Sec. 8.9.4. Funds Collected

  1. Creation of Trust Funds
    1. The facility fees collected by the City shall be kept separate from other revenue of the City.
    2. There shall be 1 trust fund established for each of the benefit areas, shown on maps labeled “Thoroughfare and Collector Street Benefit Areas” and “Open Space Benefit Areas,” respectively; copies are on file with the City Clerk and are made a part of this UDO.
    3. All facility funds collected shall be properly identified by the appropriate benefit area and transferred for deposit in the appropriate trust account.
    4. A portion of these funds shall be allocated and assigned to a separate account for each benefit area for the purpose of providing funds for reimbursements required per Sec. 8.9.1. and Sec. 8.9.3.
    5. These funds shall be allocated into the appropriate reimbursement accounts as follows:
      1. Thoroughfare and collector street fees as defined in this UDO:
        1. Benefit Zone 1: 50% of the funds collected.
        2. Benefit Zone 2: 27% of the funds collected.
        3. Benefit Zone 3: 27% of the funds collected
      2. Open space fees: All Benefit Zones: 20% of the funds collected.
    6. Funds may be transferred from reimbursement accounts to project accounts for each benefit area at the end of each fiscal year, to the extent that the account balance in each benefit area exceeds the contractual reimbursement
      obligations for the area.
  2. Limitation on Expenditure of Funds Collected
    1. Funds expended from facility fee trust accounts shall be made for no other purpose than for thoroughfare and collector street capital costs or open space capital costs associated with projects undertaken by the City or by the City in conjunction with other units of government.
    2.  No funds shall be used for periodic or routine maintenance or for administration of the facility fee program.
    3. Expenditures from the trust fund shall be matched by an equal sum of money approved from non-fee sources and shall be spent for projects located in the same zone in which the fees were collected.
    4. All funds shall be used exclusively for capital improvements within the benefit area from which the funds were collected.
    5. A report of the collection activity from application of facility fees shall be made to City Council and once every 2 years.
    6. The report shall show where fees have been collected and what projects have been constructed or reimbursed with fee monies.
    7. The City Council shall review this report and consider whether within each benefit area fees are being spent so that no area of new construction is not being benefited by the fees.
    8. If the City Council determines that areas of new construction within benefit areas are not being benefited, then it shall readjust capital improvements program to correct this condition.
    9. Funds shall be expended in the order in which they were collected. But in no event shall funds not be expended within 6 years after their collection except when the City, in conjunction with any other unit of government, provides the facility; in such cases, the funds must be expended within 10 years after their collection.
  3. Disbursal of Funds
    Funds withdrawn from these trust accounts must be used solely in accordance with the provisions of this UDO. The disbursal of funds require the approval of the City Council upon recommendation of the City Manager.
  4. Interest on Funds
    1. Any funds on deposit not immediately necessary for expenditure shall be invested as allowed in N.C. Gen. Stat. §159-30 for other public monies.
    2. All income derived shall be deposited in the applicable trust account.
  5. Return of Fees
    1. If the development for which the fees were paid was never begun or if begun, the property is restored to an undeveloped state, a reimbursement will be allowed within 7 months following the issuance of a building permit provided such permit is surrendered to the City or within 7 months following the payment of the facility fee in the case when no building permit is required.
    2. Any funds not expended within the time limits established in Sec. 8.9.4.B.9. above shall be returned to the feepayor or the landowner if the address of the feepayor provided to the City is not current with interest at the rate of
      6% per annum. A refund of permit fees is allowed for shell permits if it is determined during review of the “fit-up” permits, the uses have changed to a use with a lower fee then a refund is owed.