(A) The water system impact fees collected pursuant to this chapter shall be deposited into a fund called the city water system improvement fund. The fees deposited in the above-mentioned fund shall be used only for financing the construction and acquisition of additions and extensions of the city water system and all components thereof, including wells, distribution facilities, treatment facilities, and other appurtenant facilities, in order to provide additional water service capacity to those new customers who connect to the city's water system. Financing of the system is to include, but not be limited to, principal on the bonds or notes proceeds which have been or will be expended for the expansion, extensions, and additions of the city's water system to accommodate growth.
(B) The City Commission may by resolution provide for the application of some or all of the water impact fee to the payment or security for the payment of existing or future revenue bonds or notes issued in whole or in part for the purposes set out in division (A) above, provided that the amount of water impact fee applied to the payment of such bonds or notes shall not exceed the amount of bond or notes proceeds actually expended for such purpose at the average rate borne by the bonds or notes. Such application or pledge may be made directly in the proceedings authorizing such bonds or notes or in an agreement with an insurer of bonds or notes to assure such insurer of additional security.
(Ord. 188, passed 5-17-84; Am. Ord. 1518, passed 11-6-14)