HomeMy WebLinkAboutOrd 2000-21TOWN OF FOUNTAIN HILLS
ORDINANCE 00-21
AN ORDINANCE OF THE MAYOR AND COMMON COUNCIL OF THE
TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN
CODE, CHAPTER 7, BUILDINGS AND BUILDING REGULATIONS BY
ADDING A NEW ARTICLE 7-10, DEVELOPMENT FEE PROCEDURES
AND REQUIREMENTS, CONSISTING OF SECTION 7-10-1 PURPOSE
AND INTENT; SECTION 7-10-2 DEFINITIONS; SECTION 7-10-3
GENERAL PROVISIONS, APPLICABILITY; SECTION 7-10-4
PROCEDURES FOR IMPOSITION, CALCULATION AND COLLECTION
OF DEVELOPMENT FEES; SECTION 7-10-5 ESTABLISHMENT OF
DEVELOPMENT FEE ACCOUNTS, APPROPRIATION OF
DEVELOPMENT FEE FUNDS AND REFUNDS; SECTION 7-10-6
APPEALS; AND SECTION 7-10-7 EXEMPTIONS AND WAIVERS;
PROVIDING FOR CONFLICT RESOLUTION; PROVIDING FOR
SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Town of Fountain Hills is authorized pursuant to Arizona Revised Statutes § 9-
463.05 to establish and impose development fees on new development to offset
costs to the municipality associated with providing necessary public facilities and
services, the demand for which is created by new development; and
WHEREAS, the Town has studied the necessity for and implications of the adoption of
development fees for various public facilities; and
WHEREAS, the Town has developed the population and land use projections for the Town over
the next 20 years (to the year 2020) , which highlights the growth and associated
public facility demands that the Town will have to respond to in the future, while
maintaining the existing level of service (LOS) standards for existing residents as
well as new residents; and
WHEREAS, the Town is projected to grow from a population of approximately 20,500 persons in
2000 to a population of more than 28,000 in the Year 2020 (with intermediate
population projections of 24,790 in 2005; of 26,650 in 2010; of 27,610 in 2015 and
of 28,134 in 2020; and
WHEREAS, the number of housing units are projected to increase commensurately from
approximately 10,098 in 2000 to approximately 14,182 in Year 2020; and
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WHEREAS, retail, commercial, office and other non-residential building space which also
increases demand on public facilities is also projected to increase substantially from
approximately 1.12 million square feet in 2000 to more than 2.41 million square feet
in the Year 2020; and
WHEREAS, the Town has developed a long-range Capital Improvements Program (CIP) for
streets in order to more definitively project the specific public facility demands that
will be imposed upon the Town by this high projected growth rate, and has
determined its existing LOS for Town Marshal, general government, parks and
recreation and open space services and maintaining that LOS as the Town grows;
and,
WHEREAS, based on the population, housing unit and land use projections as well as the public
facility needs associated with the projected level of growth, the Town has
determined that development fees are an appropriate and necessary technique, to be
used in conjunction with other available public facilities financing techniques, to
ensure that adequate public facilities are provided to new growth while the Town
maintains the level of service (LOS) standards for existing Town residents; and
WHEREAS, the Town has determined that development fees will be necessary for multiple
public facilities; and
WHEREAS, the Town has found and determined that development fees for different public
facilities, but all enacted pursuant to the authority granted by Arizona Revised
Statutes § 9-463.05 will have certain common characteristics and that the Town
will, therefore, benefit from the adoption and use of a uniform procedure for the
imposition, calculation, collection, expenditure and administration of all of the
adopted development fees, and
WHEREAS, the use of uniform procedures, to the extent possible, will be more efficient and
expedient for both the Town and applicants for development permits than separate
procedures for each development fee; and
WHEREAS, the use of uniform procedures will simplify the implementation and administration
of development fees; and
WHEREAS, the use of uniform procedures will best ensure that development fees are
"earmarked" and expended for the public facilities for which they were imposed and
collected; and
WHEREAS, all monies collected from development fees shall be deposited in interest -bearing
accounts which clearly identify the category, amount, fund and public facility for
which such fee was imposed; and
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WHEREAS, each such category, fund or account shall be accounted for separately; provided,
however, that the determination as to whether the accounting requirement shall be
by category, account or fund and whether by aggregate or individual development
shall be within the discretion of the Town; and
WHEREAS, any interest or other income earned on monies deposited in said interest -bearing
accounts shall be credited to the applicable account; and
