(A) Eligibility. Reimbursement may be made to a developer or other applicant for expenses incurred in providing facilities that are subsequently utilized by the town to serve other customers. No allowance will be made for any lines that are not designed to serve lands outside the applicant's project. Lines or other system components subject to reimbursement shall be:
(1) Those that are located between a subdivision or project and a facility of the town water and sewer system and which are so sized as to serve other properties. In this case the maximum reimbursable amount shall be the actual cost of the lines less the amount that the original developer would have had to pay for front footage fees. Reimbursement is to be made from front footage charges levied against property served directly by the connections; and
(2) Those within a subdivision or project (located outside the town) that are of a size in excess of the need of the project itself and are so located to serve other properties. In this case the maximum reimbursable amount shall be only the extra cost incurred by installing lines larger than needed to serve the subdivision or project itself. Reimbursement is to be made from availability fees levied against any property developed simultaneously or subsequent to the installation of the lines or served by the lines.
(B) Reimbursement agreement. The town shall execute a reimbursement agreement with any developer or applicant who finances an extension subject to reimbursement pursuant to this section. The agreement shall be prepared by the town and shall contain a description of the subject water and sewer lines and describe the conditions under which the developer or applicant may receive a reimbursement from the town. The agreement shall be signed by both parties.
(C) Basis for payment.
(1) The reimbursement period for each developer shall expire 10 years following the initial date of service to the development.
(2) No interest on cost pending reimbursement shall be allowed.
(3) Reimbursement due an original developer under a reimbursement agreement shall be paid by the town to the developer within 30 days following the end of the quarter from collections made during that quarter.
(4) Any developer making a subsequent connection to a main that is itself installed under a reimbursement agreement will be eligible to receive reimbursement from fees and charges only after the claim of the first developer is satisfied in full or the reimbursement period has expired, whichever first occurs.
Likewise, a third developer and any subsequent developers connecting to a line having a reimbursement agreement shall receive reimbursement in accordance with the sequence of the effective dates of the reimbursement agreements.
(5) When availability fees are collected from property that is located between 2 lines installed under separate reimbursement agreements, the town will determine a fair and proportionate distribution of the available funds based on the design of the system and the amount of reimbursement for which each is eligible.
(1981 Code, § 14-58)