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sanitary sewer or storm sewer. <br />~2} If development is commenced without an appropriate permit or <br />connection i s made to the water system, sanitary sewer system ar storm sewer <br />system without an appropriate permit, the systems development charge is <br />~mmed~ately payable upon the earliest date that a permit was required. <br />43} 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 ar allow connection described <br />i n subsection 1.120 ~ 1 } unti 1 the charge has been paid i n full or anti 1 pro- <br />vision for installment payments has been made within the limits prescribed <br />in subsection 1.1902}. <br />~4} Except as provided i n this subsection, the obligation to pay <br />the unpaid systems development charge and interest thereon sha11 be secured <br />by a 1 i en against the property upon which development i s to occur. Such <br />1 i ens sha11 arise upon issuance of the permit requiring the system development <br />charge and shall be entered an the city's 1 i en docket and the debt secured <br />thereby may be collected i n the same manner as al 1 owed by 1 aw for street <br />improvement assessment 1 fens. In 1 ieu of such 1 ien, 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, 1 etter of <br />credit or other security acceptable to the city manager ar the manager's <br />designee. <br />~ 5} When the obligation to pay the unpaid systems development <br />charge i s imposed at the time of 1 evyi ng a 1 ocal improvement district assess- <br />ment for sanitary sewer or of paying an equivalent assessment for sanitary <br />sewer and the obl i gati an i s secured by a 1 i en against the real property being <br />developed, the person paying the systems development charge i n i nstal i ments <br />may apply for deferral of the payments as provided i n section 1.195. <br />1.125 SDC -Exemptions. The fallowing are exempt from the systems devel- <br />opment charge imposed in section 1.105: <br />~a} Except for the systems development charge attri butabl e <br />to the sanitary sewer system and the storm sewer system, all level - <br />apment which existed or for which the city had recei ved a compl eted <br />building permit application an or before June 30, 1991 ar far which <br />a bui 1 di ng permit was issued before that date. <br />fib} Any conducting of a bui 1 di ng or mining operation, or mak- <br />i ng of a phys i cal change i n 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 capi tat improve- <br />ments. Except for the initial connection to the sanitary sewer by <br />an existing single f ami 1 y dwelling, any modification to a s i ngl e <br />family dwelling that does not increase the number of dwel 1 i ng units <br />within the structure or does not change the use of the structure i s <br />exempt under this provision . <br />1.130 SDC -Credits. <br />~ 1 } As used i n this section and i n the definition of "Qualified <br />public improvements" in section 1.014 the word "contiguous" means: in a <br />public way which abuts. <br />~2} When development occurs that must pay a system development <br />Ordinance - S <br />