§ 418. System development charges.

(1)

The authority is hereby empowered to levy and collect water system development charges and/or sewer system development charges, for capital improvements and debt service on such capital improvements as hereinafter specified, and adopt a schedule of payment of said system development charges, within the boundaries of the authority, under any of the following conditions:

(a)

Whenever a property owner or his authorized representative connects an existing structure to a system or portion thereof owned or operated by the authority;

(b)

Whenever a property owner or his authorized representative applies for a building permit and prior issuance of a building permit to alter an existing structure previously connected to a water system and/or sewer system owned or operated by the authority, where such alteration increases the potential demand on the authority's systems; or

(c)

Whenever a property owner or his authorized representative applies for a building permit and prior to issuance of a building permit to construct a structure on property which according to an adopted plan is scheduled in the future to be connected to a system owned or operated by the authority even though the property owner or his representative may receive interim water and/or interim sewer service from a source other than the authority.

(2)

If the structure on the property for which a system development charge has been paid is not authorized to connect to the authority's systems within ten (10) years of the date of such payment, the property owner holding legal title at the end of the ten-year period shall be eligible for a refund of the system development charge without interest. The authority shall notify the property owner of his eligibility for a refund by mailing notice to the property owner. Such notice shall be sent by certified or registered mail with return receipt requested. Any property owner eligible for a refund shall file written application with the authority or such property owner shall be deemed to have waived any right to a refund, and the authority shall be entitled to retain and apply the system development charge for capital water and sewer improvements. Failure to construct the structure for which a system development charge has been paid shall not constitute grounds for a refund, nor shall delay or failure to receive the mailed notice of eligibility for a refund toll the ninety-day time limit within which an application for refund must be filed.

(3)

Except as otherwise provided by the resolution authorizing issuance of bonds or other obligations of the authority, water and sewer development charges shall not be transferred or used for any purpose other than capital improvements for raw water supplies, water treatment facilities, water transmission mains, storage facilities, pumping facilities, distribution lines, and related facilities required to provide new connections by new customers and for payment of debt service on public obligations issued to finance any such capital improvements. Capital improvements which are designed to benefit existing customers of the authority shall not be paid for with funds from this account.

(4)

Except as otherwise provided by the resolution authorizing the issuance of bonds or other obligations of the authority, sewer system development charges shall not be transferred or used for any purpose other than capital improvements for sewage treatment and disposal facilities, sewage transmission facilities, and related facilities required to provide new connections by new customers and for payment of debt service on public obligations issued to finance any such capital improvements. Capital improvements which are designed to benefit existing customers of the authority shall not be paid for with funds from this account.

(5)

Water system development charges and sewer system development charges shall be reviewed at least annually by the authority to determine that charges are equitable and proportionate to the current estimate of costs for providing the capital improvements for which the charges are imposed. The initial schedule of system development charges shall be those already in effect in the authority and any subdistricts as of the effective date of this act. The authority may thereafter change or revise the schedule of system development charges upon compliance with the notice and hearing requirements set forth for the adoption of rates, fees, and other charges, except that if such charges or revisions be made substantially pro rata as to all classes of services no hearing or notice shall be required.

(6)

The authority, in its discretion, may permit the owners of existing structures which connect to the authority's system to pay the system development charges on an installment basis with interest. In the event that the system development charges shall not be paid as and when due, any unpaid balance thereof and all interest accruing thereon shall be a lien on any parcel of property affected thereby. Such liens shall be superior and paramount to the interest on such parcel or property of any owners, lessee, tenant, mortgagee, or other person except the lien of the county taxes and shall be on a parity with the lien of any such county taxes. In the event that any such system development charge shall not be paid as and when due and shall be in default for thirty (30) days or more, the unpaid balance thereof and all interest accrued thereon, together with attorney's fees and costs, may be recovered by the authority in a civil action, and any such lien and accrued interest may be foreclosed or otherwise enforced by the authority by action or suit in equity as for the foreclosure of a mortgage on real property.

(7)

System development charges may be pledged to the payment of bonds or other obligations of the authority, provided that the authority has agreed in the resolution authorizing such bonds or other obligations that it maintain net revenues, together with special assessment proceeds and other revenues derived by the authority, exclusive of system development charges, equal to at least one hundred (100) percent of the debt service on such bonds or obligations.

(8)

Nothing in this act shall be construed to invalidate water and sewer system development charges previously levied and collected and pledged by the board under its preexisting implied authority to levy and collect and pledge such charges.

(9)

As an alternative to the provisions of subsections (1) through (7), the authority is empowered to levy and collect water and/or sewer impact fees within the boundaries of the authority in the same manner and to the same extent as counties.

(Ch. 94-491, § 19)