9-2-18: ESTABLISHMENT OF ACCOUNTS:

   A.   Specified: To ensure that impact fees will benefit the appropriate development, the City will establish separate interest bearing impact fee trust accounts for each category of capital improvement within each service area for which the impact fee is collected.

   B.   Earned Interest: Interest earned shall be credited to the account on which it was earned and shall be used solely for the purposes specified in the CIP.

   C.   Accounting; Time Limit For Expending Funds: The City shall establish adequate financial and accounting controls to ensure that impact fees are utilized solely for purposes authorized by this chapter. 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 chapter. Impact fees shall be expended within a reasonable period of time, but not to exceed a maximum of eight (8) years, unless extended as provided by subsection D of this section from the date the fees were collected, on a first-in, first-out basis (FIFO). Funds shall be deemed expended for purposes of this chapter when payment for a capital cost has been approved by the City.

   D.   Extension Of Time Limit: The City may hold the impact fees for longer than eight (8) years, but no more than eleven (11) years from the date the fees were collected, if it identifies in writing:

      1.   A reasonable cause why the fees should be held longer than the eight (8) years; and

      2.   An anticipated date by which the fees will be expended.

   E.   Refunds: If it is determined that the impact fees have not been expended for capital facilities identified by the CIP within the authorized time frame and any permitted extensions, then such fees, including interest shall be refunded as set forth by this chapter.

   F.   Annual Financial Report: A financial report on the impact fee trust accounts shall be provided annually to the Mayor and Council. The report shall include:

      1.   The amount of all development impact fees collected, appropriated or spent during the preceding year by category of public facility and service area;

      2.   The percentage of tax and revenue other than impact fees collected appropriated or spent for system improvements during the preceding year by category of public facility and service area;

      3.   The length of time that unexpended impact fees have been held and the expiration date of those impact fees. (Ord. 43-16, 12-13-2016, eff. 1-1-2017)