HomeMy WebLinkAboutFinal Adoption Ordinance 1843 referencing impact fees Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Saunders, Assistant Director
Tim McHarg, Director
SUBJECT: Final adoption and second reading of Ordinance 1843 to revise Chapter 2,
Article 6, Division 9, Impact Fees, BMC to remove specific references.
MEETING DATE: November 5, 2012
AGENDA ITEM TYPE: Consent
RECOMMENDATION: Give final approval to Ordinance 1843.
SUGGESTED MOTION: Having reviewed the ordinance draft and considered public comment I finally approve Ordinance 1843.
BACKGROUND: The impact fee authorizing ordinance was initially adopted in 1996. Since
then the municipal code has been restructured. The proposed changes revise references to the
impact fee studies and remove overly detailed specifics from the ordinance. No policy change is proposed with this ordinance. The adopted fees remain in place as is. The City Attorney believes
the municipal code should be structured to provide overall guidance and the details of
implementation be addressed by Commission Resolution and policy. Preliminary approval was
given on October 22nd.
These changes would remove specific reference to individual studies and instead provide a
general framework for the impact fee program. Adoption of each study would then be completed
by Commission Resolution. This ordinance change is proposed at this time to enable a cleaner
completion of the present fee update process. Additional ordinance changes may be suggested in
the future to resolve certain policy issues. Those changes will be processed separately.
UNRESOLVED ISSUES: None.
ALTERNATIVES: As identified by the City Commission.
FISCAL EFFECTS: This ordinance change does not have a fiscal impact. It does not change
amounts or types of fees assessed or when charges are collected or fees used.
Attachments: Ordinance 1843
Report compiled on: 10/24/2012
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ORDINANCE NO. 1843
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE
AMENDED BY REVISING CHAPTER 2, ARTICLE 6, DIVISION 9, IMPACT FEES,
TO REMOVE REFERENCES TO SPECIFIC IMPACT FEE STUDIES AND COSTS.
Preamble
WHEREAS, the City of Bozeman is committed to addressing the community’s needs
and expressed desires for services; and
WHEREAS, the City of Bozeman is committed to meeting those desires and demands
for services in a fiscally responsible manner; and
WHEREAS, the City of Bozeman is committed to meeting those desires and demands
for services in a manner which recognizes the fiscal and legal interest of all of the system users
now and in the future and not a limited subset of users; and
WHEREAS, the City of Bozeman has developed and adopted an impact fee capital
improvements program, which distinguishes current and future needs and provides a lawful,
logical, balanced, operationally sound, and cost effective basis upon which to maintain and
develop the City’s transportation, fire protection and emergency medical services, water and
wastewater systems; and
WHEREAS, Sections 7-6-1601 through 7-6-1604, MCA provide specific authority and
guidance about the necessary documentation to establish an impact fee and procedures to adopt
and administer an impact fee; and
WHEREAS, The City of Bozeman adopted an impact fee program in 1996 through
ordinance 1414 which has been amended from time to time; and,
WHEREAS, the State of Montana adopted Sections 7-16-1601 through 7-16-1604
providing guidance to local governments regarding impact fees and establishing certain
standards for impact fee adoption; and,
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WHEREAS, Bozeman previously included very specific references to individual fee
studies and costs within the adopted ordinances; and,
WHEREAS, state enabling law for impact fees allows for adoption of an impact fee
study by either ordinance or resolution; and,
WHEREAS, the City of Bozeman wishes to take a different approach to organizing its
ordinances and intends that the adopted ordinance provide a general framework for the impact
fee program and the individual fee studies be adopted by resolution instead of ordinance; and,
WHEREAS, the amendments were the subject of a public hearing held on October 22,
2012;
NOW, THEREFORE, BE IT ORDAINED by the City Commission of the City of
Bozeman, Montana, that:
Section 1 Chapter 2, Article 6, Division 9 of the Bozeman Municipal Code be amended so that such
division shall read as follows:
Sec. 2.06.1600. - Legislative findings.
A. The city commission finds that:
1. The protection of the health, safety, and general welfare of the citizens of the city
requires that the street, fire protection, water, and wastewater systems of the city be expanded
and improved to accommodate continuing growth within the city and within those areas directly
served by its fire department and within those areas connected to its water and wastewater
systems.
2. New residential and nonresidential development imposes increased and excessive
demands upon existing city facilities.
3. New development often overburdens existing public facilities, and the tax revenues
generated from new development often do not generate sufficient funds to provide public
facilities to serve the new development.
4. New development is expected to continue and will place ever-increasing demands on the
city to provide public facilities to serve new development.
5. The creation of an equitable development impact fee system would enable the city to
impose a proportionate share of the costs of required improvements to the city's transportation,
fire protection, water, and wastewater systems on those developments that create the need for
them.
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6. All types of development that are not explicitly exempted from the provisions of this
division will generate demand for city's transportation, fire protection, water, and wastewater
services or facilities that will require improvements to city facilities and equipment.
7. The city's transportation adopted impact fee studies study, dated October 31, 2007,
prepared by Tindale-Oliver & Associates and as updated, and the fire/EMS impact fee study
dated July 2008 and as updated, prepared by HDR Engineering, and water and wastewater
impact fee studies dated July 2007, prepared by HDR Engineering, set forth reasonable
methodologies and analyses for determining the impacts of various types of development on the
city's street, fire protection, water and wastewater systems and for determining the cost of
acquiring land and the cost of acquiring or constructing facilities and equipment necessary to
meet the demands for such services created by new development.
8. The city establishes as city standards the assumptions and service standards referenced in
the impact fee studies and other duly adopted documents as part of its current plans for the
transportation system and for the city's fire protection, water, and wastewater systems.
9. The documentation required by MCA 7-6-1602, is collectively contained in the city's
facility plans, impact fee studies, development regulations, financial records, capital
improvements program, design and specification manual, and other city documents.
10. The development impact fees described in this division are reasonably related to the
service demands and needs of new development and are based on the impact fee studies and
documentation cited in subsection 7 of this section and do not exceed the costs of acquiring
additional land and the costs of acquiring or constructing additional facilities or equipment
required to serve the new developments that will pay the fees.
11. All transportation improvements upon which the transportation impact fees are based and
upon which transportation impact fee revenues will be spent, based on the limitations set forth in
this division will benefit all new development in the city; and it is, therefore, appropriate to treat
the entire city as a single service area for purposes of calculating, collecting, and spending the
transportation impact fees, while recognizing differences in the demand for service based upon
the identified factors set forth in the transportation impact fee study.
12. All of the fire protection improvements listed in the fire impact fee study will benefit all
new development that receives fire protection service directly from the city fire department; and
it is, therefore, appropriate to treat the entire city and all properties served directly by the city fire
department as a single service area for purposes of calculating, collecting, and spending the fire
protection impact fees.
13. All of the water system improvements listed in the water impact fee study will benefit all
new development that connects to the city water system; and it is, therefore, appropriate to treat
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the entire city and all properties connected to the city water system as a single service area for
purposes of calculating, collecting, and spending the water impact fees.
14. All of the wastewater system improvements listed in the wastewater impact fee study will
benefit all new development that connects to the city wastewater system; and it is, therefore,
appropriate to treat the entire city and all properties connected to the city wastewater system as a
single service area for purposes of calculating, collecting, and spending the wastewater impact
fees.
15. There is both a rational nexus and a rough proportionality between the development
impacts created by each type of development covered by this division and the development
impact fees that such development will be required to pay.
16. The city's facility planning, capital improvement program, development review, and
bidding processes create a public process by which, on a specific and detailed basis, the capacity
expanding components of construction can be identified and funded distinctly from those
components which are not capacity expanding by providing for evaluation by the city and the
impact fee advisory committee of future needs related to growth, identification of applicable
funding sources, and monitoring of construction and payments.
17. This division creates a system by which development impact fees paid by new
developments will be used to expand or improve the city transportation, fire protection, water,
and wastewater systems in ways that benefit the development that paid each fee within a
reasonable period of time after the fee is paid.
18. This division creates a system under which development impact fees shall not be used to
cure existing deficiencies in public facilities or to pay maintenance or operations costs associated
with providing public facilities.
Sec. 2.06.1610. - Authority and applicability.
A. This division is enacted pursuant to the city's self-government powers, the authority
granted to the city by the Montana State Constitution, MCA 7-6-1601 through 7-6-1604, and
MCA 7-1-4123, 7-1-4124, 7-3-4313, 7-7-4404, 7-7-4424, 7-13-4304, and 69-7-101.
B. The provisions of this division shall apply to all of the territory within the limits of the
city.
