Chapter 3.12
DEVELOPMENT FEES

Sections:

3.12.010    Purpose.

3.12.020    Definitions.

3.12.030    Methodology; applicability.

3.12.040    Procedures for imposition; calculation; credits and collection; exemptions.

3.12.050    Establishment of Development fee accounts; appropriation of development fee funds; refunds.

3.12.060    Appeals.

3.12.070    Development fee reviews; updates; adjustments.

3.12.080    Libraries.

3.12.090    Parks and recreation.

3.12.100    Police facilities.

3.12.110    General government.

3.12.120    General transportation.

3.12.010 Purpose.

A.    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 assure that new development contributes 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 and facilities;

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 Arizona Revised Statutes § 9-463.05 have been met.

3.12.020 Definitions.

A.    Except as otherwise indicated herein, the words or phrases used in this Chapter have the following meanings:

1.    "Applicant" means any person who files an application for a building permit with the Town of Pinetop-Lakeside.

2.    "Appropriation or to appropriate" means an action by the Town Council to identify, through the Capital Improvement Program (CIP), specific public facilities for which development fee funds may be utilized. Appropriation includes execution of a contract or other legal encumbrance authorized by the Town 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.

3.    "Capital Improvement Program ("CIP")" means a five year schedule of planned public facility improvements adopted by the Town Council, which schedule indicates the funding sources and estimated costs for each improvement planned during the first five (5) years.

4.    "Town" means the Town of Pinetop-Lakeside, Arizona.

5.    "Town Code" means Pinetop-Lakeside Town Code.

6.    "Town Council" means the governing body of the Town.

7.    "Town Manager" means the Town Manager of the Town or his/her designee.

8.    "Credit" means a waiver of certain required development fees in exchange for the dedication of public facility sites and improvements included in the Town’s CIP, for which the development fee is assessed.

9.    "Development Agreement" means an agreement between the Town and an applicant or other party enacted in accordance with Arizona Revised Statutes § 9-500.05.

10.    "Development Fee" means a fee adopted pursuant to Arizona Revised Statutes § 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 building permit and which is calculated to defray all or a portion of the costs of the public facilities required to accommodate new development at Town-designated level of service (LOS) standards, and the expenditure of which provides a beneficial use to new development.

11.    "Director" means the Director of the Town Community Development Department or the Director’s designee.

12.    "General Plan" means the General Plan of the Town of Pinetop-Lakeside.

13.    "Methodology Report" means a report titled "Town-wide Development Fee Study," prepared in support of this Chapter, by TischlerBise, dated March 1, 2006, which sets forth the methodology, level of service, and rational basis for the determination of the impact of new development on public facilities; the proper and proportionate amount of the development fee to be assessed against new development; and the mechanisms for ensuring that a reasonable relationship exists between the fee amount and the impact of new development on public facilities and the beneficial use of public facilities that accrue to new development paying the development fee.

14.    "New Development" means any construction, reconstruction, redevelopment, rehabilitation, structural alteration, structural enlargement, structural extension, or new use that requires a building permit after the effective date of this Chapter; any change in use of an existing non-residential building, structure or lot requiring any form of Town approval, and which increases the demand for one (1) or more public facility; except as otherwise provided in section 3.12.030.B.7 and 3.12.040.E of this Chapter.

15.    "Non-Residential" means any use or development that is not a residential use.

16.    "Public Facility" means capital facilities, included in the Town’s CIP, any single piece of equipment or other large item (e.g., land, building, parks, etc.). Public facilities include, but are not limited to, parks and recreation facilities, police facilities, general government facilities, and streets and roads facilities. Public facilities do not include site-necessitated capital facilities.

17.    "Public Facility Expenditures" means 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 Methodology Report. Public facility expenditures do not include costs associated with the operation, repair, or maintenance of or personnel expenses associated with public facilities.

18.    "Residential" means any use or development that includes or results in the creation of a dwelling unit.

3.12.030 Methodology; applicability.

A.    Incorporation of Development Fee Calculation Methodology Report.

1.    The Town Council has reviewed and accepted, and incorporates into this Chapter by reference, the Methodology Report, which establishes the need for development fees for public facilities including libraries, parks and recreation, police facilities, general government facilities, and transportation, and sets forth a reasonable methodology, level of service, and analysis for the determination of the development fees by public facility type.

