§ 51.59  FINANCING EXTENSIONS WITHIN CORPORATE LIMITS.
   (A)   Extensions to approved subdivisions or developed property.
      (1)   When application is received requesting the extension of water or sanitary sewer service or both to serve property within the corporate limits which is developed or has been previously approved as a subdivision, or where streets have previously been dedicated and accepted by the city, and where such area is not part of a new subdivision which has not been approved by the city, the City Manager or other person designated by the City Council shall estimate the cost of the project and present the application for such extension, the estimated cost and other required information to the City Council for their consideration. If the application is approved by the City Council and subject to the availability of funds, the city will install or have installed by contract under its supervision the extensions which have been approved, and such extensions shall be financed in accordance with this section.
      (2)   When an approved water or sanitary sewer extension project has been completed, the City Council shall determine, for each project, the percentage of the total cost that will be assessed to benefitted properties. In determining such percentage, any of the basis for assessment, or combination thereof, in accordance with and under the authority granted to the city under state law can be used. The remaining percent or the total cost of such extensions shall be borne by the city from funds appropriated for this purpose.
      (3)   Any property owner shall have the opportunity to pay his, her or their proportionate share of the cost of such extensions after the assessment roll is confirmed rather than paying his or her share in equal annual installments with interest as required by statute.
   (B)   Extensions to proposed developments or subdivisions.
      (1)   When an application is received requesting the extension of water or sanitary sewer service or both to proposed developments or subdivisions within the corporate limits which have not been approved by the City Council, the City Manager or other person designated by the City Council shall estimate the cost of the project and present the application for such extension, the estimated cost and other required information to the City Council for its consideration. If the application is approved and subject to the availability of funds, the city shall install or have installed by contract under its supervision such extensions which shall be financed in accordance with this section.
      (2)   Prior to the beginning of any construction, the property owner shall advance to the city funds in an amount equal to 100% of his or her proportionate share of the total estimated cost of the proposed extensions. Upon receipt of such funds, a written contract shall be entered into by and between the city and the property owner, under which the city will use such funds upon the following terms and conditions.
         (a)   The funds shall be deposited in a special account of the city for which a separate accounting will be made.
         (b)   At the time construction of the extension is completed and the total cost thereof is determined, if the amount deposited exceeds 100% of the total cost, that portion in excess of the amount deposited will be refunded to the owner without interest. If the amount deposited is less than 100% of the total cost, the owner or owners shall pay such additional amount to the city and this condition shall be a part of the written contract.
         (c)   In lieu of depositing funds, the owner may provide a surety bond or some other form of security that will insure payment to the city of the owner’s proportionate share of the cost of extension in accordance with this subchapter.
         (d)   No refund or reimbursement of funds shall be made to the owner who pays 75% of the total cost of extension under the requirements of this division (B)(2), except as provided for in division (B)(2)(b) above.
      (3)   The city shall finance from funds appropriated for this purpose the remaining 25% of the total cost of extension to and within such proposed developments or subdivisions.
   (C)   Facilities excluded in determining owner’s share of cost.
      (1)   When the city determines that it is advisable to install larger size facilities than are necessary to serve the property requesting such extension, the difference in the cost of the larger size facilities over and above the cost of the facilities required to serve the property requesting such extension shall be paid for by the city and excluded from the total cost to be shared by the property owner and the city as provided for herein.
      (2)   Fire hydrants, pumping stations, outfall lines and other facilities installed for general public use shall be paid for by the city and excluded from the total cost to be shared by the property owner and the city, as provided for herein.
   (D)   Exceptions authorized. Nothing in this subchapter shall prevent the City Council from extending water or sanitary sewer mains or both within the corporate limits on their own motion without receipt of an application from property owners, and to assess the cost of such extensions in accordance with the terms of this section when, in the opinion of the City Council, the general public interest demands such extension of service.
(2005 Code, § 90-79)  (Ord. passed 11-6-1967; Motion passed 2-1-1993; Ord. passed 10-4-1999)