As Introduced

126th General Assembly
Regular Session
2005-2006
H. B. No. 299


Representatives Peterson, Schneider, Wolpert, Schaffer, Calvert, G. Smith, Allen, Flowers 



A BILL
To amend sections 133.06 and 133.07 and to enact 1
sections 5755.01 to 5755.12 of the Revised Code to 2
authorize counties, townships, and school 3
districts to levy impact fees on new development 4
to finance capital improvements necessitated by 5
that development. 6


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 133.06 and 133.07 be amended and 7
sections 5755.01, 5755.02, 5755.03, 5755.04, 5755.05, 5755.06, 8
5755.07, 5755.08, 5755.09, 5755.10, 5755.11, and 5755.12 of the 9
Revised Code be enacted to read as follows: 10

       Sec. 133.06.  (A) A school district shall not incur, without 11
a vote of the electors, net indebtedness that exceeds an amount 12
equal to one-tenth of one per cent of its tax valuation, except as 13
provided in divisions (G) and (H) of this section and in division 14
(C) of section 3313.372 of the Revised Code, or as prescribed in 15
section 3318.052 of the Revised Code, or as provided in division 16
(J) of this section. 17

       (B) Except as provided in divisions (E), (F), and (I) of this 18
section, a school district shall not incur net indebtedness that 19
exceeds an amount equal to nine per cent of its tax valuation. 20

       (C) A school district shall not submit to a vote of the 21
electors the question of the issuance of securities in an amount 22
that will make the district's net indebtedness after the issuance 23
of the securities exceed an amount equal to four per cent of its 24
tax valuation, unless the superintendent of public instruction, 25
acting under policies adopted by the state board of education, and 26
the tax commissioner, acting under written policies of the 27
commissioner, consent to the submission. A request for the 28
consents shall be made at least thirty days prior to the election 29
at which the question is to be submitted, except that the 30
superintendent of public instruction and the tax commissioner may 31
waive this thirty-day deadline or grant their consents after the 32
election if the school district shows good cause for such waiver 33
or consent after the election. 34

       (D) In calculating the net indebtedness of a school district, 35
none of the following shall be considered: 36

       (1) Securities issued to acquire school buses and other 37
equipment used in transporting pupils or issued pursuant to 38
division (D) of section 133.10 of the Revised Code; 39

       (2) Securities issued under division (F) of this section, 40
under section 133.301 of the Revised Code, and, to the extent in 41
excess of the limitation stated in division (B) of this section, 42
under division (E) of this section; 43

       (3) Indebtedness resulting from the dissolution of a joint 44
vocational school district under section 3311.217 of the Revised 45
Code, evidenced by outstanding securities of that joint vocational 46
school district; 47

       (4) Loans, evidenced by any securities, received under 48
sections 3313.483, 3317.0210, 3317.0211, and 3317.64 of the 49
Revised Code; 50

       (5) Debt incurred under section 3313.374 of the Revised Code; 51

       (6) Debt incurred pursuant to division (B)(5) of section 52
3313.37 of the Revised Code to acquire computers and related 53
hardware; 54

       (7) Debt incurred under section 3318.042 of the Revised Code; 55

       (8) Securities issued under section 5755.09 of the Revised 56
Code. 57

       (E) A school district may become a special needs district as 58
to certain securities as provided in division (E) of this section. 59

       (1) A board of education, by resolution, may declare its 60
school district to be a special needs district by determining both 61
of the following: 62

       (a) The student population is not being adequately serviced 63
by the existing permanent improvements of the district. 64

       (b) The district cannot obtain sufficient funds by the 65
issuance of securities within the limitation of division (B) of 66
this section to provide additional or improved needed permanent 67
improvements in time to meet the needs. 68

       (2) The board of education shall certify a copy of that 69
resolution to the superintendent of public instruction with a 70
statistical report showing all of the following: 71

       (a) A history of and a projection of the growth of the 72
student population; 73

       (b) The history of and a projection of the growth of the tax 74
valuation; 75

       (c) The projected needs; 76

       (d) The estimated cost of permanent improvements proposed to 77
meet such projected needs. 78

       (3) The superintendent of public instruction shall certify 79
the district as an approved special needs district if the 80
superintendent finds both of the following: 81

       (a) The district does not have available sufficient 82
additional funds from state or federal sources to meet the 83
projected needs. 84

