§ 42-112. Installment payments.

(1)

Subject to availability of funds, the city may enter into agreements to extend payment (offer installment payments) of impact fees (a/k/a water and/or wastewater capital recovery fees) and associated costs with owners of buildings, structures or applicable improvements that connect to the water and wastewater systems and the landowners of the property on which such improvements are located. The provisions of this section shall apply to both existing and new buildings, structures, or applicable improvements that connect to water and wastewater systems; however, any agreement for impact fee installment payments regarding new buildings, structures, or improvements must be approved by the city council.

Notwithstanding anything herein, the city is under no obligation to approve any agreement as the decision to offer an installment payment plan is in the complete discretion of city. If the agreement to offer an installment payment plan is for a total impact fee payment of $50,000.00 or more on existing buildings, structures, or applicable improvements, the city manager or his designee may approve an installment agreement providing for payments for a period not exceeding ten years. The city manager or designee shall determine the interest rate by taking into account the specific source of funds to be used relative to providing extended payment and the cost of such funds, including all expenses and costs incidental to obtaining or providing same, including interest at the interest rate that the city will employ in offering extended payment with interest, and a reasonable estimation of the administrative costs or expenses associated with administering the extended payment alternative to the respective land(s). In the event an owner's total impact fee payment is less than $50,000.00 on existing buildings, structures, or applicable improvements, the city manager or his designee may approve an installment agreement providing for payments for a period not exceeding seven years.

(a)

Any obligations to pay such extended installment payments of impact fees shall be secured by a lien on the property to which such payments apply in a form as required by city.

(b)

The amount of payment, including any title verification expenses and a reasonable estimation of the cost and expense associated with providing an extended payment alternative, shall be paid in equal monthly payments with an annual interest rate as determined by city and as memorialized in a written agreement. However, if the city's cost of the funds fluctuates either positively or negatively by one percent over the life of the loan, city may adjust the interest rate accordingly. State documentary stamp fees, title charges, and recording fees will be upfront costs borne by the owner and shall be paid in full at the time the extended payment agreement is executed. The interest rate charged shall be representative of the city's cost of funds, including all expenses or costs incidental to obtaining or providing same, if any.

(c)

Upon satisfactory payment of all principal, interest, and associated costs under an extended payment agreement, the city shall execute a satisfaction of lien and record the same in the official records of Lake County, Florida.

(d)

Notwithstanding the above, the city council may, for good cause shown, waive any of the terms contained in this section.

(2)

The obligation for payment of the impact fee shall run with the land.

(Ord. No. 2007-01, § 3, 9-4-2007; Ord. No. 2009-25, § 1, 12-1-2009)