§ 51.87  ACCOUNTING AND USE OF IMPACT FEES.
   (A)   Accounting for impact fees.
      (1)   The city shall establish separate interest-bearing accounts for water system impact fees.
      (2)   Interest earned on each account shall be credited to that account, and shall be used solely for the purposes authorized in this subchapter.
      (3)   The city shall establish and maintain financial and accounting controls to ensure that impact fees disbursed from an account are used solely for the purposes authorized in this subchapter. Disbursement of funds shall be authorized by the city at such times as are reasonably necessary to carry out the purposes and intent of this subchapter.
      (4)   The city shall maintain financial records for each account which show the source and disbursement of all funds. The records shall be open for public inspection during ordinary business hours.
   (B)   Use of impact fee accounts.
      (1)   Impact fees collected under this subchapter shall be used to pay or recoup the costs of constructing capital improvements or facility expansions identified in the Capital Improvements Plan. Construction costs include the construction contract price, surveying and engineering costs, and land acquisition costs (including purchase price, court awards and costs, attorney's fees, and expert witness fees).
      (2)   Impact fees may be used to pay the principal and interest and other finance costs on bonds, notes or other obligations issued by or on behalf of the city to finance capital improvements or facility expansions identified in the Capital Improvements Plan.
      (3)   Impact fees may be used to pay fees to an independent qualified engineer or financial consultant (i.e., an engineer or consultant who is not an employee of the city) for preparing or updating the Capital Improvements Plan.
      (4)   Impact fees collected under this subchapter shall not be used to pay for any of the following:
         (a)   Construction or acquisition of capital improvements or facility expansions other than those identified in the Capital Improvements Plan;
         (b)   Repair, operation, or maintenance of existing or new capital improvements or facility expansions;
         (c)   Upgrade, expansion or replacement of existing capital improvements that serve existing uses in order to meet stricter safety, efficiency, environmental or regulatory standards;
         (d)   Upgrade, expansion, or replacement of existing capital improvements to provide better service to existing uses; or
         (e)   Administrative and operating costs of the city.
      (5)   The city may pledge impact fee revenues as security for the payment of debt service on a bond, note, or other obligation issued to finance a capital improvement or facility expansion identified in the Capital Improvements Plan if the City Council certifies in an ordinance or resolution that none of the revenues will be used or expended for an improvement or expansion not identified in the Plan.
   (C)   Exceptions and exemptions.
      (1)   Impact fees shall not be collected from any local taxing unit, as defined in the state tax code that is authorized to impose and is imposing ad valorem taxes on property.
      (2)   No wastewater impact fee shall be charged for an irrigation meter.
      (3)   No impact fee shall be charged for a fire line meter that serves only a fire suppression system.
(Ord. 746, passed 4-4-2017)