WHEREAS, the Town has found and determined that development fees are an appropriate
technique for funding public facilities; and
WHEREAS, the Town has or will, for each public facility development fee, determine that the
payment of the development fee and its expenditure for needed public facilities will
result in a benefit to the development on which it is imposed; and
WHEREAS, the Town has developed and adopted a schedule of development fees for each
public facility; and
WHEREAS, the Town has provided a credit (offset) mechanism in cases where the proposed
development has been subject to the required dedication of public sites and/or public
improvements for which the development fees are also being imposed; and
WHEREAS, the Town has determined that the development fee amounts bear a reasonable
relationship to the burden imposed upon the municipality to provide additional
public facilities to serve the new development at the adopted level of service (LOS)
standard; and
WHEREAS, the Town has developed fee calculation methodologies which will be imposed in an
equitable and non-discriminatory manner; and
WHEREAS, in cases where the Town may be imposing a development fee for public facilities on
land in a community facilities district established pursuant to Arizona Revised
Statutes Title 48, Chapter 4, Article 6, which will also be funded in whole or in part
through district funding mechanisms, the Town should take into account only that
public infrastructure provided by the district and capital costs paid by the district for
those necessary public facilities and services also being funded by development
fees, and provide appropriate credits in the development fee calculation in those
instances to avoid double charging.
NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND COMMON COUNCIL
OF THE TOWN OF FOUNTAIN HILLS, ARIZONA AS FOLLOWS:
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Section 1. That the Town Code, Chapter 7, Buildings and Building Regulations, is hereby
amended and a new Article 7-10 consisting of seven sections is hereby adopted.
Section 2. That as of the effective date of this Ordinance, Article 7-10 of Chapter 7 of the
Town Code of the Town of Fountain Hills shall read as follows:
Section 7-10-1. PURPOSE AND INTENT.
The purposes and intent of these development fee procedures are:
A. To establish uniform procedures for the imposition, calculation, collection
expenditure and administration of development fees imposed upon new
development;
B. To implement the goals, objectives and policies of the Fountain Hills General Plan
so that to assure that new development contributes its fair share towards the costs of
public facilities reasonably necessitated by such new development;
C. To ensure that new development is reasonably benefited by the provision of the
public facilities provided with the proceeds of development fees;
D. To ensure that all applicable legal standards and criteria are properly incorporated in
these procedures;
E. To ensure that all applicable procedures and requirements of Arizona revised
Statutes § 9-463.05 have been met.
Section 7-10-2. DEFINITIONS.
The words or phrases used herein shall have the meaning prescribed in the current Fountain Hills
Town Code except as otherwise indicated herein:
A. Applicant — any person who files an application with the Town for a building
permit.
B. Appropriation or to appropriate — an action by the Town to identify specific public
facilities for which development fee funds may be utilized. Appropriation shall
include, but shall not necessarily be limited to: inclusion of a public facility in the
adopted Town budget or capital improvements program; execution of a contract or
other legal encumbrance 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.
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C. Commercial or industrial use — means any use or establishment not defined as a
dwelling unit.
D. Connection — means the physical tie-in of a developer's water, effluent or sewer
service to a water, effluent or sewer main.
E. Director — the Director of Community Development.
F. Developer — means the individual, firm, corporation, partnership, association,
syndication, trust or other legal entity that is responsible for creating a demand for
Town facilities and services.
G. Development Fee — a fee adopted pursuant to Arizona Revised Statutes § 9-463.05
which is imposed on new development on a pro rata 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 which
reasonably benefits new development.
H. Development Fee Adoption and Imposition — this Ordinance establishes procedures
and requirements for all development fees which may be adopted by the Town;
provided, however, that in order to impose a development fee for a particular public
facility, the Town shall prepare a written report, notice, schedule and hold a public
hearing; and otherwise comply with all applicable requirements of Arizona Revised
Statutes § 9-463.05 and this Ordinance.
