Chapter 15.13
IMPACT FEES

Sections:

15.13.010    Findings and authority.

15.13.020    Definitions.

15.13.030    Findings of adequacy.

15.13.040    Assessment of impact fees.

15.13.050    Exemptions.

15.13.060    Credits.

15.13.070    Tax adjustments.

15.13.080    Appeals.

15.13.090    Establishment of impact fee accounts.

15.13.100    Refunds.

15.13.110    Use of funds.

15.13.120    Review.

15.13.130    Impact fees and administrative fees.

15.13.140    Independent fee calculations.

15.13.150    Existing authority unimpaired.

15.13.160    Authority of planning commission to hear impact fee appeals.

15.13.010 Findings and authority.

The city council of the city of Burlington (the “council”) hereby finds and determines that growth and development activity in the city will create additional demand and need for public streets and roads, publicly owned parks, open space and recreational facilities, and fire protection facilities in the city, and the council finds that growth and development activity should pay a proportionate share of the cost of such planned facilities needed to serve the growth and development activity. Therefore, pursuant to chapter 82.02 RCW the council adopts this chapter to assess impact fees for planned facilities. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the council in establishing the impact fee program. (Ord. 1347 § 2, 1997).

15.13.020 Definitions.

The following definitions shall apply for purposes of this chapter unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090, or given their usual and customary meaning.

1. “Act” means the Growth Management Act, as codified in chapter 36.70A RCW, as now in existence or as hereafter amended.

2. “Boundary line adjustment” or “lot boundary adjustment” shall have the same meaning as set forth in BMC Title 16.

3. “Building permit” means an official document or certification which is issued by the building official and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving or repair of a building or structure.

4. “Capital facilities” means the facilities or improvements included in a capital budget.

5. “Capital facilities plan” or “the plan” means the capital facilities plan adopted by the council as part of the capital facilities element of the comprehensive plan for Burlington, and such plan as amended.

6. “City” means the city of Burlington.

7. “City engineer” means the officially appointed and acting public works director for the city, also referred to herein as a “department head.”

8. “Council” means the city council of the city of Burlington.

9. “County” means Skagit County.

10. “Department” means the city planning department.

11. “Developer” means an individual, group of individuals, partnership, corporation, state agency, or other person undertaking development activity, and their successors and assigns.

12. “Development activity” means any construction or expansion of a building or structure; or the siting of a mobile home; or any change in use of a building or structure or mobile home; or the subdivision of land; or the seeking of plat approval, binding site plan approval, mobile home park approval, boundary line adjustment, or conditional use permit approval; or any change in use of land that creates additional demand and need for public streets and roads, publicly owned parks, open space and recreational facilities, and fire protection facilities.

13. “Development approval” means any written authorization from the city, other than a building permit, which authorizes the commencement of a development activity, including, but not limited to, plat approval, binding site plan approval, boundary line adjustment, and a conditional use permit.

14. “Encumbered” means to reserve, set aside, or otherwise earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for planned facilities.

15. “Feepayer” is a person, corporation, partnership, an incorporated association, or any other similar entity, or department or bureau of any governmental entity or municipal corporation, commencing a development activity which creates the demand for planned facilities, and which requires development approval and/or the issuance of a building permit. “Feepayer” includes an applicant for an impact fee credit.

16. “Fire chief” means the officially appointed and acting chief of the fire department of the city, also referred to herein as a “department head.”

17. “Fire impact fee” means the impact fee designated to pay for fire protection facilities.

18. “Impact fee” means a payment of money imposed by the city on development activity pursuant to this chapter as a condition of granting development approval and/or a building permit in order to pay for the planned facilities needed to serve new growth and development activity. “Impact fee” does not include a reasonable permit fee, an application fee, the administrative fee for collecting and handling impact fees, the cost of reviewing independent fee calculations, or the administrative fee required for an appeal pursuant to BMC 15.13.080.

