Chapter 26.05
IMPACT FEES

Sections:

26.05.010    Findings and authority.

26.05.020    Definitions.

26.05.030    Single-family residential deferral option.

26.05.040    Authority unimpaired.

26.05.050    Fire impact fee capital facilities plan.

26.05.060    Fire impact fee formula.

26.05.070    Fire impact fee assessment.

26.05.080    Fire impact fee adjustments.

26.05.090    Fire impact fee credits.

26.05.100    Fire impact fee appeals.

26.05.110    Fire impact fee refunds.

26.05.120    Use of fire impact fees.

26.05.130    Fire impact fee review.

26.05.140    Fire impact fee exemptions.

26.05.150    School impact fees.

26.05.160    School impact fee program elements.

26.05.170    Assessment of school impact fees.

26.05.180    School impact fee exemptions.

26.05.190    Determination of school impact fees, adjustments, exceptions, and appeals.

26.05.200    Impact fee accounts and refunds.

26.05.210    Use of school impact fees.

26.05.220    School impact fee schedule.

26.05.010 Findings and authority.

The city council of the city of DuPont (the “council”) hereby finds and determines that new growth and development in the city; including but not limited to new residential, commercial, retail, office, and industrial development, will create additional demand and need for public facilities in the city of DuPont, and the council finds that new growth and development should pay a proportionate share of the cost of new facilities needed to serve the new growth and development. Therefore, pursuant to Chapter 82.02 RCW, RCW 82.02.100, the council adopts this chapter to assess impact fees on new residential, commercial, and industrial development in the city. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the city council in establishing an impact fee program. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 1)

26.05.020 Definitions.

The following words and terms shall have the following meanings for the purposes of this chapter, unless the context clearly requires otherwise. Terms or words not defined herein shall be defined pursuant to RCW 82.02.090 when given their usual and customary meaning.

The “Act” means the Growth Management Act, Chapter 17, Laws of 1990, First Extraordinary Session, Chapter 36.70A RCW et seq., and Chapter 32, Laws of 1991, First Special Session, as now in existence or hereinafter amended.

“Adult” means a person aged 55 or older.

“Applicant” means the person or entity that owns or holds purchase options or other development control over property for which development activity is proposed, and shall include any entity that controls, is controlled by, or is under common control with the applicant.

“Building permit” means an official document or certification of the city of DuPont issued by the city’s building official which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, placement, demolition, moving, or repair of a building or structure.

“Capital facilities plan” means the school district’s facilities plan adopted by the district’s board of directors and such plan as amended.

“City” means the city of DuPont, Washington, county of Pierce.

“County” means Pierce County.

“Development activity” means any construction or expansion of a building or structure or use, any change in use of a building or structure, or any change in the use of land that creates additional demand and need for public facilities.

“Development approval” means any written authorization from the city, which authorizes the commencement of the “development activity.”

“District” means a participating school district and shall specifically mean the Steilacoom Historical School District No. 1.

“Dwelling unit” means a dwelling unit as defined in DMC 25.10.040.100.

“Dwelling unit, multifamily” means a multi-family dwelling unit as defined in DMC 25.10.040.090.

“Dwelling unit, single-family” means a single family dwelling unit as defined in DMC 25.10.040.095.

“Encumbered” means impact fees identified by the district as being committed as part of the funding for a school facility for which the publicly funded share has been assured or building permits sought or construction contracts let or other contractual obligations incurred.

“Feepayer” is a person, corporation, partnership, an incorporated association or governmental agency, municipality, or similar entity commencing a land development activity, which requires a building permit and creates a demand for additional fire capital facilities.

“Impact fee” means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. “Impact fee” does not include a reasonable permit or application fee.

“Interlocal agreement” means the agreement between the district and the city, governing the operation of the school impact fee program and describing the relationship, duties and liabilities of the parties.

“Letter encumbered” means to reserve, set aside, or earmark the fire impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for the provision of fire protective services.

“Owner” means the owner of record of real property, as found in the records of Pierce County, Washington, or a person with an unrestricted written option to purchase property; provided, that if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the property.

