RESOLUTION NO.
A RESOLUTION ENACTING A FEE IN LIEU OF PROPERTY TAX AND SETTING FORTH A FEE IN LIEU OF PROPERTY TAX SCHEDULE OF FEES FOR NEW CONSTRUCTION FOR THE CITY OF CEDAR HILLS, UTAH.
WHEREAS, the City of Cedar Hills (“City”) has been experiencing rapid growth that has placed a significant burden on the City’s ability to provide essential public services; and
WHEREAS, although newly developed properties increase the demand for city services, the owners of those properties do not contribute a fair share of the costs of those services during the period following issuance of the building permit of the new development until placed on the county tax roll; and
WHEREAS, the existing revenues of the City are insufficient to meet the increasing demand for additional city services generated by the development and subsequent use and occupancy of property during the interim period before being placed on the tax roll; and
WHEREAS, the City Council of the City desires to provide for a means of payment that will have a rational relation and be proportional to the increased demand for services furnished by the City during the interim period from the time development begins until the time such improvements are placed on the tax roll; and
WHEREAS, the City must expand its public facilities and service systems in order to maintain current public facilities standards if new development is to be accommodated without decreasing current standards. This must be done to promote and protect the public health, safety, and welfare; and
WHEREAS, a Fee in Lieu of Property Tax is a rational method of ensuring that development bears a proportionate share of the cost of the city services necessary to accommodate such development. This must be done in order to protect the public health, safety, and welfare; and
WHEREAS, a Fee in Lieu of Property Tax is a reasonable and legally permissible means of generating the revenue necessary to provide funding for services necessitated by new development; and
WHEREAS, the fees established by Section 3 are derived from, based upon, and do not exceed the costs of providing additional public services necessitated by the new land developments for which the fees are levied; and
WHEREAS, the Fee in Lieu of Property Tax is supported by adequate studies and analysis justifying the need for additional funding in order to assure that the City can provide adequate public services, the need for which is created by proposed new development; and
WHEREAS, the City Council, in reviewing this proposed occupancy fee, has considered the need to provide services to new residents and the fact that the costs of providing those services are not covered by property taxes because the new homes are not included on the tax roles until the following year; and
WHEREAS, after consideration of all the factors outlined above, the City Council finds the Fee in Lieu of Property Tax imposed pursuant to this Resolution to be reasonable and equitable; and
WHEREAS, the City Council held a public hearing on the 18th day of April, 2006, to consider this Resolution, which public hearing was noticed according to State Law and City Ordinances; and
WHEREAS, the notice of public hearing by the City Council was posted and published not less that fourteen (14) days before the date of the public hearing; and
WHEREAS, the advance notice that was posted and published by the City contains specific advance notice that this proposed Resolution, as set forth herein, would be considered; and
WHEREAS, the City Council has determined that the proposed amendments are in the best interest of the City and its citizens;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF CEDAR HILLS, UTAH, AS FOLLOWS:
Section 1. Intent This Resolution is intended to assist in the implementation of the City of Cedar Hills General Plan by providing adequate services to protect the public health, safety and welfare.
Section 2. Purpose The purpose of this Resolution is to assure that new development pays its fair share of the cost of providing services that are not initially covered by real estate taxes.
Section 3. Fee In Lieu of Property Tax A Fee is hereby imposed that shall apply to new development of those real properties located within the City that require the issuance of an occupancy permit, said fee shall cover the period from the date of issuance of the Certificate of Occupancy until and including the ensuing date when the new development is assessed by the Utah County Assessor and placed on the tax roll. Said fee shall be in the amounts as set forth in Exhibit A, Schedule of Fees, which is attached hereto and made part of this Resolution by reference.
Section 4. Adjustment of Fee in Lieu of Property Tax
A. In the event that the fee payer disagrees with the amount of the Fee in Lieu of Property Tax to be charged pursuant to the Schedule of Fees:
1. If the fee payer opts to challenge the Fee in Lieu of Property Tax , then the fee payer shall first pay the fee set forth in the Schedule of Fees, then prepare and submit to the Chief Building Official or designee, within 90 days, the evidence required below.
