(1) The City of Covington Finance Department shall earmark all impact fees collected under this title 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.

(2) Funds withdrawn from the impact fee accounts must be used in accordance with the provisions of this title and applicable State law.

(3) On an annual basis, the Finance Director shall provide a report to the City Council on the impact fee accounts showing the source and amount of all moneys collected, earned, or received, and the public improvements that were financed in whole or in part by impact fees.

(4) Impact fees shall be expended or encumbered for a permissible use within 10 years of receipt, unless the City Council identifies in written findings that there exists an extraordinary and compelling reason for impact fees to be held longer than 10 years. Under such circumstances, the Council shall establish the period of time within which the impact fees shall be expended or encumbered. (Ord. 16-16 § 1 (Exh. A))