Responsible City Agency: Housing and Neighborhood Development
Keywords Impact Fees, Expenditures, Expense.
1. General
1.1 It is the policy of Salt Lake City Corporation to expend impact fee revenues in a manner that is consistent with sound financial practices and in compliance with Utah Code Chapter 11-36 and Salt Lake City Code Chapter 18.98.
1.2 Definitions
A. “Public facilities” means
only the following capital facilities
that have a life expectancy of 10 or more years and are owned or operated by or
on behalf of the City and are included in the City’s capital facilities plan for
impact fees:
(i) roadway facilities;
(ii)
parks, recreation facilities, open space, and trails;
and
(iii) public safety (police and fire)
facilities.
B. “System improvements” means:
(i) existing public facilities that are designed to provide services to service areas within the community at large; and
(ii) future public facilities identified in the City’s capital facilities plan for impact fees that are intended to provide services to service areas within the community at large.
2. Limitations on Impact Fee Expenditures
2.1 Under Utah Code Chapter 11-36 and Salt Lake City Code Chapter 18.98, the City may expend impact fee revenues solely for the purposes for which they were received and only for any of the following.
A. System improvements: (1) for public facilities identified in the City’s capital facilities plan for impact fees; and (2) for the specific public facility type for which the impact fee was collected;
B. System improvements, including, but not limited to, planning, land acquisition, construction, engineering, architectural, permitting, financing, and administrative expenses, mitigation costs, capital equipment pertaining to system improvements, and any other similar expenses that can be capitalized pursuant to generally accepted accounting principles;
C. To recoup improvement costs previously incurred by the City to the extent that new growth and development activity will be served by the previously constructed improvements or incurred costs;
D. To recoup the cost of studying, analyzing, and preparing the impact fees;
E. To pay debt service on bonds or similar debt instruments issued to finance system improvements to the extent such system improvements serve the development activity for which the impact fees were imposed.
2.2 Components of Expenditures
The following constitute components of the cost of the system improvements referred to in Section 2.1:
A. The price of the construction contract for the system improvements;
B. The cost of acquiring land, improvements, materials, and fixtures;
C. The cost for planning, surveying, and engineering fees for services provided for and directly related to the construction of the system improvements;
2.3 Impact fee revenues may not be used for the following expenses:
A. City employee travel, including transportation costs, registration fees, lodging, meals or per diem;
B. Entertainment;
C. Food or beverages;
D. Gifts;
E. Maintenance or operation costs;
F. Except as provide in Salt Lake City Code Chapter 18.98, to make up for deficiencies in existing facilities serving existing developments; or
G. Other costs or reimbursements other than those directly related to the construction of the system improvements or as outlined in section 2 of this policy.
Effective Date (Date Signed by Acting Mayor Rocky Fluhart): March 29, 2006