITIES. A category of necessary public services including arterial or collector streets or roads, traffic signals, rights-of-way and improvements thereon, bridges, culverts, irrigation tiling, storm drains, and regional transportation facilities.
SERVICE AREA. A specified area within the boundaries of the town or the area served by the town's water or wastewater system within which the town will provide a category of necessary public services to development at a planned level of service. Some or all of the capital facilities providing service to a service area may be physically located outside of that service area.
SERVICE UNIT. A standardized measure of the demand generated for a category of necessary public service.
SINGLE-FAMILY. A dwelling unit that is not attached to any other dwelling unit.
SUBJECT DEVELOPMENT. A contiguous land area linked by a unified plan of development.
SUBSTANTIAL NEXUS. A SUBSTANTIAL NEXUS exists where the demand for necessary public services that will be generated by a development unit can be reasonably quantified in terms of the burden it will impose on the available capacity of existing capital facilities, the need it will create for new or expanded capital facilities, and/or the benefit to the development from those capital facilities.
SWIMMING POOL. A public facility primarily designed and/or utilized for recreational non-competitive functions generally occurring within water, including, but not limited to, swimming classes, open public swimming sessions, and recreational league swimming/diving events. The facility may be indoors, outdoors, or any combination thereof, and includes all necessary supporting amenities.
TOWN. The Town of Florence, Arizona.
USEFUL LIFE. The period of time in which an asset can reasonably be expected to be used under normal conditions, whether or not the asset will continue to be owned and operated by the town over the entirety of such period.
VEHICLE. Any device, structure, or conveyance utilized for transportation in the course of providing a particular category of necessary public services at a specified level of service, excluding helicopters and other aircraft.
WASTEWATER FACILITIES. A category of necessary public services consisting of those facilities necessary to provide wastewater service, including but not limited to sewers, lift stations, reclamation plants, wastewater treatment plants, and all other facilities for the collection, interception, transportation, treatment and disposal of wastewater, and any appurtenances for those facilities, but excluding lines less than ten inches in diameter.
WATER FACILITIES. A category of necessary public services consisting of those facilities necessary to provide for potable water service, including the acquisition, supply, transportation, treatment, purification and distribution of water, and any appurtenances for those facilities, but excluding water meters and lines of 12 inches in diameter or less.
(D) Applicability.
(1) Service areas. Except as otherwise provided herein, this section shall apply to all new development within any service area. The following service areas are hereby established.
(a) The service areas for road, fire, police and park development impact fees shall each encompass all of the territory within the corporate limits of the town, as those boundaries may be amended in the future through annexation.
(b) The two service areas for the water development impact fees shall be the areas north and south of the Gila River, shown in the figure below, as those areas may be expanded in the future through the extension of town water service.
(c) The two service areas for the wastewate r developm ent impact fees shall be the areas north and south of the Gila River, shown in the figure below, as those areas may be expanded in the future through the extension of town wastewater service.
(2) Administration. The Town Manager or his or her designee is authorized to make determinations regarding the application, administration and enforcement of the provisions of this section.
(E) Authority.
(1) 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 land use assumptions, Infrastructure Improvements Plan, fee report, development impact fee, and required reports or audits conducted pursuant to this section. Development impact fees shall be subject to the following requirements:
(a) 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 and the net cost per service unit.
(b) No development impact fee shall exceed the net cost per service unit for any category of necessary public services for any category of development.
(c) 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 are assessed by the town.
(d) 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.
(e) Development impact fees may not be used to pay the town's administrative, maintenance, or other operating costs.
(f) 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.
(g) All development impact fees charged by the town must be included in a fee schedule prepared pursuant to this section.
(h) All development impact fees shall meet the requirements of A.R.S. § 9-463.05.
(2) Net cost 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, less any required offsets, and shall recommend a development impact fee structure for adoption by the town. The actual impact fees to be assessed shall be adopted in the form of impact fee schedules.
(F) Administration.
(1) Separate accounts. Development impact fees collected pursuant to this section shall be placed in separate, interest-bearing accounts for each capital facility category within each service area.
(2) Limitations on use of fees. Development impact fees and any interest thereon collected pursuant to this section shall be spent to provide capital facilities associated with the same category of necessary public services in the same service area for which they were collected, including costs of financing or debt used by the town to finance such capital facilities and other costs authorized by this section that are included in the Infrastructure Improvements Plan.
