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A. The system development charge is payable upon, and as a condition of, issuance of:

1. A building permit;

2. A development permit and/or a development permit for development not requiring the issuance of a building permit;

3. A permit or approval to connect to the water system, storm drainage system, or the sewer system; or

4. A right-of-way access permit.

B. If no building, development, or connection permit is required, the system development charge is payable at the time that the usage of the capital improvement is increased based on changes in the use of the property unrelated to seasonal or ordinary fluctuations in usage.

C. If development is commenced or connection is made to the water system, sanitary sewer system or storm sewer system without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required, and it will be unlawful for anyone to continue with the construction or use constituting a development until the charge has been paid or payment secured to the satisfaction of the city manager.

D. Any and all persons causing, constructing, conducting, occupying, or using the development or making application for the needed permit, or otherwise responsible for the development, are jointly and severally obligated to pay the charge, and the city manager may collect the said charge from any of them. The city manager or her/his designee shall not issue any permit or allow a connection described in TMC 13.35.040 until the charge has been paid in full or until an adequate secured arrangement for its payment has been made, within the limits prescribed by ordinance of the city council.

E. Installment Payment.

1. When a system development charge is due and collectible, the owner of the parcel of land subject to the development charge may apply for payment in 20 semiannual installments, to include interest on the unpaid balance, in accordance with ORS 223.208 and city ordinances. The application shall provide that the owner agrees to pay an additional specified amount of five percent for administration costs. The application shall provide that the owner agrees to pay interest at the rate of eight percent per annum on the unpaid balance until the bonds are sold, if ever that be, and thereafter the rate shall be the net effective interest rate on the bond issue rounded up to the next one-tenth of one percent. The application shall also provide that the owner agrees to pay a billing charge to be added to each installment. The billing charge shall be a prorated share of the actual cost of billing and keeping records of installment payment accounts. The amount of the billing charge shall be determined from time to time by the city manager.

2. The city manager shall provide application forms for installment payments, which shall include a waiver of all rights to contest the validity of the lien, except for the correction of computational errors. The applicant shall pay an administration fee in cash at the time of application in the amount of three percent of the balance due or $25.00, whichever is greater.

3. An applicant for installment payments shall have the burden of demonstrating the applicant’s authority to assent to the imposition of a lien on the parcel and that the interest of the applicant is adequate to secure payment of the lien.

4. Upon acceptance of the application, the lien shall be entered in the lien docket. From that time the city shall have a first lien upon the described parcel for the amount of the system development charge, together with interest on the unpaid balance at the rate established by the council. The lien shall be enforceable in the manner provided in ORS Chapter 223.

F. Upon written request to the planning department, the city manager is authorized to cancel assessments of SDCs, without further council action, where the new development approved by the building permit is not constructed and the building permit is canceled.

G. In the event that a property that has been subject to a cancellation of assessment of SDCs had entered into an installment payment as outlined in subsection (E)(1) of this section, a new installment payment contract shall be subject to the code provisions applicable to SDCs and installment payment contracts on file on the date the new contract is received by the city.

H. Bancrofting or systems development charges shall be permitted only as specified by ORS 223.208.

I. Delinquent assessments for delinquent system development charges shall be interest at the rate of 18 percent per annum while delinquent. [Ord. 792; Ord. 725 § 8.]