(1) The reimbursement fee shall be computed by the City for all the benefiting properties, including the applicant’s property. Property dedicated as public street right-of-way shall be excluded. Property owned in fee simple by the City shall be included. The fee shall be calculated separately for each type of improvement. The applicant shall not be reimbursed for the applicant’s share of the fee.

(2) The cost to be reimbursed to the applicant shall be limited to the cost of construction, engineering, and off-site right-of-way acquisition. Engineering shall include surveying and inspection and shall not exceed 13.5 percent of eligible construction cost. Right-of-way acquisition costs shall be limited to the reasonable market value of land or easements purchased by the applicant from a third party to complete off-site improvements.

If SDC credits are available for the oversizing of sanitary sewer or storm drain lines, the net amount to be reimbursed shall be determined by subtracting the value of the SDC credits from the total eligible costs, as described above, and as determined by the City Engineer.

(3) No reimbursement shall be allowed for financing costs, permits or fees required for construction permits, land or easements dedicated by the applicant, costs which are eligible for systems development charge credits, or any costs which are not clearly documented.

(4) The City Council may establish an interest rate to be applied to the reimbursement fee as a return on the investment of the applicant. The interest rate shall be fixed and computed against the reimbursement fee as simple interest and will not compound.