“Proportionate share” means that portion of the cost for fire facility improvements that are reasonably related to the service demands and needs of new development.

“Public facilities” means the following capital facilities owned or operated by governmental entities: (1) public streets and roads; (2) publicly owned parks and open spaces and recreational facilities; (3) school facilities; (4) fire protection facilities not part of a fire district; and (5) police facilities and essential public facilities as defined by Chapter 36.70A RCW. (Ord. 22-1103 §§ 1 (Exh. A), 3; Ord. 04-776 § 2)

26.05.030 Single-family residential deferral option.

In accordance with RCW 82.02.050, impact fee payments may be deferred for single-family detached and attached residential construction until final building inspection or 18 months from the date of original building permit issuance, whichever occurs first. Impact fee deferrals are considered under the following terms and conditions:

(a) For each single-family residence for which any impact fee deferral is applied for, an administrative fee as set forth in the city’s fee schedule must simultaneously be paid to the city due to the increased burden placed on city staff for processing and monitoring such deferral.

(b) A separate application must be submitted for each single-family residence being constructed.

(c) Only the first 20 applications per calendar year by each applicant for impact fee deferral are eligible for impact fee deferral under this chapter.

(d) The period of deferral expires at the earliest of:

(1) The time of final inspection by the city;

(2) The time of issuance of a certificate of occupancy by the city;

(3) The time of closing of the first transfer of the property occurring after the issuance of the applicable building permit; or

(4) Eighteen months after the building permit is issued by the city.

(e) Final inspection approval, certificate of occupancy, and hookups to water and sewer will not be issued or made until payment in full of the impact fees is made.

(f) For the first transfer of the property, the impact fees shall be paid at closing if they have not been previously paid.

(g) The applicant for impact fee deferral must grant and record in favor of the city of DuPont an impact fee lien in the amount of the deferred impact fee. The lien must be in a form signed, dated and approved by the city attorney, and signed by all owners of the property and persons or entities holding any interest in the property, with all signatures acknowledged as required for a deed, and recorded among the appropriate land records of Pierce County. Proof of such recording shall be submitted to the city before a building permit may be issued. The lien shall specify that it is binding on all successors in title after the recordation. The lien may specify that it is subordinate to one mortgage for the purpose of construction upon the same real property granted by the applicant for impact fee deferral. A mortgage, deed of trust or other financing mechanism shall be limited to the property upon which construction on one single-family residence will occur. A lien not paid when due shall bear interest at the statutory rate. A lien shall become due at the expiration of the deferral date.

(h) If impact fees are not paid in accordance with ESB 5923(2015) and DMC 26.05.140, the city may institute foreclosure proceedings in accordance with Chapter 61.12 RCW.

(i) After full payment of impact fees, and upon written request of the person paying said fees containing the name and address of the requester together with a copy of a proposed lien release form, the city, upon approval by the city attorney, shall sign a lien release and deliver it to the person paying said fee either in person or by first class mail. (Ord. 22-1103 § 1 (Exh. A); Ord. 17-1017 § 2 (Exh. B). Formerly 26.05.115)

26.05.040 Authority unimpaired.

Nothing in this chapter shall preclude the city from requiring the feepayer to mitigate adverse and environmental effects of a specific development pursuant to the State Environmental Policy Act, Chapters 43.21C and/or 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with Chapters 43.21C and 82.02 RCW. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 13. Formerly 26.05.130)

26.05.050 Fire impact fee capital facilities plan.

In order to collect fire impact fees, the city must first adopt a fire capital facilities plan as an element of the city’s comprehensive plan.

The city’s capital facilities plan for fire protection services shall consist of the following elements:

(a) The city’s capacity over the next six years, based on an inventory of the city’s fire facilities both existing and under construction;

(b) The forecast of future needs for fire facilities based upon the city’s population projections;

(c) A six-year financial plan component, updated as necessary, to maintain at least a six-year forecast for financing needed within projected funding levels;

(d) Application of the formula set forth in this chapter based upon the information in the capital facilities plan; and

(e) Council Action. No new or revised impact fee shall be effective until adopted by council following a duly advertised public hearing to consider the city’s capital facilities plan or plan update. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 3. Formerly 26.05.030)

26.05.060 Fire impact fee formula.

The impact fee formula is based on the following assumptions:

(a) Total fire service capital facilities needs for the period 2004 – 2009 as identified in the city of DuPont capital facilities plan equals $5,410,000.