C. The provisions of this division related to the fire protection impact fees shall also apply to
all properties located outside the city that are served directly by the city fire department.
D. The provisions of this division related to water impact fees shall also apply to all
properties located outside the city that are connected to the city water system.
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E. The provisions of this division related to wastewater impact fees shall also apply to all
properties located outside the city that are connected to the city wastewater system.
Sec. 2.06.1620. - Intent.
A. This division is adopted to help implement the growth policy comprehensive plan of the
city, the city's 2001 most recently adopted long range transportation plan update prepared by
Robert Peccia & Associates, and as updated, the September 2006 draft of the most recently
adopted water facility plan, prepared for the city by Allied Engineering and Robert Peccia and
Associates, and as updated, and the May 2006 draft of the most recently adopted wastewater
facility plan prepared for the city by HDR Engineering and Morrison-Maierlie, Inc., and as
updated, and the August 2006 draft of the most recently adopted fire protection/EMS master plan
prepared for the city by Emergency Services Consulting, Inc, and as updated.
B. The intent of this division is to ensure that new development bears a proportionate share
of the cost of improvements to the city transportation, fire protection, water, and wastewater
systems; to ensure that such proportionate share does not exceed the cost of the transportation,
fire protection, water, and wastewater facilities and equipment required to serve such new
developments; and to ensure that funds collected from new developments are actually used to
construct improvements to the city transportation, fire protection, water, and wastewater systems
that reasonably relate to the benefits accruing to such new developments.
C. It is the further intent of this division that new development pay for its proportionate
share of public facilities through the imposition of development impact fees that will be used to
finance, defray, or reimburse all or a portion of the costs incurred by the city to construct
improvements to the city transportation, fire protection, water, and wastewater systems that serve
or benefit such new development.
D. It is not the intent of this division to collect any money from any new development in
excess of the actual amount necessary to offset new demands for transportation, fire protection,
water, or wastewater improvements generated by that new development.
E. It is not the intent of this division that any moneys collected from any development
impact fee and deposited in an impact fee fund ever be co-mingled with moneys from a different
impact fee fund or ever be used for a type of facility or equipment different from that for which
the fee was paid.
Sec. 2.06.1630. - Definitions.
A. The following words, terms and phrases, when used in this division, shall have the
meanings ascribed to them in this section, except where the context clearly indicates a different
meaning:
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1. "Central Business District" (CBD) means land uses established within the B-3, "Central
Business District," zoning district.
2. "Development" means any construction or expansion of a building, structure, or use, any
change in use of a building or structure, or any change in the use of land, which creates
additional demand for public services.
3. "Development impact fees" means the transportation impact fee, fire protection impact
fee, water impact fee, and wastewater impact fee established by this division.
4. "Development impact fees review committee" means the committee composed of the
impact fee coordinator, the building official, the director of public service, the fire chief, and the
director of planning and community development, or their designees appointed to serve in the
member's place at a meeting.
5. "Encumber" means to legally obligate by contract, or otherwise commit to use by
appropriation or other official act of the city.
6. "Impact fee capital improvement program" means the capital improvements program for
the transportation system, the city fire protection system, and the city water and wastewater
systems, which shall assign moneys from each impact fee fund to specific projects and related
expenses for improvements to the type of facilities or services for which the fees in that fund
were paid, and shall not include improvements needed to correct existing deficiencies or
operations or maintenance costs.
7. "Impact fee coordinator" means the director of the city's department of planning and
community development.
8. "Impact fee funds" means the transportation impact fee fund, fire protection impact fee
fund, water impact fee fund, and wastewater impact fee fund established by this division.
9. "Impact fee studies" means the studies most recently adopted by resolution of the City
Commission for each impact fee which set forth reasonable methodologies and analyses for
determining the impacts of various types of development on the city's street, fire protection and
emergency medical services, water and wastewater systems or other services or facilities for
which an impact fee may be charged and for determining the cost of acquiring land and the cost
of acquiring or constructing facilities and equipment necessary to meet the demands for such
services created by new development. transportation impact fee study, dated October 31, 2007,
prepared by Tindale-Oliver & Associates and as updated, and the fire impact fee study, dated
October 1995 and as updated, prepared by James Duncan and Associates, and the water and
wastewater impact fee studies dated May 2007, prepared by HDR Engineering.
10. "Improvement" means planning, land acquisition, engineering design, construction
inspection, on-site construction, off-site construction, equipment purchases, and financing costs
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associated with new or expanded facilities, buildings, and equipment that expand the capacity of
a facility or service system and that have an average useful life of at least ten years. The term
"improvement" does not include maintenance, operations, or improvements that do not expand
capacity.
11. "Independent fee calculation study" means a study prepared by an applicant for a building
permit or water or wastewater connection permit calculating the cost of expansions or
improvements to the city's transportation, fire protection, water, or wastewater systems required
to serve the applicant's proposed development; that is performed on an average cost (not
marginal cost) methodology; uses the service units and unit construction costs stated in the
impact fee studies; and is performed in compliance with any criteria for such studies established
by this division or by the city.
12. "Initiation of construction" means the date of the preconstruction meeting with the city
engineer, or the date of the first visible change in the physical condition of the improved site
caused by the first person furnishing services or materials to effect construction of the
improvement, whichever occurs first.
13. "Project-related improvements" means site-related improvements including, without
limitation, all access streets adjacent to the proposed development or leading only to the
proposed development and not included on the transportation system; all streets and driveways
within the development; all acceleration, deceleration, right, or left turn lanes leading to any
streets and driveways within the development; all traffic control devices for streets and
driveways within the development; all water lines or facilities adjacent to, leading to, or located
within the development and serving only the development; all wastewater lines or facilities
adjacent to, leading to, or located within and serving only the development; and all off-site
improvements necessary for the safety and code compliance of a development. Credit for
incidental improvements shall not be allowed. The presumption shall be made that the minimum
improvement needed to serve a project shall be deemed to be a project improvement even if
additional capacity is thereby created that may be potentially used by other developments
presently or in the future.
14. "Transportation system" means capacity-adding improvements to collectors or arterial
roads of three lanes or more, which are included on the 2001 Greater Bozeman Transportation
Plan Update most current long range transportation plan or the city's impact fee capital
improvement program, and which will benefit new development as required by law and this
division. The transportation system includes only those bicycle and pedestrian facilities built in
conjunction with and included in a capacity-adding transportation facility improvement
otherwise eligible for impact fee funding pursuant to the terms of this division. The
"transportation system" does not include project-related improvements.
15. Trip exchange district.
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a. "Trip exchange district" means a defined geographic area that meets the following
criteria, pursuant to the transportation fee study and an independent fee calculation study as
provided in section 2.06.1640.B.3:
(1) The use of shared and consolidated parking;
(2) A high degree of pedestrian and bicycle access to and throughout the proposed
development;
(3) The availability of public transit;
(4) Extensive trip capture within the proposed development where trips to the proposed
development result in visits to multiple businesses in the area via a mode other than automobile;
b. The following additional physical development characteristics are associated with trip
exchange district land uses:
(1) The majority of buildings associated with the proposed development are multi-story
building, often more than two stories;
(2) Diverse business proprietorships within the development;
(3) Primary use at the ground floor is commercial;
(4) The majority of individual businesses within the development are less than 20,000 square
feet;
(5) Structures within the development are in near to each other and the public street (with
small or no setbacks);
(6) Having a high percentage building coverage on the lot and typically in excess of 0.5;
(7) The physical characteristics are shared among the entire business area, not just one or a
few of the businesses;
(8) The area should be at least 50 percent developed as measured by lot area utilized; and
(9) The area is the subject of a city enforceable common plan of development, such as an
urban renewal plan.
Sec. 2.06.1640. - Street impact fees.
A. Imposition of transportation impact fees.
1. On or after March 23, 1996, any Any person who seeks to obtain any of the following
forms of development approval is required to pay a transportation impact fee in the amount
specified in the Commission resolution adopting the most recent transportation impact fee study
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and establishing the transportation impact fee and as updated as required in this division. Table
2.06.1640
a. A building permit;
b. Any other permit that will result in the construction of improvements that will generate
additional traffic; or
c. Any extension of any such permit that was issued before the effective date of the
ordinance from which this division is derived; or
d. Any delayed payment of impact fees as specified and approved by the city commission in
accordance with chapter 10, article 8.
2. Notwithstanding subsection A.1 of this section, no impact fee shall be imposed earlier
than the issuance of a building permit for developments requiring a building permit.
3. No permits of the types described in subsection A.1 of this section shall be issued until
the transportation impact fee described in this division has been paid, unless the development for
which the permit is sought is exempted by subsection F of this section.
