[HISTORY: Adopted by the Mayor and Common Council of the City of Reedsburg 4-14-2003 (Sec. 3.10 of the former Municipal Codebook); amended in its entirety 9-9-2019 by Ord. No. 1891-19. Subsequent amendments noted where applicable.]
Pursuant to the authority of § 66.0617, Wis. Stats., the local impact fees enabling legislation, the purpose of this chapter is to establish the mechanism for the imposition of impact fees upon new development to finance the capital costs of acquiring, establishing, upgrading, expanding, and constructing public facilities which are necessary to accommodate land development. This chapter is intended to assure that new development bears an appropriate share of the cost of capital expenditures necessary to provide public facilities within the City of Reedsburg and its service areas as they are required to serve the needs arising out of land development.
As used in this chapter, the following terms shall have the meanings indicated:
BUILDING PERMIT
The permit required for new construction, additions and improvements pursuant to Chapter 242, Building Construction, § 242-9, of the Code of the City of Reedsburg. The term "building permit," as used herein, shall not be deemed to include permits required for remodeling, rehabilitation, or other improvements to an existing structure or rebuilding a damaged or destroyed structure, provided there is no increase in the number of dwelling units resulting therefrom.
CAPITAL BUDGET
A separate budget dedicated to financing capital improvements.
CAPITAL COSTS
The costs to construct, expand or improve public facilities, including the cost of land, and including legal, engineering and design costs to construct, expand or improve public facilities, except that not more than 10% of capital costs may consist of legal, engineering and design costs unless such costs relate directly to the public improvement for which the impact fees were imposed actually exceed 10% of the capital costs. "Capital costs" does not include other noncapital costs to construct, expand or improve public facilities or the costs of equipment to construct, expand or improve public facilities.
CAPITAL IMPROVEMENT PLAN
Shall be a part of the Comprehensive Plan, which:
A. 
Contains an aggregation of sites into development subareas with development potential that would create the need for new capital improvements;
B. 
Includes standards for level of service for the capital facilities and infrastructure to be fully or partially funded with impact fees; and
C. 
Sets forth proposed subarea project lists, cost estimates, and funding sources.
CAPITAL IMPROVEMENT PROGRAM
The officially adopted schedule of capital improvements setting forth the year or month in which they will be undertaken, the time and cost of construction, and other necessary features.
CAPITAL IMPROVEMENTS
Public facilities that are treated as capitalized expenses according to generally accepted accounting principles, and does not include costs associated with the operation, administration, maintenance, nor replacement of capital improvements, nor does it include administrative facilities.
COMPREHENSIVE PLAN
The official land use plan of the City of Reedsburg.
DEVELOPMENT
Any man-made change to improved or unimproved real property, the use of any principal structure or land or any other activity that requires a change in water meter size or the installation of a new water meter and/or the issuance of a building permit.
DEVELOPMENT SUBAREAS
Geographically defined areas of the City that have been designated in the Comprehensive Plan or impact fee needs assessment as areas in which development potential may create the need for capital improvements programs to be funded by impact fees.
DWELLING UNIT
One or more rooms designed as a residential occupancy area by not more than one family or group for living and sleeping purposes.
IMPACT FEE
Any charge, fee, or assessment levied pursuant to this chapter when any portion of the revenues collected is intended to fund any portion of the costs of capital improvements or any public facilities and shall be assessed at the issuance of a building permit.
IMPACT FEE COEFFICIENT
The charge per dwelling unit calculated by dividing total public facility costs by total number of dwelling units as projected by the most current water system needs assessment.
LAND DEVELOPMENT
The construction or modification of improvements to real property that creates additional residential dwelling units within the City or its service areas or that results in nonresidential uses that create a need for new, expanded or improved public facilities within the City or its service areas. Land development also includes construction or modification of improvements to real property that creates the need for an additional water meter or an upgrade in water meter size.
MULTIFAMILY
Any residential dwelling with more than two single-family dwellings.
NEEDS ASSESSMENT
The assessment of needs required to identify public facility costs for the purpose of calculating impact fees as defined by § 66.0617, Wis. Stats.
PUBLIC FACILITIES
For purposes of this chapter, as defined in § 66.0617, Wis. Stats., "public facilities" means facilities for facilities for pumping, storing, treating and distributing water and parks owned and maintained by the City.