       (b) The projection of the potential average growth of tax 85
valuation during the next five years, according to the information 86
certified to the superintendent and any other information the 87
superintendent obtains, indicates a likelihood of potential 88
average growth of tax valuation of the district during the next 89
five years of an average of not less than three per cent per year. 90
The findings and certification of the superintendent shall be 91
conclusive. 92

       (4) An approved special needs district may incur net 93
indebtedness by the issuance of securities in accordance with the 94
provisions of this chapter in an amount that does not exceed an 95
amount equal to the greater of the following: 96

       (a) Nine per cent of the sum of its tax valuation plus an 97
amount that is the product of multiplying that tax valuation by 98
the percentage by which the tax valuation has increased over the 99
tax valuation on the first day of the sixtieth month preceding the 100
month in which its board determines to submit to the electors the 101
question of issuing the proposed securities; 102

       (b) Nine per cent of the sum of its tax valuation plus an 103
amount that is the product of multiplying that tax valuation by 104
the percentage, determined by the superintendent of public 105
instruction, by which that tax valuation is projected to increase 106
during the next ten years. 107

       (F) A school district may issue securities for emergency 108
purposes, in a principal amount that does not exceed an amount 109
equal to three per cent of its tax valuation, as provided in this 110
division. 111

       (1) A board of education, by resolution, may declare an 112
emergency if it determines both of the following: 113

       (a) School buildings or other necessary school facilities in 114
the district have been wholly or partially destroyed, or condemned 115
by a constituted public authority, or that such buildings or 116
facilities are partially constructed, or so constructed or planned 117
as to require additions and improvements to them before the 118
buildings or facilities are usable for their intended purpose, or 119
that corrections to permanent improvements are necessary to remove 120
or prevent health or safety hazards. 121

       (b) Existing fiscal and net indebtedness limitations make 122
adequate replacement, additions, or improvements impossible. 123

       (2) Upon the declaration of an emergency, the board of 124
education may, by resolution, submit to the electors of the 125
district pursuant to section 133.18 of the Revised Code the 126
question of issuing securities for the purpose of paying the cost, 127
in excess of any insurance or condemnation proceeds received by 128
the district, of permanent improvements to respond to the 129
emergency need. 130

       (3) The procedures for the election shall be as provided in 131
section 133.18 of the Revised Code, except that: 132

       (a) The form of the ballot shall describe the emergency 133
existing, refer to this division as the authority under which the 134
emergency is declared, and state that the amount of the proposed 135
securities exceeds the limitations prescribed by division (B) of 136
this section; 137

       (b) The resolution required by division (B) of section 133.18 138
of the Revised Code shall be certified to the county auditor and 139
the board of elections at least seventy-five days prior to the 140
election; 141

       (c) The county auditor shall advise and, not later than 142
sixty-five days before the election, confirm that advice by 143
certification to, the board of education of the information 144
required by division (C) of section 133.18 of the Revised Code; 145

       (d) The board of education shall then certify its resolution 146
and the information required by division (D) of section 133.18 of 147
the Revised Code to the board of elections not less than sixty 148
days prior to the election. 149

       (4) Notwithstanding division (B) of section 133.21 of the 150
Revised Code, the first principal payment of securities issued 151
under this division may be set at any date not later than sixty 152
months after the earliest possible principal payment otherwise 153
provided for in that division. 154

       (G) The board of education may contract with an architect, 155
professional engineer, or other person experienced in the design 156
and implementation of energy conservation measures for an analysis 157
and recommendations pertaining to installations, modifications of 158
installations, or remodeling that would significantly reduce 159
energy consumption in buildings owned by the district. The report 160
shall include estimates of all costs of such installations, 161
modifications, or remodeling, including costs of design, 162
engineering, installation, maintenance, repairs, and debt service, 163
and estimates of the amounts by which energy consumption and 164
resultant operational and maintenance costs, as defined by the 165
Ohio school facilities commission, would be reduced. 166

       If the board finds after receiving the report that the amount 167
of money the district would spend on such installations, 168
modifications, or remodeling is not likely to exceed the amount of 169
money it would save in energy and resultant operational and 170
maintenance costs over the ensuing fifteen years, the board may 171
submit to the commission a copy of its findings and a request for 172
approval to incur indebtedness to finance the making or 173
modification of installations or the remodeling of buildings for 174
the purpose of significantly reducing energy consumption. 175