I. Development Fee Calculation Methodology Report — that report entitled "Town of
Fountain Hills, Arizona Development Fee Study Final Report" dated September 26,
2000 that was prepared by Rick Giardina & Associates in association with BBC
Research and Consulting.
J. Development Fee District Maps — the map(s) defining the geographical extent of
development fee districts, if any, for each adopted development fee, as may be
necessary.
K. District or Development Fee District — a defined geographical area or sub -area of the
Town and/or its planning area within which particular public facilities are provided
and in which development fees will be collected, appropriated, and expended for
public facilities serving new development within such area or sub -area.
L. Dwelling Unit — means a room or group of rooms within a building containing
cooking accommodations and designed to be used for living purposes. Each
apartment unit, mobile home, mobile home space, travel trailer or travel trailer space
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shall be considered a dwelling unit. Dwelling unit shall not include those units
designed primarily for transient occupant purposes, nor shall they include rooms in
hospitals or nursing homes.
1. Single -Family Detached Dwelling Unit — means a dwelling unit designed
and used by only one family and which unit is physically separated from any
other dwelling unit.
2. All Other Dwelling Units — means a dwelling unit typically designed and
used for only a single family, but which is either attached to another
dwelling unit, such as an apartment, duplex, townhouse or single-family
attached dwelling unit such as a guest house, or which is a mobile home or
travel trailer.
M. General Government Development Fee — a fee imposed on all new residential and
non-residential development to fund the proportionate share of the costs of:
municipal office space and Town owned and operated vehicles and major capital
equipment.
N. Governing Body — the Mayor and Common Council of the Town of Fountain Hills,
Arizona.
O. Multiple Uses — a new development consisting of both residential and non-
residential uses, or one (1) or more different types of non-residential use, on the
same site or part of the same new development.
P. Municipal Planning Area — an area outside of the present Fountain Hills Town
limits, but in which the Town may provide public facilities and services.
Q. New Development — any new construction, reconstruction, redevelopment,
rehabilitation, structural alteration, structural enlargement, structural extension, or
new use which requires a building permit; any change in use of an existing non-
residential building, structure or lot requiring any form of Town building permit or
approval, and which increases the demand for one (1) or more public facilities or
services as herein defined; or, any change in use of an existing residential or non-
residential building or structure or change in the use of land, which requires an
increase in water meter size or installation of a larger water meter, except as
otherwise provided in Section 3.E hereof.
R. Open Space Development Fee — a fee imposed only on new residential development
to fund the proportionate share of the costs of: open space, including but not
necessarily limited to, open space lands, hillside slope preservation, development
rights, desert mountain preserves, trails, trailheads, and vehicular access rights of
way.
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S. Parks and Recreation Development Fee — a fee imposed only on new residential
development to fund the proportionate share of the costs of: community parks,
including but not limited to, development rights and/or construction easements and
recreation facilities and improvements (but expressly excluding private
neighborhood parks).
T. Public Facility or Service — public improvements, facilities or services necessitated
by new development, including, but not limited to, police/Town Marshal facilities,
streets, parks and recreation, open space, libraries, general government, public
works, community facilities, municipal facilities, flood control and drainage,
utilities and educational facilities.
U. Public Facility Expenditures — include amounts appropriated in connection with the
planning, design, engineering and construction of public facilities; 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 the public safety.
V. Street Development Fee — a fee imposed on all new residential and non-residential
development to fund the proportionate share of the costs of: transportation
improvements and the widening of existing roads designed to solve congestion -
related problems that are anticipated from increased traffic demands resulting from
new development, and including improvements to principal and minor arterials
and/or collectors needed for access and traffic mobility, but excluding project -
specific traffic and transportation improvements such as turn lanes, individual traffic
signals for the benefit of a specific development project and the like.
W. Town Marshal Development Fee — a fee imposed on all new residential and non-
residential development to fund the proportionate share of the costs of. Town
Marshal buildings and facilities, communication systems and vehicles and major
capital equipment.