2. The fee payer, at his option, may submit evidence to the Chief Building Official or designee indicating that the fee to be paid according to the Schedule of Fees is not a fair proportion of the cost of services that provide benefits to the fee payer’s new development. The Chief Building Official or designee shall adjust the Fee in Lieu of Property Tax if substantial evidence is submitted that clearly demonstrates that an adjustment is necessary under the general methodology upon which the fee is based. The burden shall be upon the fee payer to provide all relevant data, analysis, and report(s) that would assist the Chief Building Official or designee in making a determination. The analysis and report(s) must be based upon generally accepted practices and methodologies.
3. All decisions by the Chief Building Official or designee shall be based on the evidence presented by the fee payer, the staff file, and other relevant evidence. Said evidence must be relevant to the methodologies and the formula set forth in the Schedule of Fees. The Chief Building Official or designee shall consider the documentation submitted by the fee payer but is not required to accept such documentation as he or she shall reasonably believe as is inaccurate or not reliable and may, in the alternative, require the fee payer to submit additional or different documentation for consideration.
4. The Chief Building Official or designee’s decision to adjust or refuse to adjust the fee shall be made in writing.
B. The Chief Building Official or designee shall have the authority to make such adjustments based upon information submitted by an applicant and any recommendations from the City Engineer.
C. The Chief Building Official or designee may adopt policies consistent with this Resolution and any resolutions passed by the City Council to assist in the implementation, administration and interpretations of this Resolution.
D. If the applicant, person or entity is not satisfied with the Chief Building Official or designee’s decision, a further appeal may be made to the City Council under the procedures set forth in the Administrative Challenges and Appeals Procedure Section herein.
Section 5. Administrative Challenges and Appeals Procedure
A. Any person or entity required to pay an Fee in Lieu of Property Tax who believes the fee does not meet the requirements of the law may file a Government Records Access Management Act (GRAMA) request for information with the City Recorder. Upon receipt of the GRAMA request and according to Utah State Law, the City Recorder shall provide the person or entity with the written analysis used by the City in setting the occupancy fee and any other relevant information relating to the Fee in Lieu of Property Tax.
B. Any person or entity residing in or owning property within the City who believes the fee does not meet the requirements of the law or wishes to challenge the fee shall file a written appeal within 30 days after payment of the fee with the City Recorder setting forth in detail all factual and legal ground in support of the appeal. Upon receipt of the appeal, the Chief Building Official or designee shall make a recommendation to the City Council on the appeal. The City Council shall thereafter render its decision on the appeal no later than 30 days after the date the matter was first heard by the City Council. Any person or entity who has failed to comply with these administrative remedies may not file or join an action challenging the validity of any Fee in Lieu of Property Tax.
Section 6. Collection, Deposit and Use
A. The Chief Building Official or designee shall be charged with the collection of the Fee in Lieu of Property Tax, which shall be collected as a condition prior to the issuance of a Certificate of Occupancy.
B. The payment of the Fee in Lieu of Property Tax shall be in addition to any other fees, charges or assessments due for the issuance of a Certificate of Occupancy.
C. The obligation for payment of the Fee in Lieu of Property Tax shall run with the land.
D. The Fee in Lieu of Property Tax collected pursuant to this enactment shall be used to provide city services to those developments from which the fee is collected.
Section 7. Severability It is hereby declared that all parts of this Resolution are severable, and if any section, clause, or provision of this Resolution shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of any such section, clause, or provision shall not affect the remaining sections, clauses, or provisions of this Resolution.
Section 8. Effective Date The City Council specifically finds that it is necessary for the immediate preservation of health, safety and welfare of the present and future inhabitants of the City that this Resolution take effect immediately upon its approval and adoption.
PASSED AN D APPROVED BY THE CITY COUNCIL OF THE CITY OF CEDAR HILLS, STATE OF UTAH, THIS 18TH DAY OF APRIL, 2006.
Michael C. McGee, Mayor
ATTEST:
______________________________
Kim Holindrake, City Recorder
EXHIBIT A
SCHEDULE OF FEES
Residential Properties:
Assessed Value (55% of market value) x Certified Tax Rate x Percent of Year Remaining
Other Types of Properties:
Property Value x Certified Tax Rate x Percent of Year Remaining