A. Imposition Of Impact Fees:
1. Any person who seeks to obtain a building or zoning permit or, in the event of an existing structure, an application for connection to the town's public facilities or extension of such a permit or requests an upgrade in public services is required to pay an impact fee in the amount specified in this chapter.
2. No building permits shall be issued until the impact fees for the public services have been paid, unless the development for which the permit is sought is exempted by this section.
3. All funds paid by an applicant pursuant to this chapter shall be identified as impact fees and shall be promptly deposited in the respective public service account reserved for such purpose.
4. If a fee payer disputes the amount of the impact fee determined as described in this chapter, the fee payer may submit an independent fee calculation study for the land development activity for which a building permit is sought. Such dispute shall be reviewed by the town engineer who shall then make a recommendation to the town council as to the amount of fee to be paid.
B. Computation Of Amount Of Impact Fee: The impact fee for public services shall be based on the formula as adopted by the town council and in accordance with section 7-6-1602, Montana Code Annotated. The report, including the data sources and methodology shall be available upon request at the town offices. The report may be reviewed at the office or copied at the applicant's expense.
The impact fee amount shall be set by resolution of the town council and shall be reviewed and updated every two (2) years, beginning in January 2009.
C. Impact Fee Funds:
1. An impact fee fund has been created for each public service for which fees are collected, and such funds shall be maintained in separate interest bearing accounts.
2. Each fund shall contain only those impact fees collected pursuant to this chapter and any interest which may accrue from time to time on such amounts. The administrative portion of the fees, which shall be in the maximum amount allowed by law shall be accounted for separately.
3. The monies in each impact fee fund shall be used only: a) to acquire or construct improvements to each public facility, or b) to pay debt service on any portion of any future bond issue used to finance improvements to each public facility or c) as necessary for refunds or credits as set out in this chapter.
4. If the impact fees imposed are not collected or spent in accordance with this chapter, any impact fees that were collected shall be refunded to the person who owned the property at the time that the refund was due.
D. Exemptions From Impact Fees:
1. The town council may grant an exemption from this chapter that it considers appropriate and that is consistent with this chapter and the provisions of section 7-6-1602, Montana Code Annotated, or that is in accordance with a voluntary agreement between the town and the individual or entity being assessed the impact fee, consistent with this chapter and section 7-6-1602, Montana Code Annotated.
2. The following types of development may be exempted from payment of the impact fee. Any claim of exemption must be made no later than the time of application for a building permit. Any claim not so made shall be deemed waived.
a. Alteration or expansion of an existing building that does not require an additional or larger water tap;
b. Replacement of a building or structure of the same size that does not require an additional or larger water tap;
c. The location of a mobile home on a site for which a water impact fee was previously paid pursuant to this chapter, and that does not require an additional or larger water tap;
d. Other developments as may be approved by the town council.
3. The installation of fire lines for fire protection shall be exempted from payment of the impact fee.
4. Any such claim for exemption must be made no later than the time when the applicant applies for the building or zoning permit, or applies for connection to the public service, and any claims for exemption not made at or before that time shall have been waived.
5. The town council or its designee shall determine the validity of any claims for exemptions pursuant to the criteria set forth above, subject to review by town council.
E. Relationship To Other Fees: The impact fee established herein is paid to the town in addition to any other fees, including, but not limited to, fees to pay for administration, plan review, or inspection costs, connection charges, user fees, special improvement district assessments, fees authorized under title 7 of this code for county, municipal and consolidated government sewer and water districts and systems and costs of ongoing maintenance or other charges adopted by the town council pursuant to other ordinances or resolutions.
F. Refund Of Impact Fees: Refunds of impact fees shall be made only in the following instances and in the following manner:
1. If the fees have not been encumbered or used within fifteen (15) years from the date on which the fee was collected, the fee must be refunded to the person who owned the property at the time that the refund was due. In determining whether impact fees have been expended or encumbered, fees shall be considered encumbered on a first in, first out (FIFO) basis.
