A. Except where a credit for or deferral of a Utility Capital Facility Charge is authorized by SMC 15.04.142, a Utility Capital Facility Charge shall be assessed for each new water or sewer connection which has remained unused for twelve (12) months and/or for which a minimum maintenance fee as set forth in SMC 15.05.040 has not been paid during said period to provide a means by which property owners who connect to the City’s water and/or sewer utilities bear an equitable share of the cost of construction of major utility facilities and equipment. The Capital Facility Charge for both the water and sewer connection shall be based upon the size of the water service. Capital Facility Charges for utility connection made to property located outside of the corporate City limits shall be one hundred fifty (150) percent of those charges established by resolution as authorized in SMC 15.04.120(B).

B. The City Council shall, from time to time by Council resolution, determine the amount of Capital Facility Charge for water and sewer connection.

C. Payment of all Capital Facility Charges shall be made in full upon submission of an application for service under SMC 15.04.020 or by credit against payment or deferral as established by SMC 15.04.142. No water or sewer service shall be commenced until such charges are paid in full in good funds or by credit against payment or deferral as established by SMC 15.04.142. All charges constitute a lien against the property superior to all other liens and encumbrances except those for general taxes and special assessments. Such a lien may be foreclosed in the same manner provided by law for the foreclosure of delinquent local improvement district assessments.

D. A developer who has, at the City’s request, installed upsized utility infrastructure, and has not entered into any reimbursement agreement that includes a recovery for the oversized value, and has not applied for or received utility service connections prior to the adoption date of the ordinance codified in this section, may apply for a Capital Facility Charge Credit. The value of the Capital Facility Credit shall be determined by the City Engineer and shall be based on the estimated value of the oversized infrastructure. The Capital Facility Credit shall be limited to the development that installed the utility infrastructure. Capital Facility Credits will be applied in equal amounts to each lot’s utility specific Capital Facility Charges.

E. All Capital Facility Charges received by the City shall be deposited in the Water Sewer Cumulative Reserve Construction Fund. (Ord. 1886, 1999; Ord. 2075, 2005; Ord. 2236, 2012; Ord. 2384, 2019)