B. Computation of amount of transportation impact fee.
1. An applicant required by this division to pay a transportation impact fee may choose to
have the amount of such fee determined pursuant to either subsection B.2 or B.3 of this section.
The amount of the fee calculated pursuant to either subsection B.2 or B.3 of this section shall be
subject to the following adjustment:
a. For the first expansion of an existing nonresidential building, the amount calculated shall
not include the amount calculated for the expansion of up to 30 percent as compared with its size
on February 22, 1996, or 2,000 square feet, whichever is less.
b. The transportation impact fees adopted are those shown in adopted by resolution of the
Commission Table 2.06.1640 and as updated as provided for in this division. Beginning on
February 16, 2008, the amount of the fee collected shall be 60 percent of the amount calculated.
2. Unless an applicant requests that the city determine the amount of such fee pursuant to
subsection B.3 of this section, the city shall determine the amount of the required transportation
impact fee by reference to the most recently adopted transportation impact fee study Table
2.06.1640. The fee amounts set forth in such study table include credits for expected future
receipts of state and federal highway funds and expected future receipts of gas tax revenues, and
all other non-impact fee sources of funding anticipated to be made by or as a result of new
development to be applied to the transportation improvements required to serve new
development.
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a. If the applicant's development is of a type not listed in the most recently adopted
transportation impact fee study Table 2.06.1640, then the city shall use the fee applicable to the
most nearly comparable type or land use in the study table. In making a decision about which use
is most nearly comparable, the city shall be guided by the most recent edition of "Trip
Generation: An Information Report" prepared by the Institute of Transportation Engineers; or if
such publication is no longer available, then by a similar publication. If the city determines that
there is no comparable type of land use listed in the study table, then a new fee shall be
determined by:
(1) Finding the most nearly comparable trip generation rate from the publication noted in
subsection B.2.a. of this section; and
(2) Applying the formula set forth in subsection B.3.d of this section.
b. If the applicant's development includes a mix of those uses listed in the most recently
adopted transportation impact fee study Table 2.06.1640, then the fee shall be determined by
adding up the fees that would be payable for each use if it were a freestanding use pursuant to the
most recently adopted transportation impact fee study. Table 2.06.1640
c. If the applicant is applying for an extension of a permit issued previously, then the fee
shall be the net increase between the fee applicable at the time of the current permit application
and any transportation impact fee previously paid pursuant to this division for the same structure.
In the event that the fee applicable at the time of the current permit application is lower than the
transportation impact fee previously paid pursuant to this division for the same structure, there
shall be no refund of transportation impact fees previously paid.
d. If the applicant is applying for a permit to allow a change of use or the expansion,
redevelopment, or modification of an existing development, the fee shall be based on the net
positive increase in the fee for the new use as compared to the previous use. However, no new
fee shall be imposed unless an additional unit of service demand is created, in accordance with
the most recently adopted transportation impact fee study Table 2.06.1640. If necessary to
determine such net increase, the city shall be guided by the most recent edition of "Trip
Generation: An Information Report" prepared by the Institute of Transportation Engineers; or if
such publication is no longer available, then by a similar publication. In the event that the
proposed change of use, expansion, redevelopment, or modification results in a net decrease in
the fee for the new use or development as compared to the previous use or development, there
shall be no refund of transportation impact fees previously paid.
3. An applicant may request that the city determine the amount of the required
transportation impact fee by reference to an independent fee calculation study for the applicant's
development prepared by qualified professional traffic engineers and/or economists at the
applicant's cost and submitted to the city engineer. Any such study must show the traffic
engineering and economic methodologies and assumptions used, including, but not limited to,
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those forms of documentation listed in subsections B.3.a and B.3.b of this section and must be
acceptable to the city pursuant to subsection B.3.c of this section.
a. Traffic engineering studies must include documentation of trip generation rates, trip
lengths, any percentage of trips from the site that represent net additions to current trips from the
site, the percentage of trips that are new trips as opposed to pass-by or divert-link trips, and any
other trip data for the proposed land use.
b. Economic studies must include documentation of any special factors that the applicant
believes will reduce the traffic volumes otherwise attributable to the proposed land use.
c. The city shall consider all such documentation and any independent fee calculation study
submitted by the applicant, but shall not be required to accept any such study or documentation
that the city deems to be inaccurate or unreliable and may request that the applicant submit
additional or different documentation for consideration. Any independent fee calculation study
submitted by an applicant may be accepted, rejected, or accepted with modifications by the city
as the basis for calculating transportation impact fees.
d. Upon acceptance, or acceptance with modifications, of an independent fee calculation
study and documentation, the city shall use the following formulas and methodology contained
within the most recently adopted transportation impact fee study to determine the transportation
impact fee. :
Net Impact Fee = Total Impact Cost - Gas Tax Credit - Ad Valorem Credit
Where:
Total Impact Cost = ((Trip Rate × Assessable Trip Length × % New Trips) / 2) × (1 -Interstate
Adj. Factor) × (Cost per Lane Mile/Avg. Capacity Added per Lane Mile)
Total Gas Tax Credit = Present Value (Annual Gas Tax Credit), given 4.6 percent interest rate
and 25-year facility life
Annual Gas Tax Credit = (((Trip Rate × Total Trip Length × % New Trips) / 2) × Effective Days
per Year × $(Gallon to Capital)/Fuel Efficiency
And where:
Trip Rate = the average daily trip generation rate, in vehicle-trips/day.
Assessable Trip Length = the actual average trip length for the category, in vehicle miles.
Total Trip Length = the assessable trip length plus an adjustment factor of half a mile is added to
the trip length to account for the fact that gas taxes are collected for travel on all roads including
local roads.
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% New Trips = adjustment factor to account for trips that are already on the roadway.
Divide by two = The total daily miles of travel generated by a particular category (i.e., rate X
length X percent new trips) is divided by two to prevent the double-counting of travel generated
among land use codes since every trip has an origin and a destination.
Interstate Adjustment Factor = adjustment factor to account for the travel demand occurring on
interstate highways (15.0 percent).
Cost per Lane Mile = unit cost to construct one lane mile of roadway, in $/lane mile
($3,678,522.00 per study and will be subject to inflationary adjustments).
Average Capacity Added per Lane Mile = represents the average daily traffic on one travel lane
at capacity for one lane mile of roadway, in vehicles/lane-mile/day (8,658 per study).
Cost per Vehicle Mile of Capacity = unit cost to construct to provide a vehicle mile of capacity
($472.92 per study).
Present Value = calculation of the present value of a uniform series of cash flows, gas tax
payments in this case, given an interest rate, "i," and a number of periods, "n;" for 4.6 percent
interest and a 25-year facility life, the uniform series present worth factor is 14.6768.
Effective Days per Year = 365 days.
$/Gallon to Capital = the amount of gas tax revenue per gallon of fuel that is used for capital
improvements, in $/gallon ($0.102).
Fuel Efficiency = average fuel efficiency of vehicles, in vehicle-miles/gallon (17.70).
C. Payment of transportation impact fee.
1. An applicant for any of the permits or extensions listed in subsection A.1 of this section
shall pay the transportation impact fee required by this division to the city prior to the issuance of
any such permit.
2. All funds paid by an applicant pursuant to this division shall be identified as
transportation impact fees and shall be promptly deposited in the transportation impact fee fund
described in subsection D of this section.
D. Transportation impact fee funds.
1. A single transportation impact fee fund is created and such fund shall be maintained in an
interest bearing account.
2. Such fund shall contain only those transportation impact fees collected pursuant to this
division and any interest which may accrue from time to time on such amounts.
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E. Use of transportation impact fee funds. The moneys in the transportation impact fee fund
shall be used only as follows:
1. To acquire land for and/or acquire or construct capacity-adding capital improvements to
the transportation system reasonably related to the benefits accruing to new development subject
to the terms of this division, in accordance with the requirements of state law; or
2. To pay debt service on such capital improvements to the transportation system; or
3. For purposes of refunds or credits, as described in section 2.06.1680 or 2.06.1690.G; and
4. May not be used for:
a. Operations or maintenance purposes;
b. To correct existing deficiencies; or
c. For bicycle or pedestrian facilities not built in conjunction with and included in a
capacity-adding transportation system facility, otherwise eligible for impact fee funding.
