A. Establishment Of Reserve Accounts: Pursuant to California Government Code section 66006, there is hereby established the water system capacity fee reserve account (the reserve account) in the district water development fund. Any fee paid pursuant to the provisions of this chapter shall be placed into the reserve account established for such fee and used solely for the purpose of implementation of the applicable public purpose for which the fee was established. All monies in the reserve account established by this chapter shall be held separate and apart from other district funds. All interest or other earnings of the reserve account shall be credited to the reserve account.
B. Expenditures From Fee Reserve Accounts: All monies and interest in the reserve account established by this chapter shall be expended on the implementation of the applicable public purpose for which the fee was established:
1. The reimbursement for all direct and indirect costs incurred by the district for such implementation pursuant to this chapter including, but not limited to, the costs of land acquisition, planning, legal advice, engineering, design, construction and equipment.
2. The reimbursement for all costs incurred by the district and associated with the administration of each account.
3. The issuance of bonds or notes, secured by the reserve account, for such implementation. (Ord. 09-230, 1-8-2009)