ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

HB 4066: municipal development fees; proportional fees

Sponsor: Representative Olson, LD 10

Committee on Government

Overview

Permits a municipality to impose a development fee on a single service unit for a necessary public service's development that is proportionate to the amount that will be used.

History

A necessary public service can be any of the following with a life expectancy of three years or more and that are owned and operated by or on the behalf of the municipality: 1) water facilities, including the supply, transportation, treatment, purification or distribution of water and their appurtenances; 2) wastewater facilities, including collection, interception, transportation, treatment or disposal of wastewater and their appurtenances; 3) storm water drainage and flood control, including their appurtenances; 4) certain fire and police, library, street, and recreational facilities and neighborhood parks; and 5) certain facilities that were financed and adopted a development fee before June 1, 2011. A service unit is a standardized measure of consumption, use, generation or discharge attributable to an individual unit of development that is calculated according to an engineering or planning standard.

A municipality can assess development fees to offset the municipality's costs associated with providing necessary public services to a development. Such fees are calculated based on the infrastructure improvements plan. Development fees also cannot exceed a proportionate share of the necessary public services' costs needed to provide such services to the development. Additionally, costs for necessary public services because of new development must be based on the same level of service provided to the existing development in the service area (A.R.S. § 9-463.05).

Provisions

1. Allows a municipality to impose a development fee on a single service unit for the development of a necessary public service proportionate to the amount of necessary public service that the single service unit will use. (Sec. 1)

2. Restricts a municipality from imposing a development fee that is greater than the amount needed to meet the necessary public service's increased need as a result of the single service unit development. (Sec. 1)

3. Makes technical and conforming changes. (Sec. 1)

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7. Initials ML/MN HB 4066

8. 2/13/2026 Page 0 Government

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