A. The City of Redmond Finance Department shall earmark all fire, park, and transportation impact fees collected under this chapter as to the person paying them, the date paid, and the type of impact fee paid. The Finance Department shall promptly deposit all fees collected in appropriate special interest-bearing accounts. A separate account shall be established for each type of impact fee. All interest shall be retained in the account and expended for the purposes for which the impact fee was imposed. While maintaining fees in separate accounts, pooled investments may be used.

B. Impact fees shall only be expended on system improvements which are in conformance with the Capital Facilities Chapter of the Comprehensive Plan and administrative costs. Impact fees shall only be expended on system improvements which are included in the Capital Facilities Chapter of the Comprehensive Plan or which are included in a functional plan adopted by reference in the Utilities Chapter of the Comprehensive Plan or the Capital Facilities Chapter of the Comprehensive Plan. The part of the Utilities Chapter which adopts functional plans by reference shall be part of the Capital Facilities Chapter of the Comprehensive Plan. Administrative costs shall not exceed three-tenths of one percent of the impact fees collected.

C. Impact fees shall only be used for system improvements within the service areas established under RMC 3.10.040 for the particular type of fee involved.

D. For system improvements included in the Capital Facilities Chapter or a functional plan adopted by reference, impact fees may be expended on facility planning, land acquisition, site improvements, application fees, necessary off-site improvements, required mitigation, construction, engineering, architectural, permitting, financing, and administrative expenses, relocatable facilities, capital equipment, repayment of system improvement costs previously incurred by the City to the extent that new growth and development will be served by the system improvements, and any other expenses which could be capitalized and are consistent with the Capital Facilities Element or a functional plan adopted by reference.

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

F. Impact fees shall be expended or encumbered for a permissible use within ten years of the date they are received by the City of Redmond Finance Department unless the City Council finds that there exists an extraordinary and compelling reason for fees to be held longer than ten years. These findings shall be set forth in writing and be approved by the City Council. (Ord. 2610 § 1 (part), 2011: Ord. 2587 § 2 (part), 2011).