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Can developer fees be used for technology expenditures?

Question: Can a district use developer fees for technology expenditures? Our district is in the process of purchasing a Wi-Fi system that requires that a Wi-Fi hub be attached to the ceilings of the school buildings. Wiring is then run through the ceilings and walls to the central communication rack for the school. Does this qualify as "reconstruction"? As a point of information, the cost is approximately $610,000 for eight school sites.

Response: Our experience is that technology expenditures can be funded from developer fee funds, but they must be a part of the "infrastructure" of the building systems to qualify.  In other words, anything necessary to bring a connection up to the outlet in the wall is infrastructure; anything beyond that point (computers, servers, lab equipment, etc.) must be funded via some other source.

Of course, you should consult with legal counsel as there are many circumstances that might result in a different conclusion, and they should be your ultimate source of information in this regard.

12/22/09

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