(b) Allocation of the $5,410,000 is divided 50 percent residential responsibility and 50 percent commercial/industrial responsibility.

(c) The 2004 population of the city of DuPont is 4,425 or 52 percent of the estimated 2009 population of 8,500. Population growth will account for 48 percent of the total 2009 population.

(d) Population growth between 2004 and 2009 will be housed in approximately 1,380 new dwelling units.

Residential Impact Fee Formula per New Dwelling Unit

($2,705,000 x 0.48) ÷ 1,380 =

$940.87 per dwelling unit

(e) There are 1,003 acres of commercial/industrial zoned land in the city of DuPont south of Sequalitchew Village excluding environmentally sensitive areas, streets and the Consent Decree Area Golf Course.

Commercial/Industrial Impact Fee Formula

$2,705,000 ÷ 1,003 acres = $2,696.91 per acre

(Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 4. Formerly 26.05.040)

26.05.070 Fire impact fee assessment.

The city shall collect fire impact fees from applicants seeking development approvals from the city for any development activity in the city for which building permits are required. This will include the expansion of existing uses, which create the demand for fire protection services.

A developer may choose to offer a negotiated voluntary developer mitigation agreement in lieu of the impact fee. The aggregate value of the mitigation agreement shall, at a minimum, be equal to the value of the total calculated impact fee for the subject project. Such agreement shall be executed and any monies agreed to thereunder paid to the city at the time the building permit is issued.

Fire impact fees shall be assessed at the time of a sufficiently complete building permit application that complies with the city’s zoning ordinances and building and development codes. Fire impact fees shall be collected from the feepayer at the time the building permit is issued.

Except if otherwise exempt, the city shall not issue the required building permit unless or until the fire impact fees are paid. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 5. Formerly 26.05.050)

26.05.080 Fire impact fee adjustments.

The city may adjust a fire impact fee at the time the fee is imposed to consider unusual circumstances in specific cases to ensure that impact fees are imposed fairly.

In calculating the fee imposed on a particular development, the city shall permit consideration of studies and data submitted by a developer to adjust the amount of the fee. The developer shall submit an independent fee calculation study to the director of community development. The director of community development shall review the study to determine that the study:

(a) Is based on accepted impact fee assessment practices and methodologies;

(b) Uses acceptable data sources and the data used is comparable with the uses and intensities planned for the proposed development activity;

(c) Complies with the applicable state laws governing impact fees;

(d) Is prepared and documented by professionals who are mutually agreeable to the city and the developer and are qualified in their respective fields; and

(e) Shows the basis upon which the independent fee calculation was made.

In reviewing the study, the director of community development may require the developer to submit additional or different documentation. If an acceptable study is presented, the director of community development may adjust the fee to that appropriate for the particular development activity. If an acceptable study is not presented, the developer shall pay the impact fees required prior to submitting the study.

A developer requesting an adjustment or independent fee calculation may pay the impact fees imposed by this chapter to obtain a building permit while the city determines whether to partially reimburse the developer by making an adjustment or accepting the independent fee calculation. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 6. Formerly 26.05.060)

26.05.090 Fire impact fee credits.

A feepayer can request that a credit, or credits, be awarded to the feepayer for the value of dedicated land, improvements to, or new construction of any system improvements provided by the developer to facilities that are identified in the capital facilities plan and that are required by the city as a condition of approving the development activity. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 7. Formerly 26.05.070)

26.05.100 Fire impact fee appeals.

(a) Any feepayer may pay the impact fees imposed by this chapter under protest in order to obtain a building permit.

(b) Appeals regarding fire impact fees imposed on any development activity may only be taken by the feepayer of the property where such development activity will occur. No appeal shall be permitted unless and until the impact fee at issue has been paid.

(c) Determinations of the city staff with respect to the applicability of fire impact fees to a given development activity, or the availability of a credit, can be appealed to the city council pursuant to this section.

