A. Reimbursement fees shall be spent on capital improvements associated with the systems for which the fees are assessed, including expenditures relating to repayment of indebtedness.

B. Improvement fees shall be spent only on capacity increasing improvements for which the fees are assessed, including repayment of indebtedness. An increase in system capacity occurs if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of such improvements funded by improvement SDCs must be related to the need for increased capacity to provide service for future users.

C. Notwithstanding subsections A and B of this section, SDC revenues may be expended on the direct costs of complying with the provisions of this chapter, including the costs of developing SDC methodologies, system planning, providing an annual accounting of SDC expenditures and other costs directly related to or required for the administration and operation of this SDC program. (Ord. 3174 § 1, amended, 03/19/2019; Ord. 2791 § 3, amended, 1997)