(3) Time limit. Development impact fees collected after July 31, 2014 shall be used within ten years of the date upon which they were collected for all categories of necessary public services except for water and wastewater facilities. For water facilities or wastewater facilities collected after July 31, 2014, development impact fees shall be used within 15 years of the date upon which they were collected. Any funds not so used shall be subject to refund pursuant to § 150.280(O). Whether fees paid by a particular development have been spent shall be determined on a first-in, first-out basis.
(G) Land use assumptions. The Infrastructure Improvements Plan shall be consistent with the town’s current land use assumptions for each service area and each category of necessary public services as adopted by the town pursuant to A.R.S. § 9-463.05.
(1) Reviewing the land use assumptions. Prior to the adoption or amendment of an Infrastructure Improvements Plan, the town shall review and evaluate the land use assumptions on which the Infrastructure Improvements Plan is to be based to ensure that the land use assumptions within each service area conform with the general plan.
(2) Evaluating necessary changes. If the land use assumptions upon which an Infrastructure Improvements Plan is based have not been updated within the last five years, the town shall evaluate the land use assumptions to determine whether changes are necessary. If, after general evaluation, the town determine that the land use assumptions are still valid, the town shall issue the report required in this chapter.
(3) Required modifications to land use assumptions. If the town determines that changes to the land use assumptions are necessary in order to adopt or amend an Infrastructure Improvements Plan, it shall make such changes as necessary to the land use assumptions prior to or in conjunction with the review and approval of the Infrastructure Improvements Plan pursuant to this chapter.
(H) Infrastructure Improvements Plan.
(1) Infrastructure Improvements Plan contents. The Infrastructure Improvements Plan shall be developed by qualified professionals and may be based upon or incorporated within the town’s Capital Improvements Plan. The Infrastructure Improvements Plan shall include the following.
(a) Specify the categories of necessary public services for which the town will impose a development impact fee, which may include any or all of the following:
1. Water;
2. Wastewater;
3. Road facilities;
4. Fire protection;
5. Police; and
6. Park.
(b) Define and provide a map of one or more service areas within which the town 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 development unit to be served by those capital facilities. For libraries and for parks larger than 30 acres, each service area must be defined in a manner that demonstrates a direct benefit between the capital facilities and the development unit to be served by those capital facilities. The town 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 development unit to be served.
(c) Identify and describe the land use assumptions upon which the Infrastructure Improvements Plan is based in each service area.
(d) Analyze and identify the existing level of service provided by the town to existing development unit for each category of necessary public services in each service area.
(e) Identify the level of service to be provided by the town for each category of necessary public services in each service area based on the relevant land use assumptions and any established town standards or policies related to required levels of service. If the town 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.
(f) 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 development unit, and the available excess capacity of those capital facilities to serve new development unit including any existing or planned commitments or agreements for the usage of such capacity. The Infrastructure Improvements Plan shall additionally identify any changes or upgrades to existing capital facilities that will be needed to achieve or maintain the planned level of service to existing development unit, or to meet new safety, efficiency, environmental, or other regulatory requirements for services provided to existing development unit; and those portions of capital facilities that will be necessary to serve any new public school, private school, or town facility for which development impact fees will not be assessed.
(g) Identify any grandfathered facilities and the impact thereof on the need for necessary public services in each affected service area.
(h) Estimate the total number of existing and future development units within each service area based on the town's land use assumptions and projected new development unit in each service area.
(i) Based on the analysis in divisions (H)(1)(c) through (H)(1)(f) above, 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 development unit in each service area, and identifying the applicable development unit factor associated with each category of development.
(j) 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 development unit in that service area, for a period not to exceed ten years. Nothing in this division shall prohibit the town 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 EDU.
(k) 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 development unit, including costs of land acquisition, improvements, engineering and architectural services, studies leading to design, 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 development unit. 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 development unit, or to meet new regulatory requirements for services provided to existing development unit, such costs shall be identified and distinguished in the Infrastructure Improvements Plan.
(l) 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.
(m) Calculate required offsets as follows.
1. From the forecasted revenues in division (H)(1)(l) of this section, identify those sources of revenue that are attributable to new development, and will contribute to paying for the capital costs of necessary public services.
2. For each source and amount of revenue identified pursuant to division (H)(1)(m)1., calculate the relative contribution of each category of development to paying for the capital costs of necessary public services in each service area.
