10-2-9: USE OF FUNDS:
   A.   Pursuant to this chapter, impact fees:
      1.   Pursuant to and consistent with the requirements of Montana Code Annotated section 7-6-1603(1), shall be used for public improvements that are reasonably related to the benefits accruing to the development;
      2.   Pursuant to and consistent with the requirements of Montana Code Annotated section 7-6-1602(7)(c), shall not be imposed to correct existing deficiencies in public facilities;
      3.   Pursuant to and consistent with the requirements of Montana Code Annotated section 7-6-1602(7)(e), shall not be used for operation or maintenance of public facilities;
      4.   Pursuant to and consistent with the requirements of Montana Code Annotated section 7-6-1603(5), shall not be used for remodeling, rehabilitation, or other improvements to an existing structure or for rebuilding a damaged structure unless there is an increase in units that increase service demand, and the impact fees are used only for the net increase between the old and new demand; and
      5.   Pursuant to and consistent with the requirements of Montana Code Annotated section 7-6-1601(1)(b), shall not be used for consumable supplies.
   B.   Impact fees may be spent for public improvements, including, but not limited to, planning, land acquisition, right-of-way acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and any other expenses which can be capitalized.
   C.   Impact fees may also be used to recoup public improvement costs previously incurred by the City to the extent that new growth and development will be served by the previously constructed improvements or incurred costs.
   D.   In the event that bonds or similar debt instruments are or have been issued for the advanced provision of public improvements for which impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this section and are used to serve the new development. (Ord. 18-38, 12-3-2018)