Chapter 6.07 — IMPACT FEES

Chapter 6.07 - IMPACT FEES[[5]]

Sections:

Footnotes:

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Editor's note— Ord. No. 19-899, adopted Mar. 12, 2019, amended Ch. 6.07 in its entirety to read as herein set out. Former Ch. 6.07 pertained to the same subject matter, consisted of §§ 6.07.010—6.07.150, and derived from Ord. 613, 1989; Ord. 616, 1989; and Ord. No. 16-859, adopted Sept. 27, 2016.

This chapter is enacted pursuant to authority granted to cities by Article XI, Section 7 of the California Constitution and to ensure compliance with the provisions of Government Code Sections 66000, et seq. Nothing in this chapter is intended to conflict with any state or federal law intended to regulate the adoption of development impact fees. In the event of a conflict between any provision in this chapter and state or federal law, state and federal law shall control. Additionally, nothing in this chapter is intended to limit any authority granted to the city by the state legislature in the adoption, imposition, administration, and collection of development impact fees.

(Ord. No. 19-899, § 2, 3-12-2019)

This chapter applies to all fees imposed by the city as a condition of development approval, or the connection of property to the city's water and sewer facilities, for the purpose of financing capital improvements and facilities, the need for which is attributable to such development, unless expressly herein exempted, including without limitation:

A.

Sewer connection or capacity charges;

B.

Water connection or capacity charges;

C.

Public facilities fees (including, but not limited to, public facilities fee categories of city, fire, police, fire station, and public works);

D.

Park fees (except fees charged in lieu of park land dedication pursuant to Government Code Section 66477, and the tax imposed by Chapter 3.28 of this code);

E.

Drainage fees;

F.

Thoroughfare and bridge fees; and

G.

Transportation fees.

(Ord. No. 19-899, § 2, 3-12-2019)

6.07.030 - Exemptions.

The provisions of this chapter do not apply to:

A.

Taxes and special assessments;

B.

Fees for processing development applications or approvals;

C.

Fees for enforcement of or inspections pursuant to regulatory ordinances;

D.

Fees collected under development agreements adopted pursuant to Government Code Section 665864 et seq.;

E.

Fees imposed pursuant to a reimbursement agreement between the city and a property owner or developer for that portion of the cost of a public facility paid for by the property owner or developer which exceeds the need for the public facility attributable to and reasonably related to the development; or

F.

Fees charged in lieu of park land dedication (Government Code Section 66477) and the tax imposed by Chapter 3.28 of this code.

(Ord. No. 19-899, § 2, 3-12-2019)

6.07.040 - Definitions.

As used in this chapter:

A.

"Benefit area" means the geographic area encompassing the entire city within which impact fees are collected and expended for a particular type of capital improvement serving development projects within such area.

B.

"Calculate" means to determine the amount of impact fees to be collected, based on the need for capital improvements related to a particular development project, as may be established and adjusted by resolution of the City Council from time to time.

C.

"Capital improvement" means land or facilities for the storage, treatment or distribution of water; for the collection, treatment, reclamation or disposal of sewage; for the collection and disposal of stormwaters and for flood-control purposes; for purposes of transportation and transit, including without limitation streets, street lighting and traffic-control devices and supporting improvements, roads, overpasses, bridges, airports and related facilities; for parks and recreational improvements; for public safety, including police and fire services; for public buildings of all kinds; and for any other capital project identified in the city's capital improvements plan, which is the major projects financing plan.

D.

"Capital improvements plan" means the five-year plan for capital improvements, adopted annually by the council, describing the approximate location, size, time of availability and estimated cost of, and appropriating money for, capital improvement projects.

E.

"Capital improvements project list" means the list attached to the annual council resolution setting the base fee amount for a specific impact fee. The list shall describe the approximate location, size, time of availability and estimated cost of each capital improvement to be funded from a particular impact fee account.

F.

"Collection" means the point at which the impact fee is actually paid over to the city.

G.

"Commitment" means earmarking impact fees to fund or partially fund capital improvements serving new development projects.

H.

"Development project" means any project undertaken for the purpose of development, including without limitation a project involving the issuance of a permit for construction, reconstruction or change of use, but not a permit to operate nor a permit issued for the remodeling, rehabilitation or other improvement to an existing structure, nor the reconstruction of a development project destroyed or damaged by a natural disaster subject to the requirements of Government Code Sections 66010 and 66011, nor the replacement

of one mobile home with another on the same pad, nor an accessory use, so long as no dwelling unit is added.

I.