Section 7-10-3. GENERAL PROVISIONS; APPLICABILITY
A. Term. This Ordinance and the procedures established herein shall remain in effect
unless and until repealed, amended or modified by the Mayor and Common Council
in accordance with applicable State law and the Town Code, ordinances and
resolutions.
B. Review.
1. At least once every five years, and no later than July 1 of every fifth year,
beginning July 1, 2005, and prior to Common Council adoption of the
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Town's annual budget for that year, the Town Manager or his designee shall
coordinate the preparation and submission of a report to the Mayor and
Common Council on the subject of development fees.
2. The report may include any or all of the following:
a. recommendations for amendments, if appropriate, to these
procedures or to specific ordinances adopting development fees for
particular public facilities;
b. proposed changes to the Fountain Hills General Plan or plan
elements and/or an applicable Capital Improvement Program,
including the identification of additional public facility projects
anticipated to be funded wholly or partially with development fees;
C. proposed changes to the boundaries of development fee districts, if
applicable;
d. proposed changes to development fee schedules as set forth in the
ordinances imposing and setting development fees for particular
public facilities;
e. proposed changes to level of service standards for particular
facilities;
f. proposed changes to any development fee calculation methodology;
g, proposed changes to the population, housing, land use, persons per
household or non-residential development projections included in
the Development Fee Calculation Methodology Report and upon
which the development fee amounts have been determined;
h. other data, analysis or recommendations as the Town Manager or
appropriate designee may deem appropriate, or as may be requested
by the Mayor and Common Council.
3. The report may additionally include any or all of the following on a five-year
basis:
a. number of building permits issued by type or residential or non-
residential development;
b. square footage (gross floor area) of non-residential development;
C. total amount of development fees collected, by public facility and by
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land use type;
d. the amount of expenditures made from the development fee account
or subaccounts and the purpose for which the expenditure was made,
i.e., the description, type and location of the public facility project;
e. when the public facility project was initiated and when it was (or will
be) completed;
f. whether additional development fee funds will be appropriated for
the same project in the future;
g. whether supplemental non -development fee funds have been used
for the project and, if so, how much;
h. the service area for the public facility project;
i. the total estimated cost of the project and the portion funded with
development fees;
j. whether the public facility project is in the Town's current Annual
Budget or capital improvements program;
k. the estimated useful life of the project;
the extent to which the public facility project is needed to serve
new/projected growth;
M. the extent to which the public facility project is needed to maintain
the existing level of service (LOS) standard, and;
n. such other facts as may be deemed relevant by the Common Council.
4. Submission of Development Fee Five -Year Report and Common Council
Action. The Town Manager or appropriate designee shall submit the
Development Fee Five -Year Report to the Mayor and Common Council,
which shall receive the Five -Year Report and which may take such actions
as it deems appropriate, including, but not limited to, requesting additional
data or analyses and holding public workshops and/or public hearings.
C. Affected Area.
1. Development Fee District. Development fees shall be imposed on new
development in Fountain Hills which, for purposes hereof, may be divided
into development fee districts by the Town.
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2. Municipal Planning Areas. Development fees imposed by the Town may, if
necessary and appropriate, be collected by other municipalities or by the
County on new development within the Town's municipal planning area,
but outside of the Fountain Hills Town limits, only pursuant to an
intergovernmental agreement which provides that the development fees
collected to be transferred to the appropriate Town fund for expenditure in
accordance with the terms of this Ordinance.
3. Identification. The affected area, including development fee districts, if
applicable, shall be described and/or mapped in the particular public facility
development fee ordinance.
4. Changes in Boundaries of Development Fee Districts. The Town may
amend the boundaries of the Development Fee Districts at such times as
may be deemed necessary to carry out the purposes and intent of this
Ordinance and applicable legal requirements for use of development fees. In
the event of annexation of unincorporated County land into the Town, the
Mayor and Common Council shall consider whether such annexed area
should be included in a particular development fee district.
D. Type of Development Affected. This Ordinance shall apply to all new development
as herein defined and as defined in the development fee ordinances for particular
public facilities.