3. Based on the relative contributions identified pursuant to division (H)(1)(m)2., for each category of necessary public services, calculate the total offset to be provided to each category of development in each service area.
4. 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 development unit by dividing the total offset for each category of development by the number of development unit associated with that category of development.
5. Beginning August 1, 2014, for purposes of calculating the required offset, if the town imposes a construction, contracting, or similar excise tax rate in excess of the percentage amount of the transaction privilege tax rate that is imposed on the majority of other transaction privilege tax classifications in the town, 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.
6. 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 town 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.
(n) Calculate the plan-based cost per development unit by:
1. Dividing the total projected costs to provide capital facilities to the new development unit for each category of necessary public services in each service area as determined pursuant to division (H)(1)(j) into the number of new development unit projected for that service area over a period not to exceed ten years, considering the specific development unit factor(s) associated with such development unit for each category of necessary public services; and
2. Subtracting the required offset per development unit calculated pursuant to division (H)(1)(m).
(2) Multiple plans. An Infrastructure Improvements Plan adopted pursuant to this division may address one or more of the town's categories of necessary public services in any or all of the town's service areas. Each capital facility shall be subject to no more than one Infrastructure Improvements Plan at any given time.
(3) Reserved capacity. The town 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 division (M) of this section. All reservations of existing capacity must be disclosed in the Infrastructure Improvements Plan at the time it is adopted.
(I) Adoption and modification procedures.
(1) Adopting or amending the infrastructure improvements plan. The Infrastructure Improvements Plan shall be adopted or amended subject to the following procedures:
(a) Major amendments. Except as provided in division (b) below, the adoption or amendment of an Infrastructure Improvements Plan and underlying land use assumptions shall occur according to the following schedule:
1. At least 60 days before the public hearing regarding a new or updated Infrastructure Improvements Plan, the town shall provide public notice of the hearing and post the Infrastructure Improvements Plan and the underlying land use assumptions on its website: the town shall additionally make available to the public the documents used to prepare the Infrastructure Improvements Plan and underlying land use assumptions and the amount of any proposed changes to the net cost per service unit.
2. The town shall conduct a public hearing on the Infrastructure Improvements Plan and underlying land use assumptions.
3. Following the public hearing, the town may amend the Infrastructure Improvements Plan and underlying land use assumptions, provided that town shall post the amended Infrastructure Improvements Plan and underlying land use assumptions on its website and make them available to the public at least 14 days prior to approval or disapproval.
4. The town shall approve or disapprove the Infrastructure Improvements Plan and underlying land use assumptions at least 30 days, but no more than 60 days, following the public hearing.
(b) Minor amendments. The town may update the infrastructure improvements plan and/or its underlying land use assumptions without a public hearing if all of the following apply:
1. The changes in the Infrastructure Improvements Plan and/or the underlying land use assumptions will not add any new category of necessary public services to any service area.
2. The changes in the Infrastructure Improvements Plan and/or the underlying land use assumptions will not increase the level of service to be provided in any service area.
3. Based on an analysis of the fee report and the town's adopted development impact fee schedules, the changes in the Infrastructure Improvements Plan and/or the underlying land use assumptions would not, individually or cumulatively with other amendments undertaken pursuant to this section, cause a development impact fee in any service area to be increased by more than 5% above the development impact fee that is provided in the current development impact fee schedule.
4. At least 30 days prior to the date that the any amendment pursuant to this section is adopted, the town shall post the proposed amendments on the town website.
(2) Amendments to the fees. Any adoption or amendment of a fee report and fee schedule shall occur according to the following schedule:
(a) The public hearing on the fees must be held at least 30 days after the approval of the Infrastructure Improvements Plan as provided in division (1) above. The town must give at least 30 days notice prior to the hearing, provided that this notice may be given on the same day as the approval of the Infrastructure Improvements Plan.
(b) The town shall make the proposed fees available to the public on the town's website 30 days prior to the public hearing described in division (2)(a) above.
(c) The amended fees may be adopted by the town no sooner than 30 days, and no later than 60 days, after the hearing described in division (2)(a) above.
(d) The development fee schedules adopted pursuant to this section shall become effective 75 days after adoption by the town.
(J) Required updates.
