1. Impact Fee AdministrationCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7000 Fax - (406) 758-7758
MONTANA
Date: January 27, 2011
TO: Jane Howington, City Manager
Mayor Fisher and City Council members
From: Amy Robertson
Finance Director
RE: Ordinance 1681 — Financing Impact Fees —amendment request
We have had four properties finance impact fees and the issues related to implementation need
clarifying. Property owners can pay 20% and finance the remaining impact fees over 5 years.
I would like the Ordinance to specify that impact fees originating between Jan 1st and June 30th
will have the first payment placed on the tax roll in November of that year. Otherwise we are
looking at delaying until the next year the assessment. Due to timing of the tax bills and the
necessity of splitting the payments equally between first half and second half installments, the
January 19'h 2011 property will not appear on the tax notice until November 2012 with that
payment extended to May 2013, second half. It is necessary to calculate interest for 863 days.
The second request I would have is to lower limit the amount that can be financed. Currently
these properties have a $41.00 impact fee for police. They pay $8.20 and finance $32.80. The
interest we earn will not begin to cover the time involved with calculating the interest, placing
the assessment on the tax rolls, recording the receivables and tracking each property when the
payments come in and have to be posted. I would request that impact fees of less the $100 (or a
higher amount) be paid in full and not financed.
We have requested that the County provide us 6 lines on the tax bills so that we can keep
separate the revenue due to each fund, water, sewer, transportation, etc. It is unlikely that will
happen as the tax bills are pretty full. We will then have to track each payment to know which
fund receives the money. When payments are late and there is a penalty and interest received it
would be necessary to prorate that between all 6 funds, probably pennies. I would request that
council authorize all penalties and interest earned from financed impact fees be placed in the
General Fund as an administrative fee.
A sample of all of the paper work involved with one property is attached.
Exhibit A
Sample amendment:
8-31 Collection of Impact Fees.
F. Impact fees to be financed originating between Jan 1st and June 30' will have the first
assessment placed on the tax bill for the November billing of the current year. Interest will
be calculated from the original financing date through November 30' and May 31" - the
County tax due dates.
G. Impact fees of less than $100 may not be financed but shall be paid in full.
H. Late payments of the financed impact fees which generate penalty and interest fees
which come from the County shall be placed in the General Fund as an administrative fee.
AN ORDINANCE 1, OF KALISPELL IMPACT1
NO. CODIFIED AT CHAPTER 8 OF THE' i'CODE,
DECLARING/ AUTHORIZING THE CITY ATTORNEYTO
CODIFY 1'
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, the development community, the Impact Fee Committee and the City Council have
discussed some apprehension about the possible chilling effect the impact fees may
have upon property owners considering further investment in the community,
particularly in a slow economy; and
WHEREAS, to allow a property owner to make payments of the impact fees over a period of time
is a method which, in some circumstances, may provide a property owner with the
option necessary to go forward with a planned development; 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 CITY 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 20th DAY OF SEPTEMBER, 2010.
ATTEST:
Theresa White
City Clerk
Tammi Fisher
Mayor
EXHIBIT "A"
8-31 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 7-6-1602 MCA, 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 E, the Kalispell Building
Department shall collect all impact fees imposed and shall collect them 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. The party responsible for the payment of impact fees may elect to pay such 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. 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;
Return to:
City Clerk ,_5`
P.O. Box 1997 _ "A
Kalispell, MT 59903�
J v
4
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City of Kalispell Impact Fee Assessment Agreement
Election to Pay Impact Fees by Installment Method and
Agreement to Allow Assessment Lien upon Subject Real Property
Building Permit:
Legal Owner: Ni dog i7", s i LLG
C/o W, l l t6 yr, P—.
Mailing Address of Legal Owner: 3-54 8)uQ- L& n e i `<` 5'� q0
Location Address of Subject Real Property: a i,5 CR> �p�Gf�J✓k �I�/�''
Subject Real Property Legal Description: S 5 (fiek r 5
�r �3 , S�x;,13 Cry eIc
Assessor Number:0(X��l �-�
Date Impact Fees Assessed: I� I n' i l 1
Total Impact Fees Assessed:
Stormwater
$1121.00
Water
$2213.00
Wastewater
Sewage Collection: $1064.10
Sewage Treatment: $1434.90
$2499.00
Police
$ 41.00
Fire
$ 483.00
Transportation
$ 352.00
Total Impact Fees
$6709.00
Impact Fees Paid (20% of Total): $1341.80
Impact Fees remaining to be paid: $5367.20
City of Kalispell Impact Fee Assessment Agreement Page - I
t
CE
0
I, CIO �Jd%ice " Z Tc4U e,/Zfb , am the legal owner of the subject real property
desc ibed above. Based upon improvements I have made, or will cause to be made to this
property, increased demands will be placed upon the City of Kalispell services which will benefit
the subject real property for which impact fees are being imposed. Upon execution of this
agreement I am paying 20% of the total impact fees imposed upon the subject property. I agree
that the remaining 80% of the impact fees due shall immediately become a lien upon the above
described real property in favor of the City of Kalispell, with the same legal effect as real
property improvement assessments pursuant to MCA 7-12-4183 and shall run with the land. I
further agree that the remaining balance shall be billed and paid in the same manner as City of
Kalispell real estate taxes and assessments in twice yearly payments with 5% annual interest
accruing on the declining balance. I further agree and understand that the final payment of any
remaining balance, including interest, shall be due and payable no later than five years from the
date of this agreement. I further agree and understand that my failure or the failure of my
successor in interest to pay the sums when due and payable shall give rise to the legal right of the
City of Kalispell to execute its rights of foreclosure against the subject real property.
DATED this f day of K o✓1 , 201L.
Real Property Owner
Please Note: A separate check in the amount of $7.00 per page and payable to
the Flathead County Clerk & Recorder's ®fitce is required at the time this
agreement is submitted to the Kalispell Building Department as a filing fee for
recording this document.
City of Kalispell Impact Fee Assessment Agreement Page - 2
STATE OF MONTANA }
) ss.
County of Flathead )
On this (4 day of (�y1,cc. ci ! 201 , before me, a Notary Public for the State of
Montana, personally appeare �i i�1?`jb� n , proved to me to be the person whose
name is subscribed to the within instrument, and acknowledged to me that he/she executed the
same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the
day and year hereinabove first written.
� 41u�
CARLA HUYTQI: NO RY PUBLIC for the State of Montana
NotXR NOTARY PUBLIC for the
Printed Name: Ct �-/ , t
* SEAS State of Montana idin/
g at Lakeside, Montana Residing at:
My Commission Expires
S OF tr+ May 31, 2014 My Commission expires: j? ' GL
City of Kalispell Impact Fee Assessment Agreement Page - 3
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