B.    Applicability and General Provisions.

1.    Term. This Chapter and the procedures established herein is in effect unless and until repealed, amended or modified by the Town Council, in accordance with applicable State law and the Town Code, ordinances, and resolutions.

2.    Affected Area. All of the area within the Town boundaries, as changed from time-to-time, shall be subject to this Chapter.

3.    Applicability. Development fees are imposed on residential and non-residential new development within the Town as further provided in sections 3.12.060 through 3.12.100 of this Chapter.

4.    Development Fee Imposition and Appropriation. Development fees are imposed and are to be appropriated, in accordance with the provisions of this Chapter.

5.    Change in Boundaries of the Town. In the event of annexation of unincorporated land in Navajo or Apache Counties by the Town, such annexed areas shall be subject to the development fees set forth in this Chapter.

6.    Type of Development Affected. Except as provided in the following subparagraph, this Chapter applies to all new development as further provided in sections 3.12.060 through 3.12.100 of this Chapter.

7.    Type of Development Not Affected. This Chapter does not apply to:

a.    Previously-Issued Building Permits. No development fee is to be imposed on new development for which a building permit has been issued prior to the effective date of this Chapter.

b.    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.

c.    No Net Increase in Non-Residential Square Footage. No development fee is imposed on a 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.

d.    Other Uses. No development fee is imposed on a use, development, project, structure, building, fence, sign or other activity, whether or not a building permit is required, which does not result in an increase in the demand for public facilities.

e.    Development by School Districts or Charter Schools. Pursuant to Arizona Revised Statutes § 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 Town 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.

8.    Effect of Payment of Development Fees on Other Applicable Town Regulations.

a.    The payment of development fees does not entitle the applicant to a building 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 Town Code, which remain operative and in full force and effect without limitation.

9.    Amendments. This Chapter, and any ordinance adopting development fees for any particular public facility pursuant to this Chapter, may be amended from time to time by the Town Council; provided, however, that no such amendment is adopted without a written report detailing the reasons and need for the development fee revision nor without proper notice and public hearing as set forth herein and in Arizona Revised Statutes § 9-463.05(C), as then amended.

10.    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 Arizona Revised Statutes, title 48, Chapter 4, article 6, the Town will take into account all public infrastructure provided by the district and capital costs paid by the district for necessary public facilities and will not assess a portion of the development fee otherwise calculated to be due that would duplicate the infrastructure provided by the district or the costs imposed by the district on new development.

3.12.040 Procedures for imposition, calculation, credits and collection.

A.    In General. The Town will notify an applicant of applicable development fee requirements at the time of application for a building permit. The Town calculates development fees at the time of application for a building permit and the applicant must pay the fees due prior to the issuance of the building permit.

B.    Calculation. Upon receipt of an application for a building permit, the Town will determine (i) whether the proposed use is a residential or non-residential use, (ii) the specific category of residential or non-residential development, if applicable, (iii) if a residential use is proposed, the number of new dwelling units, and (iv) if a non-residential use is proposed, the number of new or additional square feet of gross floor area.

1.    Upon receipt of an application for a building permit, the Town 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, measured from the date of adoption of this Chapter.

2.    After making these determinations, the Town will calculate 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 units of demand proposed by the amount of the applicable development fee per unit of development, incorporating any applicable credit.

3.    If the type of land use proposed for new development is not expressly listed in the particular development fee ordinance, the Director:

a.    Will identify the most similar land use type listed and calculates the development fee based on the development fee for the land use identified;

b.    Will identify the broader land use category within which the proposed land use would apply, then calculate the development fee based on the development fee for that land use category; or

c.    Will determine the basis used to calculate the fee pursuant to an independent impact analysis as provided below.

4.    In the event that the Director is required to determine the proper classification of a proposed new development, the Director’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 the Methodology Report.

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 sections 3.12.060 through 3.12.100 of this Chapter, the applicant may, prior to issuance of a building permit, request that the Town 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 Town in the preparation of an independent impact analysis shall be borne by the applicant and no building permit shall be issued until the independent impact analysis is complete, a determination as to the appropriate development fee, is made by the Director, and the applicant has paid all of the costs of the independent impact analysis.

b.    Upon the request of an applicant, the Director 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 on a Town-wide basis and based on data, information, or assumptions contained in this Chapter and the Methodology Report, or an independent source, provided that:

i.    The independent source is a generally-accepted standard source of demographic and planning data; or

ii.    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 Director 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 (3) years earlier is invalid.

e.    If the Director 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 sections 3.12.060 through 3.12.100 of this Chapter, then the alternative fee shall be paid by the applicant. If the alternative development fee is greater than the fees set forth in sections 3.12.060 through 3.12.100 of this Chapter, the fees set forth in sections 3.12.060 through 3.12.100 of this Chapter 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 Director; provided, however, that such estimate may be subject to change when a formal application for a building permit for new development is made. The non-binding estimate is solely for the benefit of the prospective applicant and in no way binds the Town 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 building permit is requested.