E. Type of Development Not Affected.
1. Previously -Issued Building Permits. No development fee shall be imposed
on new development for which a building permit has been issued prior to the
effective date of this Ordinance.
2. In -Process Building Permits. No development fee shall be imposed on new
development for which a complete building permit application has been
made, including all items as required on a Town building permit application
completeness form, and all plan check and building permit fees have been
paid prior to the effective date of this Ordinance.
3. Previous Payment of Development Fees. Subject to the requirements of
Section 4 of this Ordinance, no development fees shall be due at a later stage
of the development permit or approval process if development fees have
been paid for such category of public facilities at an earlier stage in the
development permit or approval process.
4. No Net Increase in Dwelling Units. No development fee shall be imposed
on any new residential development which does not add a new dwelling
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unit.
5. No Net Increase in Non -Residential Square Footage. No development fee
shall be imposed on any new non-residential development which does not
add square footage, unless the new non-residential development increases
the demand for public facilities for which development fees are being
imposed.
6. Other Uses. No development fee shall be 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 demand
for public facilities.
7. Development projects which are the subject of a Development Agreement
containing provisions in conflict with this Article, but only to the extent of
the conflict or inconsistency.
8. Development by Other Governmental Entities. Pursuant to Arizona Revised
Statutes § 9-500.18, no development fee shall be imposed on new
development by the State of Arizona, school districts organized pursuant to
Arizona State laws, or the Federal Government, or agencies thereof;
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 public governmental agencies.
F. Effect of Payment of Development Fees on Other Applicable Town Land Use,
Zoning, Platting, Subdivision or Development Regulations.
1. The payment of development fees shall not entitle the applicant to a building
permit unless all other applicable land use, zoning, planning, platting,
subdivision or other related requirements, standards and conditions have
been met. Such other requirements, standards and conditions are
independent of the requirement for payment of a development fee.
2. Neither this Ordinance nor the specific development fee ordinances for
particular public facilities shall 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 land
development regulations, which shall be operative and remain in full force
and effect without limitation.
G. Amendments. This Ordinance, and any ordinance adopting development fees for
any particular public facility pursuant to this Ordinance, may be amended from time
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to time by the Mayor and Common Council; provided, however, that no such
amendment shall be 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 § 9-463.05C.
H. 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 shall take into account all public infrastructure provided by the
district and capital costs paid by the district for necessary public services and
facilities and shall 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.
Section 7-10-4. PROCEDURES FOR EvWOSTTION, CALCULATION AND COLLECTION OF
DEVELOPMENT FEES
A. In General. An applicant shall be notified by the Town of the applicable development
fee requirements at the time of application for a building permit via the issuance of a
Development Fee Calculation Form to the applicant. Development fees shall be
calculated by the Town at the time of application for a building permit and shall be paid
by the applicant prior to the issuance of a building permit.
B. Calculation.
1. Upon receipt of an application for a building permit, the Town shall determine (a)
whether it is a residential or non-residential use, (b) the specific category (type) of
residential or non-residential development, if applicable, (c) if residential, the
number of new dwelling units, (d) if non-residential, the number of new or
additional square feet of gross floor area (rounded up to nearest square foot) and
the proposed use, and (e) the development fee district in which the new
development is located (if applicable).
2. Upon receipt of an application for a building permit, the Town shall determine
whether it is for a change in use. In such cases, the development fee due shall be
based only on the incremental increase in the fee for the additional public
facilities needed for the change in use.
3. After making these determinations, the Town shall calculate the demand for the
public facility added by the new development for each public facility category
for which a development fee is being imposed and calculate the applicable
development fee by multiplying the demand added by the new development by
the amount of the applicable development fee per unit of development,
incorporating any applicable offset if set forth in the particular development fee
calculation methodology.