F. Exemptions from transportation impact fee.
1. The following types of development shall be exempted from payment of the
transportation impact fee:
a. Alterations, remodeling, rehabilitations, expansions of existing buildings, or other
improvements to an existing structure where no additional vehicle trips will be produced over
and above those produced by the existing use;
b. Construction of accessory buildings or structures that will not produce additional vehicle
trips over and above those produced by the primary building or land use;
c. The replacement of a destroyed or partially destroyed building or structure with a new
building or structure of the same size and use where no additional vehicle trips will be produced
over and above those produced by the original building or structure;
d. The installation or replacement of a mobile home on a lot or a mobile home site when a
transportation impact fee for such lot or site has previously been paid pursuant to this division or
where a mobile home legally existed on such site on or prior to the effective date of the
ordinance from which this division is derived;
e. Any other type of development for which the applicant can demonstrate that the proposed
land use and development will produce no more vehicle trips from such site over and above the
trips from such site prior to the proposed development, or for which the applicant can show that a
transportation impact fee for such site has previously been paid in an amount that equals or
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exceeds the transportation impact fee that would be required by this division for such
development.
2. Any such claim for exemption must be made no later than the time when the applicant
applies for the first permit or a type listed in subsection A.1 of this section for the proposed
development, and any claim for exemption not made at or before that time shall have been
waived.
3. The city manager shall determine the validity of any claim for exemption pursuant to the
criteria set forth in subsection F.1 of this section.
_____
Table 2.06.1640-1
The following transportation impact fees apply to developments not located in the central
business district or a designated trip exchange district.
ITE LUC Land Use Unit Fee
(in dollars)*
RESIDENTIAL:
210 Single-family (Detached)
Less than 1,500 sf and very low income(2) du 2,171
Less than 1,500 sf and low income (3) du 3,147
Less than 1,500 sf du 3,968
1,500 to 2,499 sf du 5,396
2,500 sf or larger du 6,082
220 Apartments du 3,339
230 Residential Condominium/Townhouse du 2,946
240 Mobile Home Park du 1,593
LODGING:
310 Hotel room 3,063
320 Motel room 1,678
RECREATION:
430 Golf Course hole 12,295
411 City Park acre 546
444 Movie Theaters 1,000 sf 6,463
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INSTITUTIONS:
610 Hospital 1,000 sf 6,023
620 Nursing Home bed 381
520 Elementary School student 315
530 High School student 477
540 University (7,500 or fewer students) (4) student 609
550 University (more than 7,500 students) (4) student 529
560 Church/Synagogue 1,000 sf 2,428
565 Day Care 1,000 sf 7,433
OFFICE:
710 50,000 sf or less 1,000 sf 3,977
710 50,001-100,000 sf 1,000 sf 3,623
710 100,001-200,000 sf 1,000 sf 3,084
710 greater than 200,000 sf 1,000 sf 2,460
720 Medical Office 1,000 sf 9,584
RETAIL:
820 under 50,000 sf 1,000 sf 9,378
820 50,000-99,000 sf 1,000 sf 9,587
820 100,000-199,000 sf 1,000 sf 9,331
820 200,000-299,000 sf 1,000 sf 8,567
820 greater than 300,000 sf 1,000 sf 8,144
812 Building Material/Lumber 1,000 sf 21,209
813 Discount Super-Store 1,000 sf 26,996
817 Nursery/Garden Center 1,000 sf 18,903
851 Convenience Store 1,000 sf 44,607
931 Quality Restaurant 1,000 sf 22,036
934 Fast Food Rest w/ Drive-Thru 1,000 sf 61,225
841 New/Used Auto Sales 1,000 sf 12,033
890 Furniture Store 1,000 sf 1,684
912 Bank/Savings Drive-in 1,000 sf 31,706
INDUSTRY:
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110 General Light Industrial 1,000 sf 2,290
140 Manufacturing 1,000 sf 1,250
150 Warehouse 1,000 sf 1,627
151 Mini-Warehouse 1,000 sf 810
(1) Source: Transportation Impact Fee Study, Appendix F, Table F-1.
(2) Defined as 50 percent of city median income based on 2007 Gallatin County Average
Median Income (AMI).
(3) Defined as 80 percent of city median income based on 2007 Gallatin County Average
Median Income (AMI).
(4) Impact fee to be assessed on structures with classroom facilities. All auxiliary structures such
as administrative buildings and research centers are to be charged at the office land use rate.
Table 2.06.1640-2
The following transportation impact fees apply to developments located in the central business
district or within a designated trip exchange district:
ITE LUC Land Use Unit Fee
(in dollars)*
RESIDENTIAL:
210 Single-family (Detached)
Less than 1,500 sf and very low income(2) du 2,171
Less than 1,500 sf and low income (3) du 3,147
Less than 1,500 sf du 3,968
1,500 to 2,499 sf du 5,396
2,500 sf or larger du 6,082
220 Apartments du 3,339
230 Residential Condominium/Townhouse du 2,946
240 Mobile Home Park du 1,593
LODGING:
310 Hotel room 2,835
320 Motel room 1,333
RECREATION:
430 Golf Course hole 4,333
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411 City Park acre 182
444 Movie Theaters 1,000 sf 2,333
INSTITUTIONS:
610 Hospital 1,000 sf 6,023
620 Nursing Home bed 381
520 Elementary School student 315
530 High School student 477
540 University (7,500 or fewer students) (4) student 609
550 University (more than 7,500 students) (4) student 529
560 Church/Synagogue 1,000 sf 2,428
565 Day Care 1,000 sf 7,433
OFFICE:
710 50,000 sf or less 1,000 sf 3,187
710 50,001-100,000 sf 1,000 sf 2,911
710 100,001-200,000 sf 1,000 sf 2,475
710 greater than 200,000 sf 1,000 sf 1,974
720 Medical Office 1,000 sf 9,584
RETAIL:
820 under 50,000 sf 1,000 sf 5,284
820 50,000-99,000 sf 1,000 sf 5,452
820 100,000-199,000 sf 1,000 sf 5,182
820 200,000-299,000 sf 1,000 sf 5,115
820 greater than 300,000 sf 1,000 sf 4,999
812 Building Material/Lumber 1,000 sf 21,209
813 Discount Super-Store 1,000 sf 26,996
817 Nursery/Garden Center 1,000 sf 18,903
851 Convenience Store 1,000 sf 44,607
931 Quality Restaurant 1,000 sf 6,009
934 Fast Food Rest w/ Drive-Thru 1,000 sf 22,164
841 New/Used Auto Sales 1,000 sf 12,033
890 Furniture Store 1,000 sf 1,684
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912 Bank/Savings Drive-in 1,000 sf 24,133
INDUSTRY:
110 General Light Industrial 1,000 sf 2,290
140 Manufacturing 1,000 sf 1,250
150 Warehouse 1,000 sf 1,627
151 Mini-Warehouse 1,000 sf 810
(1) Source: Transportation Impact Fee Study, Appendix F, Table F-2.
(2) Defined as 50 percent of city median income based on 2007 Gallatin County Average
Median Income (AMI).
(3) Defined as 80 percent of city median income based on 2007 Gallatin County Average
Median Income (AMI).
(4) Impact fee to be assessed on structures with classroom facilities. All auxiliary structures such
as administrative buildings and research centers are to be charged at the office land use rate.
*Compiler's note: The transportation impact fees listed in this formula shall be adjusted annually
as per section 2.06.1700.K.
Sec. 2.06.1650. - Fire protection and emergency medical service impact fees.
A. Imposition of fire protection and emergency medical service impact fees.
1. On or after March 23, 1996, any Any person who seeks to obtain any of the following
forms of development approval is required to pay a fire/EMS impact fee in the amount specified
in the Commission resolution adopting the most recent fire/EMS impact fee study and
establishing the fire/EMS impact fee and as updated as required in this division:
a. A building permit; or
b. Any other permit that will result in construction that will generate demand for fire
protection services; or
c. Any extension of any such permit that was issued before the effective date of the
ordinance from which this division is derived, is required to pay a fire protection impact fee in
the amount specified in this division; or
d. Any delayed payment of impact fees as specified and approved by the city commission in
accordance with chapter 10, article 8.
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2. No permits of the types described in subsection A.1 of this section shall be issued until
the fire protection/EMS impact fee described in this division has been paid, unless the
development for which the permit is sought is exempted by subsection F of this section.
B. Computation of amount of fire protection/EMS impact fee.
1. An applicant required by this division to pay a fire protection/EMS impact fee may
choose to have the amount of such fee determined pursuant to either subsection B.2 or B.3 of this
section. The amount of the fee calculated pursuant to either subsection B.2 or B.3 of this section
shall be subject to the following adjustment:
a. For the first expansion of an existing nonresidential building, the amount calculated shall
not include the amount calculated for the expansion of up to 30 percent as compared with its size
on February 22, 1996, or 2,000 square feet, whichever is less.
