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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 bylaw 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 />meet for sanitary sewer or of paying an equivalent assessment for sanitary <br />sewer and the obligation is secured by alien 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 far 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 />Ordinance - 8 <br />