Section 2-236. Capital expansion trust funds.
(a) Established. The following capital expansion trust funds are hereby established:
(1) parks and recreation services special revenue fund;
(2) Library services capital expansion special revenue fund;
(3) General government services capital expansion special revenue fund;
(4) Police protection capital expansion special revenue fund; and
(5) Fire protection capital expansion special revenue fund.
(b) Collection; deposit. Upon collection of the applicable impact fees imposed by this division, the same shall be earmarked to ensure that the impact fees are ultimately expended in connection with the improvements for which they were paid, by crediting the impact fees to the appropriate capital expansion trust fund or account. Notwithstanding the foregoing, however, the designation and establishment of any capital expansion trust fund or account shall not be construed to require the establishment of any completely independent, self-balancing funds or accounts, as such terms are commonly defined and used in governmental accounting, but rather is intended solely to constitute an earmarking of the impact fees collected for certain purposes. The impact fees of the earnings thereon may be deposited immediately upon collection in five separate interest-bearing bank accounts established in the names of each of the capital expansion trust funds or accounts; a single, interest-bearing bank account; an interest-bearing bank account in which other funds of the city are on deposit; or any combination of the foregoing; provided that, in each case, the account or funds are with a depository authorized to receive deposits of city funds and that standard accounting records are maintained to reflect the earmarking of the monies therein for the various purposes of the capital expansion trust funds or accounts. The capital expansion trust funds or accounts shall be maintained on the books of the city as separate and distinct from all other funds and accounts of the city. Interest earned on the impact fees shall be credited to each of the capital expansion trust funds or accounts in the appropriate percentages.
(c) Use.
(1) Funds credited to each capital expansion account shall be used only for the purpose of expansion or acquisition of capital facilities or equipment for the particular service named in each account. Expenditures from each account shall be specifically approved by the city council, shall be limited to the expansion or acquisition of such capital facilities, or for payments, including sinking fund payments, on bonds or other certificates of indebtedness executed for the purpose of expansion or acquisition of those facilities or equipment. Before authorizing an expenditure from any one of these trust accounts, the city shall determine that:
a. The expenditure is for capital facilities or equipment to be used for the purpose of such account;
b. The expenditure is required by new construction from which such funds were collected; and
c. The expenditure will result predominantly in a special benefit to new construction, as opposed to pre-existing uses.
(2) The city shall have the right to modify or delete any of the proposed capital improvements or expenditures within each of the general categories of the improvements and specialized equipment reflected in any impact fee study report upon which the fees imposed in this division are based or to add capital improvements or expenditures within those general categories, provided that the total amount of impact fees credited to each of the applicable capital expansion trust funds or accounts is ultimately expended for the purposes of such capital expansion trust funds or accounts in the amount set forth in section 2-233.