Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 9-463.05, Arizona Revised
Statutes, is amended to read:
START_STATUTE9-463.05. Development fees; imposition by cities
and towns; annual report
A. A municipality may assess development fees to
offset costs to the municipality associated with providing necessary public
services to a development.
B. Development fees assessed by a municipality under
this section are subject to the following requirements:
1. Development fees shall result in a beneficial use
to the development.
2. Monies received from development fees assessed pursuant
to this section shall be placed in a separate fund and accounted for separately
and may only be used for the purposes authorized by this
section. Interest earned on monies in the separate fund shall be
credited to the fund.
3. The schedule for payment of fees shall be
provided by the municipality. The municipality shall provide a
credit toward the payment of a development fee for the required dedication of
public sites and improvements provided by the developer for which that development
fee is assessed. The developer of residential dwelling units shall be required
to pay development fees when construction permits for the dwelling units are
issued.
4. The amount of any development fees assessed
pursuant to this section must bear a reasonable relationship to the burden
imposed upon the municipality to provide additional necessary public services
to the development. The municipality, in determining the extent of
the burden imposed by the development, shall consider, among other things, the
contribution made or to be made in the future in cash or by taxes, fees or
assessments by the property owner towards the capital costs of the necessary
public service covered by the development fee.
5. If development fees are assessed by a
municipality, such fees shall be assessed in a non‑discriminatory manner.
6. In determining and assessing a development fee
applying to land in a community facilities district established under title 48,
chapter 4, article 6, the municipality shall take into account all public
infrastructure provided by the district and capital costs paid by the district
for necessary public services and shall not assess a portion of the development
fee based on the infrastructure or costs.
7. Developers
shall be given a fifteen per cent discount in development fees for homes that
qualify for the federal tax credit for energy efficient homes.
C. A municipality shall give at least sixty days'
advance notice of intention to assess a new or increased development fee and
shall release to the public a written report including all documentation that
supports the assessment of a new or increased development fee. The
municipality shall conduct a public hearing on the proposed new or increased
development fee at any time after the expiration of the sixty day notice of
intention to assess a new or increased development fee and at least fourteen
days prior to the scheduled date of adoption of the new or increased fee by the
governing body. A development fee assessed pursuant to this section
shall not be effective until ninety days after its formal adoption by the
governing body of the municipality. Nothing in this subsection shall affect
any development fee adopted prior to July 24, 1982.
D. Each municipality that assesses development fees
shall submit an annual report accounting for the collection and use of the
fees. The annual report shall include the following:
1. The amount assessed by the municipality for each
type of development fee.
2. The balance of each fund maintained for each type
of development fee assessed as of the beginning and end of the fiscal year.
3. The amount of interest or other earnings on the
monies in each fund as of the end of the fiscal year.
4. The amount of development fee monies used to
repay:
(a) Bonds issued by the municipality to pay the cost
of a capital improvement project that is the subject of a development fee
assessment.
(b) Monies advanced by the municipality from funds
other than the funds established for development fees in order to pay the cost
of a capital improvement project that is the subject of a development fee
assessment.
5. The amount of development fee monies spent on
each capital improvement project that is the subject of a development fee
assessment and the physical location of each capital improvement project.
6. The amount of development fee monies spent for
each purpose other than a capital improvement project that is the subject of a
development fee assessment.
E. Within ninety days following the end of each
fiscal year, each municipality shall submit a copy of the annual report to the
city clerk. Copies shall be made available to the public on
request. The annual report may contain financial information that has not been
audited.
F. A municipality that fails to file the report
required by this section shall not collect development fees until the report is
filed.END_STATUTE
Sec. 2. Section 11-1102, Arizona Revised
Statutes, is amended to read:
START_STATUTE11-1102. County development fees; annual report
A. If a county has adopted a capital improvements
plan, the county may assess development fees within the covered planning area
in order to offset the capital costs for water, sewer, streets, parks and
public safety facilities determined by the plan to be necessary for public
services provided by the county to a development in the planning area.
B. Development fees assessed under this section are
subject to the following requirements:
1. Development fees shall result in a beneficial use
to the development.
2. Monies received from development fees shall be
placed in a separate fund and accounted for separately and may only be used for
the purposes authorized by this section. Interest earned on monies in the
separate fund shall be credited to the fund.
3. The county shall prescribe the schedule for
paying the development fees. The county shall provide a credit toward the
payment of the fee for the required dedication of public sites and improvements
provided by the developer for which that fee is assessed. The developer of
residential dwelling units shall be required to pay the fees when construction
permits for the dwelling units are issued.
4. The amount of any development fees must bear a
reasonable relationship to the burden of capital costs imposed on the county to
provide additional necessary public services to the development. In
determining the extent of the burden imposed by the development, the county
shall consider, among other things, the contribution made or to be made in the
future in cash by taxes, fees or assessments by the property owner toward the
capital costs of the necessary public service covered by the development fee.
5. Development fees shall be assessed in a
nondiscriminatory manner.
6. In determining and assessing a development fee
applying to land in a community facilities district established under title 48,
chapter 4, article 6, the county shall take into account all public
infrastructure provided by the district and capital costs paid by the district
for necessary public services and shall not assess a portion of the development
fee based on the infrastructure or costs.
7. Developers
shall be given a fifteen per cent discount in development fees for homes that
qualify for the federal tax credit for energy efficient homes.
C. Before assessing or increasing a development fee,
the county shall:
1. Give at least one hundred twenty days' advance
notice of intention to assess a new or increased development fee.
2. Release to the public a written report including
all documentation that supports the assessment of a new or increased
development fee.
3. Conduct a public hearing on the proposed new or
increased development fee at any time after the expiration of the one hundred
twenty day notice of intention to assess a new or increased development fee and
at least fourteen days before the scheduled date of adoption of the new or
increased fee.
D. A development fee assessed pursuant to this
section is not effective for at least ninety days after its formal adoption by
the board of supervisors.
E. Each county that assesses development fees shall
submit an annual report accounting for the collection and use of the fees. The
annual report shall include the following:
1. The amount assessed by the county for each type
of development fee.
2. The balance of each fund maintained for each type
of development fee assessed as of the beginning and end of the fiscal year.
3. The amount of interest or other earnings on the
monies in each fund as of the end of the fiscal year.
4. The amount of development fee monies used to
repay:
(a) Bonds issued by the county to pay the cost of a
capital improvement project that is the subject of a development fee
assessment.
(b) Monies advanced by the county from funds other
than the funds established for development fees in order to pay the cost of a
capital improvement project that is the subject of a development fee
assessment.
5. The amount of development fee monies spent on
each capital improvement project that is the subject of a development fee
assessment and the physical location of each capital improvement project.
6. The amount of development fee monies spent for
each purpose other than a capital improvement project that is the subject of a
development fee assessment.
F. Within ninety days following the end of each
fiscal year, each county shall submit a copy of the annual report to the clerk
of the board of supervisors. Copies shall be made available to the public on
request. The annual report may contain financial information that has not been
audited.
G. A county that fails to file the report required
by this section shall not collect development fees until the report is filed.
H. This section does not affect any development fee
adopted before May 18, 2000. END_STATUTE
