It is the intent of the city to give new and expanding businesses a credit against tap-in charges for existing water and sanitary sewer lines for development on currently undeveloped property. This credit is to be applied when the proposed development will create new permanent jobs. Construction activities involved in the project development phase do not constitute the creation of permanent jobs for purposes of this policy.
The credit development under this policy will be calculated based on the annual payroll of the new or expanded business. A credit of one-half of 1% of the annual payroll, up to the cost of the tap-in charges, for the first five years of operation will be given to offset the costs of the water and sanitary sewer tap-in fees.
EXAMPLE: A new business is planning to locate on a tract of ground with 350 feet frontage. The charge for the waterline is $5,250 (350 feet x $15) and the charge for the sanitary sewer is $14,000 (350 feet x $40) for a total charge of $19,250. The new business will start with a first year payroll of $200,000 (10 employees @ $20,000) and gradually increasing to $1,200,000 (60 employees @ $20,000) in five years and will remain constant thereafter. The credit maximum to be given is calculated as follows:
Year | Payroll | Credit
|
Total | $ 3,500,000 | $17,500 |
The credit of $17,500 would be applied to the $19,250 charge resulting in a net charge to the new business of $1,750 at the end of the five year period.
The credit given would initially be based on an estimated payroll and shall be verified on an annual basis for the five year period. If more payroll is paid than estimated, the difference will be refunded to the business. Conversely, if payroll costs are less than estimated, the additional cost will be paid to the city.
Extensions of new lines will be governed by the Board of Utility policies 3001 (waterlines) and 4001 (sanitary sewers).