Section
157-01 Development fees; purpose and intent, definitions, land use assumptions, Infrastructure Improvements Plan, and fee study; applicability
157-02 Procedures for imposition, calculation, credits, and collection of development fees; waivers
157-03 Establishment of development fee accounts; appropriation of development fee funds; and refunds
157-04 Appeals
157-05 Annual report, amendments, Infrastructure Improvements Plan updates
157-06 Parks and recreation facilities development fee
157-07 [Repealed]
157-08 [Repealed]
157-09 Police facilities development fee
157-10 Fire facilities development fee
157-11 General government facilities development fee
157-12 [Repealed]
157-13 Streets facilities development fee
157-99 Penalty
(A) Purpose and intent. The purpose and intent of these development fee procedures are:
(1) To establish uniform procedures for the imposition, calculation, collection, expenditure and administration of development fees imposed on new development;
(2) To ensure that new development contributes only its proportionate share towards the costs of public facilities reasonably necessitated by such new development;
(3) To ensure that new development receives a beneficial use from the expenditure of development fees on necessary public services included in the infrastructure improvements plan;
(4) To ensure that all applicable legal standards and criteria are incorporated into these procedures; and
(5) To ensure that all applicable procedures and requirements of A.R.S. § 9-463.05, as amended, have been met.
(B) Definitions. Except as otherwise indicated herein, the words or phrases used in this chapter have the meaning prescribed in Chapter 157 of the City Code.
APPLICANT. Any person who files an application for a construction permit with the City of Yuma.
APPROPRIATE or TO APPROPRIATE. An action by the City Council to identify, through the Infrastructure Improvements Plan, specific public facilities for which development fee funds may be utilized. Appropriation includes execution of a contract or other legal encumbrance authorized by the City Council for construction of a public facility using development fee funds in whole or in part; and/or actual expenditure of development fee funds through payments made from a development fee account.
BIENNIAL CERTIFIED AUDIT.
(a) An audit, conducted by one or more qualified professionals who are not employees or officials of the City of Yuma and who did not prepare the infrastructure improvements plan, that reviews the City of Yuma's:
1. Land use assumptions, including determining whether the land use assumptions conform with the City of Yuma's general plan;
2. The progress of the infrastructure improvements plan, including the collection and expenditures of development fees for each project in the plan;
3. Development fees, including evaluating any inequities in implementing the infrastructure improvements plan or imposing the development fee.
(b) BIENNIAL CERTIFIED AUDIT shall not mean an audit conducted pursuant to A.R.S. § 9-481 or require certification by a certified or licensed public accountant.
CITY. The City of Yuma, Arizona.
CITY ADMINISTRATOR. The City Administrator of the City or the City Administrator's designee.
CITY CODE. Yuma City Code.
CITY COUNCIL. The governing body of the City.
CONSTRUCTION PERMIT. An approval by the City to undertake any new development, including but not limited to a building permit, plumbing permit, mechanical permit, electrical permit, encroachment permit or certificate of occupancy.
COORDINATOR. The Development Fee Coordinator designated by the City Administrator.
CREDIT. A reduction of certain required development fees in exchange for the dedication of public facility sites and improvements included in the Infrastructure Improvements Plan, for which the development fee is assessed.
DEDICATION. The actual conveyance date or the date an improvement, facility or real or personal property is placed into service, whichever occurs first.
DEVELOPMENT AGREEMENT. An agreement between the City and an applicant or other party enacted in accordance with A.R.S. § 9-500.05.
DEVELOPMENT FEE. A fee adopted pursuant to A.R.S. § 9-463.05 which is imposed on new development on a proportionate share basis in connection with and as a condition of the issuance of
a construction permit and which is calculated to defray all or a portion of the costs of the public facilities required to accommodate new development at City-designated level of service (LOS) standards, and the expenditure of which provides a beneficial use to new development.
DEVELOPMENT FEE STUDY or FEE STUDY. A report titled "Development Fees" dated January 4, 2012 prepared pursuant to A.R.S. § 9-463.05, which sets forth the proportionate share development fees necessary to offset new development's demand for necessary public services and facility expansions.
EXEMPT DEVELOPMENT. The construction, reconstruction, conversion, structural alteration, relocation or enlargement of any structure that does not add or increase the number of service units.
