(a) Impact Fee Accounts. An impact fee account shall be established by the City for each category of capital improvements for which impact fees are imposed. Such account shall clearly identify the category, account or fund for which the impact fee has been imposed. All impact fees collected by the City shall be deposited into the appropriate impact fee account, which shall be interest bearing. All interest earned on monies deposited to such account shall be credited to and shall be considered funds of the account. The funds of each such account shall be capable of being accounted for separately from all other City funds, over time. The City shall establish and implement necessary accounting controls to ensure that the impact fee funds are properly deposited, accounted for and appropriated in accordance with this chapter and any other applicable legal requirements.
(b) Appropriation of Impact Fee Funds.
(1) Impact fee funds may be appropriated for capital improvements and capital improvement expenditures and for the payment of principal, interest and other financing costs on contracts, bonds, notes or other obligations issued by or on behalf of the City or other applicable local governmental entities to finance such capital improvements. All appropriations from impact fee accounts shall be detailed on a form provided for such purposes and filed within the Finance Department.
(2) Impact fees shall be appropriated only:
A. For the particular category of capital improvements for which they were imposed, calculated and collected;
B. Within the impact fee district where collected, unless the impact fee funds will be appropriated for a capital improvement necessitated by or serving the new land development as provided herein; and
C. Within five years of the beginning of the fiscal year immediately succeeding the date of collection, unless such time period is extended as provided herein.
(3) Impact fees may not be appropriated for:
A. Funding maintenance or repair of capital improvements nor for operational or personnel expenses associated with the provision of the capital improvements;
B. A purpose other than system improvement costs to create additional improvements to serve new growth;
C. A category of system improvements other than that for which they were collected; or
D. The benefit of service areas other than for which they were imposed.
(4) Impact fee funds may be appropriated for a capital improvement located outside of the district where collected only if the demand for the capital improvement is generated in whole or in part by the new land development or if the capital improvement will actually serve the new land development.
(5) Impact fee funds may be appropriated beyond five years from the beginning of the fiscal year immediately succeeding the date of collection if the appropriation is for a capital improvement which requires more than five years to plan, design and construct, and the demand for the capital improvement is generated in whole or in part by the new land development, or if the capital improvement will actually serve the new land development. Such appropriations shall be fully documented on forms provided by the City for such purposes.
(c) Procedure for Appropriation of Impact Fee Funds.
(1) The City shall each year identify capital improvement projects anticipated to be funded in whole or in part with impact fees. The capital improvement recommendations shall be based upon the impact fee annual review set forth herein and such other information as may be relevant, and may be part of the City's annual budget and capital improvements programming process.
(2) The recommendations shall be consistent with the provisions of this chapter, the particular impact fee ordinances, or other applicable legal requirements and any guidelines adopted by the City Council.
(3) The City Council may include impact fee-funded capital improvements in the City's annual budget and capital improvements program. If included, the description of the capital improvement shall specify the nature, location, capacity to be added, service area, need/demand for, and the anticipated timing of completion of the capital improvement.
(4) The City Council may authorize impact fee-funded capital improvements at such other times as may be deemed necessary and appropriate by the City Council.
(5) The City Council shall verify that adequate impact fee funds are or will be available from the appropriate impact fee account for the particular category of capital improvements.
(Ord. 2006-36. Passed 10-23-06.)