       If the commission determines that the board's findings are 176
reasonable, it shall approve the board's request. Upon receipt of 177
the commission's approval, the district may issue securities 178
without a vote of the electors in a principal amount not to exceed 179
nine-tenths of one per cent of its tax valuation for the purpose 180
of making such installations, modifications, or remodeling, but 181
the total net indebtedness of the district without a vote of the 182
electors incurred under this and all other sections of the Revised 183
Code shall not exceed one per cent of the district's tax 184
valuation. 185

       So long as any securities issued under division (G) of this 186
section remain outstanding, the board of education shall monitor 187
the energy consumption and resultant operational and maintenance 188
costs of buildings in which installations or modifications have 189
been made or remodeling has been done pursuant to division (G) of 190
this section and shall maintain and annually update a report 191
documenting the reductions in energy consumption and resultant 192
operational and maintenance cost savings attributable to such 193
installations, modifications, or remodeling. The report shall be 194
certified by an architect or engineer independent of any person 195
that provided goods or services to the board in connection with 196
the energy conservation measures that are the subject of the 197
report. The resultant operational and maintenance cost savings 198
shall be certified by the school district treasurer. The report 199
shall be made available to the commission upon request. 200

       (H) With the consent of the superintendent of public 201
instruction, a school district may incur without a vote of the 202
electors net indebtedness that exceeds the amounts stated in 203
divisions (A) and (G) of this section for the purpose of paying 204
costs of permanent improvements, if and to the extent that both of 205
the following conditions are satisfied: 206

       (1) The fiscal officer of the school district estimates that 207
receipts of the school district from payments made under or 208
pursuant to agreements entered into pursuant to section 725.02, 209
1728.10, 3735.671, 5709.081, 5709.082, 5709.40, 5709.41, 5709.62, 210
5709.63, 5709.632, 5709.73, 5709.78, or 5709.82 of the Revised 211
Code, or distributions under division (C) of section 5709.43 of 212
the Revised Code, or any combination thereof, are, after 213
accounting for any appropriate coverage requirements, sufficient 214
in time and amount, and are committed by the proceedings, to pay 215
the debt charges on the securities issued to evidence that 216
indebtedness and payable from those receipts, and the taxing 217
authority of the district confirms the fiscal officer's estimate, 218
which confirmation is approved by the superintendent of public 219
instruction; 220

       (2) The fiscal officer of the school district certifies, and 221
the taxing authority of the district confirms, that the district, 222
at the time of the certification and confirmation, reasonably 223
expects to have sufficient revenue available for the purpose of 224
operating such permanent improvements for their intended purpose 225
upon acquisition or completion thereof, and the superintendent of 226
public instruction approves the taxing authority's confirmation. 227

       The maximum maturity of securities issued under division (H) 228
of this section shall be the lesser of twenty years or the maximum 229
maturity calculated under section 133.20 of the Revised Code. 230

       (I) A school district may incur net indebtedness by the 231
issuance of securities in accordance with the provisions of this 232
chapter in excess of the limit specified in division (B) or (C) of 233
this section when necessary to raise the school district portion 234
of the basic project cost pursuant to Chapter 3318. of the Revised 235
Code. The school facilities commission shall notify the 236
superintendent of public instruction whenever a school district 237
will exceed either limit pursuant to this division. 238

       (J) A school district whose portion of the basic project cost 239
of its classroom facilities project under sections 3318.01 to 240
3318.20 of the Revised Code is greater than or equal to one 241
hundred million dollars may incur without a vote of the electors 242
net indebtedness in an amount up to two per cent of its tax 243
valuation through the issuance of general obligation securities in 244
order to generate all or part of the amount of its portion of the 245
basic project cost if the controlling board has approved the 246
school facilities commission's conditional approval of the project 247
under section 3318.04 of the Revised Code. The school district 248
board and the Ohio school facilities commission shall include the 249
dedication of the proceeds of such securities in the agreement 250
entered into under section 3318.08 of the Revised Code. No state 251
moneys shall be released for a project to which this section 252
applies until the proceeds of any bonds issued under this section 253
that are dedicated for the payment of the school district portion 254
of the project are first deposited into the school district's 255
project construction fund. 256

       Sec. 133.07.  (A) A county shall not incur, without a vote of 257
the electors, either of the following: 258

