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Letter to the Editor: City is questioned about Impact Fee Use

Sedona AZ (November 8, 2010) – The Sedona Eye and Sedona Times Publishing welcomes the sedona city plannerSedona City Council to respond to this email sent to each Councilor and many citizens, including the SedonaEye.com editor:

“Dear All:

Could someone please let me know where in the documents provided below it is stipulated that Sedona’s $1.6 million in development impact fees need to be spent only in Parks and Recreation. If there is no such requirement stated in the Sedona Code where is it stated in the State law? If Sedona has a different regulation tucked away somewhere else, please let me know where and how it may be accessed?

I have provided the necessary State and City related documentation for your reference.

Thank you very much.”

City Code Article 8-3 DEVELOPMENT IMPACT FEES:

CAPITAL IMPROVEMENT. Land or facilities for purposes constructing or improving public facilities; for transportation and transit, including without limitation, streets, street lighting and traffic-control devices and supporting improvements, roads, overpasses, bridges, and related facilities; storm drainage facilities; for parks and recreational improvements; for acquisition of open space; for public safety, including police and jail facilities; for public buildings of all kinds; and for any other capital project identified in the City’s Capital Improvement Plan or Flexible Capital Budget. Capital improvement also includes the design, engineering, inspection, testing, planning, legal, land acquisition, and all other costs associated with construction of a public facility. http://www.codepublishing.com/AZ/sedona/

Sedona Development Impact Fees as of 2009:

http://www.sedonaaz.gov/sedonacms/Modules/ShowDocument.aspx?documentid=888

Arizona Revised Statutes 9-463.05

Development fees; imposition by cities and towns; infrastructure improvements plan; annual report; limitation on actions; definitions

http://www.azleg.state.az.us/FormatDocument.asp?inDoc=/ars/9/00463-05.htm&Title=9&DocType=ARS

Land Development Code

§ 102 AUTHORITY.

This Code is enacted pursuant to the requirements and authority granted the city by the Arizona Constitution, Article XIII, § I and A.R.S. §§ 9-276, 9-461, 9-462 and 9-463.

http://www.sedonaaz.gov/sedonacms/Modules/ShowDocument.aspx?documentid=5309

DEVELOPMENT IMPACT FEES ORDINANCE

Article 16 and shall include the definitions contained therein.

http://www.sedonaaz.gov/sedonacms/Modules/ShowDocument.aspx?documentid=5308

ARTICLE 16: (RESERVED)

Editor’s Note: As a result of the enactment of Ordinances 2006-21 and 2006-22, both passed 12-12-2006, Development Impact Fees are now codified in Article 8-3 of the Sedona City Code.

2007 S – http://www.sedonaaz.gov/sedonacms/Modules/ShowDocument

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3 Comments

  1. Michael Goimarac, Sedona City Council Response says:

    The Mayor requested that I respond to the inquiry concerning why impact fees received for Park and Recreation impacts cannot be used for other city purposes.

    Under the current law, fees cannot be redistributed from one DIF category to another. Per ARS 9-463.05, funds shall be used to provide the same category of necessary public service for which the development fee was assessed for the benefit of the same area, as defined in the infrastructure improvements plan that was incorporated into the impact fee study in 2006. To quote the statute directly, it states:

    “Monies received from a development fee identified in an infrastructure improvements plan adopted or amended pursuant to subsection D of this section shall be used only to provide the same category of necessary public service for which the development fee was assessed.”

    The general premise behind impact fees is that any new development creates an additional impact on the demand for parks, police protection, etc. The fee is intended to cover the cost per development for such impacts. There is a separate fee created for each specific impact, i.e. parks and recreation, police protection, etc. These separate fees are then aggregated into a single development impact fee that is assessed to each new development. When the fee is collected, it is then distributed back into separate accounts for each impact. It would be running afoul of the statute to take, for example, park and recreation impact fees and use them for roads or police protection. A developer could claim that the City did a “bait and switch” by assessing him a fee for parks and then never applying it to his benefit for park uses.

    Hopefully, this answers your question.

    Michael Goimarac” <mgoimarac@sedonaaz.gov

  2. Sedona Curious says:

    Goimaric’s response is lacking in specificity. Perhaps it was intentional that he repeated the State law, although it was supplied to him in a reference url (as well as the verbiage from the Sedona Code). We want to know what types of uses staff defined for each of the developments that have been built in the past, how it relates to the resident survey findings and what steps can be taken to revise or correct them as well as preventing anything similar from happening in the future. Thus, Goimarac merely fueled the flames of curiosity.

  3. Timothy Simpson says:

    To embelish Sedona Curious, how about Perplexing? With a Community Plan missing teeth insofar as enforcement, a strange method of charging a flat fee for sewer service instead of metered usage, lack of credibility to uphold rezoning amendments to the Community Plan, such as was the case with a zone change approval to Fairfield based on inclusion of affordable units (which stipulation was left out of the subsequent Development Agreement,) and now this questionable policy for disbursement of development impact fees, I don’t get it. What, exactly is the pecking order? If developers are able to earmark where their impact charges are to be spent, much the same as is suggested in obituary notices, are they not then, in fact, running this place? Further, why is it that the City of Sedona spends even more money on surveys that are ultimately ignored? Between the Chamber of Commerce, building contractors, and the Department of Planning & Zoning, what need is there for other branches at City Hall, including a City Council?

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