FACILITY EXPANSION. The expansion of the capacity of an existing facility that serves the same function as the otherwise new necessary public service in order that the existing facility may serve new development. FACILITY EXPANSION does not include the repair, maintenance, modernization or expansion of an existing facility to better serve existing development.
FINAL APPROVAL. For a non-residential or multifamily development, the approval of a site plan or, if no site plan is submitted for the development, the approval of a final subdivision plat. For a single-family residential development, the approval of a final subdivision plat.
GENERAL PLAN. The General Plan of the City of Yuma.
INFRASTRUCTURE IMPROVEMENTS PLAN. A written plan that identities each necessary public service or facility expansion that is proposed to be the subject of a development fee and otherwise complies with the requirements of A.R.S. § 9-463.05.
LAND USE ASSUMPTIONS. A written projection of changes in land uses, densities, intensities and population for a specified service area over a period of at least ten years and pursuant to the City of Yuma General Plan.
NECESSARY PUBLIC SERVICE. Any of the following, subject to all limitations and exceptions contained in A.R.S. § 9-463.05, that has a life expectancy of three or more years and is owned and operated by or on behalf of the City: street facilities; fire and police facilities; general government facilities; and parks and recreational facilities.
NEW DEVELOPMENT. The subdivision of land; the construction, reconstruction, change of use, conversion, structural alteration, relocation or enlargement of any structure that adds or increases the number of service units; or any use or extension of the use of land that increases the number of service units.
NON-RESIDENTIAL. Any use or development that is not a residential use.
PUBLIC FACILITY. Capital facilities associated with a necessary public service or facility expansion and included in the City's Infrastructure Improvements Plan, which are necessary to accommodate new development, including land, land improvements, buildings, and vehicles. PUBLIC FACILITIES include, but are not limited to, parks and recreation facilities, fire facilities, police facilities, street facilities, and general governmental facilities. PUBLIC FACILITIES do not include site-necessitated capital facilities.
PUBLIC FACILITY EXPENDITURES. Amounts appropriated in connection with the planning, implementation, design, engineering, and construction of public facilities; including planning, legal, appraisal, and other costs related to the acquisition of land, financing, and development costs; the costs of compliance with purchasing procedures and applicable administrative and legal requirements; and all other costs necessarily incident to provision of public facilities, including updates to the land use assumptions, Infrastructure Improvements Plan, and fee study. PUBLIC FACILITY EXPENDITURES do not include costs associated with operation, repair, maintenance, personnel or administrative expenses, upgrades necessary to meet stricter regulatory standards, upgrades to enhance LOS standards associated with public facilities, or financing costs not attributable to the portion of bonds or debt used to finance facilities in the Infrastructure Improvements Plan.
RESIDENTIAL. Any use or development that includes or results in the creation of a dwelling unit.
SERVICE AREA. Areas within the boundaries of the City specified by this chapter, in which new development will be served by necessary public services or facility expansions and within which a substantial nexus exists between the necessary public services or facility expansions and the development being served as prescribed in the Infrastructure Improvements Plan.
SERVICE UNITS. A standardized measure of consumption, use, generation or discharge attributable to an individual unit of residential or non-residential development, calculated pursuant to generally accepted engineering or planning standards for a particular category of necessary public services or facility expansions.
SITE-NECESSITATED CAPITAL FACILITY. A public improvement, whether on- or off-site, that is not included in the City's Infrastructure Improvements Plan and that is necessary to offset impacts attributable to a particular development; including but not limited to, direct access improvements, rum lanes, median openings, and frontage roads.
WAIVER. A partial or full reduction of development fees that meets specific criteria for the
application, has been approved by City Council and an alternative funding source other than development fees has been provided.
(C) Incorporation of the land use assumptions, Infrastructure Improvements Plan, and fee study. The City Council has reviewed and accepted, and incorporates into this chapter by reference, the land use assumptions, Infrastructure Improvements Plan, and fee study, which, among other things:
(1) Estimates the public facility capacity required as a result of new development in each service area including parks and recreation facilities, fire facilities, police-facilities, general government facilities, and streets facilities;
(2) Forecasts the costs of infrastructure, improvements, real property, financing, and other costs associated with meeting those future needs;
(3) Forecasts the revenue sources that will be available to fund the public facilities necessitated by new development;
(4) Establishes a proportionate share development fee by service area and service unit to offset new development's demand for additional public facility capacity and facility expansions; and
(5) Includes a map of the service areas.
