(a) Funds collected as system development charges shall be used for system improvements.
(b) No funds shall be used for periodic or routine maintenance.
(c) Funds collected as system development charges shall be used exclusively for system improvements in the System Development Charge District in which the project is located.
(d) Funds shall be construed as being expended in the order in which they are collected, in accordance with "First-In First-Out" principles.
(e) Each fiscal period the Finance Director shall present to the City Council an annual report, describing the amount of system development charges collected, encumbered and used during the preceding year by category for each System Development Charge District. Monies, including any accrued interest, not encumbered in any fiscal period shall be retained in the same system development charge account(s) until the next fiscal period except as provided in Section 1157.11 (Refunds) and Section 1157.14 (Distribution & Disbursement of Funds) of this chapter.
(f) System development charges may be used for the payment of principal and interest on bonds, notes or other financial obligations or instruments by or on behalf of the City to finance wastewater facilities.
(g) The system development charges will be used, first, to retire debt service which is pending for the year in which the system development charges were collected and which the City incurred to provide system improvements that accommodate new development; second, to reimburse other accounts which may have advanced funds to finance debt service; and, third, to repay bond principal.
(Ord. 2635. Passed 1-13-11.)
(Ord. 2635. Passed 1-13-11.)