2. Unless an applicant requests that the city determine the amount of such fee pursuant to
subsection B.3 of this section, the city shall determine the amount of the required fire protection
impact fee by reference to the most recently adopted fire impact fee study. Table 2.06.1650
a. If the type of development that a permit is applied for is not listed in the most recently
adopted fire impact/EMS fee study Table 2.06.1650, then the city shall use the fee applicable to
the most nearly comparable type or land use in the study table.
b. If the type of development that a permit is applied for includes a mix of those uses listed
in the most recently adopted fire impact fee study Table 2.06.1650, then the fee shall be
determined by adding up the fees that would be payable for each use if it were a freestanding use
pursuant to the most recently adopted fire impact fee study. Table 2.06.1650
c. If the applicant is applying for an extension of a permit issued previously, then the fee
shall be the net increase between the fee applicable at the time of the current permit application
and any fire protection impact fee previously paid pursuant to this division for the same
structure. In the event that the fee applicable at the time of the current permit application is lower
than the fire protection impact fee previously paid pursuant to this division for the same
structure, there shall be no refund of fire protection impact fees previously paid.
d. If the applicant is applying for a permit to allow a change of use or for the expansion,
redevelopment, or modification of an existing development, the fee shall be based on the net
increase in the fee for the new use as compared to the previous use. In the event that the
proposed change of use, expansion, redevelopment, or modification results in a net decrease in
the fee for the new use or development as compared to the previous use or development, there
shall be no refund of fire protection impact fees previously paid.
3. An applicant may request that the city determine the amount of the required fire/EMS
protection impact fee by reference to an independent fee calculation study for the applicant's
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development prepared at the applicant's cost by qualified professional fire protection experts
and/or economists and submitted to the city fire chief. Any such study shall be based on the same
service standards and unit costs for fire protection/EMS used in the most recently adopted
fire/EMS impact fee study prepared by HDR Engineering dated July 2008 and as updated, and
must document the economic methodologies and assumptions used. Any independent fee
calculation study submitted by an applicant may be accepted, rejected, or accepted with
modifications by the city as the basis for calculating fire protection impact fees. If such study is
accepted or accepted with modifications as a more accurate measure of the demand for new fire
protection/EMS facilities and equipment created by the applicant's proposed development than
the applicable fee shown in the most recently adopted fire impact fee study Table 2.06.1650, then
the fire protection/EMS impact fee due under this division may be calculated according to such
study.
C. Payment of fire protection/EMS impact fees.
1. An applicant required by this division to pay a fire protection/EMS impact fee shall pay
such fee to the city prior to the issuance of any of the permits listed in subsection A.1 of this
section.
2. All funds paid by an applicant pursuant to this division shall be identified as fire
protection/EMS impact fees and shall be promptly deposited in the fire protection/EMS impact
fee fund described in subsection D of this section.
D. Fire protection/EMS impact fee funds.
1. A single fire protection/EMS impact fee fund is created and such fund shall be
maintained in an interest bearing account.
2. Such fund shall contain only those fire protection/EMS impact fees collected pursuant to
this division and any interest which may accrue from time to time on such amounts.
E. Use of fire protection/EMS impact fee funds. The moneys in the fire protection/EMS
impact fee fund shall be used only:
1. To acquire or construct fire protection/EMS improvements within the city; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue
bond issue used to finance the acquisition or construction of fire protection/EMS improvements
within the city; or
3. As described in section 2.06.1680 or 2.06.1690.G.
F. Exemptions from fire protection/EMS impact fee.
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1. The following types of development shall be exempted from payment of the fire
protection/EMS impact fee:
a. Reconstruction, expansion, or replacement of a previously existing residential unit that
does not create any additional or larger residential units.
b. Construction of unoccupied accessory units related to a residential unit.
c. Projects that the applicant can demonstrate will produce no greater demand for fire
protection/EMS from such land than existed prior to issuance of such permit.
d. Projects for which a fire protection/EMS impact fee has previously been paid in an
amount that equals or exceeds the fire protection/EMS impact fee that would be required by this
division.
2. Any such claim for exemption must be made no later than the time when the applicant
applies for the first permit of a type listed in subsection A.1 of this section for the proposed
development, and any claim for exemption not made at or before that time shall have been
waived.
3. The city manager shall determine the validity of any claim for exemption pursuant to the
criteria set forth in subsection F.1 of this section.
Table 2.06.1650
Fire/EMS Impact Fee Schedule
Type of Development Impact Fee*
Detached residential per dwelling unit $780.20
Attached residential, per dwelling unit $655.92
Commercial/Industrial/Institutional per 1,000 gross sq. ft. of
building space
$178.84
Compiler's Note: The fire protection impact fees listed in this formula shall be adjusted annually
as per section 2.06.1700.K.
Sec. 2.06.1660. - Water impact fees.
A. Imposition of water impact fees.
1. On or after March 23, 1996, any Any person who seeks to obtain a permit for connection
to the city water system, or who is subject to subsection B.2.b of this section and applies for a
city permit to expand or add to the structure served by a previously approved water connection,
or any extension of such a permit issued before the effective date of the ordinance from which
this division is derived, is required to pay a water impact fee in the amount specified in the
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Commission resolution adopting the water impact fee study and establishing the water impact fee
and as updated as required in this division; or
2. Any delayed payment of impact fees as specified and approved by the city commission in
accordance with chapter 10, article 8.
3. No permits for connection to the city water system shall be issued until the water impact
fee described in this division has been paid, unless the development for which the permit is
sought is exempted by subsection F of this section.
B. Computation of amount of water impact fee.
1. The city shall determine the amount of the required water impact fee by reference to the
most recently adopted water impact fee study Table 2.06.1660 unless the applicant chooses to
submit an individualized calculation pursuant to subsection B.2.a of this section or the city
determines the application to be subject to subsection B.2.b of this section. If the applicant is
applying for a replacement for a water connection permit issued previously, then the fee shall be
the net positive difference between the fee applicable at the time of the current permit application
and any water impact fee previously paid pursuant to this division for the same structure. In the
event that the fee applicable at the time of the replacement permit application is lower than the
water impact fee previously paid pursuant to this division for the same structure, there shall be
no refund of water impact fees previously paid.
2. Individualized calculations.
a. An applicant may request that the city determine the amount of the required water impact
fee by reference to an independent fee calculation study for the applicant's development prepared
at the applicant's cost by a professional engineer and/or economist and submitted to the city
public service director. Any such study shall be based on the same service standards and unit
costs used in the most recently adopted water impact fee study prepared by HDR Engineering
dated May 2007, and as updated, and must document the economic methodologies and
assumptions used. Any independent fee calculation study submitted by an applicant may be
accepted, rejected, or accepted with modifications by the city as the basis for calculating water
impact fees. If such study is accepted, or accepted with modifications, as a more accurate
measure of the demand for new water facilities created by the applicant's proposed development
than the applicable fee shown in the most recently adopted water impact fee study Table
2.06.1660, then the water impact fee due under this division may be calculated according to such
study.
b. The city may identify a user as having extraordinary demands for water service which are
not accurately represented by the average usage which was relied upon by the methodology
which generated the calculated charges in the most recently adopted water impact fee study
Table 2.06.1660. In this circumstance the city shall prepare a customized calculation based upon
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the most recently adopted water impact fee study large meter calculation methodology in Exhibit
6 of the water impact fee study. The impact fee paid for water meters larger than three inches as
of the effective date of the ordinance from which this division is derived may be adjusted based
on actual usage. If usage is greater than 110 percent of anticipated volume during the 12-month
period of time beginning six months after building occupancy is granted by the city, an
additional impact fee may be charged, using the same techniques for calculating peak day and
storage EDUs and multiplying by the peak day impact fee cost per EDU and the storage impact
fee cost per EDU then in effect. The additional impact fee is the positive net between a
previously calculated impact fee and the impact fee based upon the metered demand.
C. Payment of water impact fee.
1. An applicant required by this division to pay a water impact fee shall pay such fee to the
city prior to the issuance of a water connection permit.
2. All funds paid by an applicant pursuant to this division shall be identified as water impact
fees and shall be promptly deposited in the water impact fee fund described in subsection D of
this section.
D. Water impact fee funds.
1. A single water impact fee fund is created and such fund shall be maintained in an interest
bearing account.
2. Such fund shall contain only those water impact fees collected pursuant to this division
and any interest which may accrue from time to time on such amounts.