19. “Impact fee account” or “account” means the account or accounts established for the planned facilities for which impact fees are collected. The accounts shall be established pursuant to BMC 15.13.090, and comply with the requirements of RCW 82.02.070.

20. “Independent fee calculation” means the impact calculation, and/or economic documentation prepared by the feepayer, to support the assessment of an impact fee other than by the use of the schedules attached as Appendix A to this chapter, on file in the office of the city clerk, or the calculations prepared by the planning director or city engineer where none of the impact fee categories or impact fee amounts in Appendix A accurately describe or capture the impacts of the development activity on public streets and roads, publicly owned parks, open space and recreational facilities, and fire protection facilities.

21. “Owner” means the owner of record of real property, or a person with an unrestricted written option to purchase property; provided, that if the real property is being purchased under a recorded real estate contract, the purchaser shall be considered the owner of the real property.

22. “Parks director” means the parks and recreation director of the city parks and recreation department, also referred to herein as a “department head.”

23. “Parks impact fee” means the impact fee designated to pay for publicly owned parks, open space and recreation facilities.

24. “Peak hour” means the consecutive 60-minute periods during the 4:00 p.m. to 6:00 p.m. peak period during which the highest volume of trips on the city’s street system occurs.

25. “Project improvements” means site improvements and facilities that are planned and designed to provide service for a particular development project or users of the project, that are necessary for the use and convenience of the occupant or users of the project, and are not in the capital improvement plan adopted by the city and used in the fee calculation.

26. “Planned facilities” shall mean public streets and roads, publicly owned parks, open space, recreation facilities, and fire protection facilities included in the capital facilities element of the comprehensive plan for Burlington.

27. “Planning director” means the director of the department of planning and community development.

28. “Square footage” means the square feet of the gross floor area of a development or structure.

29. “Standard of service” means the quantity and quality of service which the city council has determined to be appropriate and desirable for the city. A measure of the standard of service may include, but is in no way limited to, maximum levels of congestion on city streets and roads, maximum commute times, maximum wait at stops, maximum fire department response time, minimum fire suppression capabilities, minimum park space per capita for a variety of types of parks, minimum distance from residences to parks, and any other factors the city council may deem appropriate.

30. “State” means the state of Washington.

31. “System improvements” means public facilities that are included in the city of Burlington’s capital facilities plan and are designed to provide service to the community at large, in contrast to project improvements. In the instance of transportation impact fees, “system improvements” are those public facilities that are included in the city of Burlington’s capital facilities plan, and form the basis of calculating the city’s transportation impact fees.

32. “Transportation impact fees” means the impact fee designated to pay for public streets and roads.

33. “Unit” means any building or portion thereof which contains living facilities including provisions for sleeping, cooking, eating, and sanitation, as required by the city, for not more than one family and including site-built buildings, mobile/manufactured homes and modular homes.

34. “Voluntary agreement” means an agreement between the developer and the city as authorized by RCW 82.02.020. (Ord. 1650 § 1, 2008; Ord. 1347 § 2, 1997).

15.13.030 Findings of adequacy.

A. Prior to approving proposed plats, binding site plans, or granting other development approvals, the council or administrative personnel, as appropriate, shall make written findings that appropriate provisions are made for planned facilities. Findings of adequacy shall be based on the city’s standard of service.

B. Compliance with this requirement shall be sufficient to satisfy the requirements of RCW 58.17.110, 58.17.060, and the Growth Management Act. The findings shall be made at the time of preliminary plat, binding site plan or other development approval.

C. The city shall not approve applications for preliminary plats, binding site plans, or grant other development approvals, unless the city is able to make the finding of adequacy; provided, that if the feepayer opts to dedicate land, to provide improvements, and/or construction consistent with the requirements of BMC 15.13.060 governing credits, where appropriate, the city may make such findings.

D. If any party for any reason is able to exempt itself from the operation of this chapter, the city reserves the right to review its land use plan in conjunction with its capital facilities plan in order to ensure adequacy. In the event that the impact fees that might have been paid would have been an integral part of the financing to ensure adequacy, the city reserves the right to deny approval for the development on these grounds. (Ord. 1347 § 2, 1997).

