(A) Appropriation of capacity charges.
(1) In general. Water and wastewater capacity charges may be appropriated for water and wastewater facilities, for capital facility expenditures and for the payment of principal, interest and other financing costs on contracts, bonds, notes or other obligations issued by or on behalf of the town or other applicable local governmental entities to finance such water and wastewater facilities and water and wastewater public facility expenditures. All appropriations of capacity charges will be documented and filed within the Finance Department.
(2) Restrictions on appropriations. Capacity charges will be appropriated only:
(a) For the particular public facility that they were imposed, calculated and collected;
(b) For the purpose collected to serve the new development; and
(c) Capacity charges will not be appropriated for funding maintenance or repair of water or wastewater facilities nor for operational or personnel expenses associated with the provision of the water or wastewater facility.
(3) Appropriation of capacity charges outside of area where collected. Capacity charges may be appropriated for a water or wastewater facilities located outside of the service area only if the demand for the water or wastewater facility is generated in whole or in part by the new development or if the facility will actually serve the new development.
(B) Refunds.
(1) Eligibility for refund.
(a) Expiration or revocation of building permit. An applicant who has paid a capacity charge for a new development that the necessary building permit has expired or that the building permit has been revoked prior to construction will be eligible to apply for a refund of capacity charges paid on a form provided by the town for such purposes.
(b) Abandonment of development after initiation of construction. An applicant who has paid a capacity charge for a new development that a building permit has been issued and construction has been initiated, but the construction is abandoned prior to completion and issuance of a certificate of occupancy, will not be eligible for a refund unless the uncompleted building is completely demolished.
(c) A 5% administrative fee, but not to exceed $200, will be deducted from the amount of any refund granted and will be retained by the town to defray the administrative expenses associated with the processing of a refund application.
(2) Except as provided in divisions (B)(1)(a) and (b) and (B)(5) of this section, refunds will be made only to the current owner of property on that the new development was proposed or occurred.
(3) Processing of applications for a refund. Applications for a refund will be made on a form provided by the town for such purposes and will include all information required in (B)(4) of this section, as appropriate. Upon receipt of a complete application for a refund, the town will review the application and documentary evidence submitted by the applicant as well as such other information and evidence as may be deemed relevant, and make a determination as to whether a refund is due. Refunds by direct payment will be made following an affirmative determination by the town.
(4) (a) Applications for refunds due to abandonment of a new development prior to completion will be made on forms provided by the town and will be made within 60 days following expiration or revocation of the building permit. The applicant will submit:
1. Evidence that the applicant is the property owner or the duly designated agent of the property owner;
2. The amount of the capacity charges paid by category and receipts evidencing such payments; and
3. Documentation evidencing the expiration or revocation of the building permit or proof of demolition of the structure pursuant to a valid demolition permit.
(b) Failure to apply for a refund within 60 days following expiration or revocation of the building permit or demolition of the structure will constitute a waiver of entitlement to a refund. No interest shall be paid by the town in calculating the amount of the refunds.
(5) The town may, at its option, make refunds of capacity charges by direct payment, by offsetting such refunds against other fees due for new development on the same property, or by other means subject to agreement with the property owner.
(Ord. O2-17-05, passed 5-1-17)