A. School impact fees may be used by the affected school district only for capital facilities that are reasonably related to the development for which they were assessed and may be expended only in conformance with the affected school district’s adopted capital facilities plan.

B. In the event that bonds or similar debt instruments are issued for the advance provision of capital facilities for which school impact fees may be expended, and where consistent with the provisions of the bond covenants and state law, school impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the capital facilities provided are consistent with the requirements of this section.

C. The responsibility for assuring that school impact fees are used for authorized purposes rests with the affected school district. All interest earned on a school impact fee account must be retained in the account and expended for the purpose or purposes for which the school impact fees were imposed, subject to the provisions of MMC 3.50.170.

D. The affected school district shall provide the city an annual report showing the source and the amount of school impact fees received by the district and the capital facilities financed in whole or in part with those school impact fees. The annual report shall be submitted to the city collectively with the affected school district’s capital facilities plan. If the affected school district has previously submitted a biannual plan, the annual report shall be due on the anniversary date of the previously submitted plan. If an annual report is not submitted as required, the city may withhold deposit of future impact fees until the annual report has been submitted to the city. (Ord. 005/2019 § 7)