RESIDENTIAL DEVELOPMENT
Any development approved by the local government for residential use.
RESIDENTIAL EQUIVALENT UNIT (REU)
A unit of measure for water impact fees equivalent to one residential dwelling unit. For purposes of this chapter, one residential equivalent is considered equal to the basic residential water meter size of 5/8 inch or 3/4 inch.
SERVICE AREA
A geographic area delineated by the Common Council within which the City provides or will provide facilities.
SERVICE STANDARD
A certain quantity or quality of public facilities relative to a certain number of persons, parcels of land or other appropriate measure as specified by the Common Council.
SITE
The land on which development takes place.
SUBDIVISION
A plat, certified survey map, or other method used to divide a parcel of property into two or more separate parcels or lots.
WATER UTILITY
The Water Utility of the Reedsburg Utility Commission of the City of Reedsburg.
ZONING DISTRICTS
Those areas designated in Chapter 690, Zoning, as being reserved for specific land uses, subject to development and use regulations specified in Chapter 690.
ZONING ORDINANCE
The official adopted Zoning Map and text regulating all development and land use in the City of Reedsburg.
The impact fees for water utilities to be paid at the time of issuance of a building permit are:
Meter Size
Equivalency
Impact Fee
5/8" and 3/4" multifamily
0.75
$473
5/8" and 3/4"
1
$631
1"
2.5
$1,576
1 1/2"
5
$3,153
2"
8
$5,044
3"
15
$9,458
4"
25
$15,763
6"
50
$31,527
8" or larger
80
$50,443
A. 
An impact fee will not be required in the following cases:
(1) 
Alterations or expansion of an existing building where no additional or larger water meter connections are requested.
(2) 
The replacement of a building or structure with a new building or structure of the same size and use where no additional or larger water and/or sewer connections are requested and where the use is not changed.
B. 
A change in water meter size shall not be exempted from payment of the impact fee; however, a credit shall be given for the current impact fee on the old meter size. For example, at the time of an application for a change from a five-eighths-inch meter to a one-inch meter, the impact fee would equal the current impact fee for a one-inch meter less the current impact fee for a five-eighths-inch meter.
C. 
No impact fee shall be required, nor credited, for a change in water meter size that results in a decrease in meter size.
D. 
Any claim for exemption must be made no later than the time of application for a building permit. Any claim not so made shall be deemed waived.
A. 
Impact fees for park facilities imposed pursuant to this chapter shall be due and payable at the time of issuance of a building permit for new construction of a residential dwelling.
B. 
Impact fee for dwelling units shall be $800 for a single unit. For seasonal employee housing development with more than 12 units, the fee can be reduced to $400 pending the inclusion of recreation facilities, and open space is required for these developments.
A. 
All required park impact fees shall be paid in full by separate check at the time of issuance of a building permit. Park impact fee payments shall be assumed to be the responsibility of the owner of record at the time of building permit issuance.
B. 
All required water impact fees shall be paid in full by separate check to Reedsburg Utility Commission prior to issuance of a water meter. A completed application for water service, and a copy of the building permit shall be submitted with the payment.
The basis for the imposition of impact fees is the Park Facilities Needs Assessment Report and its attachments, as outlined in the needs assessment prepared by MSA in May 2019, and the Water Impact Fee Report, prepared by MSA Professional Services, Inc. in May 2019 both of which are on file in the office of the City Clerk-Treasurer of the City of Reedsburg. Park impact fees shall be used generally for parks, playgrounds, and land for athletic fields. Water impact fees shall be used for water towers, reservoirs, pump stations, wells and equipment, pump stations, water mains and related public improvement of the Water Utility.
A. 
Funds collected from impact fees shall be used solely for the purpose of paying the proportionate costs of providing public facilities that may become necessary due to land development. These costs may include the costs of debt service on bonds or similar debt instruments when the debt has been incurred for the purpose of proceeding with designated public facilities projects prior to the collection of all anticipated impact fees for that project, to reimburse the City or Utility for advances of other funds or reserves, and such other purposes consistent with § 66.0617, Wis. Stats., which are recorded and approved by the Common Council. Section 66.0617, Wis. Stats., was amended by Act 243 of 2017 to:
(1) 
Require that, at the time the municipality collects an impact fee, it shall provide to the developer from which it received the fee an accounting of how the fee will be spent; and
(2) 
Add to the list of items that cannot be included as impact fees: amounts for an increase in service capacity greater than the capacity necessary to serve the development for which the fee is imposed; or expenses for operation or maintenance of a public facility.
