§46-144  Collection and expenditure ofimpact fees.  Collection and expenditure of impact fees assessed, imposed,levied, and collected for development shall be reasonably related to thebenefits accruing to the development.  To determine whether the fees arereasonably related, the impact fee ordinance or board rule shall provide that:

(1)  Upon collection, the fees shall be deposited in aspecial trust fund or interest-bearing account.  The portion that constitutesrecoupment may be transferred to any appropriate fund;

(2)  Collection and expenditure shall be localized toprovide a reasonable benefit to the development.  A county or board shallestablish geographically limited benefit zones for this purpose; provided thatzones shall not be required if a reasonable benefit can be otherwise derived. Benefit zones shall be appropriate to the particular public facility and thecounty or board.  A county or board shall explain in writing and disclose at apublic hearing reasons for establishing or not establishing benefit zones;

(3)  Except for recoupment, impact fees shall not becollected from a developer until approval of a needs assessment study that setsout planned expenditures bearing a substantial relationship to the needs oranticipated needs created by the development;

(4)  Impact fees shall be expended for publicfacilities of the type for which they are collected and of reasonable benefitto the development; and

(5)  Within six years of the date of collection, theimpact fees shall be expended or encumbered for the construction of publicfacility capital improvements that are consistent with the needs assessmentstudy and of reasonable benefit to the development. [L 1992, c 282, pt of §2;am L 2001, c 235, §4]