(1) Revising the Infrastructure Improvements Plan. Except as provided in division (2) below, not later than every five years the town shall update the applicable land use assumptions. Infrastructure Improvements Plan and fee report related to each category of necessary public services pursuant to the procedures outlined in division (I). Such five-year period shall be calculated from the date of the adoption of the Infrastructure Improvements Plan.
(2) Determination of no changes. Notwithstanding division (1) above, if the town determines that no changes to an Infrastructure Improvements Plan, underlying land use assumptions, or fee report are needed, the town may elect to continue the existing Infrastructure Improvements Plan and fee report without amendment by providing notice as follows:
(a) Notice of the determination shall be published at least 180 days prior to the end of the five-year period described in division (J)(1) of this section.
(b) The notice shall identify the Infrastructure Improvements Plan and fee report that shall continue in force without amendment.
(c) The notice shall provide a map and description of the service area(s) covered by the Infrastructure Improvements Plan and fee report.
(d) The notice shall identify an address to which any resident of the town may submit, within 60 days, a written request that the town update the Infrastructure Improvements Plan, underlying land use assumptions, and/or fee report and the reasons and basis for the request. The town shall consider and respond within 30 days to any timely requests submitted.
(K) Assessment and collection.
(1) Assessment. Development impact fees shall be assessed on new development according to the provisions of this section and the following fee schedules.
(a) Non-utility fee schedule. Road, park, fire, and police development impact fees shall be assessed according to the following fee schedule. These fees apply town-wide. Residential land uses shall be assessed per dwelling unit. Nonresidential land uses shall be assessed per 1,000 square feet of gross floor area.
Type
|
Police
|
Fire
|
Parks
|
Roads
|
Single-family | $754 | $955 | $1,934 | $2,250 |
Multi-family | $560 | $710 | $1,437 | $1,560 |
Commercial/retail | $1,465 | $694 | $148 | $3,900 |
Industrial | $292 | $482 | $102 | $850 |
Office/other service | $292 | $880 | $187 | $1,680 |
(b) Utility fee schedule. Water and wastewater development impact fees shall be assessed according to the following fee schedule. Water and wastewater fees apply only to customers of the town's water and wastewater systems located in the water and wastewater service areas. Water and wastewater fees shall not be assessed on property located within the North Florence Improvement District. Water and wastewater fees are based on the size and type of the water meter. For wastewater customers that are not also water customers, the wastewater fee shall be based on the water meter size and type that is appropriate for the customer, as determined by the Town Engineer.
Meter Size | Type | Water | Wastewater |
Meter Size | Type | Water | Wastewater |
.625 | Displacement* | $1,065 | $2,400 |
.750 | Displacement | $1,597 | $3,600 |
1.000 | Displacement | $2,662 | $6,001 |
1.500 | Displacement | $5,324 | $12,002 |
2.000 | Displacement | $8,518 | $19,202 |
3.000 | Displacement | $17,037 | $38,405 |
3.000 | Compound | $17,037 | $38,405 |
3.000 | Turbine | $18,635 | $42,005 |
4.000 | Compound | $26,621 | $60,008 |
4.000 | Turbine | $33,543 | $75,610 |
6.000 | Compound | $53,243 | $120,015 |
6.000 | Turbine | $69,216 | $156,020 |
8.000 | Compound | $85,189 | $192,025 |
8.000 | Turbine | $149,082 | $336,043 |
10.000 | Turbine | $223,623 | $504,065 |
12.000 | Turbine | $282,191 | $636,082 |
*applicable rate for single-family customers | |||
(2) Collection. Development impact fees, together with administrative charges assessed pursuant to division (K)(2)(e) below, shall be calculated and collected prior to issuance of permission to commence development; specifically:
(a) Unless otherwise specified pursuant to a development agreement adopted pursuant to this section, development impact fees shall be paid prior to issuance of a building permit according to the current development impact fee schedule for the applicable service area(s) as adopted pursuant to this section, or according to any other development impact fee schedule as authorized in division (K)(4).
(b) If a building permit is not required for the development, but water or wastewater connections are required, any and all development impact fees due shall be paid at the time the water service connection is purchased. If only a wastewater connection is required, the development impact fees shall be paid prior to approval of a connection to the sewer system.
(c) No building permit, water or sewer connection, or certificate of occupancy shall be issued if a development impact fee is not paid as directed in the previous paragraphs.