"Dwelling unit" means one or more rooms in a building or a portion thereof, designed, intended to be used, or actually used for occupancy for living and sleeping quarters, and containing one kitchen only, and includes a mobile home, but not hotel or motel units (See Sections 6.04.9610).

J.

"Impact fees" means any monetary exaction imposed as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the cost of capital improvements relating to the project.

K.

"Impose" means to determine that a particular development project is subject to the collection of impact fees, and to attach such determination to the project as a condition of development approval.

L.

"Nonresidential development project" means all development other than residential development projects.

M.

"Residential development project" means any development undertaken for the purpose of creating a new dwelling unit or units and involving the issuance of a building permit for such construction, reconstruction or use.

(Ord. No. 19-899, § 2, 3-12-2019)

6.07.050 - Establishment of fee schedule by resolution—Hearing required.

Developer impact fees shall be established by resolution of the city council from time to time, fixed for each benefit area, to be paid into each impact fee. Before establishing or changing any impact fee, the council shall hold a public hearing pursuant to notice, as prescribed by Government Code Section 66016 as to water and sewer connection or capacity charges, and Sections 66016 and 66018 as to other developer impact fees, at which oral or written presentations may be made by interested parties. An ordinance or resolution establishing a new impact fee shall take effect no sooner than sixty days following the final action by the city on the ordinance or resolution.

(Ord. No. 19-899, § 2, 3-12-2019)

6.07.060 - Imposition, calculation and collection of impact fees.

A.

Impact fees shall be imposed as a condition of approval of all development projects. No tentative or final subdivision map, parcel map, grading permit, building permit, final inspection or certificate of occupancy

shall be approved unless the provisions of this section have been fulfilled.

B.

Impact fees shall be imposed by including the following language in any document of development approval:

"Approval of this project is conditioned upon payment to the City of all applicable impact fees and connection fees, as provided in Chapter 6.07 of the Fillmore Municipal Code."

C.

Impact fees, if imposed, shall be calculated and collected by the city engineer at the time, and as a condition, of issuance of a building permit, except that public improvement impact fees for residential development shall be collected upon final inspection or issuance of a first certificate of occupancy and public improvement impact fees for designated residential development projects as defined in Government Code § 66007(c)(4) shall be collected upon issuance of a first certificate of occupancy or first temporary certificate of occupancy, whichever occurs first, pursuant to the conditions and exceptions in Government

Code § 66007(c)(1)(A)(iii), Government Code § 66007(c)(1)(D)(2)(A-B) and any subsequent amendments to that section of the Government Code. The connection fees shall be calculated and collected at the time of application for connection to the utility system and the connection fees shall not exceed the costs incurred by the utility provider resulting from the connection activities. The calculation of impact fees due shall be based on the fee schedule in effect at the time of application for a building permit. Nothing herein related to calculation of the amount of fees is intended to conflict with any requirement of state law or this code related to vesting rights. Nothing herein related to time of collection is intended to conflict with Government Code § 66007.

(Ord. No. 19-899, § 2, 3-12-2019; Ord. No. 25-978, § 1, 2-11-2025)

6.07.070 - Impact fee accounts.

A.

There shall be established an impact fee account for each benefit area, as designated by the city engineer, for each type of capital improvement for which an impact fee is imposed; and impacted fees collected shall be deposited in each such account according to type of improvement and benefit area. The funds of the account shall not be commingled with other revenues or funds of the city, except as allowed under Government Code Section 66006(c). Any account previously established for the deposit of funds which would have been developer impact fees under this chapter shall be deemed an impact fee account for the purposes of this chapter.

B.

Each impact fee account shall be interest-bearing and the accumulated interest shall become a part of the account.

C.

The funds of each account shall be expended within the benefit area and shall be used exclusively for the capital improvements for which the impact fees were collected.

(Ord. No. 19-899, § 2, 3-12-2019)

A.

Impact fees shall be expended only for the type of capital improvements for which they were imposed, calculated and collected and shall be expended or committed according to the time limits and procedures established in this chapter and state law. Impact fees may be used to pay the principal, interest and other costs on bonds, notes and other obligations issued or undertaken by or on behalf of the city to finance such improvements.

B.

Impact fees shall not be expended to maintain, repair or operate capital improvements except as permitted by law.

(Ord. No. 19-899, § 2, 3-12-2019)

A.

Except as described in subsection B., of this section, upon application of the property owner the city shall refund that portion of any impact fee which has been on deposit over five years and which is unexpended and uncommitted. The refund shall be made to the then-current owner or owners of lots or units of the development project or projects, on a prorated basis.

