(6)__Considers the impact of the growth rate ordinance on neighboring communities;

C.__A requirement that the number of permits issued annually under the growth rate ordinance must be no less than the average annual number of permits issued by the municipality for the 10 years prior to adoption of the growth rate ordinance; and

D.__A requirement in the growth rate ordinance that the municipality review and update the justification in the comprehensive plan described in paragraph B every 5 years to provide an analysis as to whether the growth rate ordinance is still necessary and how the growth rate ordinance may or may not be adjusted to meet current conditions.

3. Growth rate ordinances that apply outside designated growth areas.__Notwithstanding the provisions of subsection 2, a municipality with a comprehensive plan adopted under the planning and land use regulation laws under this chapter may adopt an ongoing growth rate ordinance that applies only to designated rural areas if:

A.__The growth rate ordinance is recommended in the plan as a mechanism for guiding growth; and

B.__The comprehensive plan lays out meaningful policies and strategies for accommodating most of the community's future growth in designated growth areas.

SUMMARY

This bill outlines the parameters within which a municipality may adopt a growth rate ordinance. Temporary growth rate ordinances may be enacted only to slow development while a community works toward solving the problems necessitating the growth rate ordinance. A permanent growth rate ordinance may be enacted only as part of an integrated growth management strategy and also may be used in designated rural areas as a mechanism to guide growth within a community. The bill also clarifies that a municipality with comprehensive plan may implement a growth rate ordinance in its rural area only.