(d) An appeal shall be taken within 10 working days of payment of the impact fees under protest or within 10 working days of the city’s issuance of a written determination of a credit or exemption decision by filing with the city a notice of appeal giving the reasons for the appeal with an accompanying appeal fee as set forth in the existing fee schedule for land use decisions. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 8. Formerly 26.05.080)

26.05.110 Fire impact fee refunds.

(a) If the city fails to expend or encumber the impact fees within six years from the date the fees were paid, unless extraordinary circumstances or reasons exist, the current owner of the property on which the impact fees were paid shall receive a refund of such fees.

(b) The city shall notify potential claimants by first class mail that they are entitled to a refund. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first-in, first-out basis.

(c) Owners seeking a refund must submit a written request for a refund of the fees to the city within one year of the date the right to claim a refund arises or notice is given, whichever comes later.

(d) Any impact fees for which no application has been made within the one-year period shall be retained by the city and expended on appropriate fire facilities.

(e) Refunds of impact fees shall include any interest earned on the impact fees by the city. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 9. Formerly 26.05.090)

26.05.120 Use of fire impact fees.

(a) Pursuant to this chapter, fire impact fees shall be used for fire facilities that will reasonably benefit the city and its residents.

(b) Fees shall not be used to make up deficiencies in city facilities serving an existing development.

(c) Fees shall not be used for maintenance and operations, including personnel.

(d) Fire impact fees shall be used for but not limited to land acquisition, site improvements, engineering and architectural services, permitting, financing, administrative expenses and applicable mitigation costs, and capital equipment pertaining to fire protection facilities.

(e) Fire impact fees may also be used to recoup public improvement costs incurred by the city to the extent that new growth and development will be served by the previously constructed improvement.

(f) In the event bonds or similar debt instruments are or have been issued for fire facility improvements, impact fees may be used to pay the principal on such bonds. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 10. Formerly 26.05.100)

26.05.130 Fire impact fee review.

Impact fees shall be reviewed by the planning commission with recommendations to the city council as it may be necessary and appropriate, in conjunction with the annual review and update of the capital facilities plan and the city’s comprehensive plan. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 11. Formerly 26.05.110)

26.05.140 Fire impact fee exemptions.

The fire impact fees are generated from the formula for calculating the fees as set forth in this chapter. The amount of the impact fees is determined by the information contained in the adopted fire department capital facilities plan, as appended to the city’s comprehensive plan. All new development located in the city will be charged a fire impact fee; provided, that the following exemptions shall apply. Any development activity or project which has submitted a technically complete building permit application prior to the effective date of the ordinance codified in this chapter shall be exempt from the payment of fire impact fees. The following shall be exempt from fire impact fees:

(a) Replacement of a structure with a new structure having the same use, at the same site, and when such replacement is within 12 months of demolition or destruction of the previous structure;

(b) Alteration or expansion of or remodeling of an existing dwelling or structure where no new units are created and the use is not changed;

(c) Construction of an accessory residential structure;

(d) Miscellaneous improvements including, but not limited to, fences, walls, swimming pools, and signs;

(e) Demolition of or moving an existing structure within the city from one site to another;

(f) Low-income housing developed by individuals, nonprofit corporations, or a housing authority may be exempted from impact fees at the discretion of city staff subject to:

(1) Fiscal impact analysis of the effect of impact fees upon low-income housing and how exempting housing from impact fees would forward the goals for low-income housing in the city and Pierce County;

(2) That adequate documentation be provided that the housing will remain available for low-income persons for a 10-year period of time at affordable rents;

(3) Staff may make partial exemptions for market rate and low-income units; provided, that documentation is submitted for the low-income units to show that they will meet the specifications for household income, rent levels, and that affordable rent will be available for 10 years; and

(4) In the case of owner-occupied dwellings, that such housing will be sold or leased at affordable rates to low-income households for a period of 10 years; and

(g) The impact fee for exempt development shall be calculated as provided by this chapter and paid with public funds. Such payments may be made by including such amounts in the public share of the system improvements undertaken within the city for fire protection services and facilities. (Ord. 22-1103 § 1 (Exh. A); Ord. 04-776 § 12. Formerly 26.05.120)