15.13.040 Assessment of impact fees.

A. The city shall collect impact fees, based on the schedules in Appendix A, 1999 Update, as further amended by the 2008 Transportation Impact Fee Update, from any applicant seeking a building permit from the city. This shall include, but is not limited to, the development of residential, commercial, retail, and office land, and includes the expansion of existing uses that creates a demand for additional planned facilities, as well as a change in existing use that creates a demand for additional planned facilities.

B. Except as may be due to exemptions or credits provided pursuant to BMC 15.13.050 or 15.13.060, pursuant to an independent fee calculation accepted by the planning director pursuant to BMC 15.13.140, or impact fees imposed by the planning director pursuant to BMC 15.13.140, the city shall not issue a building permit(s) unless and until the impact fees set forth in the schedules in Appendix A, 1999 Update, as further amended by the 2008 Transportation Impact Fee Update, attached to the ordinance codified in this section, to this chapter have been paid.

C. Impact fees may also be collected pursuant to the timeline provisions of an adopted development agreement as provided in BMC 17.68.110(H). (Ord. 1666 § 1, 2009; Ord. 1655 § 1, 2008; Ord. 1650 § 2, 2008; Ord. 1533 § 1, 2004; Ord. 1446 § 1, 2000; Ord. 1410 § 1, 1999; Ord. 1347 § 2, 1997).

15.13.050 Exemptions.

A. The following shall be exempted from the payment of all impact fees:

1. Replacement of a residential structure or replacement of a mobile home with a new residential structure or mobile home of the same use at the same site or lot when such replacement occurs within 24 months of the demolition or destruction of the prior residential structure or the removal of the mobile home.

2. Alterations or expansion or enlargement or remodeling or rehabilitation or conversion of an existing unit where no additional units are created and the use is not changed.

3. The construction of accessory structures that will not create significant impacts on planned facilities.

4. Miscellaneous improvements, including but not limited to fences, walls, swimming pools, and signs.

5. Demolition or moving of a structure.

6. Expansion of a residential structure, provided the expansion does not result in the creation of an additional unit.

B. If a nonresidential structure is replaced with a new nonresidential structure of the same size and use at the same site or lot within 24 months of the demolition or destruction of the prior structure, the impact fee will be based on the square feet and usage of the new structure minus credit for the prior square feet and use of the prior structure.

C. The planning director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section, in any other section, or under other applicable law. Determinations of the planning director shall be in writing and shall be subject to the appeals procedures set forth in BMC 15.13.080. (Ord. 1650 § 3, 2008; Ord. 1533 § 2, 2004; Ord. 1347 § 2, 1997).

15.13.060 Credits.

A. Credit Available. After the effective date of the ordinance codified in this chapter, credit against the amount of the impact fees for developer dedications of land for planned facilities or construction of planned facilities, or improvements to planned facilities shall be governed by this section. This section allows for the provision of reasonable credit(s) to a feepayer for the value of any dedication of land for, improvements to, or new construction of one or more planned facilities that appear in Appendix A to this chapter, on file in the office of the city finance director, by a feepayer, pursuant to RCW 82.02.060(3), as further provided herein. The amount of the credit for a particular improvement or facility shall be limited to the cost of that improvement or facility as set forth in Appendix A to this chapter, on file in the office of the city finance director, as now or hereafter amended. Credits shall be specific to the type of improvements or dedications made, such that dedications of land for, construction of or improvements to publicly owned parks, open space or recreational facilities shall be applicable only to the parks impact fee; dedications of land for, construction of or improvements to public transportation facilities shall be applicable only to the transportation impact fee; and dedications of land for, construction of or improvements to fire protection facilities shall be applicable only to the fire impact fee. Credit shall not include increased housing density.

