Chapter 16.52#
AREA OF BENEFIT#
Sections:#
- 16.52.010 Purpose and authority.
- 16.52.020 Findings required.
- 16.52.030 General.
- 16.52.040 Interest provision.
- 16.52.050 Separate funds.
- 16.52.060 Life of area of benefit.
- 16.52.070 Surplus distribution.
- 16.52.080 Credits.
- 16.52.090 Payment of fees required.
- 16.52.100 Exemptions.
- 16.52.110 Reimbursements.
- 16.52.120 Notice of hearing.
- 16.52.130 Hearing.
16.52.010 Purpose and authority.#
The purpose of this chapter is to make provision for assessing and collecting fees as a condition of approval of a map, condition of development approval, or as a condition of issuing a building permit for the purpose of defraying the actual or estimated cost of constructing the public improvements pursuant to the city's authority to make and enforce all ordinances and regulations with respect to municipal affairs under the California Constitution, Article 11, Section 5 and Visalia Municipal Charter, Article III, Sections 1 and 2.
This chapter shall be the exclusive procedure for the establishment and operation of areas of benefit in the city. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.020 Findings required.#
No area of benefit shall be established hereunder unless the City Council finds that the construction of the public facilities or improvements provided for by the area of benefit fees is required for subsequent subdivisions and developments, and that the fees are fairly apportioned within the area on either the basis of benefits conferred on property proposed for development or subdivision, or on the need for such facilities created by the proposed development and development of other property within the area. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.030 General.#
A. The City Council may by resolution adopt an area of benefit for the purpose of defraying the actual or estimated costs of public improvements. An area of benefit may be used for the following purposes:
- To reimburse a subdivider or developer who installs public or public utility improvements that benefit property outside the subdivision or development.
- To reimburse the city or county that constructs public or public utility improvements that benefit property.
- To establish a fund for the future construction of a needed public or public utility improvement.
B. Public or public utility improvements for which area of benefits can be established are as follows:
- Curb, gutter and sidewalk
- Street structural sections
- Tree wells and sprinkler systems
- Fences
- Street lighting
- Street signs
- Traffic signals
- Storm drainage facilities
- Sanitary sewer facilities
- Water facilities
- Fire hydrants
- Storm drain and sanitary sewer pump stations
- Railroad crossings
- Bridges, culverts and major thoroughfares
- Fire stations
- Police substations
C. By resolution, the City Council shall establish the boundaries of the area of benefit, the estimated or actual cost, a fair method of allocation of costs, fee apportionment, and the applicable fee to be paid. The cost shall include design, construction, inspection, acquisition of land or easements, contingencies, and incidental expenses.
D. The area of benefit fees shall include a city administrative charge of ten percent of the total cost.
Where used in this chapter, the phrase "subdivider or developer" shall also mean "city or county" as used in Subsection A above. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.040 Interest provision.#
16.52.040 Interest.#
A. Interest shall accrue on the unpaid balance of the area of benefit fee and the area of benefit fee shall be adjusted accordingly. The interest rate shall be equal to the local agency invest fund (LAIF) rate in effect at the time the resolution approving the area of benefit fee is adopted and shall be so indicated in the resolution. The interest shall begin to accrue from the time the notice of completion is filed with the county recorder for the improvements covered by the area of benefit fee. The amount of the accumulated interest shall not exceed one hundred (100) percent of the principal amount of the area of benefit fee.
B. The revised area of benefit fee shall equal the adjusted cost plus a city administrative fee of ten percent of the adjusted cost. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.050 Separate funds.#
A. Area of benefit fees less the ten percent city administrative charge shall be deposited in separate funds. Moneys in such funds shall be expended solely for the construction or reimbursement for construction of the public improvements serving the area to be benefited.