(d) If the building permit is for a change in the type of building use, an increase in square footage, a change to land use, or an addition to a residential or nonresidential point of demand to the water or wastewater system, the development impact fee shall be assessed on the additional service units resulting from the expansion or change, and following the development impact fee schedule applicable to any new use type.
(e) For issued permits that expire or are voided, development impact fees and administrative charges shall be as follows:
1. If the original permittee is seeking to renew an expired or voided permit, and the development impact fees paid for the development have not been refunded, then the permittee shall pay the difference between any development impact fees paid at the time the permit was issued and those in the fee schedule at the time the permit is reissued or renewed.
2. If a new or renewed permit for the same development is being sought by someone other than the original permittee, the new permit applicant shall pay the full development impact fees specified in the fee schedule in effect at the time that the permits are reissued or renewed. If the original permittee has assigned its rights under the permits to the new permit applicant, the new permit applicant shall pay development impact fees as if it were the original permittee.
(3) Exemptions. Development impact fees shall not be owed under either of the following conditions:
(a) Development impact fees have been paid for the development and the permit(s) which triggered the collection of the development impact fees have not expired or been voided.
(b) The approvals that trigger the collection of development impact fees involve modifications to existing development that do not result in an increase in the number of service units.
(4) Temporary exemption from fee increases. New developments in the town shall be temporarily exempt from increases in development impact fees that result from the adoption of new or modified development impact fee schedules, as follows.
(a) Single-family uses. On or after the day that the first building permit is issued for a single-family residential development, the town shall, at the permittee's request, provide the permittee with an applicable development impact fee schedule that shall be in force for a period of 24 months beginning on the day that the first building permit is issued, and which shall expire at the end of the first business day of the 25th month thereafter. During the effective period of the applicable development impact fee schedule, any building permit issued for the same single-family residential development shall not be subject to any new or modified development impact fee schedule.
(b) Nonresidential and multi-family uses. On or after the day of approval of a site plan, or if no site plan is required for the development the approval of the final subdivision plat, for a nonresidential or multi-family development, the town shall, at the permitee's request. provide the permittee with an applicable development impact fee schedule that shall be in force for a period of 24 months beginning on the day that final development approval of a site plan or final subdivision plat is given, and which shall expire at the end of the first business day of the 25th month thereafter. During the effective period of the applicable development impact fee schedule, any building permit issued for the same development shall not be subject to any new or modified development impact fee schedule.
(c) Changes to site plans and subdivision plats. Notwithstanding the other requirements of this section, if changes are made to a development's final site plan or subdivision plat that will increase the number of service units after the issuance of a grandfathered development impact fee schedule, the town may assess any new or modified development impact fees against the additional service units.
(d) Fee reductions provided. If the town reduces the amount of an applicable development impact fee during the period that a grandfathered development impact fee schedule is in force, the town shall assess the lower development impact fee.
(L) Credits and credit agreements.
(1) Eligibility of capital facility. All development impact fee credits must meet the following requirements.
(a) One of the following is true:
1. The capital facility, or the financial contribution toward the capital facility, that will be provided by the developer and for which a credit will be issued must be identified in an adopted Infrastructure Improvements Plan and fee report as a capital facility for which a development impact fee was assessed: or
2. The applicant must demonstrate to the satisfaction of the town that, given the class and type of improvement, the subject capital facility should have been included in the Infrastructure Improvements Plan in lieu of a different capital facility that was included in the Infrastructure Improvements Plan and for which a development impact fee was assessed. If the subject capital facility is determined to be eligible for a credit in this manner, the town shall amend the Infrastructure Improvements Plan to (i) include the subject replacement facility and (ii) delete the capital facility that will be replaced.
(b) The subject development is located within the service area of the eligible capital facility.
(c) Credits shall not be available for any infrastructure provided by a developer if the cost of the infrastructure will be repaid to the developer by the town through another agreement or mechanism. To the extent that the developer will be paid or reimbursed by the town or an improvement district for any contribution, payment, construction, or dedication from any town funding source, any credits claimed by the developer shall be reduced by any amounts to be paid or reimbursed by the town or improvement district.
