(A) Trust Fund. A local Water Impact Fee Trust Fund is hereby established for the purpose of ensuring that the impact fees collected, pursuant to this subchapter, are designated for the accommodation of impacts reasonably attributable to new development that paid the local impact fees.
(B) Trust Fund management. All local impact fees collected by the city pursuant to this subchapter shall be promptly deposited into the local Water Impact Fee Trust Fund as appropriate. The Impact Fee Trust Fund shall be maintained in interest bearing accounts. Monies in the Trust Fund shall be considered to be spent in the order collected, on a first-in/first-out basis. These funds shall contain only local water fees collected pursuant to this subchapter, plus any interest which may accrue from time to time on each such fund.
(C) Trust Fund limitations. The following limitations shall apply to the use, and expenditure, of local impact fees collected, and deposited, in the trust funds:
(1) Each local impact fee imposed pursuant to this subchapter may be assessed, collected, and expended only for the planning, design, and construction of new water facilities, or of capital improvements to existing water facilities that expand the system’s capacity, or for the recoupment of prior capital improvements to water facilities that created capacity available to serve new development;
(2) The local water impact fees may be pledged to the payment of bonds issued by the city to finance water capital improvements, or water facilities for which the local impact fees may be imposed;
(3) No local impact fee shall be assessed for, or expended for, the operation, or maintenance, of any water facility, or for the construction, or improvement, of water facilities that do not create additional capacity;
(4) No monies from the Trust Fund shall be spent for periodic, or routine, maintenance, rehabilitation, or replacement of any facility of any type, or to cure deficiencies in capital water facilities existing on the effective date of this subchapter; and
(5) Monies, as described in § 50.33.
(Ord. 2019-13, passed 7-22-2019)