E. Use of water impact fee funds. The moneys in the water impact fee fund shall be used
only:
1. To acquire or construct improvements to the city water system; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue
bond issue used to finance improvements to the city water system; or
3. As described in section 2.06.1680 or 2.06.1690.G.
F. Exemptions from water impact fees.
1. The following types of development shall be exempted from payment of the water impact
fee:
a. Alteration or expansion of an existing nonresidential building that does not require an
additional or larger water meter;
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b. Replacement of a nonresidential building or structure of the same size that does not
require an additional or larger water meter;
c. The location of mobile home on a site for which a water impact fee was previously paid,
and that does not require an additional or larger water meter; The reconstruction or replacement
of a previously existing residential unit that does not create any additional or larger residential
units.
2. The installation of fire lines for fire protection shall be exempted from payment of the
water impact fee.
3. Any such claim for exemption must be made no later than the time when the applicant
applies for the first permit of a type listed in subsection A.1 of this section for the proposed
development, and any claim for exemption not made at or before that time shall have been
waived.
4. The city manager shall determine the validity of any claims for exemption pursuant to the
criteria set forth in subsections F.1 and F.2 of this section.
Table 2.06.1660
Water Impact Fee Schedule*
Size of Water Meter Cost Per Meter
¾ inch $3,310.00
1 inch $8,275.00
1½ inch $16,550.00
2 inch $26,480.00
3 inch $52,960.00
Larger than 3 inch Calculated
Compiler's Note: The cost per meter fees listed in this formula shall be adjusted annually as per
section 2.06.1700.K.
Sec. 2.06.1670. - Wastewater impact fees.
A. Imposition of wastewater impact fees.
1. On or after March 23, 1996, any Any person who seeks to obtain a permit for connection
to the city wastewater system, or who is subject to subsection B.2.b of this section and applies
for a city permit to expand or add to the structure served by a previously approved water
connection, or any extension of such a permit issued before the effective date of the ordinance
from which this division is derived is required to pay a wastewater impact fee in the amount
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specified in the Commission resolution adopting the wastewater impact fee study and
establishing the wastewater impact fee and as updated as required in this division; or
2. Any delayed payment of impact fees as specified and approved by the city commission in
accordance with chapter 10, article 8.
3. No permits for connection to the city water system shall be issued until the water impact
fee described in this division has been paid, unless the development for which the permit is
sought is exempted by subsection F of this section.
B. Computation of amount of wastewater impact fee.
1. The city shall determine the amount of the required wastewater impact fee by reference to
the most recently adopted wastewater impact fee study Table 2.06.1660 unless the applicant
chooses to submit an individualized calculation pursuant to subsection B.2.a of this section or the
city determines the application to be subject to subsection B.2.b of this section. If the applicant is
applying for a replacement for a wastewater connection permit issued previously, then the fee
shall be the net positive difference between the fee applicable at the time of the current permit
application and any wastewater impact fee previously paid pursuant to this division for the same
structure. In the event that the fee applicable at the time of the replacement permit application is
lower than the wastewater impact fee previously paid pursuant to this division for the same
structure, there shall be no refund of wastewater impact fees previously paid.
2. Individualized calculations.
a. An applicant may request that the city determine the amount of the required wastewater
impact fee by reference to an independent fee calculation study for the applicant's development
prepared at the applicant's cost by a professional engineer and/or economist and submitted to the
city public service director. Any such study shall be based on the same service standards and unit
costs used in the most recently adopted wastewater impact fee study prepared by HDR
Engineering dated May 2007, and as updated, and must document the economic methodologies
and assumptions used. Any independent fee calculation study submitted by an applicant may be
accepted, rejected, or modified by the city as the basis for calculating wastewater impact fees. If
such study is accepted or accepted with modifications as a more accurate measure of the demand
for new wastewater facilities created by the applicant's proposed development than the applicable
fee shown in the most recently adopted wastewater impact fee study Table 2.06.1660, then the
wastewater impact fees due under this division shall be calculated according to such study.
b. The city may identify a user as having extraordinary demands for wastewater service
which are not accurately represented by the average usage which was relied upon by the
methodology in the most recently adopted wastewater impact fee study which generated Table
2.06.1670. In this circumstance the city shall prepare a customized calculation based upon the
methodology in the water impact fee study. When applicable an adjustment for high strength
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discharge will be applied. The impact fee paid for water meters larger than three inches as of the
effective date of the ordinance from which this division is derived may be adjusted based on
actual usage. If usage is greater than 110 percent of anticipated volume or other measure of
demand during the 12-month period of time beginning six months after building occupancy is
granted by the city, an additional impact fee may be charged, using the same techniques for
calculating treatment and collection in EDUs and multiplying by the impact fee cost per EDU.
The additional impact fee is the positive net between a previously calculated impact fee and the
impact fee based upon the metered demand.
C. Payment of wastewater impact fee.
1. An applicant required by this division to pay a wastewater impact fee shall pay such fee
to the city prior to the issuance of a wastewater connection permit.
2. All funds paid by an applicant paid pursuant to this division shall be identified as
wastewater impact fees and shall be promptly deposited in the wastewater impact fee fund
described in subsection D of this section.
D. Wastewater impact fee funds.
1. A single wastewater impact fee fund is created and such fund shall be maintained in an
interest bearing account.
2. Such fund shall contain only those wastewater impact fees collected pursuant to this
division and any interest which may accrue from time to time on such amounts.
E. Use of wastewater impact fee funds. The moneys in the wastewater impact fee fund shall
be used only:
1. To acquire or construct improvements to the city wastewater system; or
2. To pay debt service on any portion of any future general obligation bond issue or revenue
bond issue used to finance improvements to the city wastewater system; or
3. As described in section 2.06.1680 or section 2.06.1690.G.
F. Exemptions from wastewater impact fees.
1. The following types of development shall be exempted from payment of the wastewater
impact fee:
a. Alteration or expansion of an existing nonresidential building that does not require an
additional or larger water meter;
b. Replacement of a nonresidential building or structure of the same size that does not
require an additional or larger water meter;
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c. The location of mobile home on a site for which a wastewater impact fee was previously
paid and that does not require an additional or larger water meter; The reconstruction or
replacement of a previously existing residential unit that does not create any additional or larger
residential units.
2. Any such claim for exemption must be made no later than the time when the applicant
applies for the first permit of a type listed in subsection A.1 of this section for the proposed
development, and any claim for exemption not made at or before that time shall have been
waived.
3. The city manager shall determine the validity of any claim for exemption pursuant to the
criteria set forth in subsection F.1 of this section.
Table 2.06.1670
Wastewater Impact Fee Schedule
Size of Water Meter Cost Per Meter*
¾ inch $2,955.00
1 inch $7,388.00
1½ inch $14,775.00
2 inch $23,640.00
3 inch $47,280.00
Larger than 3 inch calculated
Compiler's Note: The cost per meter fees listed in this formula shall be adjusted annually as per
section 2.06.1700.K.
Sec. 2.06.1680. - Refunds of development impact fees paid.
A. Refunds of development impact fees shall be made only in the following instances and in
the following manner:
1. Upon application to the impact fee coordinator by the applicant, the city shall refund the
development impact fee paid if capacity is available and service is denied.
2. Expenses and encumbrances.
a. Upon application to the impact fee coordinator, the city shall refund the development
impact fee paid and not expended or encumbered within ten years from the date the development
impact fee was paid or spent in a manner not in accordance with this division or MCA 17-6-
1602. Refunds shall be paid to the owner of the property at the time the refund is due. In
determining whether development impact fees have been expended or encumbered, fees shall be
considered encumbered on a first-in, first-out (FIFO) basis.
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b. When the right to a refund exists due to a failure to expend or encumber development
impact fees, the city shall publish written notice within 30 days after the expiration of the ten
year period from the date development impact fee was paid. The published notice shall contain
the heading "Notice of Entitlement to Development Impact Fee Refund."
3. If an applicant has paid a development impact fee required by this division and has
obtained any of the types of permits or extensions listed in 2.06.1640.A.1, 2.06.1650.A.1,
2.06.1660.A.1, or 2.06.1670.A.1, and the permit or extension for which the fee was paid later
expires without the possibility of further extension, then the applicant who paid such fee shall be
entitled to a refund of the fee paid, without interest. In order to be eligible to receive such refund,
the applicant who paid such fee shall be required to submit an application for such refund within
30 days after the expiration of the permit or extension for which the fee was paid.
4. A refund application shall be made to the impact fee coordinator within one year from the
date such refund becomes payable under subsections A and B of this section, or within one year
from the date of publication of the notice of entitlement of a refund under subsection B of this
section, whichever is later. Any refund not applied for within said time period shall be deemed
waived.
5. A refund application shall include information and documentation sufficient to permit the
impact fee coordinator to determine whether the refund claimed is proper and, if so, the amount
of such refund.
