§ 27-135. Offsets and credits against capital recovery fees.

(a)

Offset of value of system-related facilities against value of capital recovery fee. The city shall offset the present value of any system-related facilities, pursuant to rules established in this section, which have been dedicated to and have been received by the city, including the value of rights-of-way or capital improvements constructed pursuant to an agreement with the city, against the value of the capital recovery fee due for that category of capital improvement.

(b)

Credit of fees paid prior to effective date of article against capital recovery value. The city shall credit capital recovery, pro rata, acreage or lot fees which have been paid pursuant to any other section of the Code of Ordinances of the city prior to the effective date of this article against the value of a capital recovery due for that category of capital improvement, subject to guidelines established by the city.

(c)

Limitations. All offsets and credits against capital recovery fees shall be subject to the following limitations and shall be granted based on this article and additional standards promulgated by the city which may be adopted as administrative guidelines.

(1)

No offset or credit shall be given for the dedication or construction of site-related facilities.

(2)

The unit costs used to calculate the offsets shall not exceed those assumed for the capital improvements included in the capital improvements plan for the category of facility within the service area for which the capital recovery fee is imposed.

(3)

If an offset or credit applicable to a plat has not been exhausted within ten (10) years from the date of the acquisition of the first tap purchase made after the effective date of this article or within such period as may be otherwise designated by contract, such offset or credit shall lapse.

(4)

In no event will the city reimburse the property owner or developer for an offset or credit when no capital recovery fees for the new development can be collected pursuant to this article or for any value exceeding the total capital recovery fees due for the development for that category of capital improvement, unless otherwise agreed to by the city.

(d)

Application. An applicant for new development must apply for an offset or credit against capital recovery fees due for the development either at or before the time of plat recordation, unless the city agrees to a different time. The applicant shall file a petition for offsets or credits with the city on a form provided for such purpose. The contents of the petition shall be established by administrative guidelines. The city must provide the applicant, in writing, with a decision on the offset or credit request, including the reasons for the decision. The decision shall specify the maximum value of the offset or credit which may be applied against a capital recovery fee, which value and the date of the determination shall be associated with the plat for the new development.

(e)

Application of offset or credit against capital recovery fee. The available offset or credit associated with the plat shall be applied against a capital recovery fee in the following manner:

(1)

Such offset or credit shall be prorated equally among all living units equivalent, as calculated in section 27-132, and remain applicable to such LUEs, to be applied at time of plat recordation or application for a water tap purchase, as appropriate, against capital recovery fees due.

(2)

If the total number of LUEs used by the city in the original offset or credit calculation described in subsection (1) above is eventually exceeded by the number of total LUEs realized by the actual development, the city may, at its sole discretion, collect the full capital recovery fee exclusive of any associated offset or credits for the excess LUEs.

(3)

At its sole discretion, the city may authorize alternative credit or offset agreements upon petition by the owner in accordance with guidelines promulgated by the city.

(Ord. No. 90-10, § 1(1.15), 8-28-1990; Ord. No. 2018-13, § 2(Exh. 3), 4-17-2018)