(2) Calculation of credits. Credit amounts will be based on that portion of the costs for an eligible capital facility identified in the adopted Infrastructure Improvements Plan for which a development fee was assessed pursuant to the fee report. If the gross impact fee for a particular category of necessary public service is adopted at an amount lower than the net cost per service unit, the amount of any credit shall be reduced in proportion to the difference between the net cost per service unit and the gross impact fee adopted. A credit shall not exceed the actual costs the applicant incurred in providing the eligible capital facility. The amount of the credit shall be determined by the Town Engineer.
(3) Application of credits. Unless otherwise provided in a development agreement, credits shall be applied to reduce the amount of the development impact fees otherwise due for the subject development. Credits shall be applied on a first-come, first-served basis until the amount of the credit has been exhausted or the subject development has been completed. Credits shall not be transferable to another development.
(4) Effective date of credits. Unless otherwise provided in a development agreement, credits shall become effective when the amount of the credit has been determined by the Town Engineer and the improvement, dedication or financial contribution has been accepted by the town. Prior to credits becoming effective, development impact fees for the subject development shall be due and payable in full, but shall be refunded to the fee paver in whole or part, as applicable, after the credits become effective.
(5) Issuance of credits. Credits may be issued and applied toward the gross impact fees due from a development, subject to the following conditions.
(a) Credits issued for an eligible capital facility may only be applied to the development impact fee due for the applicable category of necessary public services, and may not be applied to any fee due for another category of necessary public services.
(b) Credits, once issued, may not be rescinded or reallocated to another permit or parcel, except that credits may be released for reuse on the same subject development if a building permit for which the credits were issued has expired or been voided and is otherwise eligible for a refund under this section.
(6) Life of credits. Unless otherwise provided in a development agreement, credits must be used within ten years from their effective date.
(M) Development agreements. Development agreements containing provisions regarding development impact fees, development impact fee credits, and/or disbursement of revenues from development impact fee accounts shall comply with the following provisions.
(1) Development agreement required. A development agreement is required to authorize any of the following:
(a) To issue credits prior to the town's acceptance of an eligible capital facility, provided that the development agreement specifically states the form and value of the security (i.e. bond, letter of credit, and the like) to be provided to the town prior to issuance of any credits. The town shall determine the acceptable form and value of the security to be provided.
(b) To transfer credits to a parcel that is within the same service area but outside the subject development.
(c) To reimburse the developer of an eligible capital facility using funds from development impact fee accounts. Funds reimbursed to developers from impact fee accounts for construction of an eligible capital facility must be utilized in accordance with applicable law for the use of town funds in construction or acquisition of capital facilities, including A.R.S. §§ 34-201 et seq.
(d) To allocate different credit amounts within a subject development in a manner other than first-come, first-served.
(e) To allow development impact fees for a single-family residential development to be paid at a later time than the issuance of a building permit, provided that a development impact fee may not be paid later than the 15 days after the issuance of the certificate of occupancy for that dwelling unit. The development agreement shall provide for the value of any deferred development impact fees to be supported by appropriate security, including a surety bond, letter of credit, or cash bond.
(f) To waive development impact fees. If the town agrees to waive any development impact fees assessed on development in a development agreement, the town shall reimburse the appropriate development impact fee account for the amount that was waived.
(g) To allow the use of credits to extend beyond ten years of their effective date.
(2) General requirements. All development agreements shall be prepared and executed in accordance with A.R.S. § 9-500.05 and any applicable requirements of the Town Code.
(3) No obligation. Nothing in this section obligates the town to enter into any development agreement or to authorize any type of credit arrangement permitted by this section.
(N) Appeals. A development impact fee determination by town staff may be appealed in accordance with the following procedures:
(1) Limited scope. An appeal shall be limited to disputes regarding the appropriate land use category or other matters relating to the determination of the number of new service units for a specific development, or the amount of a credit.
(2) Form of appeal. An appeal shall be initiated on such written form as the town may prescribe, setting forth, with particularity, the basis of the protest, the development impact fees involved and the relief requested. The appeal shall be filed within 30 days after the determination was made, in writing and prior to paving the development impact fees.
(3) Decision. The Town Manager shall approve or deny the protest, in whole or in part, within 60 days after its submittal to the town. The Town Manager's determination shall be provided in writing to the property owner and the Town Council and shall be final unless, within 30 days after the Town Manager's determination, a majority of the Town Council votes to hold a public hearing on the appeal. In such case, the Town Council shall hold a public hearing and shall make a determination within 30 days after the public hearing. The decision of the Town Council shall be based on the applicable provisions of this section, and shall be final.
