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A. Impact fees collected pursuant to this chapter:

1. Shall be used for existing and new system improvements that will reasonably benefit new development;

2. Shall not be used to make up for preexisting system improvement deficiencies that do not benefit new development; and

3. Shall not be used for maintenance or operation of system improvements.

B. Impact fees shall be used for system improvements in conformance with the capital facilities element of the comprehensive plan, including, but not limited to, planning, land acquisition, right-of-way acquisition, site improvements, necessary and related off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, applicable impact fees or mitigation costs, and other associated expenses capable of capitalization.

C. Impact fees may be used to recoup system improvement costs previously incurred by the city to the extent that new growth and development will be served by the previously constructed improvements or incurred costs.

D. In the event that bonds or similar debt instruments are or have been issued for the advanced provision of system improvements for which impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent permissible under state law and to the extent that the system improvements provided are consistent with the requirements of this section and serve new growth or development. (Ord. 005/2019 § 9)