9-2-14: COLLECTION AND PENALTIES:

The City may utilize the following means and methods to ensure the payment of impact fees:

   A.   Interest: Charge interest on any unpaid portions of the impact fee with interest at the highest legally allowable rate and a penalty of five percent (5%) for each thirty (30) day period payment is late;

   B.   Building Permit Withheld: Withholding the building permit until the impact fee is paid;

   C.   Utility Service Withheld: Withholding utility services until the impact fee is paid; or

   D.   Lien: Creation of a lien for failure to pay the impact fee following the procedures set forth in Idaho Code title 45, chapter 5. (Ord. 43-16, 12-13-2016, eff. 1-1-2017)

9-2-15: IMPACT FEE OFFSETS AND CREDITS:

A fee payer shall receive credit or reimbursement for the present value of any system improvement, the value of dedication of real property to the City, or other contribution required by the City from the developer for system improvements of the category for which the impact fee is being collected, including system improvements paid for pursuant to a local improvement district.

   A.   Limitations: All offsets and credits against impact fees shall be subject to the following limitations and shall be granted based on this chapter:

      1.   No offset or credit shall be given for the dedication or construction of project improvements or site related facilities.

      2.   A fee payer shall not receive an offset or credit in excess of that amount to be collected from the assessed impact fee.

      3.   The unit costs used to calculate the offsets or credits shall not exceed those assumed for the capital improvements included in the CIP(s) for the category of facility within the service area for which the impact fee is imposed.

      4.   An offset or credit shall lapse ten (10) years after receipt of the first building permit issued after the effective date of this chapter or within such period as may be otherwise agreed to by written agreement.

      5.   The City will not reimburse the property owner or fee payer for an offset or credit when no impact fees for the new development can be collected pursuant to this chapter or for any amount exceeding the total impact fees due for the new development for the category of capital improvement.

      6.   The amount of any offset or credit shall not include the amount attributable to participation by the City in the development.

   B.   Application: An offset or credit associated with a plat shall be applied to an impact fee at the time of application for the first building permit for the subject property and will continue to be applied until the offset or credit is exhausted for that development. (Ord. 43-16, 12-13-2016, eff. 1-1-2017)

9-2-16: EXEMPT DEVELOPMENT ACTIVITIES:

   A.   Claim Of Exemption: A fee payer shall claim an exempt development activity upon application for a building permit.

   B.   Activities Specified: The following development activities are exempt from the payment of impact fees:

      1.   Construction of publicly owned buildings or structures, which are solely for governmental purposes, unless the City determines that the development activity will create an extraordinary burden on public facilities owned or operated by the City;

      2.   Rebuilding or replacing a structure destroyed or damaged by fire or other catastrophe, with a new structure which does not increase the impact over that attributable to the destroyed or damaged structure; provided, that the structure is rebuilt and ready for occupancy within two (2) years of its destruction;

      3.   The remodel or repair of a structure that does not increase the number of service units;

      4.   Replacing an existing use on the same site, provided the number of units does not increase;

      5.   Placing a temporary construction trailer or office on a site;

      6.   Alteration or expansion of an existing dwelling unit where that alteration or expansion does not increase the number of service units;

      7.   Construction of accessory buildings or structures typical to residential uses, such as tennis courts or clubhouses, which will not result in an increase in the number of service units or the fee payer can demonstrate that the use does not create a significant impact on the capacity of system improvements. (Ord. 43-16, 12-13-2016, eff. 1-1-2017)

9-2-17: AFFORDABLE HOUSING IMPACT FEE EXEMPTION:

Developments that provide affordable housing may be entitled to an impact fee exemption. Applicants seeking this exemption shall make such request by written application. Each application shall be evaluated pursuant to the Idaho Development Impact Fee Act, any amendments thereto, and other criteria established by the city, and be approved by the Impact Fee Administrator.

Affordability of the designated percentage of the development shall be ensured through covenants or deed restrictions at the discretion of the city in consultation with the city attorney.

The exempt development's proportionate share of system improvements shall be funded through a revenue source other than development impact fees. (Ord. 43-16, 12-13-2016, eff. 1-1-2017; amd. Ord. 5-21, 3-9-2021)

9-2-18: ESTABLISHMENT OF ACCOUNTS:

   A.   Specified: To ensure that impact fees will benefit the appropriate development, the City will establish separate interest bearing impact fee trust accounts for each category of capital improvement within each service area for which the impact fee is collected.

   B.   Earned Interest: Interest earned shall be credited to the account on which it was earned and shall be used solely for the purposes specified in the CIP.

   C.   Accounting; Time Limit For Expending Funds: The City shall establish adequate financial and accounting controls to ensure that impact fees are utilized solely for purposes authorized by this chapter. Disbursement of funds shall be authorized by the City at such times as are reasonably necessary to carry out the purposes and intent of this chapter. Impact fees shall be expended within a reasonable period of time, but not to exceed a maximum of eight (8) years, unless extended as provided by subsection D of this section from the date the fees were collected, on a first-in, first-out basis (FIFO). Funds shall be deemed expended for purposes of this chapter when payment for a capital cost has been approved by the City.

   D.   Extension Of Time Limit: The City may hold the impact fees for longer than eight (8) years, but no more than eleven (11) years from the date the fees were collected, if it identifies in writing:

      1.   A reasonable cause why the fees should be held longer than the eight (8) years; and

      2.   An anticipated date by which the fees will be expended.

   E.   Refunds: If it is determined that the impact fees have not been expended for capital facilities identified by the CIP within the authorized time frame and any permitted extensions, then such fees, including interest shall be refunded as set forth by this chapter.

