§ 70-178. Impact fee trust account; use of entrusted funds.

(a)

There is hereby established a separate account to be known as the Volusia Educational Facilities Impact Fee Trust Account.

(b)

All funds withdrawn from this account must be used and expended in strict accordance with this section.

(c)

The funds transferred to the school board under subsection 70-177(f), shall be deposited in a separate trust or account established by the school board, i.e., the district impact fee account. The funds deposited in the district impact fee account shall be held and maintained separate from all other accounts of the district. The funds in the account must be used solely for the purpose of paying the capital costs of educational facilities needed to increase the capacity of the district school system in order to accommodate the increased demand on that system which is reasonably attributable to the construction of each new dwelling in the district.

(d)

Funds deposited in the district impact fee account may be used for repayment of moneys borrowed from any budgetary fund of the county or the school board which is used to fund improvements and additions to the district school system otherwise eligible for funding directly under subsection (c), above.

(e)

Funds deposited in the district impact fee account may be used for payment of principal and interest, necessary reserves and costs of issuance under any bonds, certificates of participation in lease-purchase programs, or other indebtedness issued by or on account of the county or school board, heretofore or hereafter, to fund improvements and additions to the district school system otherwise eligible for funding directly under subsection (c) above.

(f)

Without limiting the restrictions pertaining to the use and expenditure of funds, and as an example, funds on deposit in the district impact fee account shall not be used by the district for operational expenses, routine maintenance or repairs.

(g)

Funds on deposit in the district impact fee account which are not immediately necessary for expenditure shall be invested by the school board. All income derived from the investment of such funds shall be deposited in the district impact fee account and held and expended subject to the restrictions imposed in subsection (c) above.

(h)

Concurrent with the receipt of its annual audit, the school board shall provide to the county and to all the municipalities in Volusia County, a report containing a summary of the impact fees collected during the previous year and a detailed description of the uses and expenditures for which the net impact fee revenue was expended during the preceding year.

(i)

Funds may be used to provide refunds as described in section 70-179.

(Ord. No. 97-7, § XI, 5-15-97; Ord. No. 2005-01, § IX, 2-24-05; Ord. No. 2008-04, § I, 2-21-08)