       (1) Net indebtedness for all purposes that exceeds an amount 259
equal to one per cent of its tax valuation; 260

       (2) Net indebtedness for the purpose of paying the county's 261
share of the cost of the construction, improvement, maintenance, 262
or repair of state highways that exceeds an amount equal to 263
one-half of one per cent of its tax valuation. 264

       (B) A county shall not incur total net indebtedness that 265
exceeds an amount equal to one of the following limitations that 266
applies to the county: 267

       (1) A county with a valuation not exceeding one hundred 268
million dollars, three per cent of that tax valuation; 269

       (2) A county with a tax valuation exceeding one hundred 270
million dollars but not exceeding three hundred million dollars, 271
three million dollars plus one and one-half per cent of that tax 272
valuation in excess of one hundred million dollars; 273

       (3) A county with a tax valuation exceeding three hundred 274
million dollars, six million dollars plus two and one-half per 275
cent of that tax valuation in excess of three hundred million 276
dollars. 277

       (C) In calculating the net indebtedness of a county, none of 278
the following securities shall be considered: 279

       (1) Securities described in section 307.201 of the Revised 280
Code; 281

       (2) Self-supporting securities issued for any purposes, 282
including, but not limited to, any of the following general 283
purposes: 284

       (a) Water systems or facilities; 285

       (b) Sanitary sewerage systems or facilities, or surface and 286
storm water drainage and sewerage systems or facilities, or a 287
combination of those systems or facilities; 288

       (c) County or joint county scrap tire collection, storage, 289
monocell, monofill, or recovery facilities, or any combination of 290
those facilities; 291

       (d) Off-street parking lots, facilities, or buildings, or 292
on-street parking facilities, or any combination of off-street and 293
on-street parking facilities; 294

       (e) Facilities for the care or treatment of the sick or 295
infirm, and for housing the persons providing that care or 296
treatment and their families; 297

       (f) Recreational, sports, convention, auditorium, museum, 298
trade show, and other public attraction facilities; 299

       (g) Facilities for natural resources exploration, 300
development, recovery, use, and sale; 301

       (h) Correctional and detention facilities and related 302
rehabilitation facilities. 303

       (3) Securities issued for the purpose of purchasing, 304
constructing, improving, or extending water or sanitary or surface 305
and storm water sewerage systems or facilities, or a combination 306
of those systems or facilities, to the extent that an agreement 307
entered into with another subdivision requires the other 308
subdivision to pay to the county amounts equivalent to debt 309
charges on the securities; 310

       (4) Voted general obligation securities issued for the 311
purpose of permanent improvements for sanitary sewerage or water 312
systems or facilities to the extent that the total principal 313
amount of voted securities outstanding for the purpose does not 314
exceed an amount equal to two per cent of the county's tax 315
valuation; 316

       (5) Securities issued for permanent improvements to house 317
agencies, departments, boards, or commissions of the county or of 318
any municipal corporation located, in whole or in part, in the 319
county, to the extent that the revenues, other than revenues from 320
unvoted county property taxes, derived from leases or other 321
agreements between the county and those agencies, departments, 322
boards, commissions, or municipal corporations relating to the use 323
of the permanent improvements are sufficient to cover the cost of 324
all operating expenses of the permanent improvements paid by the 325
county and debt charges on the securities; 326

       (6) Securities issued pursuant to section 133.08 of the 327
Revised Code; 328

       (7) Securities issued for the purpose of acquiring or 329
constructing roads, highways, bridges, or viaducts, for the 330
purpose of acquiring or making other highway permanent 331
improvements, or for the purpose of procuring and maintaining 332
computer systems for the office of the clerk of any 333
county-operated municipal court, for the office of the clerk of 334
the court of common pleas, or for the office of the clerk of the 335
probate, juvenile, or domestic relations division of the court of 336
common pleas to the extent that the legislation authorizing the 337
issuance of the securities includes a covenant to appropriate from 338
moneys distributed to the county pursuant to division (B) of 339
section 2101.162, 2151.541, 2153.081, 2301.031, or 2303.201 or 340
Chapter 4501., 4503., 4504., or 5735. of the Revised Code a 341
sufficient amount to cover debt charges on and financing costs 342
relating to the securities as they become due; 343

       (8) Securities issued for the purpose of acquiring, 344
constructing, improving, and equipping a county, multicounty, or 345
multicounty-municipal jail, workhouse, juvenile detention 346
facility, or correctional facility; 347

