A. Reimbursement Fees: Reimbursement fees shall be spent only on capital improvements associated with the system for which the fees are assessed, including expenditures relating to repayment of indebtedness.
B. Improvement Fees: Improvement fees shall be spent only on capacity increasing capital improvements associated with the system for which the fee is assessed, including expenditures relating to the repayment of future debt for the improvements. An increase in system capacity occurs if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of such improvements funded by improvement fees must be related to current or projected development.
C. Expenditures Allowed: System development charge revenues may be expended on the direct costs of complying with the provisions of this chapter, including the costs of developing system development charge methodologies and accounting of system development expenditures.
D. Prohibited Expenditures:
1. System development charge revenues shall not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements.
2. System development charge revenues shall not be expended for costs of the operation or routine maintenance of capital improvements. (Ord. 629, 2-4-2004)