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4. If the type of land use proposed for new development is not expressly listed in
the particular development fee ordinance and schedule, the Town shall:
a) identify the most similar land use type listed and calculate the
development fee based on the development fee for that land use; or
b) identify the broader land use category within which the specified land
use would apply and calculate the development fee based on the
development fee for that land use category; or
c) at the option of the applicant, or the Director, determine the basis used to
calculate the fee pursuant to an independent impact analysis for
development fee calculation. This option shall be available only for
street development fees and shall be requested by the applicant on a
form provided by the Town for such purpose. If this option is chosen,
the following shall apply:
1) The applicant shall be responsible, at its sole expense, for
preparing, the independent impact analysis, which shall be
reviewed for approval by the Director, and, if appropriate, by the
Town Engineer or other Town staff or officials, prior to the
payment of the fee.
2) The independent impact analysis shall measure the impact that
the proposed development will have on the particular public
facility at issue, and shall be based on the same methodologies
used in the Development Fee Calculation Methodology Report,
and shall be supported by professionally acceptable data and
assumptions.
3) After review of the independent impact analysis submitted by
the applicant, the Director shall accept or reject the analysis and
provide written notice to the applicant of its decision on a form
provided for such purpose within thirty (30) days. If the
independent impact analysis is rejected, the written notice shall
provide an explanation of the insufficiencies of the analysis.
4) The final decision of the Director may be appealed pursuant to
Section 6, herein.
5. 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 Community Development Department; provided,
however, that such estimate may be subject to change when a formal application
for a building permit for new development is made. Such non -binding estimate
is solely for the benefit of the prospective applicant and shall in no way bind the
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Town nor preclude it from making amendments or revisions to any provisions of
this Ordinance, the specific development fee implementing ordinances or the
development fee schedules.
6. The calculation of development fees due from a multiple -use new development
shall be based upon the aggregate demand for each public facility generated by
each land use type in the new development.
7. The calculation of development fees due from a phased new development shall
be based upon the demand generated by each specific land use within the phase
of development for which a separate building permit is requested.
8. Development fees shall be calculated based on the development fee amount in
effect at the time of application for a building permit.
C. Offsets.
Offsets against the amount of a development fee due from a new development
shall be provided for, among other things, contributions made or to be made in
the future in cash, or by dedication of land or by actual construction of all or part
of a public facility by the affected property owner for public facilities meeting or
exceeding the demand generated by the new development and the contribution is
determined by the Town to be a reasonable substitute for the cost of public
facilities which are included in the particular development fee calculation
methodology.
2. The amount of the excess contribution shall be determined by the Town upon
receipt of an application form requesting an offset; provided, however, that (a)
the Town will make no reimbursement for excess contributions unless and until
the particular public facility fund has sufficient revenue to make the
reimbursement without jeopardizing the continuity of the Town's capital
improvements program and (b) the excess contribution may not be transferred or
credited to any other type of development fees calculated to be due from that
development for other type of public facilities. The determination of the
eligibility for and the amount of the credit shall be made by the Town on a form
provided for such purposes. If the applicant contends that any aspect of the
Town's decision constitutes an abuse of discretion, the applicant shall be entitled
to appeal pursuant to Section 6.
3. No offset shall be allowed unless the Town has approved the contribution or
expenditure before it is made.
4. Offsets for dedication of land or provision of public facilities shall be applicable
only as to development fees imposed for the same types of public facilities
which are proposed to be dedicated or provided. Even if the value of the
dedication of land or provision of a public facility exceeds the development fee
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due for the type of public facility, the excess value may not be transferred to
development fees calculated to be due from the applicant for other types of
public facilities for which development fees may be imposed. Offsets may,
however, be transferred to the same applicant or to other applicants for new
development which are proposed within the final approved platted area of the
same development and for the same type of public facility.
D. Collection.
1. The Town shall collect all applicable development fees at the time of issuance of
a building permit and shall issue a receipt to the applicant for such payment
unless:
a) the applicant is determined to be entitled to a full offset; or
b) the applicant has been determined to be not subject to the payment of a
development fee; or
c) the applicant has filed an appeal and a bond or other surety in the
amount of the development fee, as calculated, by the Town and approved
by the Town Attorney and Town Accountant, has been posted with the
Town.