(D) General provisions; applicability.
(1) Term. This chapter and the procedures established herein are in effect unless and until repealed, amended or modified by the City Council, in accordance with applicable state law and the City Code, ordinances, and resolutions.
(2) Affected area.
(c) Change in boundaries of the City. In the event of annexation of unincorporated county land by the City, the annexed area will be included in a particular service area based on the land use assumptions and Infrastructure Improvements Plan's methodology.
(4) Type of development not affected. This chapter does not apply to:
(a) Previously-issued construction permits and previously paid development fees. No development fee is to be imposed on new development for which a construction permit was issued prior to the original effective date of this chapter or for which development fees were paid pursuant to a prior construction permit after the original effective date.
(b) Exempt development.
1. No net increase in dwelling units. No development fee is imposed on any new residential development that does not result in the creation of a new dwelling unit, unless said new development increases the demand for public facilities for which development fees are being imposed.
2. No net increase in non-residential square footage. No development fee is imposed on non-residential new development that does not result in the creation of new square footage, unless said new development increases the demand for public facilities for which development fees are being imposed.
3. Other uses. No development fee is imposed on a use, development, project, structure, building, fence, sign or other activity, whether or not a construction permit is required, which does not result in an increase in the demand for public facilities.
(c) Development agreements. No development fee, for a particular public facility category, is imposed on development projects that are the subject of an existing development agreement, executed pursuant to A.R.S. § 9-500.05, containing provisions in conflict with this chapter, but only to the extent of the conflict or inconsistency.
(d) Development by school districts or charter schools. Pursuant to A.R.S. § 9-500.18, no development fee, other than a transportation development fee, is collected from a State of Arizona school district or a charter school; provided, however, that the City may seek to negotiate the construction of public facilities or the provision of services, or to negotiate the payment of development fees, pursuant to a development agreement or intergovernmental agreement with such entities.
(5) Effect of payment of development fees on other applicable City regulations.
(a) The payment of development fees does not entitle the applicant to a construction permit unless all applicable land use, zoning, planning, platting, subdivision, and other related requirements, standards, and conditions have been met. Such other requirements, standards, and conditions are independent of the requirement for payment of development fees.
(b) Neither this chapter nor the specific development fee ordinances for particular public facilities affect, in any manner, the permissible use of property, density/intensity of development, design and improvement standards or other applicable standards or requirements of the City Code, which remain operative and in full force and effect without limitation.
(6) Effect of imposition of development fees in a community facilities district. In calculating and imposing a development fee applicable to land in a community facilities district established under A.R.S., Title 48, Chapter 4, Article 6, the City will take into account all public infrastructure provided by the district and capital costs paid by the district for necessary public services and will not assess a portion of a development fee that would result in duplicate costs imposed by the district on new development.
(Ord. 02005-74, passed 9-7-05; Ord. 02010-14, passed 3-3-10; Ord. O2012-10, passed 5-2-12; Ord. O2014-38, passed 12-17-14; Ord. O2017- 029, passed 9-6-17)
(A) In general. The City will notify an applicant of applicable development fee requirements at the time of application for a construction permit. The City calculates development fees at the time of application for a construction permit and the applicant must pay the fees due at the time of and prior to the issuance of a construction permit.
(B) Calculation.
(1) Upon receipt of an application for a construction permit, the City determines:
(a) Whether the proposed use is a residential or non-residential use;
(b) The specific category of residential or non-residential development, if applicable;
(c) The number of new service units, if for a residential use, in dwelling units, and, if for a non-residential use, in new or additional square feet of gross floor area; and
(d) The service area in which the new development is located.
(2) Upon receipt of an application for a construction permit, the City determines whether the development proposed involves a change in use. In such cases, the development fee due is based on only the incremental increase in the fee for the additional public facilities needed for the change in use.
(3) After making these determinations, the City calculates the demand for the public facility created by the proposed new development for each public facility category for which a development fee is being imposed, and calculates the applicable development fee by multiplying the service units proposed by the amount of the applicable development fee per service unit, incorporating any applicable credit.
