The city council finds that the residential development of land in the city creates a demand on and need for public library facilities and services which cannot be met by the ordinary revenues of the city. The demand and need for such facilities and services results directly from the increase in density in the city by the development of land that has heretofore been vacant and by the construction of additional residential units on land heretofore developed. The most practical and equitable method of collecting the funds necessary to provide such library facilities and services is to establish and impose an impact fee upon the construction of new residential units in the city and to expend those funds in a manner intended to mitigate the adverse effects of new residential units on library facilities and services. In establishing and imposing this fee, the city council has determined that there is a reasonable relationship between the amount and use of the fee, the type of development on which the fee is imposed, and the need for and/or cost of the public facility or service attributable to the development.

As used in this chapter, the term "new residential unit" shall mean (a) the construction of a residential unit on land that has been vacant prior to such construction, and (b) the construction of an additional residential unit on land that was developed prior to such construction. A "new residential unit" does not include the reconstruction of a residential unit that was destroyed by fire, flood, earthquake or other disaster to the extent that the square footage of the reconstruction does not exceed the square footage of the area destroyed.

A library impact fee is imposed upon the construction of each new residential unit in the city for which a building permit is issued on or after the effective date of this chapter. The amount of the impact fee shall be two hundred dollars per unit. The amount of the impact fee may hereafter from time to time be reviewed and adjusted by the city council in accordance with available census data, actual library construction costs, and actual costs of library books and reference materials.

The impact fee shall be due and payable concurrently with the application for a building permit. No building permit shall be issued and no person shall commence the construction of any new residential unit in the city without the library impact fee due the city under this chapter first having been paid.

All proceeds from the impact fee collected under this chapter shall be deposited into a special fund of the city entitled "library facilities and services," which fund is created. Expenditures from the fund shall be used solely for the purpose of acquiring, building, improving, expanding, maintaining, and operating public libraries located within the city, including but not limited to the purchase of books, reference materials, equipment, furnishings, and other necessary supplies. Any interest income earned by moneys in the fund shall also be deposited into the fund.