Ordinance 1587 - Authorizing and Establishing Impact FeesORDINANCE NO. 1557
AN ORDINANCE AUTHORIZING AND ESTABLISHING THE PROCEDURE AND
IMPOSITION OF IMPACT FEES TO FUND CAPITAL IMPROVEMENTS IN THE CITY
OF KALISPELL, AUTHORIZING THE CITY ATTORNEY TO CODIFY SAME AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, Montana State legislation regulating impact fees to fund capital improvements, MCA
7-6-1601 through 7-6-1604, became effective April 19, 2005 and sets forth the
procedures and requirements for the imposition of impact fees by local governments;
and
WHEREAS, an impact fee represents a fee for service payable by all users creating additional
demand on a city facility; and
WHEREAS, it is the finding of the City Council that it is in the best interests of the City of
Kalispell that certain impact fees be considered and unposed to fund capital
improvements and that a procedure be established for this purpose that is compliant
with state law.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS
FOLLOWS:
SECTION I Establishment of a-Standiniz Impact Fee Committee. The City shall maintain a
standing impact fee advisory committee. This impact fee advisory committee shall include at
least one representative of the development community and one certified public accountant.
The committee shall review and monitor the process of calculating, assessing, and spending
impact fees. The committee shall be provided with adequate financial reports on a semiannual
basis, shall meet at least annually, and shall provide the City Council with a report of their
findings and recommendations. The City shall provide the committee with the appropriate
advice and counsel of professional City Staff and/or an appropriate professional consultant
selected by the City. The City Council shall not consider or adopt any impact fees that have not
been first considered by the committee. The Impact Fee Committee shall serve in an advisory
capacity to the City Council.
SECTION H Calculation and Impositions of Impact Fees. Any impact fees to fund capital
improvements of the City of Kalispell shall not be approved and adopted by City Council
unless those fees have been calculated in accordance with 7-6-1602 MCA or as such statute
may later be amended. Impact fees may not be imposed for remodeling, rehabilitation, or
other improvements to an existing structure, or rebuilding a damaged structure, unless there is
an increase in units that increase service demand as set forth by state law. If impact fees are
imposed for remodeling, rehabilitation, or other improvements to an existing structure or use,
only the net increase between the old and new demand may be unposed. The data sources and
methodology supporting adoption and calculation of an impact fee shall be available to the
public upon request.
SECTION III 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 ordinance 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) 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.
SECTION IV. Contributions in Lieu of Impact Fee Payments. The City may accept the
dedication of land or the construction of public facilities in lieu of payment of impact fees if:
(a) the need for the dedication or construction is clearly documented pursuant to 7-6-
1.602 MCA; and
(b) the land proposed for dedication for the public facilities to be constructed is
determined to be appropriate for the proposed use by the City of Kalispell; and
(c) the value of the proposed dedication or construction has been established by an
independent appraiser or construction engineer, which appraisal or estimate has been subject to
peer review; and
(d) in the event the value of the proposed dedication or construction exceeds the
impact fee due from an individual development no credits against future impact fee obligation
shall be established. In that event, the City shall pay the excess worth to the contributor.
SECTION V. Appeal Process. Any party upon whom an impact fee has been imposed has the
right to appeal the imposition or amount of the impact fee. The Appellant must perfect the
appeal by giving written notice of the appeal to the Building Department along with the full
amount of the required impact fee, in cash or cash equivalent as an appeal bond. The fOTM of
the written notice shall be sufficient if it identifies the name and address of the appellant and a
short statement giving the reason why the impact fee is wrongly imposed or in the wrong
amount. Upon receiving the Notice of Appeal and cash bond, the building department official
shall, within 24 hours, notify the City Manager who will place the matter before the City
Council on its next regularly scheduled City Council Meeting that is more than 5 days
following the filing of the appeal. The City Council shall hear evidence from the Appellant and
City staff and shall make the determination whether the impact fee imposed upon the Appellant
is compliant with state law and city ordinance. In the event that the City Council determines
that the imposition of the impact fee is not compliant with either state law or the city ordinance,
the City shall return the cash bond paid by the appellant.
SECTION VI. This ordinance shall be effective thirty (30) days from and after the date of
its final passage and approval,
PASSED AND APPROVED BY THE CITY COUNCIL AND S ED BY THE MAYOR THIS
16TH DAY OF OCTOBER., 2006.
Pamela B. Ker�VAy
Mayor
ATTEST:
Theresa White
City Clerk