5. Ordinance 1695 - Amending Ordinance 1587 - Impact Fees - 2nd Reading60 �' III
is
Tel 406.758.7709
Fax 406.758.7771.
charball @kallspell.com
Tom Mayor Tammi Fisher
and Kalispell City Council
Charles Harba.11, City Attorney
Jane Howington, City Manager
SUBJECTO ordinance No. 1095 -- an ordinance Amending the Impact Fee
Ordinance Regarding the Administration of Installment
Payments — second Reading
MEETING Tr . April 4, 2011-- Regular Council Meeting
BACKGROUND: on the 10th d.ay of October 2006 the Kalispell City Council passed
Ordinance 1587 which authorized the imposition of impact fees and provided for the
regulation of the collection of those fees. on the loth day of September, 2010 the
Kalispell City Council passed. ordinance 1681 which authorized the payment of impact
fees in installments over a period of five years. After considering the application of the
installment payment option, staff has recommended to the Kalispell City Council that
further refinement of this option is in the best interest of the City for prudent
administration of the payment program. The specific recommendations are:
1) In the event the first payment is made between January 1st and. Tune 30th the
first installment payment should be placed on the tax roll to be due November
of the same year.
Z) Upon the closing of a sale of the subject property, if such sale occurs prior to
full payment of the impact fees due, the balance of all impact fees due and
owing should be paid to the City of Kalispell.
3) The impact fees eligible for the election of installment payments should be:
a. For single family residences -- water, sanitary sewer and storm water
impact fees.
b. For all other uses — water, sanitary sever, storm water and
transportation impact fees in excess of $500.00
4) All penalties and interest earned from financed impact fees should be placed in
the General Fund as an administrative fee.
Ordinance No. 1695 Memorandum
March 29, 2011
Page - 2
RECOMMENDATION: That City Council give consideration to and pass Ordinance
No. 1695 on second reading.
FISC IMPACTS: Any fiscal impact to the City from this Ordinance should be
minimal.
Respectfully submitted,
Charles Harball, City Attorney
4fane Howington, City Mager
Office of City Attorney
City of Kalispell
AN ORDINANCE AMENDING THE CITY OF KALISPELL IMPACT FE
ORDINANCE NO. 1587 CODIFIED AT CHAPTER 8 OF THE KALISPEL
MUNICIPAL CODE, DECLARING
CITY ATTORNEY TO CODIFY THE SAME,
WHEREAS, on the 161h day of October 2006 the Kalispell City Council passed Ordinance
1587 which authorized the imposition of impact fees and provided for the
regulation of the collection of those fees; and
WHEREAS, on the 20th day of September, 2010 the Kalispell City Council passed Ordinance
1681 which authorized the payment of impact fees in installments over a period of
five years; and
WHEREAS, after considering the application of the installment payment option, the Kalispell
City Council finds that further refinement of this option is in the best interest of
the City for prudent administration of the payment program; and
WHEREAS, the City Council finds that it is in the best interest of the City and its residents to
provide the option, set forth in Exhibit "A", to allow the payment of impact fees
due in installments over a period of time.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CI'T`Y of
KALISPELL .AS FOLLOWS:
SECTION I. Ordinance No. 1587, codified as Kalispell Municipal Code 8-31, is
hereby amended to read as set forth in Exhibit "A.", attached hereto
and incorporated fully herein by this reference.
SECTION II. The City Attorney is hereby authorized and directed to recodify
this ordinance.
SECTION III. This Ordinance shall take effect thirty (30) days after its final
passage.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL THIS 4TH DAY OF APRIL, 2011.
ATTEST:
Theresa White
City Clerk
Tam mi Fisher
Mayor
EXHIBIT "A""
8-3 J Collection of Impact Fees.
A.Upon collection, all impact fees shall be deposited in a special proprietary fund, which
shall be invested with all interest accruing to the fund.
B. The City may impose impact fees on behalf of local districts.
C.If the impact fees are not hereafter collected or spent in accordance with this article or are
not in compliance with 7-6- l602 FICA., any impact fees that were collected must be
refunded to the person who owned the property at the time that the refund was due.
D. Unless an election is made as described below in paragraph B, the Kalispell Building
Department shall collect all impact fees imposed and shall collect there no earlier than the
date of issuance of a building permit if a building permit is required for the development or
no earlier than the time of wastewater or water service connection or well or septic
permitting.
E. QiThe party responsible for the payment of impact fees may elect to pay certain
fees over a period of five (5) years in five (5) equal installments, each installment bearing
an annual interest rate of five (5%) percent on the remaining principal balance. The first
payment will be due and paid to the Kalispell Building Department upon application for a
building permit or at the time of wastewater or water service connection or well or septic
permitting. In the event the first a ment is made between January 1 't and June 3 0th the
first installment payment shall be laced on the tax roll to be due November of the same
arm U on the closin og�
f a sale of the subject property, if such sale occurs prior to full
payment of the impact fees due the balance of all impact fees due and owing shall be aid
to the City of Kalispell. Upon making the election the owner of the land served by the
municipal services shall execute all necessary documentation to allow an assessment to be
placed against the property so served such that the balance of the amount owed shall be a
lien upon the serviced property and invoiced and paid through the Flathead County offices
in the same manner as other municipal assessments against the property.
(ii) The impact fees eligible for the election of installment payments shall be:
a} For single family residences -water, sanitary sewer and storm water impact fees.
b) For all other uses —water, sanitary sewer, storm water and transportation impact fees
in excess of S500.00
(iii) All penalties and interest earned from financed impact fees shall be placed in the
General Fund as an administrative fee.