§ 49-75. Authority for development fees.

(a)

Fee Report and Implementation . The City may assess and collect a Development Fee for costs of Water and Wastewater Services, including all professional services required for the preparation or revision of an Infrastructure Improvements Plan, Fee Report, Development Fee, and required reports or audits conducted pursuant to this Article. As a part of Water Services, there is hereby established a Water Supply fund account to be used as defined above. The Water Development Fee will be charged as one (1) fee, but will be accounted for as two (2) separate fund accounts, one (1) to be used for Water Service and one (1) to be used for Water Supply, both as defined above. Water Service will receive seventy-six and seven-tenths percent (76.7%) of the Water Development Fee and Water Supply will receive twenty-three and three-tenths percent (23.3%) of the Fee. For new golf course development and where considered appropriate, the division director of Water Resources or authorized designee may enter into an Agreement with the golf course Developer, as provided in Section 49-90, and agree to charge the Developer only that portion of the Water Development Fee attributable to the Water Supply Fee. Development Fees shall be subject to the following requirements:

(1)

The City shall develop and adopt a Fee Report that analyzes and defines the Development Fees to be charged in the Service Area for each Water and Wastewater Capital Facility, based on the Infrastructure Improvements Plan and the System Average Cost per EDU calculated pursuant to Section 49-79 of this Article.

(2)

Development Fees shall be assessed against the recommended types of water meters for all new Commercial, Mixed-Use, Residential, Industrial, and Supplemental land use developments, provided that the City may assess different amounts of Development Fees against the recommended types of water meters for specific Categories of Development within each Land Use based on the number of EDUs that are associated with providing Water and Wastewater Services for the recommended water meter types within that Category of Development. No Development Fee shall exceed the System Average Cost per EDU for any water meter type. Water meters shall be typed to the recommended maximum capacity shown in the DS+PM, Figure 6.1-4. In the event of a disagreement between the Developer and the City as to the appropriate type of meter, the City's decision shall be final. The Development Fees will provide funds for costs of new or expanded facilities for Water and Wastewater services as required by new development within the City's Service Area.

(3)

No Development Fees shall be charged or Credits issued, for any Capital Facility that is not a Water or Wastewater Service.

(4)

Costs for Water and Wastewater Services made necessary by new development shall be based on the same Level of Service provided to existing development in the Service Area. Development Fees may not be used to provide a higher Level of Service to existing development to update, improve, expand, connect, or replace existing water and wastewater services to meet stricter safety, efficiency, environmental, or other regulatory standards to the extent that these are applied to existing Water and Wastewater Capital Facilities that are serving existing development.

(5)

Development 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 Fees to the extent they represent principal and/or interest on the portion of any Financing or Debt used to finance the construction or expansion of a Capital Facility identified in the Infrastructure Improvements Plan.

(7)

Except for any fees included on Interim Fee Schedules, all Development Fees charged by the City must be included in a "Fee Schedule" prepared pursuant to this Article and included in the Fee Report.

(8)

All Development Fees shall meet the requirements of A.R.S. § 9-463.05.

(b)

Costs per EDU. The Fee Report shall summarize the costs of Capital Facilities necessary to serve new development on a per EDU basis as defined and calculated in the Infrastructure Improvements Plan, including all required Offsets, and shall recommend a Development Fee structure for Water and Wastewater Services for adoption by the City.

(c)

Carry-Over of Previously-Established Development Fees and Grandfathered Facilities. Notwithstanding the requirements of this Article, certain Development Fees adopted by the City before the effective date of this Article shall continue in effect as follows:

(1)

Until July 1, 2014, Water and Wastewater Development Fees established before January 1, 2012 shall continue in full force and effect. Water and Wastewater Development Fees collected before January 1, 2012, shall only be expended on Capital Facilities within Water and Wastewater Services.

(2)

The City may continue to collect and use any Development Fee established before January 1, 2012, even if the Development Fee would not otherwise be permitted to be collected and spent pursuant to A.R.S. § 9-463.05, as amended by the state legislature in SB 1525, Fiftieth Legislature, First Regular Session, if either of the following apply:

a.

Both of the following conditions are met:

i.

Before June 1, 2011, the Development Fee was pledged towards the repayment of Financing or Debt incurred by the City to provide a Capital Facility; and

ii.

The applicable Capital Facility was included in the City's Infrastructure Improvements Plan, or other City planning document prepared pursuant to applicable law, before June 1, 2011.

b.

Before July 1, 2014, the City uses the Development Fee to finance a Capital Facility in accordance with A.R.S. § 9-463.05(S).

(3)

Defined terms in any previously established fee schedule shall be interpreted according to the ordinance in effect at the time of their adoption.

(Ord. No. 4130, § 3(Res. No. 9620, § 1, Exh. A), 2-25-14, eff. 7-1-14; Ord. No. 4170, § 1(Res. No. 9873, § 1), 9-23-14, eff. 11-1-14)