(4) If the type of land use proposed for new development is not expressly listed in the particular development fee ordinance, the Coordinator:
(a) Identifies the most similar land use type listed and calculates the development fee based on the development fee for the land use identified;
(b) Identifies the broader land use category within which the proposed land use would apply and calculates the development fee based on the development fee for that land use category; or
(c) Determines the basis used to calculate the fee pursuant to an independent impact analysis as provided for below.
In the event that the Coordinator is required to determine the proper classification of a proposed new development pursuant to subsections (a) or (b) above, the Coordinator's determination must be based on a generally-accepted land use classification system (e.g., the North American Industry Classification System, the Land-Based Classification Standards (APA), and/or ITE's Trip Generation Manual) and consistent with the land use assumptions, Infrastructure Improvements Plan, and fee study.
(5) In the event an applicant believes that the impact to public facilities necessitated by new development is less than the development fee imposed in §§ 157-06 through 157-13, the applicant may, prior to issuance of a construction permit, request that the City have prepared an independent impact analysis based on the proposed development to arrive at an alternative development fee calculation.
(a) All costs incurred by the City in the preparation of an independent impact analysis shall be borne by the applicant and no construction permit shall be issued until the independent impact analysis is complete and a determination as to the appropriate fee is made by the Coordinator.
(b) Upon the request of an applicant, the Coordinator shall have prepared an independent impact analysis consistent with the requirements of this section.
(c) The independent impact analysis must be calculated for that land use type analyzed for the applicable service area and based on data, information, or assumptions contained in this chapter, the land use assumptions, Infrastructure Improvements Plan, and fee study, or an independent source, provided that:
1. The independent source is a generally-accepted standard source of demographic and planning data; or
2. The independent source is a local study supported by a database adequate for the conclusion contained in the independent impact analysis and performed pursuant to a generally-accepted methodology.
(d) If a previous applicant has submitted a local study consistent with the criteria for an independent impact analysis, and if such study is determined by the Coordinator to be current, the impact upon the public facilities as described in such prior local study shall be presumed to exist for a similar land use proposed by a subsequent applicant. There shall be a rebuttable presumption that an independent impact analysis conducted more than three years earlier is invalid.
(e) If the Coordinator determines that the independent impact analysis complies with the requirements of this section and the alternative development fee is less than the fees set forth in §§ 157-06 through 157-13, then the alternative fee shall be paid by the applicant. If the alternative development fee is greater than the fees set forth in §§ 157-06 through 157-13, the fees set forth in §§ 157-06 through 157-13 shall be due.
(6) An applicant may request a non-binding estimate of development fees due for a particular new development at any time by filing a request on a form provided for such purpose by the Coordinator; provided, however, that such estimate may be subject to change when a formal application for a construction permit for new development is made. Such non-binding estimate is solely for the benefit of the prospective applicant and in no way binds the City nor precludes it from making amendments or revisions to any provisions of this chapter or the specific development fee implementing ordinances.
(7) The calculation of development fees due from a multiple-use new development is based upon the aggregated demand for each public facility generated by each land use type in the new development.
(8) The calculation of development fees due from a phased new development is based upon the demand generated by each specific land use within each phase of development for which a separate construction permit is requested.
(9) Development fees are calculated based on the development fee amount in effect at the time of application for a construction permit.
(10) No new or modified development fee shall be assessed against a development for 24 months after the date that the City issues the final approval for a commercial, industrial or multifamily development, or the date that the first building permit issued for a residential development pursuant to an approved site plan or subdivision plat, provided that no subsequent changes are made to the approved site plan or subdivision plat that would increase the number of service units. If the number of service units increases, the new or increased portion of a modified development fee shall be limited to the amount attributable only to the additional service units. The 24 month period shall not be extended by a renewal or amendment of the site plan or the final subdivision plat that was the subject of the final approval. If, after the date of the municipality's final approval of a development, the municipality reduces the development fee assessed on development, the reduced fee shall apply to the development.
(11) For applications for a construction permit for a building shell where the actual use of the building is unknown, the development fee shall be calculated based on the lowest intensity land use allowed within the applicable zoning district. At the time the certificate of occupancy is issued and the permanent use is established, the applicant shall be assessed additional fees if the actual use of the property results in a higher fee.
(C) Credits.
(1) Eligibility. Credits against the amount of development fees due for a proposed new development may be given, pursuant to the terms outlined below, either:
(a) By the City Council, pursuant to a development agreement, for dedications of land or actual construction, by a developer of all or part of a public facility necessary to offset the impacts of a new development; or
(b) By the Coordinator, where an applicant demonstrates that excess public facility capacity was provided previously pursuant to subsection (a) above.