9.    Development fees are calculated based upon the development fee amount in effect at the time of application for a building permit.

10.    For applications for a building 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 reimbursed for any excess fee paid or assessed additional fees if the actual use of the property results in a higher fee.

C.    Credits. Credits against the amount of development fees due for a proposed new development may be given, pursuant to the terms outlined below, either:

1.    By the Director, where an applicant demonstrates that excess public facility capacity was provided previously pursuant to subparagraph (a) above.

2.    By the Town 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

3.    Public Facilities or Construction. Credits against development fees must be given for dedications of public facilities required by the Town. However, any public facility built by a developer or applicant that is not on the Town’s CIP shall not be considered required under this Chapter and shall not be considered eligible for a credit against development fees.

a.    Credit Applications. Applications for a credit for the dedication or construction of public facilities must be made on a form provided by the Director for such purposes. The application must be accompanied by a proposed development agreement as provided in this Chapter.

b.    Requirements. In order to be eligible for development fee credits, the public facility proposed for dedication or construction must be:

i.    A planned improvement, either:

ii.    Included in the Town’s current CIP; or

iii.    Determined by resolution of the Town Council for inclusion during the immediately subsequent update to the CIP;

iv.    Of a type included in the Methodology Report;

v.    Credited only against the same type of development fee as is being proposed for dedication or construction (e.g. building and dedication of a public road may constitute as credit to the general transportation portion of the development fees, only); and

vi.    Subject to an executed development agreement, as provided herein, prior to the issuance of a building permit for which a credit is sought.

4.    Procedure.

a.    Upon receipt of a complete application and proposed development agreement, the Director, Town 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 Director must forward to the Town Council a report as to whether a credit is proper based on the provisions of this Chapter.

b.    Based on the report of the Director, the provisions of this Chapter, the CIP, the General Plan, adopted Town budget, and the Methodology Report, the Town 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.

5.    Calculation of the Value of Dedication or Construction.

a.    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:

b.    The amount of the development fee due pursuant to this Chapter;

c.    The costs assumed in the Town’s CIP; or

d.    The actual, verified costs of dedication or construction.

6.    If the actual 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 Director.

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 Town rejects the applicant’s appraisal, the Town may hire and pay for a second appraisal of 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 Town 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 Town.

c.    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 Town and the provider of the dedication or construction, which must include the following:

i.    A schedule for the initiation and completion of the construction of the proposed public facility;

ii.    The amount of the development fees, by type, proposed to be credited by the Town;

d.    Where excess capacity is provided:

i.    The amount, nature, and location of excess capacity being provided;

ii.    The eligibility for such excess capacity to be used for credits against development fees owed by subsequent applicants;

iii.    The amount of such credits and their duration;

iv.    The geographic area within which such credits would be awarded based on the excess capacity benefit created by the dedication or construction; and

v.    The mechanism for transferring the excess credits to properties within the geographic benefit area of the dedication or construction.

vi.    All construction will be in accordance with Town specifications and all regulations set forth in the Town Code or as approved in writing by the Town engineer; and

vii.    Such other terms and conditions deemed necessary by the Town.

D.    Collection. The Town collects all applicable development fees at the time of the application and before issuance of a building permit unless:

1.    The applicant is entitled to a full or partial credit;

2.    The applicant is not otherwise subject to the payment of a development fee; or

3.    The applicant has filed an appeal along with a bond or other surety in the amount of the development fee, as calculated by the Town and approved by the Town Attorney and Finance Director.

E.    Exemptions. An applicant proposing a development for which development fees are due may be eligible for a partial or full exemption from payment of a development fee pursuant to the requirements of this Chapter, only as specifically provided for in this section.

1.    Application for exemption. Prior to the issuance of a building permit, an application for exemptions shall be filed with the Director on forms provided by the Town for such purpose.