       (9) Securities issued for the acquisition, construction, 348
equipping, or repair of any permanent improvement or any class or 349
group of permanent improvements enumerated in a resolution adopted 350
pursuant to division (D) of section 5739.026 of the Revised Code 351
to the extent that the legislation authorizing the issuance of the 352
securities includes a covenant to appropriate from moneys received 353
from the taxes authorized under section 5739.023 and division 354
(A)(5) of section 5739.026 of the Revised Code an amount 355
sufficient to pay debt charges on the securities and those moneys 356
shall be pledged for that purpose; 357

       (10) Securities issued for county or joint county solid waste 358
or hazardous waste collection, transfer, or disposal facilities, 359
or resource recovery and solid or hazardous waste recycling 360
facilities, or any combination of those facilities; 361

       (11) Securities issued for the acquisition, construction, and 362
equipping of a port authority educational and cultural facility 363
under section 307.671 of the Revised Code; 364

       (12) Securities issued for the acquisition, construction, 365
equipping, and improving of a municipal educational and cultural 366
facility under division (B)(1) of section 307.672 of the Revised 367
Code; 368

       (13) Securities issued for energy conservation measures under 369
section 307.041 of the Revised Code; 370

       (14) Securities issued for the acquisition, construction, 371
equipping, improving, or repair of a sports facility, including 372
obligations issued to pay costs of a sports facility under section 373
307.673 of the Revised Code; 374

       (15) Securities issued under section 755.17 of the Revised 375
Code if the legislation authorizing issuance of the securities 376
includes a covenant to appropriate from revenue received from a 377
tax authorized under division (A)(5) of section 5739.026 and 378
section 5741.023 of the Revised Code an amount sufficient to pay 379
debt charges on the securities, and the board of county 380
commissioners pledges that revenue for that purpose, pursuant to 381
section 755.171 of the Revised Code; 382

       (16) Sales tax supported bonds issued pursuant to section 383
133.081 of the Revised Code for the purpose of acquiring, 384
constructing, improving, or equipping any permanent improvement to 385
the extent that the legislation authorizing the issuance of the 386
sales tax supported bonds pledges county sales taxes to the 387
payment of debt charges on the sales tax supported bonds and 388
contains a covenant to appropriate from county sales taxes a 389
sufficient amount to cover debt charges or the financing costs 390
related to the sales tax supported bonds as they become due; 391

       (17) Bonds or notes issued under section 133.60 of the 392
Revised Code if the legislation authorizing issuance of the bonds 393
or notes includes a covenant to appropriate from revenue received 394
from a tax authorized under division (A)(9) of section 5739.026 395
and section 5741.023 of the Revised Code an amount sufficient to 396
pay the debt charges on the bonds or notes, and the board of 397
county commissioners pledges that revenue for that purpose; 398

       (18) Securities issued under section 3707.55 of the Revised 399
Code for the acquisition of real property by a general health 400
district; 401

       (19) Securities issued under division (A)(3) of section 402
3313.37 of the Revised Code for the acquisition of real and 403
personal property by an educational service center; 404

       (20) Securities issued under section 5755.09 of the Revised 405
Code. 406

       (D) In calculating the net indebtedness of a county, no 407
obligation incurred under division (D) of section 339.06 of the 408
Revised Code shall be considered. 409

       Sec. 5755.01.  As used in sections 5755.01 to 5755.12 of the 410
Revised Code: 411

       (A) "Building permit" includes any approval of plans, 412
specifications, drawings, or other data required by a county, 413
township, or municipal corporation as a prerequisite to 414
development. "Building permit" does not include any approval of 415
plans, specifications, drawings, or other data required as a 416
prerequisite to the alteration, modification, equipping, or other 417
improvement of an existing building or structure. 418

       (B) "Capital facilities" means buildings, structures, other 419
improvements to real property, or tangible personal property 420
having an estimated life or usefulness of ten years or more and 421
serving a lawful purpose of a county, a township, or a city, 422
local, or exempted village school district. 423

       (C) "Cost" of a capital facility means the following: 424

       (1) Costs of construction or expansion of the capital 425
facility, including reasonable design, survey, engineering, 426
environmental, and other professional fees directly related to the 427
construction or expansion; 428

