Mountain House Municipal Code Ch. 4 Annexation Fees

It is the intent of this chapter to establish an annexation fee pursuant to the implementation mechanisms described in the master specific plan, public financing plan and supporting documents. The Board determined, and the City Council determines to the extent necessary in continuing this fee, that an annexation fee is needed in order to implement the goals and objectives of the master specific plan for the community and to establish equity among developers who derive benefit from the costs associated with the formation of the City of Mountain House and investments in infrastructure by the City of Mountain House or developers.

(Ord. 2024-21, § 2(Exh. A), 2024)

The Board of the CSD found and declared, and the City Council finds and declares to the extent necessary in continuing this fee, as follows:

(a) Following extensive planning, environmental impact analysis, and public review, the Board of Supervisors adopted the Mountain House master specific plan and other community approvals, as an implementation measure to the San Joaquin County general plan.

(b) The master specific plan sets forth a comprehensive plan for the Mountain House Community, including a land use plan, which designates and guides the location and amount of land for residential, commercial, industrial, institutional, and recreational uses.

(c) The Board of Supervisors has also adopted specific plan I and will adopt subsequent specific plans, as the primary implementation documents of the master specific plan.

(d) The Board of Supervisors has also adopted the public financing plan that enumerates certain goals. These goals include: (Goal 2) development within the Mountain House master plan shall finance the full costs of infrastructure needed to serve the Area...; (Goal 4) future development within Mountain House shall pay the costs of mitigating impacts on existing facilities, infrastructure, and environment...; (Goal 4) infrastructure costs shall be allocated among master plan properties based on the principle of benefit received; (Goal 5) the County or CSD shall provide the necessary institutional framework for proposed financing entities and arrangements; and (Goal 6) mechanisms shall be established for assuring the timely construction of public improvements, dedications of necessary public lands and rights-of-way, and reimbursement of disproportionate costs.

(e) The Board of Supervisors has adopted the public financing plan which includes a policy that pre-development costs associated with establishing the master plan and related financing and organizational implementation efforts shall be included, as appropriate, in reimbursement agreements or public financings that are established.

(f) The master developer paid the formation costs of the City of Mountain House, and has, prior to incorporation, funded many of the CSD's projects, operations and activities.

(g) Those developing property in the Mountain House Community will derive benefit from the City and its projects, operations and activities.

(h) In order to establish equity among those developing property, to reimburse the master developer for its disproportionate share of funding the City's projects, operations and activities, and to assure the timely construction of public improvements, it is necessary to create and implement an annexation fee.

(Ord. 2024-21, § 2(Exh. A), 2024)

This chapter is enacted pursuant to California Government Code Section 66000 et seq.

(Ord. 2024-21, § 2(Exh. A), 2024)

This chapter applies to special fees charged as a condition of annexation. The fees charged under this chapter do not replace subdivision map exactions, unless such exactions relate to the facilities funded pursuant to this chapter, or other measures required to mitigate site-specific impacts of a development project; other regulatory, development and processing fees; funding required pursuant to a development agreement or reimbursement agreement for amounts that may exceed a development's proportional share of facility costs; assessments charged pursuant to special assessment or benefit assessment district proceedings; or property taxes, unless so specified.

(Ord. 2024-21, § 2(Exh. A), 2024)

(a) Establishment of Fees. An annexation fee is established for property annexing to the City to pay for City capital projects, planning and formation costs, and to reimburse developers for the funding of previous oversizing of such projects. The fee shall not be collected until the City Council, in a City Council resolution at the time of each annexation:

(1) Sets forth the specific purposes of the fee;

(2) Identifies the specific use(s) of facilities to be funded;

(3) Describes how there is a reasonable relationship between the fee's use and the type of development project;

(4) Determines how there is a reasonable relationship between the need for the use(s) and type(s) of development project(s);

(5) Determines the amount of the fee and how there is a reasonable relationship between the amount of the fee and the cost of the projects and activities of the City thereof attributable to the development; and

(6) Establishes which accounts the fees shall be placed, provides for appropriation of the fees, and references the plan adopted for the use of such fees.

