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i' <br /> sanitary sewer or storm sewer. <br /> (2) If development is commenced without an appropriate permit or <br /> connection is made to the water system, sanitary sewer system or storm sewer <br /> system without an appropriate permit, the systems development charge is <br /> immediately payable upon the earliest date that a permit was required. <br /> (3) The city manager or the manager's designee shall collect the <br /> systems development charges from the permittee. The city manager or the <br /> manager's designee shall not issue any permit or allow connection described <br /> in subsection 7.720(1) until the charge has been paid in full or until pro- <br /> vision for installment payments has been made within the limits prescribed <br /> in subsection 7.190(2). <br /> (4) Except as provided in this subsection, the obligation to pay <br /> the unpaid systems development charge and interest thereon shall be secured <br /> by a lien against the property upon which development is to occur. Such <br /> liens shall arise upon issuance of the permit requiring the system development <br /> charge aid shall be entered on the city's lien docket and the debt secured <br /> thereby may be collected in the same manner as allowed by law for street <br /> improvement assessment liens. In lieu of such lien, upon application of the <br /> permittee the obligation to pay the unpaid systems development charge and <br /> interest thereon may be secured by property, bond, deposits, letter of <br /> credit or other security acceptable to the city manager or the manager's <br /> designee. <br /> (5) When the obligation to pay the unpaid systems development <br /> charge is imposed at the time of levying a local improvement district assess- <br /> ment for sanitary sewer or of paying an equivalent assessment for sanitary <br /> sewer and the obligation is secured by a lien against the real property being <br /> developed, the person paying the systems development charge in installments <br /> may apply for deferral of the payments as provided in section 7.195. <br /> 7.725 SDC - Exemptions. The following are exempt from the systems devel- <br /> opment charge imposed in section 7.705: <br /> (a) Except for the systems development charge attributable <br /> to the sanitary sewer system and the storm sewer system, all devel- <br /> opment which existed or for which the city had received a completed <br /> building permit application on or before June 30, 1991 or for which <br /> a building permit was issued before that date. <br /> (b) Any conducting of a building or mining operation, or mak- <br /> ing of a physical change in the use or appearance of a structure or <br /> land, which does not increase the usage of any capital improvement <br /> or which does not create the need for additional capital improve- <br /> ments. Except for the initial connection to the sanitary sewer by <br /> an existing single family dwelling, any modification to a single <br /> family dwelling that does not increase the number of dwelling units <br /> within the structure or does not change the use of the structure is <br /> exempt under this provision. <br /> 7.730 SDC - Credits. <br /> (1) As used in this section and in the definition of "Qualified <br /> public improvements" in section 7.010 the word "contiguous" means: in a <br /> public way which abuts. <br /> (2) When development occurs that must pay a system development <br /> <br /> Ordinance - 8 <br /> <br />