2. If the fee has been paid and the permit, application or extension for which the fee was paid expires, and no building or development has commenced within the time allowed under the permitting process, the applicant who paid the fee shall be entitled to a refund, without interest and less administration costs.
a. Application for refund must be made within one year from the date such refund becomes payable. Any refund not applied for within said time period shall be deemed waived.
b. All refunds shall be paid within forty five (45) days of determination that such refund is due.
c. The town or its designee will determine whether a refund is due.
G. Credits Against Impact Fee:
1. When an applicant is required to pay for improvements to the public facilities that generate capacity in addition to that necessary for its development, the applicant may request that the cost for the extra capacity paid by the applicant become a credit against the impact fee for each facility for the properties to be served. The town engineer is to determine the amount of the recommended credit based upon the costs of the approved extra capacity public facilities. The town council may then, by resolution, grant credit to the applicant to be used toward specific impact fees.
2. In the event an applicant desires to dedicate land or the construction of public facilities in lieu of payment of impact fees, the following requirements apply:
a. The need for the dedication or construction must be clearly documented pursuant to section 7-6-1602, Montana Code Annotated;
b. The land proposed for dedication or the public facilities to be constructed must be appropriate for the proposed use by the town;
c. The formula or procedure for determining the worth of the proposed dedication or construction is set out in the impact fee calculation report and shall be followed for each parcel of land or public facility proposed.
d. The means to establish credits against future impact fee revenue is set out in the impact fee calculation report. The value of the dedication of land or construction of public facilities must exceed the amount of the impact fee due from an individual development.
3. In order to receive credit for qualifying dedication of land or construction of public facilities, the applicant shall submit complete engineering drawings, specifications and construction costs estimate to the town engineer. The town engineer shall determine the amount of credit due based on the information submitted and the impact fee calculation report, or, if it determines that such information is inaccurate or unreliable, then on alternative engineering or construction costs acceptable to the town. The town engineer's determination is subject to council approval.
H. Approved Credits: Approved credits shall become effective at the following times:
1. Approved credit for land or easement dedications shall become effective when the land has been conveyed to the town in a form acceptable to the town and at no cost to the town and has been accepted by the town council.
2. Approved credit for the construction of public facilities shall generally become effective when: a) all required construction has been completed and has been accepted by the town, and b) a suitable maintenance and warranty bond has been received and approved by the town, and c) all design, construction, inspection, testing, bonding and acceptance procedures have been completed in compliance with all applicable town and state procedures. However, approved credits for the construction of improvements may become effective at an earlier date if the applicant posts security in the form of a performance bond, irrevocable letter of credit or escrow agreement and the amount and terms of such security are accepted by the town. Upon request of the credit holder, the town shall send the credit holder a letter stating the credit balance available to him (or her).
I. Use Of Credits:
1. Approved credits may be used to reduce the amount of impact fees due from any proposed development for the same type of service or facility for which the applicant dedicated land or acquired or constructed improvement until the amount of the credit is exhausted. Each time a request to use credit is presented to the town, the town shall reduce the amount of the impact fee of the same type otherwise due from the applicant and shall note in the town records the amount of credit remaining, if any.
2. Approved credit shall only be used to reduce the amount of impact fees of the same type otherwise due under this chapter, and shall not be paid to the applicant in cash or in credit against any impact fees for a different type of facility or service or against any other monies due from the applicant to the town, except as set out below.
3. Credit may be transferred from one holder to another by any written instrument clearly identifying the credit issued under this section that is to be transferred, provided that such instrument is signed by both the transferor and transferee, and that the document is delivered to the town for registration of the change in ownership.
J. Impact Fee Advisory Committee: The town, through its mayor, shall appoint an impact fee advisory committee to review and monitor the process of calculating, assessing and spending impact fees. The advisory committee must include, as members of the committee, a person from the development community and a certified public accountant. The committee serves in an advisory capacity to the town council on impact fee issues. (Ord. 06-010, 2-13-2007)