2. The Town shall collect a development fee at the time of issuance of a building
permit even if development fees were paid by the applicant at an earlier time in
the development permit or approval process if the amount of the development
fees have increased since such prior approval. Except as provided for in Section
3.F, the applicant shall only be liable for the difference between the development
fees paid earlier and those in effect at the time of issuance of the subsequent
building permit.
Section 7-10-5. ESTABLISHNIENT OF DEVELOPMENT FEE ACCOUNTS; APPROPRIATION
OF DEVELOPMENT FUNDS; AND REFUNDS
A. Development Fee Accounts. A development fee account shall be established by the
Town 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. Subaccounts may be established for individual
development fee districts. All development fees collected by the Town shall be
deposited into the appropriate development fee account or subaccount, 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 Town funds, over time.
The Town 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 Ordinance, Arizona Revised Statutes § 9.463.05 and any other
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applicable legal requirements.
B. Appropriation of Development Fee Funds.
1. In General. Development fee funds may be appropriated for public facilities, for
public facility expenditures as defined in Section 2.S, hereof and for the payment
of principal, interest and other financing costs on contracts, bonds, notes or other
obligations issued by or on behalf of the Town or other applicable local
governmental entities to finance such public facilities and public facility
expenditures. All appropriations from development fee accounts shall be
detailed on a form provided for such purposes and filed with the Town
Accountant.
2. Restrictions on Appropriations. Development fees shall be appropriated only (a)
for the particular public facility for which they were imposed, calculated and
collected, (b) within the development fee district where collected unless the
development fee funds will be appropriated for a public facility necessitated by
or serving the new development as provided herein; and within (c) within six (6)
years of the beginning of the Fiscal Year immediately succeeding the date of
collection, unless such time period is extended provided herein. Development
fees shall not be appropriated for funding maintenance or repair of public
facilities nor for operational or personnel expenses associated with the provision
of the public facility.
3. Appropriation of Development Fee Funds Outside of District Where Collected.
Development fee funds may be appropriated for a public facility located outside
of the district where collected only if the demand for the public facility is
generated in whole or in part by the new development or if the public facility
will actually serve the new development.
4. Appropriation of Development Fee Funds Beyond Six (6) Years of Collection.
Notwithstanding Section 5.B.2., development fee funds may 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
which requires more than six (6) years to plan, design and construct, and the
demand for the public facility is generated in whole or in part by the new
development, or if the public facility will actually serve the new development.
Such appropriations shall be documented by the Town.
C. Procedure for Appropriation of Development Fee Funds.
1. The Town shall each year 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 review set
forth in Section 3.B. herein and such other information as may be relevant, and
may be part of the Town's annual budget and capital improvements programming
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process.
2. The recommendations shall be consistent with the provisions of this Ordinance,
the particular public facility development fee ordinances, Arizona Revised
Statutes § 463.05, or other applicable legal requirements and any guidelines
adopted by the Mayor and Common Council.
3. The Mayor and Common Council may include development fee -funded public
facilities in the Town's annual budget and capital improvements program. 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.
4. The Mayor and Common Council may authorize development fee -funded public
facilities at such other times as may be deemed necessary and appropriate by a
majority vote of the Common Council.
5. The Mayor and Common Council shall verify that adequate development fee
funds are or will be available from the appropriate development fee account for
the particular public facility.
D. Refunds.
1. Eligibility for Refund.
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 shall be eligible to apply for a refund of
development fees paid on a form provided by the Town for such
purposes.
b. Failure of Town 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 Town has failed to
appropriate the development fees collected from the applicant within the
time limit established in Sections 5.13.2. and 5.13.4. The refund
application shall be made on a form provided by the Town for such
purposes.
C. 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
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be eligible for a refund unless the uncompleted building is completely
demolished.
d. A 5% administrative fee, but not to exceed $200.00, shall be deducted
from the amount of any refund granted and shall be retained by the
Town in the appropriate development fee account to defray the
administrative expenses associated with the processing of a refund
application.
2. Except as provided in Sections 5.D.l.a. and c. and Section 5.D.6. hereof, refunds
shall be made only to the current owner of property on which the new
development was proposed or occurred.