2.    Eligibility for exemption. Partial or full exemptions from the payment of development fees as required by this Chapter may be made only for the follow 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.    Economic Development. Defined as projects that meet the objectives and criteria of a Town Economic Development Policy as adopted by the Town Council.

c.    Redevelopment. Defined as projects that meet redevelopment efforts to combat blight and unsafe conditions and are located within Town Council adopted Redevelopment Plans, in accordance with Arizona Revised Statutes § 36-1471 thru § 36-1491.

3.    Review of an application for exemption. Upon receipt of a complete application for exemption, the Director shall review the proposed new development and shall make a recommendation to the Town Council as to whether the new development qualifies for an exemption as set forth in this subsection E, only. Based upon the recommendation of the Director and the criteria set forth in this subsection E, the Town Council shall either grant, grant with conditions, or deny a proposed exemption request.

4.    Notification to appropriate departments. If the Town Council determines that the proposed development qualifies for an exemption, the Director shall notify the Finance Director that the exemption has been approved and that a funding source other than development fees shall be used to fund public facilities in accordance with the adopted capital improvements program.

5.    Effect of grant of exemption. If the Town Council grants an exemption of development fees otherwise due, the Finance Director shall transmit Town funds equal in amount to those exempted, from a source other than development fees, into the appropriate development fee account within one (1) year of the grant of the exemption. The Town shall not increase the amount of development fees payable under this Chapter to replace any revenue lost on account of the exemptions granted.

3.12.050 Establishment of development fee accounts; appropriation of development fee funds; refunds.

A.    Development Fee Accounts. The Town 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. The Town must deposit all development fees collected into the appropriate development fee account, 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 Town funds. The Town 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, Arizona Revised Statutes § 9.463.05, and any other applicable legal requirements.

B.    Appropriation of Development Fee Funds. 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 Town to finance public facilities that provide a beneficial use to new development. Development fee funds may be appropriated only for project improvements on the Town’s CIP in accordance with sections 3.12.060 through 3.12.100 of this Chapter. 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 Town.

C.    Restrictions on Appropriations. Development fees may 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 may be appropriated only:

1.    For the particular public facility for which they were imposed, calculated, and collected;

2.    Within ten (10) years of the beginning of the Town’s fiscal year immediately succeeding the date of collection, unless such time period is extended as provided herein.

D.    Procedure for Appropriation of Development Fee Funds. The Town must maintain a CIP for each public facility for which development fees are collected, which program identifies planned public facility projects over a six-year period of time. The CIP represents the Town 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 Director, the CIP 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 CIP must include improvements sufficient to provide public facilities to new development at the level of service set forth in the Methodology Report.

1.    Each year the Town must identify public facility projects anticipated to be funded in whole or in part with development fees in the coming fiscal year.

2.    The recommendations must be consistent with the provisions of this Chapter, the Town’s CIP, the particular public facility development fee ordinance, Arizona Revised Statutes § 9-463.05, other applicable legal requirements, and any guidelines adopted by the Town Council.

3.    The Town 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 Town Council in order to comply with the requirements of law.

4.    The Town 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.

E.    Refunds.

1.    Eligibility.

a.    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, is eligible to apply for a refund of development fees, on a form provided by the Town for such purpose.

b.    Failure of Town to Appropriate Development Fee Funds Within Time Limit. A current property owner may apply for a refund of development fees paid by an applicant if the Town has failed to appropriate the development fees collected from the applicant within the time limit established by this Chapter. The refund application is made on a form provided by the Town for such purpose.

2.    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, 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.

3.    Administrative Fee. The Town will deduct an administrative fee equal to three (3%) percent of the development fee to be refunded, not to exceed three hundred dollars ($300), from the amount of any refund granted and will retain said fee in the appropriate development fee account to defray the administrative expense associated with processing the refund application.

4.    To Whom. Except as provided in subsection E.1 above, refunds are made only to the current owner of property on which the new development was proposed or occurred.

5.    Processing of Applications for a Refund. Applications for a refund are made on a form provided by the Town for such purposes. Upon receipt of a complete application for a refund, the Town 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.

a.    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 one-hundred and eighty (180) days following expiration or revocation of the building 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 building permit or approval of demolition of the structure pursuant to a valid Town-issued demolition permit. Failure to apply for a refund within one-hundred and eighty (180) days following expiration or revocation of the building permit or demolition of the structure constitutes a waiver of entitlement to a refund. The Town will not pay interest on refunds made due to abandonment or building permit expiration or revocation.

b.    Due to Timeliness. Applications for refunds due to the failure of the Town to appropriate development fees collected from the applicant within the time limits established herein are made on forms provided by the Town and must be made within one (1) year following the expiration of such time limit. The applicant or current property owner must 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 Town’s failure to appropriate development fee funds for relevant public facilities. Failure to apply for a refund within one (1) year following expiration of the time limits established herein constitutes a waiver of entitlement to a refund.

