14.05.050 Authority for development impact fees.
A. Fee Report and Implementation. The city may assess and collect a development impact fee for costs of necessary public services, including all professional services required for the preparation or revision of an infrastructure improvements plan, fee report, development impact fee, and required reports or audits conducted pursuant to this chapter. Development impact fees shall be subject to the following requirements:
1. The city shall develop and adopt a fee report that analyzes and defines the development impact fees to be charged in each service area for each capital facility category, based on the infrastructure improvements plan pursuant to SCC 14.05.070.
2. Development impact fees shall be assessed against all new commercial, residential, and industrial developments; provided, that the city may assess different amounts of development impact fees against specific categories of development based on the actual burdens and costs that are associated with providing necessary public services to that category of development. No development impact fee shall exceed the proportionate share of the cost of necessary public services, based on service units for any category of development.
3. No development impact fees shall be charged, or credits issued, for any capital facility that does not fall within one of the categories of necessary public services for which development impact fees may be assessed as identified in SCC 14.05.070(A)(1).*
4. Costs for necessary public services made necessary by new development shall be based on the same level of service provided to existing development in the same service area. Development impact fees may not be used to provide a higher level of service to existing development or to meet stricter safety, efficiency, environmental, or other regulatory standards to the extent that these are applied to existing capital facilities that are serving existing development.
5. Development impact fees may not be used to pay the city’s administrative, maintenance, or other operating costs.
6. Projected interest charges and financing costs can only be included in development impact fees to the extent they represent principal and/or interest on the portion of any financing or debt used to finance the construction or expansion of a capital facility identified in the infrastructure improvements plan.
7. All development impact fees shall meet the requirements of A.R.S. Section 9-463.05.
B. Costs per Service Unit. The fee report shall summarize the costs of capital facilities necessary to serve new development on a per service unit basis as defined and calculated in the infrastructure improvements plan, including all required offsets, and shall recommend a development impact fee structure for adoption by the city. The actual impact fees to be assessed shall be disclosed and adopted in the form of impact fee schedules described in Appendix A attached to the ordinance codified in this chapter.
C. Carry-Over of Previously Established Development Impact Fees. The city may continue to use any development impact fees previously collected, even if the development impact fee would not otherwise be permitted to be collected and spent pursuant to A.R.S. Section 9-463.05, as amended by the state legislature in SB 1525, Fiftieth Legislature, First Regular Session. Use of previously collected fees shall be governed by the provisions of A.R.S. Section 9-463.05(K) as well as any other relevant provisions of this statute or amendments thereto. [Ord. 2014-04 § 1, 5-22-2014; Res. 2014-09 Exh. A, 5-22-2014].
* Editor’s note: Per SCC 2.25.100, the city clerk has noted a clerical/typographical drafting error and will be recommending in a future report to the city council that said sentence should read: “No development impact fees shall be charged, or credits issued, for any capital facility that does not fall within one of the categories of necessary public services for which development impact fees may be assessed.”