B. No credit shall be given for project improvements.

C. Application for Credit – Determination of Suitability of Land, Improvements, Construction. The feepayer applying for credit (hereinafter, “the applicant”) shall direct the request for a credit or credits to the planning director, who shall refer the request to the city engineer, the fire chief and/or the parks and recreation director as appropriate. The appropriate department head shall first determine the general suitability of the land, improvements, and/or construction for city purposes. The planning director shall then determine whether the land, improvements, and/or the facilities constructed are included within the city’s adopted capital facilities plan or the planning director may make the finding that such land, improvements, and/or facilities would serve the goals and objectives of the

 

city’s capital facilities plan. The planning director shall adopt the determination of the appropriate department head as to the general suitability of the land, improvements and/or construction for city purposes. In all cases, the planning director shall inform the applicant, in writing, of the adoption of the determination.

D. The value of credit for land, including right-of-way and easements, shall be established on a case-by-case basis by an appraiser selected by, or acceptable to, the planning director, and shall be subject to review and acceptance by the planning director.

E. The feepayer shall pay for the cost of the appraisal or request that the cost of the appraisal be deducted from the credit which the planning director may be providing to the feepayer, in the event that credit is awarded.

F. Determination of Credit Amounts. For each request for credit, once the city has determined that the land, improvements, and/or construction would be suitable for city purposes, the planning director shall determine the amount of the credit. The value of a credit for structures, facilities or other improvements shall be established by original receipts provided by the applicant for one or more of the same system improvements for which the impact fee is being charged.

The appraiser must be licensed and in good standing by the state of Washington for the category of the property appraised. The appraiser must possess an MAI or other equivalent certification and shall not have a fiduciary or personal interest in the property being appraised. A description of the appraiser’s certification shall be included with the appraisal, and the appraiser shall certify that he/she does not have a fiduciary or personal interest in the property being appraised. The appraisal shall be in accord with the most recent version of the Uniform Standards of Professional Appraisal Practice.

The applicant shall be entitled to a credit for a reasonable value of the land, improvements, and/or construction that is made or dedicated, based upon the actual cost of improvements and/or construction, or the agreed upon or actual predevelopment value of land dedicated. In the event an appraisal is necessary to determine the value of land dedicated, an appraiser shall be designated by the city and the full cost of such appraisal shall be paid by the applicant; provided, however, that if the applicant disagrees with the appraisal, and hence the determination of the value of the credit by the planning director, the applicant may appeal under the appeals procedure set forth in BMC 15.13.080. Upon reaching a determination of the total value of credits available to the applicant, the planning director shall notify the applicant in writing of the determination (the “determination of value”). The planning director shall then issue a credit certificate in the amount of the determination of value.

G. Use of Credits. The applicant, upon receipt of a credit certificate, shall have the right to use the certificate to offset any future impact fee assessed for any development activity that will be required to pay impact fees. The administration and application of the credit certificates will be as described in subsection H of this section. The application of any credit certificate will be specific to the transportation impact fee, the park impact fee, or the fire impact fee.

H. Credit Certificates – Administration. After determining the amount of the credit, the planning director shall issue and provide the applicant with a document hereinafter known as a credit certificate, setting forth the dollar amount of the credit, the date of issuance of the credit certificate, the date of expiration of the credit and the credit certificate, the reason for the credit, the legal description of the property donated, and/or the improvement or construction for which was the basis the credit certificate is registered (the “credit holder”). The applicant must sign and date the credit certificate, and return such signed credit certificate to the planning director for filing in the city’s credit certificate registry before the credit will be awarded. The failure of the applicant to sign, date, and return the credit certificate within 60 calendar days shall nullify the credit. The original credit certificate shall be kept registered in the city’s records, and the credit holder shall be provided a duplicate copy. The planning director shall develop reasonable rules and regulations for the administration of the credit certificate program, including the calculation of credits, procedures for use of credits and application of credits to particular parcels of land which may be by recorded document, and the ability to levy an administrative fee in an amount sufficient to cover actual costs to the city.

