3-11-003

Division 3-11-003
Establishment of Development Fee Accounts; Appropriation of Development Fee Funds; and Refunds

Sections:

3-11-003-0001 Development Fee Accounts

3-11-003-0002 Appropriation of Development Fee Funds

3-11-003-0003 Procedure for Appropriation of Development Fee Funds

3-11-003-0001 Development Fee Accounts

The City shall establish a development fee account for each category of public facilities for which development fees are imposed. Such account shall clearly identify the category, account, or fund for which the development fee has been imposed. All development fees collected by the City shall be deposited into the appropriate development fee account, which shall be interest bearing. All interest earned on monies deposited to such account shall be credited to and shall be considered funds of the account. The funds of each such account shall be capable of being accounted for separately from all other City funds. The City shall 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, Arizona Revised Statutes § 9-463.05, and any other applicable legal requirements.

3-11-003-0002 Appropriation of Development Fee Funds

A. In General. Subject to the provisions of § 10-18-003-0002(2), below, development fee funds may be appropriated for Public Facilities, Public Facility expenditures, and the payment of principal, interest and other financing costs on contracts, bonds, notes or other obligations issued by or on behalf of the City to finance Public Facilities and Public Facility Expenditures.

B. Restrictions on Appropriations. Development fees shall not be appropriated for maintenance or repair of Public Facilities nor for operational or personnel expenses associated with the provision of Public Facilities. Development fees shall be appropriated only:

1. for Public Facilities programmed within the first five years of the City’s Infrastructure Improvement Plan or for which the Mayor and City Council determine by resolution to include in the IIP during the immediately scheduled amendment thereto;

2. for the particular Public Facility for which they were imposed, calculated and collected;

3. within six (6) years of the beginning of the Fiscal Year immediately succeeding the date of collection, unless such time period is extended as provided herein.

C. Appropriation of Development Fee Funds Beyond Six (6) Years of Collection. Notwithstanding subsection 2 of this Section, development fee funds may be appropriated beyond six (6) years from the beginning of the Fiscal Year immediately succeeding the date of collection if the appropriation is for a Public Facility that requires more than six (6) years to plan, design and construct. The City shall document compliance with the provisions of this paragraph.

3-11-003-0003 Procedure for Appropriation of Development Fee Funds

A. Each year the City shall identify Public Facility projects anticipated to be funded in whole or in part with development fees. The Public Facility recommendations shall be based upon the development fee annual reports set forth in Division 10-18-006 of this Chapter, and such other information as may be relevant, and may be part of the City’s annual budget and infrastructure improvements planning process.

B. The recommendations shall be consistent with the provisions of this Chapter, the particular Public Facility development fee ordinances, Arizona Revised Statutes § 9-463.05, other applicable legal requirements, and any guidelines adopted by the Mayor and City Council.

C. The Mayor and City Council may include public facilities funded with development fees in the City’s annual budget and Infrastructure Improvement Plan. If included, the description of the Public Facility shall specify the nature of the facility, the location of the Public Facility, the capacity to be added by the Public Facility, the need/demand for the Public Facility and the anticipated timing of completion of the Public Facility.

D. The Mayor and 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.

3-11-003-0004 Refunds

A. Eligibility.

1. Expiration or Revocation of Building Permit. An applicant who has paid a development fee for a new development for which the necessary building permit has expired or for which the building permit has been revoked prior to construction shall be eligible to apply for a refund of development fees paid.

2. Failure of City to Appropriate Development Fee Funds Within Time Limit. The current 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 established in §10-18-003-0002.

3. Abandonment of Development After Initiation of Construction. An applicant who has paid a development fee for a new development for which a building permit has been issued and pursuant to which construction has been initiated, but which construction is abandoned prior to completion and issuance of a certificate of occupancy, shall not be eligible for a refund unless the uncompleted building is completely demolished.

B. Administrative Fee. A 5% administrative fee, not to exceed $200.00, shall be deducted from the amount of any refund granted and shall be retained by the City in the appropriate development fee account to defray the administrative expenses associated with the processing of a refund application.

C. To Whom. Except as provided in subsection 1(a) and 1(c) of this Section, refunds shall be made only to the current owner of property on which the new development was proposed or occurred.

D. Processing of Applications for a Refund. Applications for a refund shall include all information required in subsections 5 or 6 of this Section, as appropriate. Upon receipt of a request for a refund, the City shall review the application and documentary evidence submitted by the applicant as well as such other information and evidence as may be deemed relevant, and make a determination as to whether a refund is due. Refunds by direct payment shall be made following an affirmative determination by the City.

E. Due to Abandonment. Applications for refunds due to abandonment of a new development prior to completion shall be made within 180 days following expiration or revocation of the building permit. The applicant shall submit the following: (a) evidence that the applicant is the property owner or the duly designated agent of the property owner, (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 building permit or approval of demolition of the structure pursuant to a valid City-issued demolition permit. No interest shall be paid by the City in calculating the amount of the refunds.

F. Due to Timeliness. Applications for refunds due to the failure of the City to appropriate development fees collected from the applicant within the time limits established in §10-18-003-0002 shall be made within one (1) year following the expiration of such time limit. The applicant shall submit: (a) evidence that the applicant is the property owner or the duly designated agent of the property owner, (b) the amount of the development fees paid by Public Facility category and receipts evidencing such payments, and (c) description and documentation of the City’s failure to appropriate development fee funds for relevant public facilities.