3.12.060 Appeals.

A.    An appeal from any of the provisions of this Chapter or the decision of the Director or other Town official pursuant to this Chapter may be made to the Town Manager (or to a hearing officer appointed by the Town Manager) by filing a written appeal, on the appropriate Town form, with the Town Clerk within twenty (20) days following the decision being appealed.

B.    The filing of an appeal does not stay the imposition or the collection of the development fee as calculated by the Town unless an appeal bond or other sufficient surety, satisfactory to the Town Attorney and the Finance Director, has been provided.

C.    If the notice of appeal is accompanied by an appeal bond or other sufficient surety, in an amount equal to the development fee calculated to be due, a building permit may be issued to the new development.

1.    Burden of Proof. The appellant has the burden of proof to demonstrate that the decision of the Town official is erroneous. Proof shall be by a preponderance of the evidence.

2.    Contents. All appeal applications must detail the specific grounds therefore and all other relevant information as required by the Town.

D.    Decision. The Town Manager or hearing officer must:

1.    Determine whether there is an error in an order, Chapter requirement, or decision made by a Town official in the enforcement of this Chapter, and/or

2.    Determine whether a provision of this Chapter or a decision by a Town 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.

3.    Based on the information provided, reverse or affirm, wholly or partly, or modify the order, requirement, or decision of the Town official appealed, and make such order, requirement, decision, or determination as necessary, including amendments to the provisions of this Chapter.

4.    The Town Manager or hearing officer must render a decision on the appeal within sixty (60) days after the hearing of the appeal.

3.12.070 Development fee reviews, updates and adjustments.

A.    Annual Report. Within ninety (90) days following the end of each fiscal year, the Town Council shall file a copy of an annual report with the Town Clerk. Copies of the annual report shall be made available to the public on written request. The annual report may contain financial information that has not been audited. If the annual report is not filed with the Town Clerk as provided by this paragraph, the Town shall not collect development fees until the annual report is filed.

1.    The annual report must include the following:

a.    The amount assessed by the Town for each type of development fee.

b.    The balance of each development fee account maintained for each type of development fee assessed as of the beginning and end of the fiscal year.

c.    The amount of interest or other earnings on the monies in each development fee account as of the end of the fiscal year.

d.    The amount of development fee monies used to repay:

i.    Bonds issued by the Town to pay the cost of a public facility project that is the subject of a development fee assessment.

e.    Monies advanced by the Town from funds other than development fee accounts established for development fees in order to pay the cost of a public facility project that is the subject of a development fee assessment.

f.    The amount of development fee monies spent on each public facility project that is the subject of a development fee assessment and the physical location of each public facility project.

g.    The amount of development fee monies spent for each purpose other than a public facility project that is the subject of a development fee assessment.

2.    The annual report may include any or all of the following:

a.    Recommendations for amendments, if appropriate, to this Chapter or to specific ordinances adopting development fees for particular public facilities;

b.    Proposed changes to the General Plan and/or an applicable CIP, including the identification of additional public facility projects anticipated to be funded wholly or partially with development fee funds;

c.    Proposed changes to development fee schedules as set forth in sections 3.12.060 to 3.12.100 of this Chapter;

d.    Proposed changes to level of service standards for particular public facilities;

e.    Proposed changes to any development fee calculation methodology;

f.    Proposed changes to the population, housing, land use, persons per household, or non-residential development projections included in the Methodology Report and upon which the development fee amounts have been determined; or

g.    Other data, analysis, or recommendations as the Director may deem appropriate, or as may be requested by the Town Council.

3.    Based upon information provided in the annual report, the Town Council may take such action as it deems appropriate, including, but not limited to conducting an update of the development fees which shall include preparing an updated Methodology Report which demonstrates the appropriate development fee amounts. The Council may also request additional data or analyses and hold public workshops and/or public hearings concerning the annual findings and report.

