§ 9-8-11 Development fee funds and uses of development fees.
(A) Development Fee Funds. Development Fees collected pursuant to this article shall be placed in separate interest bearing funds for each category of Necessary Public Facilities or Facilities Expansions for which development fees are assessed (police, fire, streets, parks and recreation, water and wastewater) within each Service Area in which the development fees are assessed.
(B) Use of Development Fees. The use of Development Fees collected pursuant to this article is subject to the following:
(1) Development fees and any interest thereon may only be spent to provide or to provide reimbursements for costs of Necessary Public Services or Facilities Expansions that are: (i) included in an adopted Infrastructure Improvements Plan for which the development fees were assessed; (ii) that are for the same Category of Necessary Public Services for which the fee was collected; and (iii) serve the same Service Area for which the fees were collected.
(a) By way of example, street development fees collected for development occurring in the North Goodyear Service Area may be spent only on Necessary Public Services or Facilities Expansions included in an IIP for the North Goodyear Service Area.
(2) Development fees may not be used for any of the following:
(a) The costs of constructing, acquiring, expanding, or for the reimbursement of costs incurred in constructing, acquiring, or expanding infrastructure improvements that are not included in an adopted IIP.
(b) The repair, operation or maintenance of existing or new Necessary Public Services or Facility Expansions.
(c) Upgrading, updating, expanding, correcting or replacing existing Necessary Public Services to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards.
(d) Upgrading, updating, expanding, correcting or replacing existing Necessary Public Services to provide a higher level of service to existing development.
(e) Administrative, maintenance or operating costs of the City.
(3) Any development fees collected before January 1, 2012, remaining in a development fee fund shall be used towards the same Category of Necessary Public Services for which the development fee was collected.
(a) If development fees were collected for a facility that is not a Necessary Public Service as defined in this article, the fees shall be used for the purposes for which they were collected on or before January 1, 2020.
(b) If the development fees have not been spent by January 1, 2020, they shall be distributed equally among the Necessary Public Services included in an adopted IIP for the same Category of Necessary Public Services for which the fees were collected.
(C) Carry-Over. Notwithstanding the requirements of this article, the City may continue to assess and use development fees for a facility for which development fees could not otherwise be assessed pursuant to this article under the following conditions:
(1) Development fees were pledged to repay debt service obligations related to the construction of the facility prior to June 1, 2011; and
(2) After August 1, 2014, any development fees collected under this subsection (C) are used solely for the payment of principal and interest on the portion of the bonds, notes or other debt service obligations that were issued before June 1, 2011, to finance the construction of the facility. (Ord. 19-1416, passed 1-14-2019)