The city will receive applications for water and sewer extension from property owners or their agents upon the following terms and conditions.
(A) The development or improvements, when completed, must have an actual or proposed value sufficient for the city to realize increased revenue from real property taxes attributable to such development or improvement equal to or greater than the amount determinable under paragraph (B) of this section.
(B) The revenue attributable to the increased real property taxes must be sufficient for the city to recover an amount equal to or exceeding the following.
(1) Residential. The city will participate in an amount equal to 50% of the total cost of extension of water and or sewer services for the project. The city shall realize receipt of additional real property taxes in an amount sufficient to cover the city’s participation within five consecutive calendar years from the first day of January next succeeding the date of substantial completion of the development on the site. This shall apply only to development projects of ten or more residential units.
(2) Commercial. The city will participate in an amount equal to 75% of the total cost of extension of water and or sewer services for the project. The city shall realize receipt of additional real property taxes in an amount sufficient to cover the city’s participation within five consecutive calendar years from the first day of January next succeeding the date of substantial completion of the development on the site.
(3) Industrial. The city will participate in an amount equal to 100% of the total cost of extension of water and or sewer services for the project. The city shall realize receipt of additional real property taxes in an amount sufficient to cover the city’s participation within five consecutive calendar years from the first day of January next succeeding the date of substantial completion of the development on the site.
(C) The application must contain the owner’s representation of the estimated increase in the value of the subject property resulting from the development and the estimated date of substantial completion of construction as well as such other information as may be reasonably requested by the city.
(D) The applicant shall pay the difference between the cost of the extension of services and the percentage that will be paid by the city based upon the formulas set forth in § 15-219(B) of this code. The tax rate for the then current fiscal year of the city shall be used in the computation of estimated additional real property tax revenues for the specified period of years. The difference shall be paid by the applicant prior to the extension of the water and sewer lines or the awarding of contracts for such extension.
(E) The method of calculation of the increase in real property taxes on the property shall be as follows:
(1) A calculation shall be made for the real property taxes that would have been ordinarily assessed and collected on the property had it remained unimproved during the number of years specified in § 15-219(B). The value of the unimproved property for this calculation shall be the value of the real property for Rockingham County real property tax purposes for the year the project commences as determined on January 1 of such year. The total amount of taxes that would have been collected had the property remained unimproved shall be calculated by applying the then current tax rate to the value of the unimproved property as of January 1 of the year the project commences and multiplying the resulting amount by the appropriate number of years as specified in § 15-219(B).
(2) A calculation shall be made of the real property taxes that will be assessed and collected on the improved property during the required number of years based upon the applicant’s estimate pursuant to § 15-219(C).
(3) Adjustment to the sum paid prior to the commencement of the project or awarding of contracts for such project pursuant to § 15-219(D) shall be made as follows: In the event the added tax value to the property is determined by the County Tax Department to be less than the applicant’s estimate, the applicant shall be liable to the city for the difference between the total of real property taxes that would been payable to the city over the specified number of years and the actual taxes that would be collected based on the county’s evaluation. The applicant shall pay the difference to the city, if any, within the 60 day period immediately following the date the County Tax Department determines the assessment valuation of such improvements. In the event such payment is not received within the 60 day period, the city shall proceed with all remedies available to it under state law for collection.
(Ord. passed 8-22-94)