26.05.150 School impact fees.

As a condition of the city’s authorization and adoption of a school impact fee ordinance, the city and district shall enter into an interlocal agreement governing the operation, including collection, expenditure, and reporting of impact fees, of the school impact fee program, and describing the relationship and liabilities of the parties thereunder. (Ord. 22-1103 §§ 1 (Exh. A), 4)

26.05.160 School impact fee program elements.

(a) Any impact fee imposed shall be reasonably related to the impact caused by the development and shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the new development. The impact fee formula shall account in the fee calculation for past and future revenues the district will receive from the development which are proratable to the same system improvements that will serve the development and for the availability of other means of public funding.

(b) The impact fee shall be based on the formula included in the capital facilities plan developed by the district and approved by the school board, and adopted by reference by the city as part of the capital facilities element of the city’s comprehensive plan for the purpose of establishing the fee program.

(c) The district shall annually submit to the city a six-year capital facilities plan or an update of a previously adopted plan, which meets the requirements of the Growth Management Act. The materials submitted annually by the district shall include proposed impact fee amounts for single-family residential units and multifamily residential units. The schedule in DMC 26.05.220 may be amended to reflect changes to the capital facilities plan. Amendments to the schedule for this purpose shall be adopted by the city council.

(d) For purposes of the impact fee calculation, the service area shall be the entire district and, for purposes of the imposition of the fee under this chapter, the service area is the entire city. (Ord. 22-1103 §§ 1 (Exh. A), 5)

26.05.170 Assessment of school impact fees.

(a) The city shall collect impact fees, based on the schedule in DMC 26.05.220, from any applicant seeking a residential building permit from the city.

(b) Except as provided in subsection (c) of this section, all impact fees shall be collected from the applicant prior to issuance of the building permit. Unless the use of an independent fee calculation has been approved, the fee shall be calculated based on the impact fee schedule in effect at the time of building permit issuance.

(c) An applicant for any single-family detached and attached residential building permit may elect to defer the payment of the impact fees until the occurrence of the earlier of final inspection, certificate of occupancy, or 18 months from the date of building permit issuance, subject to the following:

(1) The fee amount shall be set based on the fee schedule in effect at the time the applicant applies for the deferral;

(2) The applicant must grant and record a deferred impact fee lien, on a form provided by the city, in favor of the city;

(3) The lien must be recorded, at the applicant’s cost, prior to the city’s issuance of the building permit;

(4) The deferral option is limited to 20 building permits per applicant per year;

(5) The applicant shall bear all costs and be responsible for recording any lien release requested following payment of the deferred impact fees;

(6) The city may charge a nonrefundable per lot fee to administer a deferral request;

(7) The city shall not issue the final inspection or certificate of occupancy, whichever occurs first, until the deferred impact fee has been paid in full; and

(8) If deferred impact fees are not paid in accordance with terms authorized by state law and this section, the city may initiate foreclosure proceedings for the unpaid impact fees and all costs associated with the collection of the unpaid impact fees.

(d) For building permits for mixed use developments, impact fees shall be imposed on the residential component of the development found on the schedule in DMC 26.05.220.

(e) For building permits within new subdivisions approved under DMC Title 24 (Subdivision Regulations), a credit shall be applied for any dwelling unit that exists on the land within the subdivision prior to the subdivision if the dwelling unit is demolished. The credit shall apply to the complete building permit application submitted to the city subsequent to demolition of the existing dwelling unit, unless otherwise allocated by the applicant of the subdivision as part of approval of the subdivision.

(f) Unless payment has been scheduled under subsection (c) of this section, the city shall not issue any building permit unless and until the impact fee has been paid.