B.

If fees in any impact fee account are unexpended or uncommitted for four or more years after deposit therein, the council shall make findings, at least once each fiscal year while such condition prevails, to identify the purpose to which such fees shall be put and to show a reasonable relationship between the fee and the purpose for which it was collected. If the council makes such findings, the fees are exempt from the refund requirement in subdivision (a).

C.

When sufficient funds have been collected, as determined pursuant to Government Code Section 66006(b) (1)(F), to complete financing on incomplete public improvements identified in Government Code Section 66006(a)(2), and the public improvements remain incomplete, the city shall identify, within one hundred eighty days of the determination that sufficient funds have been collected, an approximate date by which the construction of the public improvement will be commenced, or shall refund to the then current record owner or owners of the lots or units, as identified on the last equalized assessment roll, of the development project or projects on a prorated basis, the unexpended portion of the fee, and any interest accrued thereon.

D.

If the council finds that the administrative costs of refund under this section will exceed the amount to be refunded, the council may determine, after a public hearing, notice of which has been published in accordance with Government Code Section 6061 and posted in three prominent places within the area of each development project subject to the refund, that the refundable amount shall be allocated for some other purpose for which fees are collected under this chapter and which serves the project upon which the fee was originally imposed.

E.

The city may refund by direct payment, by offsetting the refund against other impact fees due for development projects by the owner on the same or other property, or otherwise by agreement with the owner.

(Ord. No. 19-899, § 2, 3-12-2019)

6.07.100 - Appeals.

A.

The burden of proof shall be upon the appellant to demonstrate that the imposition or the amount of the fee, or the amount of the refund, lacked a nexus to the appellant's project.

B.

The appellant must file a written notice of appeal with a full statement of the grounds, together with an appeals fee as shall be fixed from time to time by resolution of the council, with the city clerk within ten days following notice from the city of the amount of fees due.

C.

At a regular meeting following the filing of the appeal, the council shall fix a time and place for hearing the appeal and the city clerk shall mail notice of hearing to the appellant at the address given in the notice of appeal. The hearing shall be conducted at the time and place stated in the notice and the determination of the council shall be announced at the conclusion of the hearing or at the next regular meeting of the council. The determination of the council shall be final.

(Ord. No. 19-899, § 2, 3-12-2019)

Any party may protest the adoption and/or imposition of any fee pursuant to Government Code Sections 66020 and 66022, as applicable.

(Ord. No. 19-899, § 2, 3-12-2019)

Petitions for exception to the application of this chapter shall be made in accordance with procedures established, if any, by resolution of the council to allow a determination that there is no nexus for an impact fee for a specific project.

(Ord. No. 19-899, § 2, 3-12-2019)

At least once each year, prior to the council's adoption of the budget and revisions to the major projects financing plan (MPFP), the director of finance shall report to the council with:

A.

Recommendations for amendments to this chapter and to other parts of this code and to resolutions establishing impact fees;

B.

Proposals for changes to the major projects financing plan (MPFP), identifying capital improvements to be funded, in whole or in part, by impact fees;

C.

Proposals for changes in the boundaries of benefit areas; and

D.

Proposals for changes to impact fee rates and schedules.

The council may then, and at such other times as it may deem necessary, amend this chapter, any other part of this code establishing impact fees and any resolutions adopted pursuant to this chapter.

(Ord. No. 19-899, § 2, 3-12-2019)

6.07.140 - Credits.

A.

Any applicant subject to an impact fee pursuant to this chapter who constructs, escrows money with the city for the construction of, agrees to participate in an assessment district for the construction of or who otherwise contributes funds, or donates real property or right-of-way in lieu of fees, for capital improvements or capital improvement projects, as defined in this chapter, may be eligible for a credit for such contribution against the impact fee otherwise due.

B.

Eligibility for, and the amount of, the credit shall be determined by the city engineer based upon whether the contribution meets capital improvement needs for which the particular impact fee has been imposed, as expressed in this chapter and the capital improvement plan (CIP); whether the developer contribution will substitute for or otherwise reduce the need for capital improvements anticipated to be provided with

impact fee funds; and the value of the developer contribution. In no event, however, shall the credit exceed the amount of the otherwise applicable impact fee.

C.

Credit applications shall be made on forms provided by the city and shall be submitted at or before the time of impact fee collection. The application shall contain a declaration of those facts, under oath, along with the relevant documentary evidence which qualifies the applicant for the credit.

(Ord. No. 19-899, § 2, 3-12-2019)