       (2) Costs of acquiring land or improvements thereon, 429
including costs incurred for purchasing interests in land or 430
improvements, court awards or settlements, reasonable appraisal, 431
relocation service, negotiation service, title insurance, expert 432
witness, attorney, and other professional fees directly related to 433
such acquisition. 434

       (D) "Development" means the improvement of land for 435
residential, commercial, or industrial purposes, but not for 436
agricultural purposes. 437

       (E) "Development area" means an area bounded by a single 438
line, designated by a governing board under section 5755.03 of the 439
Revised Code, and located within the territory of the school 440
district, the unincorporated territory of the township, or the 441
unincorporated territory of the county, the governing board of 442
which adopts a resolution under section 5755.03 of the Revised 443
Code. 444

       (F) "Governing board" means a board of county commissioners, 445
a board of township trustees, or the board of education of a city, 446
local, or exempted village school district. 447

       (G) "Land use plan" means a comprehensive plan adopted by a 448
board of county commissioners pursuant to section 303.02 or 713.25 449
of the Revised Code, adopted by a board of township trustees 450
pursuant to section 519.02 of the Revised Code, or adopted by a 451
board of county commissioners or board of township trustees under 452
section 5755.02 of the Revised Code. 453

       (H) "Project improvement" means a capital facility that 454
serves, or will serve when completed, only improvements to real 455
property in a development area or the residents, occupants, or 456
other users of such improvements; provided, that a capital 457
facility that serves or otherwise benefits improvements outside 458
the development area incidentally, or that incidentally serves or 459
benefits persons other than residents, occupants, or other users 460
of improvements in the development area, is not thereby 461
disqualified as a project improvement. 462

       (I) "System improvement" means a capital facility that 463
serves, or will serve when completed, improvements to real 464
property in a development area or the residents, occupants, or 465
other users of such improvements, and improvements to real 466
property outside the development area or the residents, occupants, 467
or other users of such improvements. 468

       (J) "Land use assumptions" means projections, for a period of 469
ten years, of changes in land uses, densities, intensities, or 470
population in a development area. 471

       Sec. 5755.02.  (A) A board of county commissioners or a board 472
of township trustees may adopt a resolution imposing an impact fee 473
under section 5755.03 of the Revised Code only if the board has 474
adopted a land use plan and if the plan, including any 475
modifications or amendments, is in effect throughout the 476
development area when the impact fee resolution is adopted. A 477
board of county commissioners or board of township trustees may 478
adopt a land use plan for a development area in lieu of or in 479
addition to a comprehensive plan adopted under section 303.02, 480
519.02, or 713.25 of the Revised Code. A land use plan adopted 481
under this division shall include land use assumptions applicable 482
to the development area. 483

       (B) Before a governing board may adopt a resolution imposing 484
an impact fee under section 5755.03 of the Revised Code, the 485
governing board shall adopt, by resolution, a capital facilities 486
plan. A capital facilities plan shall be adopted for each 487
development area to be designated in the resolution imposing an 488
impact fee. In the case of a capital facilities plan adopted by a 489
board of county commissioners or board of township trustees, the 490
plan shall be consistent with the land use plan that applies to 491
the development area the capital facilities plan applies to. 492

       The capital facilities plan shall incorporate the following 493
items: 494

       (1) An analysis of the current capacity of existing capital 495
facilities under the jurisdiction of the governing board, the 496
current level of use of such existing capital facilities, existing 497
known commitments for use of current capacity, and any surplus or 498
deficiency in current capacity relative to current and existing, 499
known committed use. Capacity shall be measured in standardized 500
units appropriate to the kind of capital facility included in the 501
analysis based on accepted engineering or planning principles. The 502
analysis shall include among existing capital facilities all the 503
capital facilities of the county, township, or school district of 504
the same kind as the governing board anticipates will be financed 505
with an impact fee imposed in the development area. The analysis 506
shall include among existing capital facilities any capital 507
facilities that have been contracted for or let out to bid, or for 508
which financing has been obtained through the passage of a bond or 509
tax issue or from state, federal, or other sources. 510

       (2) Estimates of the costs to upgrade, improve, expand, or 511
replace existing capital facilities included in the analysis under 512
division (B)(1) of this section solely to meet current capacity 513
and any deficiencies in current capacity, including the cost of 514
upgrading or replacing capital facilities or parts thereof to meet 515
more stringent safety, environmental, or regulatory standards. 516

