(1) Per RCW 82.02.080, the current owner of property on which an impact fee has been paid may receive a refund of such fee if the fees are not expended or encumbered consistent with the requirements of this section.

(2) In determining whether impact fees have been encumbered, impact fees must be considered encumbered on a first-in, first-out basis.

(3) The holder of a development permit may request and must receive a refund, including interest earned on the impact fees, when the building permit for which the impact fee has been paid has lapsed for noncommencement of construction. A partial refund must be provided where the project for which a building permit has been issued has been altered, resulting in a decrease in the amount of the impact fee due.

(4) The current owner likewise may receive a proportionate refund when the public funding of applicable service area projects by the end of such 10-year period has been insufficient to satisfy the ratio of public to private funding for such service area as established in the capital facilities plan. The city must notify potential claimants by first-class mail at the last known address of each claimant.

(5) The request for a refund must be submitted to the city treasurer in writing within one year of the date the right to claim a refund arises or within one year of the date notice is given, whichever is later. Any impact fees that are not expended within these time limitations and for which no application for refund has been made as herein provided must be retained and expended on the indicated capital facilities. Refunds of impact fees under this subsection must include any interest earned on the impact fees.

(6) A developer may request and must receive a refund, including any interest earned on the impact fees, when the developer does not proceed with the development activity and no impact has resulted. (Ord. 1520 § 1 (Exh. A), 2023).