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reserve improvements fund or funds established under Part 2 of <br /> Article 3 of Chapter 159 of the General Statutes and may be ex- <br /> pended only as follows: <br /> (1) Orange County may expend these funds to the extent <br /> otherwise authorized by law on capital improvements <br /> projects related to libraries, stormwater drainage, <br /> • open space and recreation, and on emergency and public <br /> • safety facilities, including jails. <br /> (2) The Town of Chapel Hill and the Town of Carrboro may <br /> expend these funds on capital improvements related to <br /> roads and other transportation systems , stormwater <br /> drainage, open space and recreation, and police and <br /> fire stations . The funds may be spent by each <br /> municipality only for improvements that are located <br /> within the corporate limits of that municipality or <br /> within its extra-territorial planning jurisdiction or <br /> transition area(s) as established under a joint plan- <br /> ning agreement with Orange County, except that Chapel <br /> Hill and Carrboro may by agreement expend funds on <br /> joint projects that transcend each other's jurisdic- <br /> tional boundaries, such as road or drainage improvement <br /> projects. <br /> Section 6. An ordinance adopted under this Part shall <br /> provide that: <br /> (1) A person responsible for the impact of land development <br /> shall pay an impact tax for each square foot of dwell- <br /> ing space and commercial building enclosed floor space <br /> for which an occupancy permit is issued or, if no such <br /> 6 <br />