Sec. 17-208. - Fee revenue accounts.

Pursuant to Government Code section 66006, an impact fee reserve account is hereby established for each fee category. The fees paid to the city pursuant to the provisions of this article shall be deposited into the appropriate impact fee reserve account and used solely for the purpose described in this article. All monies deposited into the reserve accounts shall be held separate and apart from other city funds. All interest or other earnings on the unexpended balance in the reserve account shall be credited to the reserve account.

(Ord. No. 2286, § 3(Exh. A), 12-1-15)

Sec. 17-209. - Distribution of impact fee funds.

All monies and interest earnings in each of the impact fee reserve accounts shall be expended on the construction and related design and administration costs of constructing public facility improvements and purchasing land and equipment identified in the Nexus Study. Such expenditures may include, but are not necessarily limited to the following:

(1)

All direct and indirect costs incurred by the city to construct facility improvements pursuant to this article, including, but not limited to, the cost of land and right-of-way acquisition, planning, legal advice, engineering, design, construction, construction management, materials and equipment.

(2)

Costs of issuance or debt service associated with bonds, notes or other security instruments issued to fund facility improvements identified.

(3)

Administrative costs incurred by the city in establishing or maintaining the impact fee reserve accounts required by this article, including but not limited to the cost of studies to establish the requisite nexus between the fee amount and the use of fee proceeds and yearly accounting and reports.

(Ord. No. 2286, § 3(Exh. A), 12-1-15)

Sec. 17-210. - Periodic review and inflation adjustment.

(a)

Periodic review. The city shall comply with reporting requirements of the Mitigation Fee Act. For facilities to be funded by a combination of impact fees and other revenues, identification of the source and amount of these non-fee revenues shall be included in the report. Identification of the timing of receipt of other revenues to fund the facilities is also important.

(b)

Inflation adjustment. To account for inflation in facility construction costs, the fee imposed by this article shall be adjusted automatically on July 1 of each fiscal year, beginning on July 1, 2016, by a percentage equal to the appropriate Construction Cost Index as published by Engineering News Record, or its successor publication, for the preceding twelve (12) months.

(Ord. No. 2286, § 3(Exh. A), 12-1-15)

Sec. 17-211. - Fee refunds.

Fees collected pursuant to this article that remain unexpended or uncommitted for five (5) or more fiscal years after deposit into the impact fee reserve account may be refunded as provided by state law.

(Ord. No. 2286, § 3(Exh. A), 12-1-15)

Sec. 17-212. - Fee revision by resolution.

The amount of the DIFs and the formula for the automatic annual adjustment established by this article may be reviewed and revised periodically by resolution of the city council. This article shall be considered enabling and directive in this regard.

(Ord. No. 2286, § 3(Exh. A), 12-1-15)