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A. The revenues received from the systems development charges shall be budgeted and expended as provided by state law. Such revenues and expenditures shall be accounted for as required by state law. Their reporting shall be included in the City’s Comprehensive Annual Financial Report required by ORS Chapter 294. Reimbursement Fees shall be spent on capital improvements associated with the systems for which the fees are assessed. Improvement fees shall be spent only on capacity increasing improvements. The portion of such improvements funded by improvement SDCs must be related to current or projected development.

B. The capital improvement plan required by state law as the basis for expending the public improvement charge component of systems development charge revenues shall be the Ashland Capital Improvements Plan (CIP) or public facility plan and the CIP of any other governmental entity with which the City has a cooperative agreement for the financing of commonly used public improvements by the collection of systems development charges, provided the plan is based on methodologies conforming with State Law and is consistent with the City’s CIP and the City’s Comprehensive Plan. (Ord. 2791 § 3, amended, 1997)