(c) Credits against development fees must be given for dedications of public facilities the Infrastructure Improvements Plan that are required by the City, However, any improvement that must be built or dedicated by a developer or applicant that is not on the City's Infrastructure Improvements Plan, but substitutes for or otherwise reduces the need for public facilities in the IIP, shall be eligible for a credit against development fees. In the event the City grants a credit for such an improvement, the City will amend the Infrastructure Improvements Plan to include the subject replacement facility and will make any other amendments to the IIP to ensure consistency with Arizona law.
(2) Credits for dedication or construction. Applications for a credit for the dedication or construction of public facilities must be made on a form provided by the Coordinator for such purposes. The application must be accompanied by a proposed development agreement as provided herein.
(a) Requirements. In order to be eligible for development fee credits, the public facility proposed for dedication or construction must be:
1. Credited only against the same public facility category of development fee as the public facility being proposed for dedication or construction; and
2. Subject to an executed development agreement, as provided herein, prior to the issuance of a construction permit for which a credit is sought.
(b) Procedure.
1. Upon receipt of a complete application and proposed development agreement, the Coordinator, City Attorney, and other appropriate staff must review the application and proposed agreement, as well as such other information and evidence as may be deemed relevant, and the Coordinator must forward to the City Council a report as to whether a credit is proper based on the provisions of this chapter.
2. Based on the report of the Coordinator, the provisions of this chapter, the Infrastructure Improvements Plan, the General Plan, adopted City budget, and the CIP, the City Council must make a final decision to accept, reject, or accept with conditions the proposed dedication or construction and development agreement in exchange for a credit against development fees owed.
(c) Calculation of the value of dedication or construction.
1. The amount of the credit to be given as a result of the dedication or construction of a public facility is to be calculated as the lower of the following:
a. The amount of the development fee due pursuant to this chapter;
b. The costs assumed in the City's Infrastructure Improvements Plan; or
c. The actual verified costs of dedication or construction.
2. If the actual verified costs are used, the credit shall be calculated as follows:
a. Construction of facilities and provision of equipment. The credit must be equal to the actual cost of construction or equipment, as evidenced by receipts and other sufficient documentation provided by the developer of the public facility and verified by the Coordinator.
b. Dedication of land. The credit is to be based on the fair market value of the land as determined by a certified property appraiser hired and paid for by the applicant. If the City rejects the applicant's appraisal, the City may hire and pay for a second appraiser to appraise the property. If either party rejects the second appraisal, a third appraisal may be performed by an appraiser chosen by the first and second appraisers, the costs of which are to be shared equally by the City and the applicant. The third appraisal is binding on both parties. All appraisals must be consistent with generally-accepted appraisal techniques and the date of valuation must be the date of transfer to the City.
(d) Development agreement requirements. No dedication or construction project may be accepted in exchange for a credit except pursuant to an executed development agreement between the City and the provider of the dedication or construction, which must include the following:
1. A schedule for the initiation and completion of the construction of the proposed public facility;
2. The amount of the development fees, by type, proposed to be credited by the City;
3. Where excess capacity is provided:
a. The amount, nature, and location of excess capacity being provided;
b. The eligibility for such excess capacity to be used for credits against development fees owed by subsequent applicants;
c. The amount of such credits and their duration;
d. The geographic area within which such credits would be awarded based on the excess capacity benefit created by the dedication or construction; and
e. The mechanism for transferring the excess credits to properties within the geographic benefit area of the dedication or construction.
4. A provision that all construction will be in accordance with City specifications and all regulations set forth in the City Code; and
5. Such other terms and conditions as deemed necessary by the City.
(e) Transferability. Credits granted pursuant to this section may be transferred from the applicant to property owners within the original development. However, in order to transfer credits from the original development to another development, but within the same service area, an application must be made pursuant to subsection (3) below.
(3) Credits to subsequent applicants. An applicant may be given a credit against a development fee upon demonstration that, after the date of this chapter, a public facility was dedicated or constructed, pursuant to subsection (2) above, which will mitigate the impacts of the proposed new development on the particular public facility for which the dedication or construction was made.
