§ 3.40.080. Use of funds.

A.

Funds collected from development impact fees shall be used for the purpose of paying:

1.

The actual or estimated costs of constructing and/or improving the public facilities within the town to which the specific fee or fees relate, including any required acquisition of land or right-of-way therefor;

2.

Reimbursing the town for the development's share of those public facilities already constructed by the town or to reimburse the town for costs advanced, including, without limitation, administrative costs incurred with respect to a specific public facilities project; or

3.

To reimburse other developers who have constructed public facilities described in the resolution adopted pursuant to Section 3.40.020 of this chapter, where those facilities were beyond that needed to mitigate the impact of the developer's project or projects.

B.

In the event that bonds or similar debt instruments are issued for advanced provision of public facilities for which development 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 provided are of the type to which the fees involved relate.

C.

Funds collected in the Southside Study Area, Westside Area and in each of the drainage basins prior to the adoption of the ordinance codified in this chapter shall remain in their current funds and can only be expended for projects within the areas from which they were collected.

D.

Funds may be used to provide refunds as described in this chapter.

E.

No funds shall be used for periodic or routine maintenance.

F.

The town shall be entitled to retain not more than three percent of the funds collected as compensation for the expense of collecting the fee and administering this chapter.

G.

Each fiscal year, the town manager or his duly authorized designee, shall present to the town council a proposed five-year capital improvement program for the various public facilities referenced in the resolution adopted pursuant to Section 3.40.020 of this chapter assigning moneys (including any accrued interest) from the funds to specific improvement projects and related expenses. Moneys, including any accrued interest, not assigned in any fiscal year shall be retained in the same fund until the next fiscal year except as provided by the refund provisions of Section 3.40.090 of this chapter.

H.

The town shall be entitled to make loans of funds collected from one fund to another; provided, that the loans are properly recorded in the records of the department of administrative services and repaid with interest equal to the interest earned by the town on its funds invested with the local agency investment fund (LAIF) through the state of California. (Ord. 240 §1(part), 1994)