6. A refund shall include a pro rata share of interest actually earned on the unused or excess
development impact fee paid.
7. All refunds shall be paid within 60 days after the impact fee coordinator determines that
such refund is due.
8. Any refund payable pursuant to subsections A and B of this section, shall be made to the
record owner of property as of the date the refund was due.
9. Once paid, an impact fee may not be refunded in exchange for impact fee credits issued
according to 2.06.1690
Sec. 2.06.1690. - Credits against development impact fees.
A. After the effective date of the ordinance from which this division is derived, mandatory
or voluntary land or easement dedications for transportation, fire protection, water, or wastewater
improvements, and mandatory or voluntary acquisition or construction of capital improvements
to the transportation system or the city fire protection, water, or wastewater systems by an
applicant in connection with a proposed development may result in a pro rata credit against the
development impact fee for the same type of service or facility otherwise due for such
development, except that no such credit shall be awarded for:
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1. Projects or land dedications not listed on the impact fee capital improvements program
(CIP); or
2. Land dedications for, or acquisition or construction of, project-related improvements as
defined in section 2.06.1630; or
3. Any voluntary land or easement dedications not accepted by the city; or
4. Any voluntary acquisition or construction of improvements not approved in writing by
the city prior to commencement of the acquisition or construction.
B. In order to obtain a credit against development impact fees otherwise due, an applicant
must submit a written offer to dedicate to the city specific parcels of qualifying land or
easements, or to acquire or construct specific improvements to the transportation system or the
city fire protection, water, or wastewater systems in accordance with all applicable state or city
design and construction standards, and must specifically request a credit against such
development impact fees. Such written request must be made on a form provided by the city,
must contain a statement under oath of the facts that qualify the applicant to receive a credit,
must be accompanied by documents evidencing those facts, and must be approved not later than
the initiation of construction of improvements or the acceptance by the city of land dedications,
or the applicant's claim for the credit shall be waived. The granting of credit shall be approved by
the city commission. The city shall approve a credit only after showing that the need for the
dedication or construction is clearly documented pursuant to MCA 7-6-1602 and that any land
dedication proposed for credit is determined to be appropriate for the proposed use.
1. Upon receipt of a complete application for impact fee credit, the impact fee coordinator
shall coordinate review of the application for compliance with the requirements of this division
and other relevant requirements. Upon completion of the review the impact fee coordinator shall
either: forward the application to the city manager, or when required to the city commission, for
approval; or if the application is insufficient or otherwise does not conform to the city's
requirements, shall communicate in writing to the applicant the reason the credit request failed. If
the application satisfies the requirements and is approved, the credit may be provided in any of
the allowed forms as described in subsection G of this section.
a. Factors for consideration:
(1) When credit is sought for an improvement listed in the second through fifth years of the
CIP after the current fiscal year there shall be a rebuttable presumption that any credit shall be
awarded as a credit balance and not as cash.
(2) The final decision to approve a credit request in excess of $1,000,000.00 from a single
impact fee fund shall be made by the city commission.
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(3) In the event that the city manager believes that a credit request may result in a significant
effect on policy decisions the credit request may be referred to the city commission for final
action, regardless of the dollar amount.
(4) In the event that the city considers that award of a credit may negatively impact its ability
to construct improvements listed sooner in time on the CIP, they may decline to award a credit at
that time without removing the item from the CIP.
2. Appeals relating to of staff decisions on credit requests may be appealed to the city
commission per section 2.06.1700
C. The credit due to an applicant shall be calculated and documented as follows:
1. Credit for qualifying land or easement dedications shall, at the applicant's option, be
valued at:
a. 100 percent of the most recent assessed value for such land as shown in the records of the
city assessor; or
b. That fair market value established by a private appraiser acceptable to the city in an
appraisal paid for by the applicant.
2. In order to receive credit for qualifying acquisition or construction of transportation, fire
protection, water, or wastewater improvements, the applicant shall submit complete engineering
drawings, specifications, and construction cost estimates to the city. The city shall determine the
amount of credit due based on the information submitted, or, if it determines that such
information is inaccurate or unreliable, then on alternative engineering or construction costs
acceptable to the city.
D. Approved credits shall become effective at the following times:
1. Approved credit for land or easement dedications shall become effective when the land
has been conveyed to the city in a form acceptable to the city, and at no cost to the city, and has
been accepted by the city commission. When such conditions have been met, the city shall note
that fact in the credit record maintained by the city department of finance. Upon request of the
credit holder, the city shall send the credit holder a letter stating the credit balance available to
the credit holder.
2. Approved credits for the acquisition or construction of transportation, fire protection,
water, or wastewater improvements shall generally become effective when:
a. All required construction has been completed and has been accepted by the city; and
b. A suitable maintenance and warranty bond has been received and approved by the city;
and
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c. All design, construction, inspection, testing, bonding, and acceptance procedures have
been completed in compliance with all applicable city and state procedures.
However, approved credits for the construction of improvements may become effective at an
earlier date if the applicant posts security in the form of a performance bond, irrevocable letter of
credit, or escrow agreement, and the amount and terms of such security are accepted by the city.
At a minimum, such security must be in the amount of the approved credit or an amount
determined to be adequate to allow the city to construct the improvements for which the credit
was given, whichever is higher. When such conditions have been met, the city shall note that fact
in the credit record maintained by the city department of finance. Upon request of the credit
holder, the city shall also send the credit holder a letter stating the credit balance available to the
credit holder.
E. Approved credits may be used to reduce the amount of development impact fees due
from any proposed development for the same type of service or facility for which the applicant
dedicated land or acquired or constructed improvements until the amount of the credit is
exhausted. Each time a request to use credit from a mandatory or voluntary dedication,
acquisition, or construction is presented to the city, the city shall reduce the amount of the
development impact fee of the same type otherwise due from the applicant and shall note in the
city records the amount of credit remaining, if any. In the case of a mandatory dedication,
acquisition, or construction, any credit in excess of the amount of the development impact fee
otherwise due under this division shall be deemed excess credit that is remaining and available
for use by the applicant. In the case of a voluntary dedication, acquisition, or construction, any
credit in excess of the amount of the development impact fee of the same type and applicable to
the project, as shown in Tables 2.06.1640, 2.06.1650, 2.06.1660, or 2.06.1670, shall be deemed
excess credit that is remaining and available for use by the applicant. Upon request of the credit
holder, the city shall also send the credit holder a letter stating the amount of credit remaining to
the credit holder.
F. Approved credit shall only be used to reduce the amount of development impact fees of
the same type otherwise due under this division and shall not be paid to the applicant in cash or
in credit against any development impact fees for a different type of facility or service or against
any other moneys due from the applicant to the city, except as described in subsection G of this
section.
G. If the amount of approved credit for a mandatory dedication, acquisition, or construction
exceeds the amount of the development impact fees of the same type otherwise due under this
division, the applicant may request in writing that the city provide for reimbursement of any
excess credit to the applicant in cash. Such written request must be approved not later than the
initiation of construction of improvements, or the acceptance by the city of land dedications, or
the applicant's claim shall be waived. Upon receipt of such a written request, the city may, at its
discretion:
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1. Arrange for the reimbursement of such excess credit from the impact fee fund for the
same type of service or facility from development impact fees paid by others;
2. Arrange for the reimbursement of such excess credit through the issuance of a promissory
note payable in not more than ten years and bearing interest equal to the interest rate paid by the
city for its long-term debt; or
3. Reject the request for cash and provide credit. Such excess credit shall be valued at 100
percent of actual developer costs for the excess improvements, or at the actual appraised value of
such excess improvements, at the city's option.
H. Credit may be transferred from one holder to another by any written instrument clearly
identifying the credit issued under subsection C of this section that is to be transferred, provided
that such instrument is signed by both the transferor and transferee, and that the document is
delivered to the city for registration of the change in ownership.
I. In the event that land is annexed into the city from the county after the effective date of
the ordinance from which this division is derived, and that road or fire impact fees have been
previously paid to the county, an applicant proposing a development on the land may request in
writing a credit against the transportation impact fee equal to the amount of any road impact fee
paid to the county for the same land and may also request a credit against the fire protection
impact fee equal to the amount of any fire protection impact fee paid to the county for the same
land. Such written request must be filed not later than the time when an applicant applies for the
first permit of a type listed in section 2.06.1640.A.1 or 2.06.1650.A.1 that creates an obligation
to pay the type of development impact fee against which the credit is requested, or the applicant's
claim shall be waived.
Sec. 2.06.1700. - Miscellaneous provisions.