B. 
The City may issue bonds, revenue certificates, and other obligations of indebtedness in such manner and subject to such limitations as may be provided by law in furtherance of the provision of capital improvement projects. Funds pledged toward retirement of bonds, revenue certificates, or other obligations of indebtedness for such projects may include impact fees and other City revenues as may be allowed by the Council. Impact fees paid pursuant to this chapter, however, shall be restricted to use solely and exclusively for financing directly or as a pledge against bonds, revenue certificates, and other obligations of indebtedness for the cost of capital improvements as specified herein.
C. 
These impact fees shall be collected until the capital costs associated with the projects specified in the Park Facilities Needs Assessment Report or the Water Impact Fee Report, as amended from time to time, have been incurred and satisfied unless such time period exceeds 15 years beyond projected commencement of projects or 20 years beyond projected satisfaction of indebtedness of the specified projects for which these impact fees are imposed.
A. 
With regard to impact fees collected after April 10, 2006, that are collected by the City within eight years of the effective date of this chapter, but are not used within 10 years after the effective date of this chapter to pay capital costs for which they were imposed, shall be refunded to the current owner of the property with respect to which the impact fees were imposed along with any interest that has accumulated thereon.
B. 
The ten-year time limit for using impact fees may be extended for three years if the City adopts a resolution stating that, due to extenuating circumstances or hardship in meeting the ten-year limit, it needs an additional three years to use the impact fees that were collected. The resolution shall include detailed written findings that specify the extenuating circumstances or hardship that led to the need to adopt a resolution under this subsection.
C. 
An impact fee that was collected before January 1, 2003, must be used for the purpose for which it was imposed not later than December 31, 2012. Any such fee that is not used by the date shall be refunded to the current property owner of the property with respect to which the impact fee was imposed, along with any interest, which has accumulated.
D. 
An impact fee that is collected after December 31, 2002, and before April 11, 2006, must be used for the purpose for which it was imposed not later than the first day of the 120th month beginning after the date on which the fee was collected. Any such fee that is not used by that date shall be refunded to the current owner of the property with respect to which the impact fee was imposed, along with any interest that has accumulated.
E. 
With regard to an impact fee that is collected after April 10, 2006, and is collected more than eight years after the effective date of this chapter, such impact fees shall be used within a reasonable period of time after they are collected to pay the capital costs for which they were imposed, or they shall be refunded to the current owner of the property with respect to which the impact fees were imposed, along with any interest that has accumulated.
F. 
The current owner of property on which an impact fee has been paid may apply for a refund of such fee if the building permit for which the impact fee has been paid has lapsed for noncommencement of construction; or the project for which a building permit has been issued has been altered, resulting in a decrease in the amount of the impact fee due.
G. 
A petition for refund must be filed within one year of the event giving rise to the right to claim a refund.
H. 
The petition for refund must be submitted to the City for a park facilities impact fee refund and/or the Reedsburg Utility Commission for a water utilities impact fee refund.
I. 
Within one month of the date of receipt of a petition for refund, the City or the Utility Commission must provide the petitioner, in writing, with a decision on the refund request, including the reasons for the decision. If a refund is due the petitioner, the refund shall be paid at the time of notifying the petitioner of the decision.
The payment of an impact fee imposed under this section as a condition of a building permit may be contested as to the amount, collection or use of the impact fee:
A. 
To the Utility Commission for an appeal of a water utility impact fee, provided that the applicant files a written notice of appeal with the Utility Manager's office within 15 days of the approval by the Building Inspector of an application for a building permit upon which the impact fee is imposed. Such notice of appeal shall be entitled "Notice of Appeal of Impact Fee" and shall state the applicant's name, address, telephone number, address (if available) and legal description of the land development upon which the impact fee is imposed, and a statement of the nature of and reasons for the appeal. The Utility Manager shall schedule the appeal for consideration by the Utility Commission at the next regular meeting of the Commission and shall notify the applicant of the time, date and place of such meeting, in writing, by regular mail, deposited in the mail no later than at least three days before the date of such meeting. Upon review of such appeal, the Commission may adjust the amount, collection or use of the impact fee upon just and reasonable cause shown.