(a) Requirements. In order for a credit to be given pursuant to this section, the applicant must demonstrate that:
1. The public facility provided pursuant to subsection (2) above had sufficient excess capacity to offset the impacts of the applicant's proposed new development;
2. The public facility provided pursuant to subsection (2) above reduced the overall need for public facilities otherwise created by the proposed new development;
3. The proposed new development complies with all conditions of acceptance of the public facility provided pursuant to subsection (2) above, including time and geographic limitations for eligibility;
4. The public facility provided pursuant to subsection (2) above was for the same type of development fee as is being proposed for a credit; and
5. The applicant has secured a right to an allocation of capacity equal to the development fee owed by the applicant.
(b) Procedure.
1. Applications for a credit, based on a previously dedicated or constructed public facility, must be made on a form provided by the Coordinator for such purposes. The application must be accompanied by evidence of a transfer of credit granted pursuant to subsection (2) above.
2. Upon receipt of a complete application, the Coordinator must review the application, as well as such other information and evidence as may be deemed relevant, and determine whether a credit is proper based on the provisions of this chapter, the Infrastructure Improvements Plan, the General Plan, the CIP, and/or other relevant evidence.
3. If the Coordinator determines that a credit is appropriate, the Coordinator shall so indicate on the appropriate form and the credit shall be given upon the calculation and collection of the required development fee at the time of issuance of a construction permit.
(D) Collection. The City collects all applicable development fees at the time of issuance of a construction permit and issues a receipt to the applicant for such payment unless:
(1) The applicant is entitled to a full or partial credit;
(2) The applicant and the City have entered into a development agreement that provides for payment at a later time, but no later than 15 days after issuance of a certificate of occupancy;
(3) The applicant is not otherwise subject to the payment of a development fee; or
(4) The applicant has filed an appeal and a bond or other surety in the amount of the development fee, as calculated by the City and approved by the City Attorney and Finance Director.
(E) Waivers.
(1) Generally. An applicant proposing a development for which development fees are due may be eligible for a partial or full waiver from the requirements of this chapter, only as specifically provided for in this section.
(2) Application for waiver. Applications for waiver shall be filed with the Coordinator on forms provided by the City for such purpose.
(3) Eligibility for waiver. Partial or full waiver from the payment of development fees as required by this chapter may be made only for the following types of uses:
(a) Affordable housing. Defined as projects that meet United States Department of Housing and Urban Development housing affordability guidelines for low and moderate income households.
(b) Redevelopment and infill. Defined as projects that meet redevelopment efforts to combat blight and unsafe conditions and are located within City Council adopted redevelopment plans, in accordance with A.R.S. §§ 36-1471 through 36-1491 or projects that meet infill efforts to encourage development in older, historic, and established areas of the city and are located within the Infill Overlay District.
(4) Review of an application for waiver. Upon receipt of a complete application for waiver, the Coordinator shall review the proposed new development and shall make a recommendation to the City Council as to whether the new development qualifies for a waiver pursuant only to the provisions in subsection (3) above. Based on the recommendation of the Coordinator and the criteria set forth in subsection (3), the City Council shall either grant, grant with conditions, or deny a proposed waiver request.
(5) Notification to appropriate departments and Infrastructure Improvements Advisory Committee. If the City Council determines that the proposed development qualifies for a waiver, the Coordinator shall notify the Finance Director that the waiver has been approved and that a funding source other than development fees shall be used to fund public facilities in accordance with the Infrastructure Improvements Plan. Within 30 days of the waiver approval, the Coordinator shall provide notice to the Infrastructure Improvements Advisory Committee established pursuant to § 157-05(B).
(6) Effect of grant of waiver. If the City Council grants a waiver of development fees otherwise due, the Finance Director shall transmit funds equal in amount to those waived, from a source other than development fees, into the appropriate development fee account within one year of the grant of the waiver. The City shall not increase the amount of development fees payable under this chapter to replace any revenue lost on account of the waivers granted.
(Ord. 02005-74, passed 9-7-05; Ord. 02010-14, passed 3-3-10; Ord. 2012- 10, passed 5-2-12; Ord. O2017-029, passed 9-6-17)
(A) Development fee accounts. The City must establish and maintain a separate development fee account for each category of public facility for which a development fee is imposed. Each such account must be clearly identified as to the category of public facility for which the development fee has been imposed. Subaccounts must be established for individual service areas, as applicable. The City must deposit all development fees collected into the appropriate development fee account or subaccount, which must be interest bearing. All interest earned on monies deposited to such account must be credited to and considered funds of the account. The funds of each such account must be capable of being accounted for separately from all other City funds. The City must 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.