B. The funds shall also accrue interest. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.060 Life of area of benefit.#
Fees collected twenty (20) years after the date the area of benefit is formed shall be retained by the city. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.070 Surplus distribution.#
A. After completion of the public improvements and payment of all claims from any area of benefit, the City Council may determine by resolution the amount of the surplus, if any, remaining in any of those funds.
B. There shall be transferred to the general fund any remaining portion of the surplus that has not been paid to or claimed by the persons entitled thereto within two years from the date of either the completion of the improvements, or the adoption by the resolution declaring a surplus, whichever is later to occur. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.080 Credits.#
A. Where the city has established an area of benefit for the future construction of a needed public improvement, a subdivision or development will be credited for any portion of the improvement installed by the subdivider or developer.
B. Whenever the area of benefit fees exceed the credits, the subdivider or developer shall pay to the city the balance. Whenever the credits exceed the area of benefit fees, the city will reimburse the subdivider or developer from subsequent payments. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.090 Payment of fees required.#
A. Prior to the issuance of a building permit or the filing of any final or parcel map, the subdivider or developer shall pay all area of benefit fees.
B. The fees shall be paid for the entire area included within the map, including developed parcels. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.100 Exemptions.#
Payment of the area of benefit fees shall not be required for:
A. The following accessory buildings and structures: Private garages, children's playhouse, radio and television receiving antennas, windmills, silos, tank houses, shops, barns, coops and other buildings that are accessory to one-family or two-family dwellings.
B. The use, alteration or enlargement of an existing building or the erection of one or more buildings or structures accessory thereto, or both, on the same lot or parcel of land; provided, the total value, as determined by the building division of the engineering and building department, of all such alteration, enlargement or construction does not exceed, in the aggregate, twenty-five (25) percent of the current market value, as determined by the building division of all existing buildings on such lot or parcel of land, and the alteration or enlargement of the building is not such as to change its classification or occupancy as defined by Section 501 of the Uniform Building Code.
Additional exemption(s) from the payment of the area of benefit fee may be obtained so long as the total accumulated value of all such alterations, enlargements or construction does not exceed twenty-five (25) percent of the then current market value, as determined above, of all existing buildings on such lot or parcel of land at the time the first such exemption is obtained.
(Ord. 2024-07 § 2 (part), 2024: Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.110 Reimbursements.
A subdivider or developer who installs public improvements that benefit property outside the subdivision or development is eligible for reimbursement. An area of benefit will be established to reimburse the subdivider or developer a proportionate share of the cost. The subdivider or developer will be reimbursed from area of benefit payments from future subdivisions and development. The amount of reimbursement shall equal the area of benefit payments less the ten (10) percent city administrative charge.
Reimbursements shall be payable to heirs, successors and assigns of the subdivider or developer. Payment to more than one individual, corporation, or partnership must be approved by the finance director. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.120 Notice of hearing.
Prior to the adoption of a resolution creating an area of benefit under this chapter the city shall:
A. At least ten (10) days prior to the date and time set for the hearing before the City Council, give a notice by first class mail, to the addresses as shown on the latest equalized assessment roll of Tulare County, to the owners of all property proposed for inclusion in the area of benefit.
B. Publish in a newspaper pursuant to Government Code Section 6062a, as the same may be amended from time to time, notice of the date, time and location set for such hearing.
C. Include in such notice to property owners as required under subsection A or B above a statement of the nature of the improvement to be constructed under the area of benefit, the actual or estimated costs of the project and the proposed boundaries of the area of the benefit. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)
16.52.130 Hearing.
The hearing on such proposed areas of benefit shall take place before the City Council, at which time all interested parties shall be heard. The Council shall establish the boundaries of the area of benefit, the costs, whether actual or estimated, and a fair method of allocation of costs to the area of benefit and fee apportionment.
Following establishment of an area of benefit pursuant to this part, the city shall cause said resolution to be recorded with the Tulare County Recorder, that shall then bind and run with the land included therein. (Ord. 2017-01 (part), 2017: Ord. 9710 § 1 (part), 1997)