B.    Six-year Updates. Every six (6) years, starting from the date of adoption of this Chapter, the Town will make its determination about whether to update the development fees adopted by this Chapter. If the Town Council determines that an update is needed, an updated Methodology Report will have prepared which demonstrates appropriate development fee amounts, and other appropriate land use classifications and criteria.

C.    Annual Adjustments. Each year in which the Town does not conduct an update, the development fees with the preparation of an updated Methodology Report, the Town will adjust the amount of each development fee to account for inflationary increases in the cost of providing public facilities, utilizing the most recent data from the Engineering News Record Construction Cost Index; the Consumer Price Index, and the County assessor’s office, as applicable.

1.    The Director, in consultation with appropriate Town staff and officials, will make the automatic annual adjustment unless otherwise directed by official action of the Town Council.

3.12.080 Libraries.

A.    Definitions. "Libraries Development Fee" means a development fee imposed to offset the impacts of new development on public facilities related to Town-wide libraries including land, buildings and library collections (books, periodicals, CDs, DVDs, etc.) and other library improvements.

B.    Applicability and appropriation of development fees. Libraries Development Fees shall be assessed against only residential development, as further provided in this Chapter. Libraries Development Fees may be appropriated for the types of public facilities relied upon in the Methodology Report to determine the fee.

C.    Libraries Development Fee Schedule for Residential Development. The Town Council may set, amend or revise the libraries development fees to be paid for residential development only from time-to-time by Resolution.

3.12.090 Parks and recreation development fee.

A.    Definitions. "Parks and Recreation Development Fee" means a development fee imposed to offset the impacts of new development on public facilities related to Town-wide parks and recreation improvements.

B.    Applicability and appropriation of development fees. Parks and recreation development fees shall be assessed against only residential development, as further provided in this Chapter. Parks and recreation development fees may be appropriated for the types of public facilities relied upon in the Methodology Report to determine the fee.

C.    Parks and Recreation Development Fee Schedule for Residential Development. The Town Council may set, amend or revise the parks and recreation development fees to be paid for residential development only from time-to-time by Resolution.

3.12.100 Police facilities development fee.

A.    Definitions. "Police Facilities Development Fee" means a development fee imposed to offset the impacts of new development on public facilities related to Town-wide police and court facility improvements.

B.    Applicability and Appropriation of Development Fees. Police facilities development fees shall be assessed against both residential and non-residential development as further provided in this Chapter. Police facilities development fees may be appropriated for the types of public facilities relied upon in the Methodology Report to determine the fee.

C.    Police Facilities Development Fee Schedule for Residential Development. The Town Council may set, amend or revise the police facilities development fees to be paid for residential development only from time-to-time by Resolution.

D.    Police Facilities Development Fee Schedule for Non-residential Development. The Town Council may set, amend or revise the police facilities development fees to be paid for non-residential development only from time-to-time by Resolution.

3.12.110 General government facilities development fee.

A.    Definitions. "General Government Facilities Development Fee" means a development fee imposed to offset the impacts of new development on public facilities related to Town-wide general government facility improvements.

B.    Applicability and Appropriation of Development Fees. General government facilities development fees shall be assessed against both residential and non-residential development as further provided in this Chapter. General government facilities development fees may be appropriated for the types of public facilities relied upon in the Methodology Report to determine the fee.

C.    General Government Facilities Development Fee Schedule for Residential Development. The Town Council may set, amend or revise the general government facilities development fees to be paid for residential development only from time-to-time by Resolution.

D.    General Government Facilities Development Fee Schedule for Non-residential Development. The Town Council may set, amend or revise the general government facilities development fees to be paid for non-residential development only from time-to-time by Resolution.

3.12.120 General transportation development fee.

A.    Definitions. "General Transportation Development Fee" means a development fee imposed to offset the impacts of new development on public facilities related to streets and roads facility improvements within the Town.

B.    Applicability and Appropriation of Development Fees. Streets and roads development fees shall be assessed against both residential and non-residential development as further provided in this Chapter. Streets and roads facilities development fees may be appropriated for the types of public facilities relied upon in the Methodology Report to determine the fee.

C.    Streets and Roads Development Fee Schedule for Residential Development. The Town Council may set, amend or revise the general transportation development fees to be paid for residential development only from time-to-time by Resolution.

D.    Public Works Facilities Development Fee Schedule for Non-residential Development. The Town Council may set, amend or revise the general transportation development fees to be paid for non-residential development only from time-to-time by Resolution. (Ord. 06-270)