(a) Impact fee Accounts. The City Manager must establish an impact fee account for each category of public facility for which impact fees are imposed. Such account must identify clearly the public facility for which the impact fee has been imposed. All impact fees collected by the City must be deposited into the appropriate impact fee account. All interest earned on monies deposited into a particular impact fee account must be credited to and considered funds of that account. The funds of each such account must be capable of being accounted for separately from all other City funds. The City Manager must establish and implement necessary accounting controls to ensure that the impact fee funds are properly deposited, accounted for, and appropriated in accordance with this chapter and other applicable legal requirements.
(b) Use of Impact Fee Funds.
(1) Generally. All appropriations from impact fee accounts must be approved by the City Council and detailed on a form provided for such purposes and filed with the City Manager.
(2) Use of funds. Development impact fee funds may be used only for:
A. Public facility expenditures;
B. The payment of principal, interest, and other financing costs on contracts, bonds, notes, or other obligations issued by or on behalf of the City to finance public facilities;
C. Financing of refunds as set forth in Section 1486.05(d);
D. Financing of reimbursements as set forth in Section 1486.04(e); or
E. Financing the costs of updating this chapter.
(3) Report. Consistent with Section 1486.05(c), prior to appropriating impact fee funds, the City Manager must generate a written report which demonstrates that such funds are being used to finance public facility capacity that provides or will provide benefits to new development that are roughly proportionate to the impact of that development. The report must be consistent with the methodology report. The written report must be presented to and accepted by the City Council.
(4) Restrictions on use. Development impact fees may not be appropriated for repair or maintenance of public facilities, or for operational or personnel expenses associated with the provision of public facilities. Additionally, impact fees must be appropriated:
A. For the particular public facility for which they were imposed, calculated, and collected; and
B. Within six years of the beginning of the City's fiscal year immediately succeeding the date of collection, unless such time period is extended as provided in paragraph (b)(5), below.
(5) Appropriation of impact fee funds beyond six years of collection. Notwithstanding the provisions of subsection (c) below, impact fee funds may be appropriated beyond six years from the beginning of the City's fiscal year immediately succeeding the date of collection, if the appropriation is for a public facility that requires more than six years to plan, design, and construct. The City must document compliance with the provisions of this paragraph.
(c) Procedure for Appropriation of Impact Fee Funds.
(1) Each year the City Council must identify public facility capacity anticipated to be funded in whole or in part with impact fees. Public facility expenditures must be consistent with the methodology report, the capital improvement plan, the comprehensive plan, and the annual review described in Section 1486.07, and such other information as may be relevant to ensure compliance with this chapter.
(2) The City Council may include public facilities funded with impact fees in the City's annual budget or capital improvements plan. If included, the description of the public facility must specify the nature of the public facility, the location of the public facility, the capacity to be added and/or funded by the appropriation, the service area of the public facility, the need/demand for the public facility, and the anticipated timing of completion of the public facility.
(3) Consistent with the provisions of this chapter, the City Council may authorize public facilities expenditures at such other times as it deems necessary.
(4) The City Council must verify that adequate impact fee funds are or will be available from the appropriate impact fee account for the particular public facility capacity to be funded with impact fees.
(5) Impact fee funds must be spent on a first in/first out basis.
(d) Refunds.
(1) Eligibility.
A. Expiration or revocation of building permit. An applicant who has paid an impact fee for a new development for which construction has not begun, and the necessary building permit has expired or has been revoked, may apply for a refund of impact fees paid. Refunds must be to the initial applicant who paid the impact fee. The refund application must be made on a form provided by the City for such purposes.
B. Failure of City to appropriate impact fee funds within time limit. A current property owner may apply for a refund of impact fees paid by an applicant if the City has failed to appropriate the impact fees collected from the applicant within the time limit established in subsection (b)(4) above. Refunds made pursuant to this paragraph must be to current property owner. The refund application must be made on a form provided by the City for such purposes.
C. Abandonment of new development. An applicant who has paid an impact fee for a new development for which a building permit has been issued and pursuant to which construction has been initiated but abandoned prior to issuance of a certificate of occupancy, is eligible for a refund if the uncompleted building is completely demolished.
(2) Administrative fee. The City may deduct a two hundred dollar ($200.00) administrative fee from the amount of any refund granted and retain the administrative fee in the appropriate impact fee account to defray the administrative expenses associated with processing a refund application.
(3) Processing of applications for a refund.
A. Application made to the City Manager. Applications for a refund must be made on a form provided by the City Manager for such purposes. Upon receipt of a complete application for a refund, the City Manager must review the application and documentary evidence submitted by the applicant, as well as such other information and evidence as may be deemed relevant, and must forward a report as to whether a refund is due based on the provisions of this chapter to the Planning and Zoning Commission.
B. Recommendation of the Planning and Zoning Commission. Based on the report of the City Manager, the provisions of this chapter, and the methodology report, the Planning and Zoning Commission must recommend to the City Council to approve, deny, or approve with conditions the proposed refund.
C. City Council. Based on the report of the City Manager, the provisions of this chapter, and the methodology report, and the recommendation of the Planning and Zoning Commission, City Council must make a final decision to approve, approve with conditions, or deny the proposed refund and appropriation.
D. Appeals. Appeals from the final decision of the City Council may be made to the Court of Common Pleas of Fairfield County.
(4) Due to expiration or revocation. Applications for refunds due to expiration or revocation of a building permit must be made on forms provided by the City for such purposes and made within 60 days following expiration or revocation of the building permit. In order for the refund application to be deemed complete, the applicant must submit: (a) evidence that the person applying for the refund was the initial applicant who paid the fee, or the authorized agent of the initial applicant; (b) the amount of the impact fees paid by public facility category and receipts evidencing such payments; and (c) documentation evidencing the expiration or revocation of the building permit. Failure to apply for a refund within 60 days following expiration or revocation of the building permit constitutes a waiver of entitlement to a refund. No interest must be paid by the City in calculating the amount of a refund pursuant to this paragraph.
(5) Due to timeliness. Applications for refunds due to the failure of the City to appropriate impact fees collected from the applicant within the time limits established in subsection (b)(2) above must be made on forms provided by the City Manager and must be made within one year following the expiration of such time limit. In order for the refund application to be deemed complete, the applicant must submit:
A. Evidence that the applicant is the current property owner or the authorized agent of the current property owner;
B. The amount of the impact fees paid by public facility category and receipts evidencing such payments; and
C. A description and documentation of the City's failure to appropriate impact fee funds pursuant to subsection (b)(2) above. Interest must be paid by the City in calculating the amount of the refunds pursuant to this section.
(6) Due to abandonment. Applications for refunds due to abandonment of a new development prior to completion must be on a form provided by the City Manager for such purposes. Failure to apply for a refund within 60 days following expiration or revocation of the building permit or demolition of the structure constitutes a waiver of entitlement to a refund. No interest must be paid by the City in calculating the amount of the refund pursuant to this paragraph. The application must include:
A. Evidence that the person applying for the refund is the initial applicant who paid the fee, or the authorized agent of the initial applicant;
B. The amount of the impact fees paid by public facility category and receipts evidencing such payments; and
C. Documentation evidencing the demolition of the building partially constructed pursuant to payment of the impact fees to be refunded.
(Ord. 2007-45. Passed 8-21-07.)