A. Interest earned on moneys in any impact fee fund shall be considered part of such fund
and shall be subject to the same restrictions on use applicable to the impact fees deposited in
such fund.
B. No moneys from any impact fee fund shall be spent for periodic or routine maintenance
of any facility of any type or to cure deficiencies in public facilities existing on the effective date
of the ordinance from which this division is derived.
C. Nothing in this division shall restrict the city from requiring an applicant to construct
reasonable project improvements required to serve the applicant's project, whether or not such
improvements are of a type for which credit is available under section 2.06.1690
D. The city shall maintain accurate records of the development impact fees paid, including
the name of the person paying such fees, the project for which the fees were paid, the date of
payment of each fee, the amounts received in payment for each fee, and any other matters that
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the city deems appropriate or necessary to the accurate accounting of such fees, and such records
shall be available for review by the public during city business hours.
E. At least once during each fiscal year of the city, the city manager shall present to the city
commission a proposed impact fee capital improvements program for the transportation system,
fire protection system, water system, and wastewater system, which identifies the capacity-
adding capital improvements that will benefit new development subject to the terms of this
division, exclusive of any improvements needed to correct existing deficiencies or for operation
or maintenance purposes. Such capital improvements program shall assign moneys from each
impact fee fund to specific projects and related expenses for improvements to the type of
facilities or services for which the fees in that fund were paid. Any moneys, including any
accrued interest, not assigned to specific projects within such capital improvements program and
not expended pursuant to section 2.06.1680 or 2.06.1690.G shall be retained in the same impact
fee fund until the next fiscal year. The impact fee capital improvements program shall be adopted
by the city commission as a supplemental document to the city budget. The impact fee capital
improvements program shall schedule the construction of capital improvements to serve
projected growth and project capital improvement costs, expenditures and impact fee fund
revenues for a five-year period. The individual fee funds shall maintain a positive fiscal balance.
The program may be amended by a majority vote of the city commission. The city manager shall
adopt and revise, as needed, an administrative impact fee manual to carry out the purposes of this
division.
F. The city shall be entitled to retain not more than five percent of the development impact
fees collected as payment for the expenses of collecting the fee and administering this division.
G. If a development impact fee has been calculated and paid based on a mistake or
misrepresentation, it shall be recalculated. Any amounts overpaid by an applicant shall be
refunded by the city to the applicant within 30 days after the city's acceptance of the recalculated
amount, with interest at the rate of five percent per annum since the date of such overpayment.
Any amounts underpaid by the applicant shall be paid to the city within 30 days after the city's
acceptance of the recalculated amount, with interest at the rate of five percent per annum since
the date of such underpayment. In the event the underpayment is caused by an error attributed
solely to the city, the applicant shall pay the recalculated amount without interest. In the case of
an underpayment to the city, the city shall not issue any additional permits or approvals for the
project for which the development impact fee was previously paid until such underpayment is
corrected; and if amounts owed to the city are not paid within such 30-day period, the city may
also repeal any permits issued in reliance on the previous payment of such development impact
fee and refund such fee to the then current owner of the land.
H. In order to promote affordable workforce housing of the city, the city commission may
waive impact fees for workforce housing lots approved by the city commission pursuant to
chapter 10, article 8, by paying some or all of the impact fee from other funds of the city that are
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not restricted to other uses. In order to promote the economic development of the city and the
provision of affordable housing in the city, the city commission may agree to pay some or all of
the development impact fees imposed on a proposed development by this division from other
funds of the city that are not restricted to other uses. Any such decision to pay development
impact fees on behalf of an applicant shall be at the discretion of the city commission and shall
be made pursuant to goals and objectives previously adopted by the city commission to promote
economic development and/or affordable housing.
I. 1. Any determination made by any official of the city charged with the
administration of any part of this division may be appealed to the development impact fees
review committee by filing:
a. A written notice of appeal on a form provided by the city;
b. A written explanation of why the appellant feels that a determination was in error; and
c. An appeal fee of $500.00 with the impact fee coordinator within ten working days after
the determination for which the appeal is being filed.
2. The development impact fees review committee shall meet to review the appeal within 30
working days of the date the written appeal was presented to the impact fee coordinator. If the
appellant is dissatisfied with the decision of the development impact fees review committee, the
appellant may appeal the decision to the city commission by filing a written request with the city
clerk within ten working days of the committee's decision. At the regular meeting following the
filing of the appeal, the city commission shall fix a time and place for hearing the appeal; and the
city clerk shall mail notice of the hearing to the appellant at the address given in the notice of
appeal. The hearing shall be conducted at the time and place stated in such notice given by the
city commission. The determination of the city commission shall be final. If the city commission
concludes that all or part of a determination made by an official of the city charged with the
administration of any part of this division was in error, then the appeal fee described in this
subsection shall be returned to the appellant.
J. Updating of impact fee information.
1. The facility plans described in this division shall be reviewed by the city at least once
every five years and if a revision of a facility plan to address changed conditions is deemed
necessary by the city, the plan shall be updated.
2. The development impact fees described in this division, fee studies, data and analysis
relied upon and required by MCA 7-6-1602, and the administrative procedures and manual of
this division shall be updated at least once every three fiscal years.
3. The impact fee capital improvement program shall be reviewed and updated as provided
in section 2.06.1700.E.
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4. The purpose of the review and updating of impact fee related documentation is to ensure
that:
a. The demand and cost assumptions underlying such fees are still valid;
b. The resulting fees do not exceed the actual cost of constructing improvements that are of
the type for which the fee was paid and that are required to serve new development;
c. The moneys collected or to be collected in each impact fee fund have been, and are
expected to be, spent for improvements of the type for which such fees were paid; and
d. That such improvements will benefit those developments for which the fees were paid.
K. The development impact fees shown in the most recently adopted impact fee studies
Tables 2.06.1640, 2.06.1650, 2.06.1660, and 2.06.1670 shall be adjusted annually to reflect the
effects of inflation on those costs for improvements set forth in the impact fee studies. On
January 1 of each year unless and until the impact fee studies fees in Tables 2.06.1640,
2.06.1650, 2.06.1660, and/or 2.06.1670 are revised or replaced, and then beginning in the
subsequent calendar year, each fee amount set forth in each such study table shall be adjusted by
multiplying such amount by one plus the value of the Construction Cost Index published in the
first December edition of the current year. (Source: Engineering News Record.) The right-of-way
component of the transportation impact fee shall be adjusted by multiplying the value of the
right-of-way component of the fee by one plus the percentage value of the increase in taxable
value from the preceding year. (Source: Montana Department of Revenue.) Such adjustments in
such fees shall become effective immediately upon calculation by the city and shall not require
additional action by the city commission to be effective.
L. Violation of this division shall be a misdemeanor and shall be subject to those remedies
provided in section 1.01.210. Knowingly furnishing false information to any official of the city
charged with the administration of this division on any matter relating to the administration of
this division, including without limitation the furnishing of false information regarding the
expected size, use, or traffic impacts from a proposed development, shall be a violation of this
division. In addition to, or in lieu of, any criminal prosecution, the city or any applicant for a
permit of the types described in section 2.06.1640.A.1, 2.06.1650.A.1, 2.06.1660.A.1, or
2.06.1670.A.1 shall have the right to sue in civil court to enforce the provisions of this division.
M. The section titles used in this division are for convenience only and shall not affect the
interpretation of any portion of the text of this division.
N. Any judicial action or proceeding to attack, review, set aside, or annul the
reasonableness, legality, or validity of any development impact fee must be filed and service of
process effected within 90 days following the date of imposition of the fee or the final
determination of the city commission, whichever is the later.
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Section 2
Repealer
All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force
and effect.
Section 3
Savings Provision
This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. All other provision of
the Bozeman Municipal Code not amended by this Ordinance shall remain in full force and
effect.
Section 4
Severability
That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be
adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity
of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be
invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole.
Section 5
Codification
The provisions of Section 1 shall be codified as appropriate in Chapter 2 of the Bozeman
Municipal Code;
Section 6
Effective Date
This ordinance shall be in full force and effect thirty (30) days after final adoption.
PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana,
on first reading at a regular session held on the 22nd day of October, 2012.
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____________________________________
SEAN A. BECKER
Mayor ATTEST:
_________________________________ STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
____________________________________
GREG SULLIVAN
City Attorney
FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City
of Bozeman, Montana on second reading at a regular session thereof held on the ____ day
of ________________, 2012. The effective date of this ordinance is __________, __, 2012.
____________________________________
SEAN A. BECKER
Mayor
ATTEST:
_______________________________
STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
____________________________________
GREG SULLIVAN
City Attorney
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