B. 
To the Council for an appeal of a park facilities impact fee, provided that a notice of appeal is filed with the City Clerk-Treasurer's office within 15 days of the approval by the Building Inspector of an application for a building permit upon which the impact fee has been imposed. Such notice of appeal shall be entitled "Notice of Appeal of Impact Fee" and shall state the applicant's name, address, telephone number, address (if available) and legal description of the land development upon which the impact fee is imposed, and a statement of the nature of and reasons for the appeal. The City Clerk-Treasurer shall schedule the appeal for consideration by the Council at the next regular meeting of the Council and shall notify the applicant of the time, date and place of such meeting, in writing, by regular mail, deposited in the mail no later than at least three days before the date of such meeting. Upon review of such appeal, the Council may adjust the amount, collection or use of the impact fee upon just and reasonable cause shown.
A. 
A property owner may elect to construct a capital improvement (or donate land in lieu thereof) listed in the needs assessment or capital improvement plan. If the property owner elects to make such improvement, the property owner must enter into an agreement with the City prior to issuance of any building permit. The agreement must establish the estimated cost of the improvement, the schedule for initiation and completion of the improvement, a requirement that the improvement be completed to City standards, and such other terms and conditions as deemed necessary by the City. The City must review the improvement plan, verify costs and time schedules, determine if the improvement is an eligible improvement, and determine the amount of the applicable credit for such improvement to be applied to the otherwise applicable impact fee prior to issuance of any building permit. In no event may the City provide a refund for a credit that is greater than the applicable impact fee.
B. 
No credit shall be given for the construction of local on-site facilities required by zoning, subdivision, or other City regulations.
A. 
Upon receipt of impact fees, the City Clerk-Treasurer or the Utility Manager, as applicable, shall be responsible for placement of such funds into separate accounts as hereinafter specified. All such funds shall be deposited in interest-bearing accounts in a bank authorized to receive deposits of City or Utility funds, as applicable. Interest earned by each account shall be credited to that account and shall be used solely for the purposes specified for funds of such account.
B. 
The City Clerk-Treasurer or Utility Manager shall maintain and keep accurate financial records for each such account that shall show the source and disbursement of all revenues; that shall account for all monies received; that shall ensure that the disbursement of funds from each account shall be used for projects in the capital improvements program for the particular development subarea or for Citywide capital improvements, as specified in the program; and that shall provide an annual report for each impact fee account, showing the source and amount of all funds collected and the projects that were funded.
C. 
The City shall annually, in conjunction with the annual capital budget and capital improvements plan adoption processes, review the development potential of the subarea and the capital improvements plan and make such modifications as are deemed necessary as a result of:
(1) 
Development occurring in the prior year;
(2) 
Capital improvements actually constructed;
(3) 
Changing facility needs;
(4) 
Inflation;
(5) 
Revised cost estimates for capital improvements;
(6) 
Changes in the availability of other funding sources applicable to public facility projects; and
(7) 
Such other factors as may be relevant. Modifications to the development potential, the capital improvements program, and the impact fees shall be recommended for adoption prior to November 1 of each year and shall be effective on January 1.
This chapter shall not affect, in any manner, the permissible use of property, density of development, design and improvement standards and requirements, or any other aspect of the development of land or provision of capital improvements subject to the zoning and subdivision regulations or other regulations of the City, which shall be operative and remain in full force and effect without limitation with respect to all such development.
The impact fee is additional and supplemental to, and not in substitution of, any other requirements imposed by the City on the development of land or the issuance of building permits. It is intended to be consistent with and to further the objectives and policies of the Comprehensive Plan, the capital improvements plan, the outdoor recreation plan, and other City policies, ordinances, and resolutions by which the City seeks to ensure the provision of public facilities in conjunction with the development of land. In no event shall a property owner be obligated to pay for capital improvements in an amount in excess of the amount calculated pursuant to this chapter; provided, however, that a property owner may be required to pay, pursuant to City ordinances, regulations, or policies, for other capital improvements in addition to the impact fee for capital improvements as specified herein.