I. Transfer of Credit – Partial Use of Credit. Credit certificates may be transferred or sold to third parties by the credit holder; provided, that in order to transfer credits to another party, the current credit holder shall register the transfer with the city in accordance with the procedures for registration of credit transfers developed by the planning director. Only the credit holder who is reflected on the city’s registration system pursuant to the city’s registration system may utilize the credit. Registration with the city of credit certificates shall be conclusive evidence of credit ownership. To the extent that a credit holder wishes to utilize only a portion of the credit reflected on the credit certificate against impact fees due on a particular project, the planning director shall develop procedures for reducing the amount of credit reflected on the credit certificate accordingly or issuing a new credit certificate with the remaining credit amount.

J. Limitations on Utilization of Credits. Utilization of credit against payment of impact fees must in all cases be made prior to payment of the impact fee. No reimbursement of impact fees will be made for credit not utilized at the time the impact fee was due. In no event shall the city be under any obligation to advise any applicant for a building permit or other development approval of the existence or possible existence of the availability of credits. The burden of investigating and determining if credits may be available shall rest solely with such applicant. Credit utilized shall never exceed the amount of the impact fee due.

K. Credit for Significant Past Tax Payments. For each request for a credit for significant past tax payments made for particular improvements or land acquisitions, the feepayer shall submit proof of payments and calculation of past tax payments earmarked for or proratable to the particular improvements or land acquisitions. The planning director shall establish procedures for determining the amount of credit for significant past tax payment made for particular improvements or land acquisitions.

L. Appeals. Determinations made by the planning director pursuant to this section shall be subject to the appeals procedures set forth in BMC 15.13.080.

M. Expiration of Credits. Credits shall expire, and credit certificates shall become null and void, on a date six years from the date of issuance of the original credit certificate by the planning director. Transfer of credits or partial use of credits which may involve reissuance of credit certificates shall in no event extend the expiration date of those credits. (Ord. 1650 § 4, 2008; Ord. 1347 § 2, 1997).

15.13.070 Tax adjustments.

Pursuant to and consistent with the requirements of RCW 82.02.060, the capital facilities plan has provided adjustments for future taxes to be paid by the developer which are earmarked or proratable to the planned facilities which will serve the development activity. The impact fee schedules in Appendix A, on file in the office of the city clerk, have been reasonably adjusted for taxes and other revenue sources which are anticipated to be available to fund particular planned facilities. (Ord. 1347 § 2, 1997).

15.13.080 Appeals.

A. Any feepayer may pay the impact fees imposed by this chapter under protest in order to obtain the development approval and/or a building permit. Appeals regarding the impact fees imposed on any development activity may only be taken by the feepayer of the property where such development activity will occur. No appeal shall be permitted unless and until the impact fees at issue have been paid.

B. The feepayer must first file a request for review regarding impact fees with the planning director, as follows:

1. The request shall be in writing on the form provided by the city;

2. The request for review by the director shall be filed within 21 calendar days of the feepayer’s payment of the impact fees at issue. The failure to timely file such a request shall constitute a final bar to later seek such review;

3. No administrative fee will be imposed for the request for review by the director; and

4. The director shall issue his/her determination in writing.

C. The planning director’s determinations with respect to the applicability of the impact fees to a given development approval and/or building permit, the availability of an exemption, the availability or value of a credit, or the planning director’s decision concerning the independent fee calculation which is authorized in BMC 15.13.140, or the impact fees imposed by the planning director pursuant to BMC 15.13.140, or any other determination which the planning director is authorized to make pursuant to this chapter, can be appealed to the planning commission.

D. Appeals shall be taken within 10 working days of the planning director’s issuance of a written determination by filing with the planning commission a notice of appeal specifying the grounds thereof, and depositing an administrative fee in the amount of $300.00. The planning director shall transmit to the planning commission all papers constituting the record for the determination, including, where appropriate, the independent fee calculation.