(g) In addition to any fee charged under subsection (c) of this section, the city will impose an application fee, as provided for in the city’s adopted fee schedule, per dwelling unit which is subject to and not otherwise exempt from this chapter to cover the reasonable cost of administration of the impact fee program. The fee is not refundable and is collected from the applicant of the development activity permit at the time of permit issuance. (Ord. 22-1104 § 1; Ord. 22-1103 §§ 1 (Exh. A), 6)

26.05.180 School impact fee exemptions.

The following development activities do not create any additional school impacts and are exempt from the requirements of this chapter:

(a) Construction, reconstruction, or remodeling of the following facilities, subject to the recording of a covenant or recorded declaration of restrictions precluding use of the property for other than the exempt purpose. Provided, that if the property is used for a nonexempt purpose, then the school impact fees then in effect shall be paid.

(1) Shelters or dwelling units for temporary placement, which provide housing to persons on a temporary basis for not more than four weeks;

(2) Construction or remodeling of transitional housing facilities or dwelling units that provide housing to persons on a temporary basis for not more than 24 months, in connection with job training, self-sufficiency training and human services counseling, the purpose of which is to help persons make the transition from homelessness to placement in permanent housing; and

(3) Any form of housing exclusively for adults, which have recorded covenants or recorded declaration of restrictions precluding school-aged children as residents in those units.

(b) Rebuilding of legally established dwelling unit(s) destroyed or damaged by fire, flood, explosion, act of God or other accident or catastrophe, or remodeling of existing legally established dwelling unit(s); provided, that such rebuilding takes place within a period of one year after destruction, and so long as no additional dwelling units are created.

(c) Miscellaneous improvements to an existing dwelling unit, including but not limited to fences, walls, and mechanical units, so long as no additional dwelling units are created.

(d) Any development activity that is exempt from the payment of an impact fee pursuant to RCW 82.02.100, due to mitigation of the same system improvement under the State Environmental Policy Act.

(e) Any development activity for which school impacts have been mitigated pursuant to a condition of plat approval to pay fees, dedicate land or construct or improve school facilities, unless the condition of the plat approval provides otherwise; provided, that the condition of the plat approval predates the effective date of fee imposition.

(f) Any development activity for which school impacts have been mitigated pursuant to a voluntary agreement entered into with the district to pay fees, dedicate land or construct or improve school facilities, unless the terms of the voluntary agreement provide otherwise; provided, that the agreement predates the effective date of fee imposition. (Ord. 22-1103 §§ 1 (Exh. A), 7)

26.05.190 Determination of school impact fees, adjustments, exceptions, and appeals.

(a) The city shall determine an applicant’s impact fee based upon the current impact fee schedule.

(b) The fee amount established in the schedule shall be reduced by the amount of any payment previously made for the lot or development activity in question, either as a condition of approval or pursuant to a voluntary agreement.

(c) Whenever an applicant is granted approval subject to a condition that the applicant actually provide a school facility acceptable to the district, the applicant shall be entitled to a credit for the actual cost of providing the facility, against the fee that would be chargeable under the formula provided by this chapter. The cost of construction shall be estimated at the time of approval, but must be documented, and the documentation confirmed after the construction is completed to assure that an accurate credit amount is provided. If construction costs are less than the calculated fee amount, the difference remaining shall be chargeable as a school impact fee.

(d) The city may adjust the standard impact fees if one of the following circumstances exist; provided, that any discount set forth in the fee formula fails to adjust for the error in the calculation or fails to ameliorate for the unfairness of the fee:

(1) The applicant demonstrates that an impact fee assessment was improperly calculated; or

(2) Unusual circumstances identified by the applicant demonstrate that if the standard impact fee amount was applied to the development, it would be unfair or unjust.

(e) In cases where an applicant requests an independent fee calculation, adjustment exception or a credit pursuant to RCW 82.02.060(3), the city shall consult with the district and the district shall advise the city prior to the city making the final impact fee determination.

(f) An applicant may provide studies and data to demonstrate that any particular factor used by the district may not be appropriately applied to the development proposal.

(g) The applicant or the district may appeal any decision of the city with regard to the impact fee. The appeal shall follow the process for the appeal of the underlying development application, as set forth in the DuPont Municipal Code.

