The city may offset the improvements or funding for construction of any system-related facility included on the identified capital improvement plans that is required or agreed to by the city, pursuant to rules established in this section and administrative guidelines. Any agreements entered into hereunder shall be subject to the approval of the city council.
(1) General credit.
The city shall apply against assessed impact fees a credit equal to the portion of ad valorem tax and utility service revenues generated by new service units during the program period that is used for the payment of improvements, including the payment of debt, that are included in the capital improvement plans. This credit is already reflected in the maximum assessable impact fee.
(2) Offsets by developer.
Before impact fees can be reduced by offsets authorized under this section, the owner of the property shall apply for offsets based on actual costs with the city. Unless an agreement specifies otherwise, an offset associated with a plat shall be applied when the first building permit is submitted and to each subsequent building permit application to reduce the impact fees due until the amount associated with the offset is exhausted.
(3) Roadway offsets.
Any construction of, contributions to, or dedications of roadway facilities that are system-related facilities included on the identified capital improvement plans and that are agreed to or required by the city as a condition of development approval shall be offset against roadway facilities impact fees otherwise due from the new development.
(4) Water offsets.
Any construction of, contributions to, or dedications of water facilities that are system-related facilities included on the identified capital improvement plans and that are agreed to or required by the city as a condition of development approval shall be offset against water facility impact fees otherwise due from the new development.
(5) Wastewater offsets.
Any construction of, contributions to, or dedications of wastewater facilities that are system-related facilities included on the identified capital improvement plans and that are agreed to or required by the city as a condition of development approval shall be offset against wastewater facility impact fees otherwise due from the new development.
(6) No offsets for rights-of-way or easements.
Rights-of-way and easements are not included in the study, and no offsets shall be granted for the dedication of rights-of-way or easements. Rights-of-way and easements are dedicated as required by the ordinances of the city, necessitated by and attributable to a new development, and do not exceed the amount required for infrastructure improvements that are roughly proportionate to the new development.
(7) Master planned projects.
Master planned projects, including subdivisions containing multiple phases, and whether approved before or after the effective date of the impact fee regulations, may apply for offsets against impact fees for the entire project based upon improvements or funds toward construction of system-related facilities, or other capital improvements supplying excess capacity. Offsets shall be spent within the same service area utilizing a methodology approved by the city and be approved in an agreement.
(Ordinance 2021-27 adopted 8/10/21; Ordinance 2022-12 adopted 5/24/22)