E. The planning commission shall fix a time for the hearing of the appeal, give notice to the parties in interest, and decide the same as provided in the Burlington Municipal Code. At the hearing, any party may appear in person or by agent or attorney. If the matter which is the subject of the appeal requires development approval which also requires a hearing before the planning commission, both the appeal and the development approval hearing may be combined into a single hearing.

F. The planning commission is authorized to make findings of fact regarding the applicability of the impact fees to a given development activity, the availability or amount of the credit, or the accuracy or applicability of an independent fee calculation. The decision of the planning commission shall be final, except as provided in this section.

G. The planning commission may, so long as such action is in conformance with the provisions of this chapter, reverse or affirm, in whole or in part, or may modify the determinations of the planning director with respect to the amount of impact fees imposed or the credit awarded upon a determination that it is proper to do so based on principles or determinations as ought to be made, and to that end shall have the powers which have been granted to the planning director by this chapter.

H. Any feepayer who believes that the decision of the planning commission is based on erroneous procedures, errors of law or fact, or error in judgment, or has discovered new evidence which could not be reasonably available at the prior hearing, may make a written request for reconsideration to the planning commission within 10 working days of the date the decision is rendered. Such feepayer is the “appellant” for the purposes of this section. This request shall set forth the specific errors or new information relied upon by the appellant, and the planning commission may, after review of the record, take further action as it deems proper. The filing of a request for reconsideration shall effectively stay the appeal period until the planning commission takes further action.

I. Any feepayer aggrieved by any decision of the planning commission may submit an appeal of the decision in writing to the city council within 10 working days from the date the final decision of the planning commission is rendered, requesting a review of such decision. Such appeal shall be upon the record, established, and made at the hearing held by the planning commission; provided, that new evidence which was not available at the time of the hearing held by the planning commission may be included in such appeal. The term “new evidence” shall mean only evidence discovered after the hearing held by the planning commission and shall not include evidence which was available or which could reasonably have been available and was simply not presented at the hearing for whatever reason.

J. Upon such written notice of appeal being filed within the time period allotted, a hearing shall be held by the city council. Such hearing shall be held in accordance with the following appeal procedures:

1. The planning director or other designee (the “respondent(s)”) shall present a summary of the findings, conclusions, and decision, as well as the alleged errors forming the basis of the appeal.

2. The appellant(s) and the respondent(s) to the appeal shall have the opportunity to present oral arguments before the council; provided, that the appellants may reserve a portion of their time for rebuttal. Such oral argument shall be confined to the record and to any alleged errors therein or to any allegation of irregularities in procedure before the planning commission. The council may request additional information from any staff member or party, or any factual information from members of the audience at its discretion. Such additional information shall be part of the record.

3. If the council finds that:

a. The planning commission’s findings or decision contains substantial error;

b. The planning commission’s proceedings were materially affected by irregularities in procedure;

c. The planning commission’s decision was unsupported by substantial evidence in view of the entire record as submitted; or

d. The planning commission’s decision is in conflict with the city’s adopted plans, policies, and ordinances;

it may remand for further hearing before the planning commission or may reverse the planning commission’s decision. In addition, the council may choose to modify the planning commission’s decision based on the above criteria. Furthermore, any matter may be continued to a time certain for additional city staff analysis desired by the council, before a final determination by the council. The appellant shall be provided a copy and afforded reasonable time to review the analysis and respond to the council before final determination by the council.

4. If the council determines that there is no basis for the alleged errors set forth in the appeal, it may adopt the findings of the planning commission and accept the decision of the planning commission.

K. This procedure is the only method for appealing alleged errors or irregularities in procedure which may have occurred before the planning commission. All objections are deemed waived if no appeal is taken from the action by the planning commission.

L. Any matter requiring action by the council approving, modifying, or rejecting a decision of the planning commission shall be final and conclusive. (Ord. 1650 § 5, 2008; Ord. 1347 § 2, 1997).

15.13.090 Establishment of impact fee accounts.

A. The city shall establish separate impact fee accounts for the following: (1) transportation impact fees; (2) parks impact fees; (3) fire impact fees. The accounts shall be interest-bearing accounts.