(B) Appropriation of development fee funds.
(1) In general. Development fee funds, including accrued interest, may be appropriated only for public facilities, public facility expenditures, and for the payment of principal, interest, and other financing costs on contracts, bonds, notes, or other obligations issued by the City to finance public facilities that provide a beneficial use to new development. Development fee funds may be appropriated only for project improvements on the City's Infrastructure Improvements Plan in accordance with §§ 157-06 through 157-13. All appropriations from development fee accounts must be detailed on a form provided for such purpose and filed with the Finance Department. Development Fees shall be deemed to be appropriated in the order in which they are received by the City.
(2) Development fees may be appropriated only:
(a) For the category of public facility for which they were imposed, calculated, and collected; and
(b) Within the service area where collected.
(3) Development fees collected for a purpose other than as authorized by SB 1525 (2011), shall be used for the purpose for which they were collected on or before January 1, 2020, after which, if not spent, shall be distributed equally among the categories of necessary public services authorized by SB 1525 (2011).
(4) Restrictions on appropriations. Development fees may not be appropriated for:
(a) Maintenance or repair of public facilities;
(b) Operational, administrative, or personnel expenses associated with the provision of public facilities;
(c) Upgrading, updating, expanding, correcting, or replacing existing public facilities in order solely to meet stricter safety, efficiency, environmental or regulatory standards; or
(d) Upgrading, updating, expanding, correcting, or replacing existing public facilities in order to provide a higher level of service to existing development.
(C) Procedure for appropriation of development fee funds.
(1) The City must maintain an Infrastructure Improvements Plan for each public facility for which development fees are collected, which program identifies public facility projects necessitated by new development. The Infrastructure Improvements Plan represents the City Council's plan for providing public facilities in a manner consistent with the General Plan and the Council's ability to provide public facilities in an efficient and fiscally-responsible manner. Based on the annual report prepared by the Coordinator, the Infrastructure Improvements Plan must identify the source of funding for each planned improvement and identify the portion of each planned public facility attributable to and that will provide a beneficial use to new development. The Infrastructure Improvements Plan must include improvements sufficient to provide public facilities to new development at the level of service set forth in the Infrastructure Improvements Plan.
(2) Each year the City must identify public facility projects anticipated to be funded in whole or in part with development fees in the coming fiscal year.
(3) The recommendations must be consistent with the provisions of this chapter, the Infrastructure Improvements Plan, the City's Capital Improvement Program, the particular public facility development fee ordinance, A.R.S. § 9-463.05, other applicable legal requirements, and any guidelines adopted by the City Council.
(4) The City Council may authorize public facilities funded by development fees at such other times as it deems necessary and appropriate by a majority vote of the City Council in order to comply with the requirements of law.
(5) The City Council must verify that adequate development fee funds are or will be available from the appropriate development fee accounts at the time of appropriation in order to assure a beneficial use to new development.
(D) Refunds.
(1) Eligibility.
(a) Expiration or revocation of construction permit. An applicant who has paid a development fee for a new development for which the necessary construction permit has expired, or for which the construction permit has been revoked prior to construction, is eligible to apply for a refund of development fees, on a form provided by the City for such purpose.
(b) Failure of City to appropriate development fee funds within time limit. For fees paid after July 31, 2014, a current real property owner may apply for a refund of development fees paid by an applicant if the City has failed to appropriate the development fees collected from the applicant within the time limit identified in the Infrastructure Improvements Plan, but in no event longer than ten years from payment of the fees. The refund application is made in writing on a form provided by the City for such purpose.
(c) Failure to provide service. For fees paid after July 31, 2014, a current real property owner may apply for a refund of development fees paid by an applicant if the City has failed to provide immediate service from any existing facility with available capacity if the available capacity has not been reserved or pledged in connection with the construction or financing of the facility.
