Chapter 15.110
IMPACT FEE ENACTMENT1
Sections:
15.110.010 Findings – Authority – Purpose.
15.110.030 Impact fees imposed.
15.110.040 Impact fee amount and procedure.
15.110.050 Exemptions, adjustments, and credits.
15.110.010 Findings – Authority – Purpose.
The council finds and determines that growth and development activities in the city will create additional demand and need for culinary water, sanitary sewer, transportation, storm drain, police, parks and recreation and electrical facilities, and the council finds that persons responsible for growth and development activities should pay a proportionate share of the costs of such planned facilities needed to serve the growth and development activity. The council further finds that based on the impact fee facilities plan and impact fee analysis that impact fees are necessary to achieve an equitable allocation to the costs borne in the past and to be borne in the future, in comparison with the benefits already received and yet to be received. The provisions of this impact fee enactment shall be liberally construed in order to carry out the purpose and intent of the council in establishing the impact fee program. [Ord. O-14-2014 § 1; Ord. O-06-2014 § 1; Ord. O-19-2012 § 1].
15.110.020 Definitions.
Except as provided below, words and phrases that are defined in the Impact Fee Act shall have the same meaning in this impact fee enactment.
“Allowable credits” means the dollar value a developer may be allowed as an offset or a credit against an impact fee if the developer dedicates land for a system improvement, builds and dedicates some or all of a system improvement, or dedicates a public facility that the city and the developer agree will reduce the need for a system improvement. A credit against an impact fee shall be granted for any dedication of real property for, improvements to, or new construction of any system improvements provided by the developer if the
facilities are system improvements, or are dedicated to the public and offset the need for identified system improvements.
“Applicant” means a person or entity required to pay an impact fee under this impact fee enactment.
“Gross impact fee” means the stated impact fee assessed (prior to the computation of allowable credits, exemptions, or adjustments) for system improvements based on the requirements of this impact fee enactment.
“Impact fee agent” means the person or persons designated by the city council to evaluate impact fee applications and calculate gross impact fees, allowable credits, exemptions, adjustments, and net impact fees.
“Impact fee applicant” or “impact fee application” means an application submitted by an applicant for development approval that is required to pay an impact fee prior to obtaining subdivision approval or other development approval from the city council or the building official of the city prior to issuance of a building permit.
“Net impact fee” means the gross impact fee less all allowable credits, exemptions, adjustments, and credit adjustments required by this impact fee enactment.
“Single-family residential unit” or “equivalent residential unit” or “ERU” means the system improvement capacity required for a dwelling unit intended for the use and occupancy of a single family with no restriction on time of use. [Ord. O-14-2014 § 2; Ord. O-06-2014 § 2; Ord. O-19-2012 § 2].
15.110.030 Impact fees imposed.
A. Impact Fees. Based on the council approval and adoption of the impact fee facilities plan and impact fee analysis, impact fees shall be imposed on the basis of the impact fee analysis.
B. Impact Fees Accounting. The city will establish a separate interest-bearing ledger account for each type of public facility for which impact fees are collected. Interest earned on such account shall be allocated to that account.
1. Reporting. At the end of each fiscal year, the city shall prepare a report on each fund or account showing the source and amount of all monies collected, earned, and received by the fund or account and each expenditure from the fund or account. The report shall identify impact fees by the year in which they were received, the project from which the funds were collected, the system improvements for which the funds were budgeted, and the projected schedule for expenditures. The report shall be in a format developed by the State Auditor that is certified by the city’s chief financial officer and shall be transmitted annually to the State Auditor.
2. Impact Fee Expenditures. The city may expend impact fees collected pursuant to this impact fee enactment only for systems improvements that are (a) public facilities identified in the impact fee facilities plan; and (b) of the specific public facilities type for which the fee was collected.
3. Time of Expenditure. Impact fees collected pursuant to this impact fee enactment are to be expended or encumbered for a permissible use within six years of the receipt of those funds by the city. For purposes of this calculation, the first funds received shall be deemed to be the first funds expended.
4. Extension of Time. The city may hold unencumbered fees for longer than six years if the council identifies in writing (a) an extraordinary and compelling reason why the fees should be held longer than six years; and (b) an absolute date by which the fees will be expended.
C. Refunds. The city shall refund any impact fees paid by a developer, plus interest actually earned when (1) the developer does not proceed with the building activity and files a written request for a refund; (2) the fees have not been spent or encumbered; (3) the developer has contributed in excess of their proportional costs; and (4) no impact has resulted.
D. Additional Fees and Costs. The impact fees authorized hereby are separate from and in addition to user fees and other charges lawfully imposed by the city, such as engineering and inspection fees, building permit fees, review fees, and other fees and costs that may not be included as itemized component parts of the impact fee.
E. Fees Effective at Time of Payment. Unless the city is otherwise bound by a contractual requirement, the impact fee shall be determined in accordance with the provisions of EMMC 15.110.040. [Ord. O-14-2014 § 3; Ord. O-06-2014 § 3; Ord. O-19-2012 § 3].
15.110.040 Impact fee amount and procedure.
A. Impact Fee Imposed. Impact fees are hereby imposed on the basis of the impact fee analysis and shall be paid either as a condition of plat approval, as a condition of the issuance of a building permit, or as a condition to connecting to any current or future system improvements if a plat or building permit is not required in an amount set forth in the impact fee analysis.