B. Funds withdrawn from the impact fee accounts must be used in accordance with the provisions of BMC 15.13.110. The interest earned shall be retained in each account and expended for the purposes for which the impact fees were collected.

C. On an annual basis, the city finance director shall provide a report to the council on the impact fee accounts, showing the source and amount of all moneys collected, earned, or received, and the planned facilities that were financed in whole or in part by impact fees.

D. Impact fees shall be expended or encumbered within six years of receipt, unless the city council identifies in written findings extraordinary and compelling reasons or reasons to hold the impact fees beyond the six-year period. Under such circumstances, the council shall establish the period of time within which the impact fees shall be expended or encumbered. (Ord. 1347 § 2, 1997).

15.13.100 Refunds.

A. If the city fails to expend or encumber the impact fees within six years of when the impact fees were paid, or where extraordinary or compelling reasons exist, such other time periods as established pursuant to BMC 15.13.090, the current owner of the property on which impact fees have been paid may receive a refund of such impact fees. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or encumbered on a first-in, first-out basis.

B. The city shall notify potential claimants by first class mail deposited with the United States Postal Service at the last known address of such claimants. A potential claimant or claimant must be the owner of the property.

C. Owners seeking a refund of impact fees must submit a written request for a refund of the impact fees to the planning director within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.

D. Any impact fees for which no application for a refund has been made within this one-year period shall be retained by the city and expended on the appropriate planned facilities.

E. Refunds of impact fees under this section shall include any interest earned on the impact fees by the city, calculated at the average interest rate earned by the city on the impact fee account over the preceding fiscal year.

F. When the city seeks to terminate any or all components of the impact fee program, all unexpended or unencumbered funds from any terminated component or components, including interest earned, shall be refunded pursuant to this section. Upon the finding that any or all impact fee requirements are to be terminated, the city shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first class mail at the last known address of the claimants. All funds available for refund shall be retained for a period of one year. At the end of one year,

any remaining funds shall be retained by the city, but must be expended for the appropriate planned facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the impact fee account(s) being terminated.

G. The city shall also refund to the current owner of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, if the development activity for which the impact fees were imposed did not occur; provided, that if the city has expended or encumbered the impact fees in good faith prior to the application for a refund, the city can decline to provide the refund. If within a period of three years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner can petition the city for an offset. The petitioner must provide proof of payment of impact fees previously paid for a development of the same or substantially similar nature on the same property or some portion thereof. The planning director shall determine whether to grant an offset. Determinations of the planning director shall be in writing and shall be subject to the appeals procedures set forth in BMC 15.13.080. (Ord. 1347 § 2, 1997).

15.13.110 Use of funds.

A. Pursuant to this chapter:

1. Impact fees collected for public streets and roads, impact fees for publicly owned parks, open space and recreational facilities, and impact fees for fire protection facilities shall be used solely for those respective purposes, and only those that will reasonably benefit the development activity.

2. Impact fees shall not be imposed to make up for deficiencies in existing facilities serving existing developments.

3. Impact fees shall not be used for maintenance or operation.

B. Impact fees may be spent for planned facilities, including but not limited to planning, land acquisition, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, capital equipment pertaining to planned facilities, and any other similar expenses which can be capitalized.

C. Impact fees may also be used to recoup city improvement costs previously incurred by the city to the extent that new growth and development activity will be served by the previously constructed improvements or incurred costs.

D. In the event that bonds or similar debt instruments are or have been issued for the advanced provision of city improvements for which impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this section and are used to serve the development activity. (Ord. 1347 § 2, 1997).

15.13.120 Review.

The impact fee schedules set forth in Appendix A, on file in the office of the city clerk, shall be reviewed by the council as it may deem necessary and appropriate in conjunction with the annual update of the capital facilities plan element of the city’s comprehensive plan. (Ord. 1347 § 2, 1997).