   F.   Annual Financial Report: A financial report on the impact fee trust accounts shall be provided annually to the Mayor and Council. The report shall include:

      1.   The amount of all development impact fees collected, appropriated or spent during the preceding year by category of public facility and service area;

      2.   The percentage of tax and revenue other than impact fees collected appropriated or spent for system improvements during the preceding year by category of public facility and service area;

      3.   The length of time that unexpended impact fees have been held and the expiration date of those impact fees. (Ord. 43-16, 12-13-2016, eff. 1-1-2017)

9-2-19: EXPENDITURE OF IMPACT FEES:

   A.   Permitted Expenditures: Except as otherwise provided, impact fees, including accrued interest, shall only be expended on public facilities identified in the CIP for the relevant service area. Impact fees may be expended for, but not limited to, the construction contract price, surveying and engineering fees, and land acquisition costs for public facilities. Impact fees may also be used to pay the principal and interest payments (including sinking fund payments) on bonds or other borrowed revenues used to acquire, expand or improve public facilities. Expenditures may be made to purchase additional land from a fee payer where such purchase is consistent with the purpose of this chapter.

   B.   Prohibited Expenditures: Impact fees collected pursuant to this chapter shall not be used to pay for any of the following:

      1.   Construction, acquisition or expansion of projects or assets other than capital improvements or facility expansions identified in the CIP(s);

      2.   Repair, operation or maintenance of existing or new capital improvements or facility expansion;

      3.   Upgrade, update, expansion or replacement of existing capital improvements to provide better service to existing development;

      4.   Upgrade, update, expansion or replacement of existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards; and

      5.   Administrative and operating costs incurred by the City. (Ord. 43-16, 12-13-2016, eff. 1-1-2017)

9-2-20: APPEALS:

   A.   Appeal Of Administrative Decisions By Fee Payer: The City shall contract with qualified independent individuals to sit as hearing officers in order to consider administrative appeals filed under this chapter. Except for the determination of an individual assessment, a fee payer may appeal a final decision of the Impact Fee Administrator by filing a written notice of administrative appeal with the City Clerk within thirty (30) days of: 1) a written decision by the Impact Fee Administrator; or 2) the acceptance of payment of the impact fee under protest. The appeal shall contain a written explanation of the appeal and documentation to be considered by the Hearing Officer. A fee payer may pay an impact fee under protest in order to obtain a building permit and shall not be precluded from exercising the right of appeal as provided herein.

      1.   Except as otherwise provided in this chapter, a decision of the Impact Fee Administrator may be appealed by the developer or fee payer to the Hearing Officer for the following reasons:

         a.   The applicability of an impact fee to the new development;

         b.   The method of calculating the amount of the impact fee;

         c.   The availability or the amount of the offset or credit;

         d.   The application of the offset or credit against the impact fee due; or

         e.   The amount of a refund due.

      2.   The burden of proof shall be on the fee payer to demonstrate that the Impact Fee Administrator erred in his/her decision. Following a hearing on the appeal, the Hearing Officer shall issue a written decision within thirty (30) days of the conclusion of the hearing. The written decision of the Hearing Officer shall constitute the final decision.

      3.   The City Clerk shall schedule the appeal before the Hearing Officer as soon as practical. The Hearing Officer may affirm, reject, or revise the decision of the Impact Fee Administrator and shall issue a written decision providing findings of fact and conclusions of law supporting the decision. The written decision of the Hearing Officer shall be mailed to the City and the fee payer, certified mail, return receipt requested.

   B.   Protest Of Expenditure By Interested Person: Any person with standing may protest the expenditure of impact fees within two (2) years of the expenditure by filing a protest with the City Clerk. The City Clerk shall set the matter for hearing before the City Council within thirty (30) days of receipt of the protest. The protesting party shall identify the impact fee expenditure to be protested and the basis of the protest. The City Council shall render a decision regarding the protest within thirty (30) days of the close of the hearing on the matter.

   C.   Appeal Of An Individual Assessment: Appeals of the Impact Fee Administrator's determination of individual assessment shall be made to the City Council by the filing of an appeal with the City Clerk within ten (10) days of the decision of the Impact Fee Administrator. The appeal shall contain a written explanation of the appeal and documentation to be considered by the City Council.

      1.   The burden of proof shall be on the fee payer to demonstrate that the Impact Fee Administrator erred in their decision.

      2.   The City Clerk shall schedule the appeal before the City Council as soon as practical. The City Council may affirm, reject or revise the decision of the Impact Fee Administrator. Following a hearing on the appeal, the City Council shall issue a written decision within thirty (30) days of the conclusion of the hearing. The written decision of the City Council shall constitute the final decision.

   D.   Mediation: At any time during the appeal process, the fee payer and the City may voluntarily enter into mediation with respect to any disagreement related to the impact fee for a proposed development. Mediation shall be conducted by a qualified independent party selected by mutual agreement. The cost of such mediation will be shared equally by the fee payer or property owner and the City.

   E.   Judicial Review: Any party of record aggrieved by the decision of the Hearing Officer or the City Council may, within twenty eight (28) days of receipt of the Hearing Officer's decision, seek judicial review by filing a petition in the District Court in the manner provided by Idaho Code title 67, chapter 52. (Ord. 43-16, 12-13-2016, eff. 1-1-2017)