A. Funds collected from transportation impact fees shall be used for the purpose of capital improvements to and expansion of transportation facilities associated with the major arterial, arterial and collector street network as designated by the city and any other transportation projects identified in the circulation element of the general plan.

B. No funds shall be used for periodic or routine maintenance.

C. Funds shall be expended in the order in which they are collected.

D. In the event that bonds or similar debt instruments are issued for advance provision of capital facilities for which transportation impact fees may be expended, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities provided are of the type described in subsection A of this section.

E. At least once each fiscal year, the engineer shall present to the city council a proposed capital improvement program for roads, assigning funds, including any accrued interest, from the transportation impact fee to specific road improvement projects and related expenses. Monies, including any accrued interest, not assigned in any fiscal year shall be retained in the transportation impact fee fund until the next fiscal year except as provided by the refund provisions of this chapter.

F. Funds may be used to provide refunds as described in Section 13.24.130.

G. The city shall be entitled to retain not more than five percent of the funds collected as compensation for the expense of collecting the fee and administering this chapter. (Ord. 469 §1, 2002).