B. Application Procedure. Each applicant for development approval shall make application in writing to the city on forms provided for the city for determination of the amount of the required impact fees payable by the applicant. Each applicant shall provide all information requested by the city to allow the city to verify the accuracy of the information presented by the applicant. The impact fee agent shall consider the information presented by the applicant and determine the gross impact fee, allowable credit, exemptions, adjustments, and net impact fee.
C. Impact Fee Amount. The amount of the impact fees imposed hereby shall be the gross amount as set forth in the impact fee analysis. [Ord. O-14-2014 § 4; Ord. O-06-2014 § 4; Ord. O-19-2012 § 4].
15.110.050 Exemptions, adjustments, and credits.
A. Exemption. The council may, on a project-by-project basis, authorize exemptions to the impact fee imposed for development activity that the council determines to be of broad public purpose to justify the exception, development activities attributable to low-income housing, the state, a school district, or a charter school (the school district and charter school on the same basis).
B. Adjustments. The council shall ensure that the impact fees are imposed fairly and may adjust impact fees at the time the fee is charged to (1) respond to unusual circumstances in specific cases, (2) respond to a request for a prompt and individualized impact review for the development activities of the state or a school district or a charter school and an offset or credit for a public facility for which an impact fee has been or will be collected, and (3) permit adjustments of the amount of the impact fee to be imposed on a particular development based upon studies and data submitted by the developer.
C. Credits. A developer, including a school district or charter school, shall receive a credit against or proportionate reimbursement of an impact fee if the developer dedicates land for a system improvement, builds and dedicates some or all of a system improvement, or dedicates a public facility that the city and the developer agree will reduce the need for a system improvement. A credit against the impact fee shall also be given for any dedication of land for, improvements to, or new construction of any system improvements provided by the developer if the facilities are system improvements, or are dedicated to the public and offset the need for identified system improvements. [Ord. O-14-2014 § 5; Ord. O-06-2014 § 5; Ord. O-19-2012 § 5].
15.110.060 Service area.
Service areas are hereby established as set forth on the impact fee facilities plan and impact fee analysis. [Ord. O-14-2014 § 6; Ord. O-06-2014 § 6; Ord. O-19-2012 § 6].
15.110.070 Appeal procedures.
A. Application. The appeal procedure applies to challenges to the legality of impact fees, the interpretation and/or application of those fees.
B. Request for Information Concerning the Fee. Any person or entity required to pay an impact fee pursuant to this impact fee enactment may file a written request for information concerning the fee with the city. The city will provide the person or entity with the impact fee analysis, impact fee facilities plan, and other relevant information relating to the impact fee within two weeks after receipt of the request for information.
C. Appeals to City Before Payment of Impact Fees. Any affected or potentially affected person or entity who wishes to challenge an impact fee imposed pursuant to this impact fee enactment prior to payment thereof may file a written request for information concerning their fee and the process under the city’s appeal procedure.
D. Appeal to City After Payment of Impact Fees – Statute of Limitations for Failure to File. Any person or entity that has paid an impact fee pursuant to this impact fee enactment and wishes to challenge the fee shall file a written request for information concerning the fee after having paid the fee and proceed under the city’s appeal process. The deadline for filing an appeal shall be as follows:
1. Within 30 days after the person making the appeal pays the impact fee, they may challenge whether the city complied with the notice requirements of the impact fee with respect to imposition of the impact and the procedure.
2. Within 180 days after the person making the appeal pays the impact fee, they may challenge whether the city complied with other procedural requirements of the impact fee.
3. Within one year after the person making the appeal pays the impact fee, they may challenge the impact fee.
E. Appeal to City. Any developer, landowner, or affected party desiring to challenge the legality of any impact fee, or related fees or exaction under this impact fee enactment, may appeal directly to the city by filing a written challenge with the city before the deadlines provided above.
1. Hearing. An informal hearing will be held not sooner than five days nor more than 25 days after the written appeal to the city is filed.
2. Decision. After the conclusion of the informal hearing, the city shall affirm, reverse, or take action with respect to the challenge or appeal as the city deems appropriate. The decision of the city will be issued within 30 days after the date the written challenge was filed. In light of the statutorily mandated time restrictions, the city shall not be required to provide more than three working days’ prior notice of the time, date, and location of the informal hearing, and the inconvenience of the hearing to the challenging party shall not serve as a basis of appeal of any final determination.
F. Denial of Due Process. If the city for any reason fails to issue a final decision on a written challenge to an impact fee, its calculation or application, within 30 days after the filing of the challenge with the city, the challenge shall be deemed to have been denied.
G. Judicial Review. Nothing in this impact fee enactment shall be interpreted to alter the statutory deadlines before which an action to challenge an impact fee must be initiated in the district court. After having been served with a copy of the pleadings initiating a court review, the city shall submit to the court the records of the proceedings before the city, including minutes, and if available, a true and correct transcript of any proceedings. [Ord. O-14-2014 § 7; Ord. O-06-2014 § 7; Ord. O-19-2012 § 7].
Code reviser’s note: The city has adopted additional impact fee enactments pursuant to Ords. O-22-2015, O-04-2016, O-08-2017, O-10-2020, O-11-2020, O-15-2020, O-23-2021, O-27-2022, O-25-2023 and O-14-2024.