Processing of Applications for a Refund. Applications for a refund shall be
made on a form provided by the Town for such purposes and shall include all
information required in Sections 5.D.5. or Section 5.D.6. hereof, as appropriate.
Upon receipt of a complete application for a refund, the Town 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 Town.
4. Applications for refunds due to abandonment of a new development prior to
completion shall be made on forms provided by the Town and shall be made
within sixty (60) days following expiration or revocation of the building permit.
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 facilities 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 sixty (60)
days following expiration or revocation of the building permit or demolition of
the structure shall constitute a waiver of entitlement to a refund. No interest
shall be paid by the Town in calculating the amount of the refund(s).
Applications for refunds due to the failure of the Town to appropriate
development fees collected from the applicant within the time limits established
in Section 5.B.2. hereof shall be made on forms provided by the Town and 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 Town's failure to appropriate
development fee funds for relevant public facilities.
6. The Town may, at its option, make refunds of development fees by direct
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payment, by offsetting such refunds against other development fees due for the
same category of public facilities for new development on the same property, or
by other means subject to agreement with the property owner.
Section 7-10-6. APPEALS.
A. An appeal from any decision of a Town official pursuant to this Ordinance shall be made
to the Mayor and Common Council by filing a written appeal pursuant to the appropriate
Town form with the Town Clerk within thirty (30) days following the decision which is
being appealed; provided, however, that if the notice of appeal is accompanied by a cash
bond or letter of credit in a form satisfactory to the Town Attorney and the Town
Accountant in an amount equal to the development fee calculated to be due, a building
permit may be issued to the new development. The filing of an appeal shall not stay the
imposition or the collection of the development fee as calculated by the Town unless a
cash bond or other sufficient surety has been provided.
B. The burden of proof shall be on the appellant to demonstrate that the decision of the
Town is erroneous.
C. All appeals shall detail the specific grounds therefor and all other relevant information
and shall be filed on a form provided by the Town for such purposes.
Section 7-10-7. EXEMPTIONS/WAIVERS.
A. Filing of Application. Petitions for exemptions to the application of the provisions of
this Ordinance or waivers from specific development fees shall be filed with the Mayor
and Common Council on forms provided by the Town.
B. Effect of Grant of Exemption/Waiver. If the Mayor and Common Council grants an
exemption or waiver in whole or in part of development fees otherwise due, the amount
of the development fees exempted or waived shall be provided by the Town from non -
development fee funds, as may be provided in the particular development fee ordinances
establishing development fees for particular public facilities, and such funds shall be
deposited to the appropriate development fee account within a reasonable period of time
consistent with the applicable Town capital improvements program.
C. Development Agreements. Nothing herein shall be deemed to limit the Town's authority
or ability to enter into Development Agreements pursuant to Arizona Revised Statutes §
9-500.05 with applicants for new development who may provide for dedication of land,
payments in lieu of development fees, or actual infrastructure improvements. Such
development agreements may allow offsets against development fees for contributions
made or to be made in the future in cash, or by taxes or assessments or dedication of land
or by actual construction of all or part of a public facility by the affected property owner.
Section 3. CONFLICT.
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To the extent of any conflict between other Town ordinances and this Ordinance, this Ordinance shall be
deemed to be controlling; provided, however, that this Ordinance is not intended to amend or repeal any
existing Town ordinance, resolution or regulation.
SECTION 4. SEVERABILITY.
If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for any reason, held -to
be invalid or unconstitutional by the decisions of any court of competent jurisdiction, such decision shall
not affect the validity of the remaining portions thereof.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall become effective at 12:01 a.m. on February 15, 2001 following its adoption by the
Mayor and Common Council and publication as required by state law.
PASSED AND ADOPTED BY the Mayor and Common Council of the Town of Fountain Hills,
Arizona, this 16a' day of November, 2000.
FOR THE TOWN OF FOUNTAIN HILLS:
2- "11---X
Sharon Morgan, Mayor
= 9 0U11 191`A D11111•
ATTESTED TO:
Cassie B. Hansen, Town Clerk
APPROVED AS TO FORM:
"aul L. ordin, Town Manager William E. Farrell, Town Attorney
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