(b) Amount of the Fee. The amounts and calculation of the annexation fee established by resolution of the City Council shall be based upon and include the following:

(1) The annexing property's lump sum "fair share" of the costs of infrastructure as determined by reference to the cost allocations determined pursuant to the City's transportation improvement fee, community facilities fee, financial implementation plan, public financing plan, and other applicable determinations of "fair share" costs. The annexing property shall receive a credit against future fee obligations related to the facilities funded pursuant to this chapter. Infrastructure costs shall escalate by the percentage increase, if any, in the ENR Index from the time incurred until the annexation fee is paid. For purposes of this section, infrastructure that has been funded shall include completed infrastructure, infrastructure under construction or proposed for construction for which funds have been irrevocably committed.

(2) The annexing property's proportionate share of the costs of the following plans and programs to implement the community approvals to the extent that such plans and programs benefit the annexing party as determined pursuant to application of the nexus standards set forth in Government Code Section 65456 applicable to specific plans. Preparation of the community-wide GIS; community monitoring plan; City development standards; City landscape and irrigation specifications; fire agreement and protection plan; master storm water plan; master potable water plan; master sewer plan; water conservation plan and ordinance; sewer ordinance; community facilities fee ordinance; community facilities fee resolution; transportation improvements fee ordinance; transportation improvements fee resolution; cost estimates for sewer, water, storm drainage, parks, community facilities, and local roads; open space, parks, recreation and leisure plan; CalTrans cooperative agreement and memorandum of understanding; transit plan; traffic demand management and construction truck management plan; Byron Bethany irrigation district water service agreement, Byron Bethany Irrigation District, Department of Water Resources winter water exchange agreement; local agency formation commission proceedings; CSD budget and financial analysis prior to formation of the CSD; revenue bond election; CSD election; CSD special legislation; CSD formation. These costs shall escalate each year by the percentage increase, if any, in the CPI.

(c) Applications Requiring Payment of Fee. All persons applying for annexation to the City shall pay annexation fees to the City.

(d) Time of Payment. Annexation fees shall be paid at the time of annexation as a condition thereof.

(e) Fee Unit. The fee shall be a lump-sum amount determined at the time of annexation, and will be determined separately for each owner involved in an annexation based on the land uses designated on the owners' property.

(f) Formula for Calculating the Fees. The annexation fee shall be calculated pursuant to a formula described by a City Council resolution prepared for each annexation.

(g) Interest. All fees collected pursuant to this chapter shall be credited with interest on such fees while in the possession of the City. The interest earned shall be credited to the account in which the fee was deposited and shall be used solely to pay for the uses authorized pursuant to this section and the implementing resolutions.

(h) Distribution of Annexation Fees. The City shall distribute fees collected under this chapter within sixty (60) days after collection to parties due a reimbursement for the costs which were factored into the calculation of the annexation fee.

(i) Use of Annexation Fees. The fees and all interest earned on accrued funds shall be used to:

(1) Reimburse the master developer;

(2) Reimburse developers for oversizing of infrastructure; and

(3) Acquire privately funded infrastructure; and

(4) Fund the costs of other community facilities, transportation improvements and utility facilities.

(Ord. 2024-21, § 2(Exh. A), 2024)

Credit against the fee shall only be allowed up to the amount of reimbursements owed to a developer for privately funded formation costs, interim CSD funding, City projects, community facilities, transportation improvements, and acquisition and reimbursement costs owed to a developer for utility facilities, for previous improvements and expenditures.

(Ord. 2024-21, § 2(Exh. A), 2024)

Fees collected pursuant to this chapter do not replace existing development fees, except as the City Council may specifically provide, or limit requirements or conditions to provide additional site-specific mitigation of site-specific impacts imposed upon development projects as part of normal development review process.

(Ord. 2024-21, § 2(Exh. A), 2024)

Annexation fees shall be placed in appropriate accounts and used for reimbursements or acquisition, as appropriate, within sixty (60) days of their collection. To the extent fees are collected for other purposes during the annual review of annexation fee, the City Council shall make a finding with respect to any fee revenue not expended or committed five (5) years or more after it was paid. If the City Council finds that the fee revenue is not committed, it shall authorize a refund to the then owner of the property for which the fee was paid, pursuant to Government Code Section 66001.

(Ord. 2024-21, § 2(Exh. A), 2024)

The annexation fee authorized by this chapter and implementing City Council resolution(s), the accumulated fee funds and their appropriation, and supporting documentation shall be reviewed annually by the City Council.

(Ord. 2024-21, § 2(Exh. A), 2024)

The City shall not collect the annexation fee established by this chapter once funds sufficient to construct all facilities, or to provide for all necessary reimbursements, have been collected.

(Ord. 2024-21, § 2(Exh. A), 2024)