(h) Impact fees may be paid under protest in order to obtain a permit or other approval of development activity. (Ord. 22-1103 §§ 1 (Exh. A), 8)

26.05.200 Impact fee accounts and refunds.

(a) Impact fee receipts shall be earmarked specifically and retained in a special interest bearing account established by the district solely for the district’s school impact fees. All interest shall be retained in the account and expended for the purpose or purposes for which impact fees were imposed. Annually, the district shall prepare a report on the impact fee account showing the source and amount of all moneys collected, earned or received, and capital or system improvements that were financed in whole or in part by impact fees. The district shall submit a copy of this report to the city.

(b) Impact fees for the district’s system improvements shall be expended by the district only in conformance with the capital facilities plan element of the city’s comprehensive plan.

(c) Impact fees shall be expended or encumbered by the district for a permissible use within 10 years of receipt by the district, unless there exists an extraordinary or compelling reason for fees to be held longer than 10 years. Such extraordinary or compelling reasons shall be identified to the city by the district in a written report. The city council may at its discretion allow fees to be held longer than 10 years by resolution upon review of the district’s written report; if the council allows the fees to be held longer than 10 years it shall identify the district’s extraordinary and compelling reasons for the fees to be held longer than 10 years in the council’s own written findings.

(d) The current owner of property on which an impact fee has been paid may receive a refund of such fees if the impact fees have not been expended or encumbered within 10 years of receipt of the funds by the district on school facilities intended to benefit the development activity for which the impact fees were paid. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis. The district shall notify potential claimants by first-class mail deposited with the United States Postal Service addressed to the owner of the property as shown in the county tax records.

(e) An owner’s request for a refund must be submitted to the district in writing within one year of the date the right to claim the refund arises or the date that notice is given, whichever date is later. Any impact fees that are not expended or encumbered by the district in conformance with the capital facilities plan within these time limitations, and for which no application for a refund has been made within this one year period, shall be retained and expended consistent with the provisions of this section. Refunds of impact fees shall include any interest earned on the impact fees.

(f) Should the city seek to terminate any or all school impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded to the current owner of the property for which a school impact fee was paid. Upon the finding that any or all fee requirements are to be terminated, the city shall place notice of such termination and the availability of the refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first-class mail addressed to the owner of the property as shown in the county tax records. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the district, but must be expended by the district, consistent with the provisions of this section. The notice requirement set forth above shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.

(g) An applicant may request and shall receive a refund, including interest earned on the impact fees, when the applicant has not received a final approval for the development activity as required by statute or city code and would be required to submit a new building permit; provided, that no such refund shall be due if the district has previously expended or encumbered the impact fees.

(h) Interest due upon the refund of impact fees required by this section shall be calculated according to the average rate received by the district on invested funds throughout the period during which the fees were retained. (Ord. 22-1103 §§ 1 (Exh. A), 9)

26.05.210 Use of school impact fees.

(a) Impact fees may be spent for system improvements, including but not limited to architectural and/or engineering design studies, land surveys, land acquisition, engineering, permitting, financing, administrative expenses, relocatable facilities, capital equipment pertaining to educational facilities, construction, site improvements, necessary off-site improvements, applicable impact fees or mitigation costs and other expenses which could be capitalized, and which are consistent with the district’s capital facilities plan.

(b) Impact fees shall be expended or encumbered on a first-in, first-out basis.

(c) Impact fees may be used to recoup costs for system improvements previously incurred by the district to the extent that new growth and development will be served by the previously constructed system improvements.

(d) In the event that bonds or similar debt instruments are or have been issued for the advanced provision of system improvements, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that system improvements provided are consistent with the requirements of this chapter and are used to serve the new development. (Ord. 22-1103 §§ 1 (Exh. A), 10)

26.05.220 School impact fee schedule.

(a) The school impact fee shall be calculated based on the formula adopted by the district as part of the district’s capital facilities plan, as the same now exists or as may be subsequently amended, and hereby incorporated by reference as if set forth in full. The district shall calculate separate fees for single-family dwelling units and multifamily dwelling units.

(b) The city shall collect an administrative fee per residential permit as provided in the city of DuPont adopted fee schedule in order to cover the administrative cost of collecting, processing, and handling impact fees described in this chapter. (Ord. 22-1103 §§ 1 (Exh. A), 11)