15.13.130 Impact fees and administrative fees.

A. The impact fees set forth in Appendix A, attached to the ordinance codified in this chapter, and on file in the office of the city clerk, are based upon the data and assumptions set forth therein, and the information and public input provided to the city council in considering adoption of the ordinance codified in this chapter. Except as otherwise provided in BMC 15.13.050, 15,13.060 or 15.13.140, all development activity in the city will be charged the impact fees set forth in the schedules contained in Appendix A.

B. The city’s cost of administering the impact fee program shall be $35.00 per unit for single-family residential permits, or $70.00 per multifamily residential permit, or one percent of the impact fees calculated to be due for nonresidential permits, per impact fee (i.e., $35.00 or one percent for the fire impact fee, $35.00 for parks impact fee and $35.00 or one percent for the transportation impact fee), and shall be paid by the applicant to the city as part of the permit fee. (Ord. 1347 § 2, 1997).

15.13.140 Independent fee calculations.

A. If the planning director believes in good faith that none of the impact fee categories or impact fee amounts set forth in the schedules in Appendix A, on file in the office of the city clerk, accurately describe or capture the impacts of a development activity on planned facilities, the planning director may conduct independent fee calculations. The planning director may impose alternative impact fees on a specific development activity based on these calculations. The alternative impact fees and the calculations shall be set forth in writing and shall be mailed to the feepayer.

B. If a feepayer opts not to have the impact fee determined according to the schedules set forth in Appendix A, on file in the office of the city clerk, then the feepayer shall prepare and submit to the planning director an independent fee calculation for the development activity for which final plat, binding site plan, or other development approval, or a building permit is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made. The appropriate department heads shall review the independent fee calculation and provide an analysis to the planning director concerning whether the independent fee calculation should be accepted, rejected, or accepted in part. The planning director may adopt, reject or adopt in part the independent fee calculation based on the analysis prepared by appropriate department heads, and based on the specific characteristics of the development activity, and/or principles of fairness. The impact fees or alternative impact fees and the calculations shall be set forth in writing and shall be mailed to the feepayer.

C. Any feepayer submitting an independent fee calculation will be required to pay to the city of Burlington a fee to cover the cost of reviewing the independent fee calculation. The fee shall be $500.00 plus the actual cost of any additional staff time in excess of $500.00 spent in review, and the cost of consultant services if the city deems these services to be necessary; provided, however, for independent fee calculations for single residential lots where, in the sole discretion of the planning director, the issues involved are easily handled and the fee is clearly excessive, the $500.00 fee may be reduced. The city shall require the feepayer to post a cash deposit of $500.00 prior to initiating the review.

D. While there is presumption that the calculations set forth in the city’s capital facilities plan are valid, the planning director shall consider the documentation submitted by the feepayer and the analysis prepared by the appropriate department heads, but is not required to accept such documentation or analysis which the planning director reasonably deems to be inaccurate or not reliable, and may, in the alternative, require the feepayer to submit additional or different documentation for consideration. The planning director is authorized to adjust the impact fees on a case-by-case basis based on the independent fee calculation, the specific characteristics of the development activity, and/or principles of fairness. The impact fees or alternative impact fees and the calculations shall be set forth in writing and shall be mailed to the feepayer.

E. Determination made by the planning director pursuant to this section may be appealed to the planning commission subject to the procedure set forth in BMC 15.13.080. (Ord. 1347 § 2, 1997).

15.13.150 Existing authority unimpaired.

Nothing in this chapter shall preclude the city from requiring the feepayer or the proponent of a development activity to mitigate adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or chapter 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with BMC 15.13.050 and with RCW 43.21C.065 and 82.20.100. (Ord. 1347 § 2, 1997).

15.13.160 Authority of planning commission to hear impact fee appeals.

Pursuant to RCW 82.02.070(5), the planning commission shall have the authority to hear and determine impact fee appeals as set forth in BMC 15.13.080. Decisions of the planning commission are subject to review by the city council as provided for in chapter 17.68 BMC. (Ord. 1347 § 2, 1997).