(d) Partial refund for actual cost savings. If the development fee was collected for the construction of all or a portion of a specific public facility expenditure, and on completion of the facility, the City determines that the actual cost of construction was less than the forecasted cost of construction on which the development fee was based and the difference between the actual and the forecasted cost is greater than 10%, the current owner may apply for and receive a refund of the portion of the development fee equal to the difference between the development fee paid and the development fee that would, have been due if the development fee had been calculated at the actual construction cost.
(e) Abandonment of development after initiation of construction. An applicant, who has paid a development fee for a new development for which a construction permit has been issued, but for which construction is not begun or is abandoned prior to completion, is eligible for a refund if no construction began or any uncompleted building is demolished.
(2) To whom. Notwithstanding any hypothecation, assignment or reservation of rights by the applicant to the contrary, except as provided in subsections (l)(a) and (e) above, the City shall make refunds only to the current owner of real property for which the development fee was paid.
(3) Processing of applications for a refund. Applications for a refund are made on a form provided by the City for such purposes. Upon receipt of a complete application for a refund, the City must review the application and documentary evidence submitted by the applicant, as well as such other information and evidence as may be deemed necessary, and make a determination as to whether a refund is due.
(4) Application requirements - due to expiration, revocation, or abandonment. Applications for refunds due to expiration, revocation, or abandonment of a new development prior to completion must be made within 180 days following expiration or revocation of the construction permit. The applicant must submit the following:
(a) Evidence that the applicant paid the development fee for which a refund is sought, or is the duly designated agent of said person;
(b) The amount of the development fees paid by public facility category and receipts evidencing such payments; and
(c) Documentation evidencing the expiration or revocation of the construction permit or approval of demolition of the structure pursuant to a valid City-issued demolition permit.
Failure to apply for a refund within 180 days following expiration or revocation of the construction permit or demolition of the structure constitutes a waiver of entitlement to a refund. The City will not pay interest on refunds made due to abandonment or construction permit expiration or revocation.
(5) Application requirements - due to timeliness. Applications for refunds due to the failure of the City to provide service or appropriate development fees within the time limits established herein are made on forms provided by the City. The current property owner must submit:
(a) Evidence of current ownership or designated agency for the current property owner; and
(b) The amount of the development fees paid, by public facility category, and receipts evidencing such payments.
(Ord. 02005-74, passed 9-7-05; Ord. 02010-14, passed 3-3-10; Ord. 2012-10, passed 5-2-12)
(A) Initiation.
(1) An appeal from any of the provisions of this chapter or the decision of the Coordinator or other City official pursuant to this chapter may be made to the City Administrator by filing a written appeal, on the appropriate City form, with the City Clerk within 60 days following the decision being appealed.
(2) The filing of an appeal does not stay the imposition or the collection of the development fee as calculated by the City unless an appeal bond or other sufficient surety, satisfactory to the City Attorney and the Finance Director, has been provided.
(3) If the notice of appeal, is accompanied by an appeal bond or other sufficient surety, in any amount equal to the development fee calculated to be due, a construction permit may be issued to the new development.
(B) Burden of proof. The appellant has the burden of proof to demonstrate that the decision of the City official is erroneous.
(C) Contents. All appeal applications must detail the specific grounds therefor and all other relevant information as required by the City.
(D) Decision.
(1) The City Administrator must:
(a) Determine whether there is an error in an order, chapter requirement, or decision made by a City official in the enforcement of this chapter; and/or
(b) Determine whether a provision of this chapter or a decision by a City official made pursuant to this chapter results in a taking of private property or otherwise violates the constitutional or statutory rights of the applicant pursuant to Arizona or federal law.
(c) Based on the information provided, reverse or affirm, wholly or partly, or modify the order, requirement, or decision of the City official appealed, and make such order, requirement, decision, or determination as necessary, including amendments to the provisions of this chapter.
(2) The City Administrator must render a decision on the appeal within 90 days after the filing of the appeal.
(3) The appellant may appeal the City Administrator's decision to the City Council, or its designated hearing officer, pursuant to the following:
(a) The appeal must be filed with the City Clerk within 30 days of the City Administrator's, rendering of a decision;
(b) The appeal must be filed by a letter to the City Clerk setting forth the basis for the appeal; and
(c) A decision regarding the appeal shall be made after a public hearing and opportunity for the appellant to present evidence and be heard on the matter.
(Ord. 02005-74, passed 9-7-05; Ord. 02010-14, passed 3-3-10; Ord. 2012-10, passed 5-2-12)
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