       (3) A description of additional or expanded capital 517
facilities necessitated by development in the development area, 518
and an estimate of the cost of such additions or expansions. The 519
description shall classify each such addition or expansion as 520
either a project improvement or system improvement. 521

       (C) If a governing board intends to impose an impact fee to 522
finance only a particular class of capital facility, the capital 523
facilities plan required by division (B) of this section may be 524
limited to only that class of capital facility, but the governing 525
board may not adopt a resolution imposing an impact fee to finance 526
a capital facility for which a capital facilities plan has not 527
been adopted. 528

       Sec. 5755.03.  (A) A governing board, by a majority of the 529
board, may adopt a resolution imposing an impact fee upon 530
development occurring within a development area for the purpose of 531
financing all or a part of the cost of project improvements for 532
the area and all or a part of the proportionate cost of system 533
improvements to be financed by imposition of the fee. The 534
resolution shall include all of the following: 535

       (1) A description of the boundaries of the development area; 536

       (2) The total amount of the fee, or a schedule or formula 537
from which the fee amount can be derived; 538

       (3) A description of the project improvements or system 539
improvements to be financed with proceeds from the fee; 540

       (4) If project improvements are to be financed with proceeds 541
from the fee, the percentage of the costs of the project 542
improvements to be financed with such proceeds; 543

       (5) If system improvements are to be financed with proceeds 544
from the fee, the proportionate share of the total costs of the 545
system improvements to be financed with such proceeds; 546

       (6) The date on which imposition of the fee becomes 547
effective, which shall be a date on or after the effective date of 548
the resolution, and the date, if any, after which the fee is not 549
to be imposed; 550

       (7) When the fee is payable and to whom the fee is payable, 551
as provided in section 5755.06 of the Revised Code. 552

       (B) A governing board may include more than one development 553
area in a single resolution, but a separate impact fee shall be 554
imposed for each development area included in the resolution. 555

       A governing board may adopt more than one resolution under 556
this section. 557

       More than one governing board may adopt a resolution with 558
respect to the same development. 559

       (C) The proportionate share of the cost of a system 560
improvement that may be financed with an impact fee under this 561
chapter shall not exceed the proportionate share of the system 562
improvement that serves the development area in which the fee is 563
imposed as indicated by applicable engineering and planning 564
studies regarding the capacity and usage patterns of improvements 565
of that type. The proportionate share of the cost of a system 566
improvement that may be financed with an impact fee under this 567
chapter shall not include the cost of remedying existing 568
deficiencies in system improvements. 569

       (D) An impact fee imposed under this chapter shall not exceed 570
the cost of the project improvements and the proportionate share 571
of the costs of the system improvements designated in the 572
resolution after deduction of any of such costs paid or payable 573
from sources other than the fee and any credits allowed under 574
section 5755.07 of the Revised Code. In determining the 575
proportionate share of the cost of a system improvement, the 576
governing board shall compute a time-price differential to account 577
for the duration during which the development subject to the 578
impact fee places demand on the system improvement in relation to 579
the time the improvement is first placed into service and the 580
estimated remaining useful life of the improvement. 581

       (E) An impact fee imposed under this chapter for a 582
development area shall apply to every development in the 583
development area for which a building permit must be issued during 584
the duration of the fee as provided in the resolution imposing the 585
fee, unless the governing board determines, as provided in a 586
resolution, that the development does not contribute to demand for 587
the capital facility financed with the fee. 588

       (F) The boundary of a development area as designated in a 589
resolution adopted under division (A) of this section may be 590
changed by adoption of a subsequent resolution that describes the 591
new boundaries. 592

       (G) A resolution adopted under this section takes effect on 593
the date specified in the resolution unless the governing board 594
provides in the resolution that it is not to take effect unless 595
approved by electors of the unincorporated territory of the 596
county, unincorporated territory of the township, or school 597
district. If the governing board provides that the resolution is 598
not to take effect unless so approved, the governing board shall 599
proceed as provided in section 5755.04 of the Revised Code. 600

       (H) If a resolution is to take effect without approval of 601
voters, the governing board, upon adoption of a resolution under 602
this section, shall certify a copy of the resolution to any 603
planning commission or other authority having planning or zoning 604
jurisdiction within the development area and to the building 605
department or other authority responsible for issuing building 606
permits in the development area if that department or authority is 607
not under the jurisdiction of the governing board. If the