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North 2 UEP moves forward; Property owners put on assessment notice

By Staff | Jun 15, 2017

Property owners in the city’s North 2 Utilities Extension Project area will have to dig a little deeper into their pockets to pay for city water, sewer and irrigation service connections to be constructed over the next two years.

City staff brought the figures before City Council at a special meeting Wednesday at City Hall for the first approval to keep the project going forward. The presentation was broken down into three resolutions, each of which passed unanimously.

On July 10 the city will hold a homeowner’s informational meeting to answer questions and concerns. Council members urge property owners to attend that meeting and participate to fully understand the project and the benefit they will receive in return.

The next step in the process is approval of the State Revolving Plan (SRF) loan debt ordinance on July 24. The city will use an SRF loan at a current rate of less than 2 percent for financing the $269 million project that will service nearly 9,000 parcels.

Once that is accomplished a public hearing on the final assessment takes place on Aug. 2 with construction slated to start in August with a completion date of August 2019.

Staff projects the cost for a standard 10,000 square foot parcel at $19,382. This equates to $12,632 for the assessment costs for construction and $6,750 for capital facility expansion charges. The City is offering a 20 percent discount to property owners who prepay the capital expansion fee during the two prepayment periods. This reduces the fee to $5,400. During the initial prepayment period, which ends Sept. 30, the total cost is $18,032. During the interim prepayment period, which ends July 31, 2018, the total cost is $19,376. After July 31, 2018, the total cost to be financed is $20,726.

The city previously established a hardship program based on annual income qualification for those on low or fixed incomes.

Those who choose to finance their assessment over 20 years will wind up paying $32,338. The yearly payment will be attached to the property tax bills in November. Payments for the first six years for all three utilities will be $2,585 with the following 14 years reduced to $1,202.

Staff opted to install fiber optic conduit pipe on major roads at the same time as the water lines. The city intends to use the conduit to service its lift stations and other equipment to operate and maintain the system.

The North 2 phase of construction adopted the same methodology for assessments it used in Southwest 6-7, which came in under budget. City Manager John Szerlag said the city is working to determine how much of a refund those owners will be receiving.

Editor’s note: This story has been updated to correct the staff projections.