A. It is the stated policy of the city to exact school district capital improvement development fees as a consequence of residential development within lands annexed to the city after September 8, 1992. (Ord. 94-52, 8-15-1994)
B. Unless otherwise approved by the city council, all agreements for the annexation of lands to be developed with residential uses shall contain terms by which the entity seeking annexation shall agree to be bound by and comply with the terms of this section relating to the calculation, payment and collection of school district capital improvement development fees.
1. Criteria For Determining School District Capital Improvement Development Fees: The following criteria shall govern the calculation of fees under this section:
a. Requirement And Population Ratio: The amount of the development fee required for school district capital improvement shall be directly related to the ultimate number of students estimated to be generated by the residential development. The development fee required to be paid as a condition of annexation shall be determined by obtaining the product of the following:
(1) The estimated number of students to be served in the school district in which the development is located; and
(2) The capital costs per student, excluding school site land costs. Said fee shall then be adjusted for credits as established in this section.
2. School District Capital Development Credit: In the calculation of the fee, credit shall be given as follows:
a. Credit shall be given for the present value of the future stream of real estate tax payments from the development attributable to debt service for school district capital improvements. The credit shall be based on the annual charge per dollar of assessed valuation.
b. Credit shall be given for the present value of the future stream of real estate tax payments from the development allocated to the annual school district capital improvement budget.
c. Credit shall be given for the per student amount of state financial aid received by the school district and allocated to the annual school district capital improvement budget.
d. The sum of all school district capital improvement credits shall not exceed the total school district capital improvement development fee.
3. Information Sources: Calculations for the fee under this section shall be based upon the dwelling unit - student population formula as established in this chapter, capital improvement budget data from the school district serving the development and the office of the Kane County tax collector. Said sources shall be evaluated annually. (Ord. 92-84, 9-8-1992)
4. Payment And Collection Of Fees: Any fee payable under this section shall be paid to the city as a condition of the issuance of a building permit for a residential structure. (Ord. 94-52, 8-15-1994)
5. Collection And Transfer Of Fees To School District: The fees collected under this section shall be transferred to the school district serving the development only upon the following terms, to be contained in a written agreement between the city and the affected school district:
a. Trust account shall be established by the school district, to be designated as the "school district capital improvement development fee trust account" (hereinafter "trust account"), which shall be maintained separate and apart from all other accounts of the school district. All fees collected under this section shall be deposited into this account immediately upon receipt.
b. The funds deposited into the above account shall be used solely for growth necessitated capital improvements and additions to the school district facilities and limited to:
(1) Design and construction plan preparation.
(2) Permitting and fees.
(3) Costs of land acquisition by condemnation, excluding the actual compensation or consideration paid for the land.
(4) Construction and design of school district buildings, facilities or improvements and additions thereto, including relocation of utilities and/or landscaping.
(5) Construction management or inspection.
(6) Surveying, soils and material testing.
(7) Repayment of monies transferred or borrowed from any budgetary fund of the school district, such funds borrowed subsequent to September 8, 1992, and used to fund items payable under this section.
(8) Payment of principal and interest, necessary reserves and costs of issuance of any bonds or indebtedness used by the school board to pay for growth necessitated improvements and additions to the school district, as permitted under this section.
(9) Refund of fees, due under subsection B6 of this section.
c. Funds on deposit within the trust account shall not be used for any expenditure that would be classified as a maintenance or repair expense.
d. All funds within the trust account not immediately utilized shall be invested to the extent permitted by law and the interest deposited into said account to be used as provided herein.
e. The fees collected pursuant to this section shall be returned if not utilized, pursuant to subsection B6 of this section.
f. The school district receiving the fees shall enter into an indemnification agreement with the city by which it equally shares the cost of any legal challenge to this section.
g. The school district shall furnish to the city, on at least an annual basis, documentation necessary to calculate the capital development fee.
6. Return Of Fee For Nonuse: The fee collected under this section shall be returned to the then current owner of the property on behalf of which such fee was paid if such fees have not been expended or encumbered prior to the end of the fiscal year immediately following the eleventh anniversary of the date such fee was paid. Refunds due under these circumstances shall be made only in conformance with the following procedure:
a. The then current owner shall petition the city for the refund prior to the end of the fiscal year immediately following the eleventh anniversary of the date of payment of the fee.
b. The petition shall be submitted to the applicable school district on a form approved by the city and shall contain:
(1) A sworn statement that the petitioner is the then current owner of the property on behalf of which the fee was paid.
(2) A certified copy of the latest recorded deed, a representation that said instrument reflects the exact names of the then current owners, and that the petitioner shall notify the city of any change in ownership occurring prior to issuance of any refund.
(3) A copy of the most recent ad valorem tax bill.
c. Within ninety (90) days from the receipt of the petition for refund, the city will advise the petitioner pursuant to a written verification from the applicable school district of the status of the fee requested for refund, and if such fee has not been expended or encumbered within the applicable time period, then it shall be returned to the petitioner. For purposes of this section, fees collected shall be deemed to be spent or encumbered on the basis of the first fee in shall be the first fee out.
7. Failure To File Petition For Refund: Any owner entitled to a refund who fails to file a timely petition for a refund upon becoming eligible to do so shall be deemed to have waived any claim for a refund, and the applicable school district shall be entitled to retain and apply the fees for growth necessitated capital improvements and additions to the school system. (Ord. 92-84, 9-8-1992)