(4) Fees during pendency. Building permits may be issued during the pendency of an appeal if the applicant (a) pays the full impact fee calculated by the town at the time the appeal is filed or (b) provides the town with financial assurances in the form acceptable to the Town Manager or authorized designee equal to the full amount of the impact fee. Upon final disposition of an appeal, the fee shall be adjusted in accordance with the decision rendered, and a refund paid if warranted. If the appeal is denied by the Town Council, and the applicant has provided the town with financial assurances, the applicant shall deliver the full amount of the impact fee to the town within ten days of the final decision on the appeal. If the applicant fails to deliver the full amount of the impact fees when required by this section, the town may draw upon such financial assurance instrument(s) as necessary to recover the full amount of the impact fees due from the applicant.
(O) Refunds.
(1) Generally. A refund (or partial refund) will be paid to any current owner of property within the town who submits a written request to the town and demonstrates that one of the following applies.
(a) The permit(s) that triggered the collection of the development impact fee have expired or been voided prior to the commencement of the development for which the permits were issued and the development impact fees collected have not been expended, encumbered, or pledged for the repayment of financing or debt; or
(b) The owner of the subject real property or its predecessor in interest paid a development impact fee for the applicable capital facility on or after August 1, 2014, and one of the following conditions exists:
1. The capital facility designed to serve the subject real property has been constructed, has the capacity to serve the subject real property and any development for which there is reserved capacity, and the service which was to be provided by that capital facility has not been provided to the subject real property from that capital facility or from any other infrastructure.
2. After collecting the fee to construct a capital facility the town fails to complete construction of the capital facility within the time period identified in the infrastructure improvements plan, as it may be amended, and the corresponding service is otherwise unavailable to the subject real property from that capital facility or any other infrastructure.
3. For a category of necessary public services other than water or wastewater facilities, any part of a development impact fee is not spent within ten years of the town's receipt of the development impact fee.
4. Any part of a development impact fee for water or wastewater facilities is not spent within 15 years of the town's receipt of the development impact fee.
5. The development impact fee was calculated and collected for the construction cost to provide all or a portion of a specific capital facility serving the subject real property and the actual construction costs for the capital facility are less than the construction costs projected in the infrastructure improvements plan by a factor of 10% or more. In this event, the current owner of the subject real property shall, upon request, be entitled to a refund for the difference between the amounts of the development impact fee charged for and attributable to the construction cost and the amount the development impact fee would have been calculated to be if the actual construction cost had been included in the fee report. The refund contemplated by this section shall relate only to the costs specific to the construction of the applicable capital facility and shall not include any related design, administrative, or other costs not directly incurred for construction of the capital facility that are included in the development impact fee as permitted by A.R.S. § 9-463.05.
(2) Earned interest. A refund of a development impact fee shall include any interest actually earned on the refunded portion of the development impact fee by the town from the date of collection to the date of refund. All refunds shall be made to the record owner of the property at the time the refund is paid.
(3) Refund to government. If a development impact fee was paid by a governmental entity, any refund shall be paid to that governmental entity.
(P) Oversight.
(1) Annual report. Within 90 days of the end of each fiscal year, the town shall file with the Town Clerk an unaudited annual report accounting for the collection and use of the fees for each service area and shall post the report on its website in accordance with A.R.S. § 9-463.05(N) and (O), as amended.
(2) Biennial audit. In addition to the annual report described in division (1) above, the town shall provide for a biennial, certified audit of the town's land use assumptions, Infrastructure Improvements Plan and development impact fees.
(a) An audit pursuant to this section shall be conducted by one or more qualified professionals who are not employees or officials of the town and who did not prepare the Infrastructure Improvements Plan.
(b) The audit shall review the collection and expenditures of development fees for each project in the plan and provide written comments describing the amount of development impact fees assessed, collected, and spent on capital facilities.
(c) The audit shall describe the level of service in each service area, and evaluate any inequities in implementing the Infrastructure Improvements Plan or imposing the development impact fee.
(d) The town shall post the findings of the audit on the town's website and shall conduct a public hearing on the audit within 60 days of the release of the audit to the public.
(e) For purposes of this section a certified audit shall mean any audit authenticated by one or more of the qualified professionals conducting the audit.
(Ord. 598-13, passed 9-16-2013; Ord. 672-19, passed 5-6-2019)