(A) Financing extensions within corporate limits.
(1) Extensions to approved subdivisions or developed property.
(a) 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 town, and where such area is not part of a new subdivision which has not been approved by the town, the Director of Public Works or other person designated by the Town Board shall estimate the cost of the project and present the application for such extension, the estimated cost and other required information to the Town Board for approval. If the application is approved by the Town Board and subject to the availability of funds, the town shall install or have installed by contract under its supervision the extensions which have been approved, and such extension shall be financed in accordance with division (A)(2) below;
(b) When an approved water or sanitary sewer extension project has been completed and the total cost thereof has been determined, 75% of the total cost of such water or sanitary sewer extension or both shall be assessed against the property owners whose property abuts upon such extension at an equal rate per front foot in accordance with and under the authority granted to the town by G.S. § 160A-239.2. The remaining 25% of the total cost of such extensions shall be borne by the town from funds appropriated for this purpose.
(c) Any property owner or owners 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, her, or their share in equal annual installments with interest as required by the statute.
(2) Extensions to proposed developments or subdivisions.
(a) 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 Town Board, the Director of Public Works or other person designated by the Town Board shall estimate the cost of the project and present the application for such extension, the estimated cost and other required information to the Town Board for their approval. If the application is approved and subject to the approval of the development or subdivision and by the town, and subject to the availability of funds, the town will install or have installed by contract under its supervision such extensions which shall be financed in accordance with division (A)(2)(b) below.
(b) Prior to the beginning of any construction, the property owner or owners shall advance to the town funds in an amount equal to 100% 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 town and the property owner or owners, under which the town will use such funds upon the following terms and conditions.
1. The funds shall be deposited in a special account of the town for which a separate accounting will be made.
2. 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, then that portion in excess of the total cost will be refunded to the owner or owners 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 town and this condition shall be a part of the written contract.
3. In lieu of depositing the required funds, the owner or owners may provide a surety bond or some other form of security that will insure payment to the town of the owners’ proportionate share of the cost of extension in accordance with this section.
4. No refund or reimbursement of funds shall be made to the owner or owners who pay 100% of the total cost of extension under the requirements of this section except as provided for in division (A)(2)(b)2. above.
(3) Exception authorized: Nothing in this section shall prevent the Town Board 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 division (A)(1) above, when, in the opinion of the Town Board, the general public interest demands such extension of service.
(Prior Code, 15-35)
(B) Filing extensions outside corporate limits.
(2) (a) If an application is approved by the Town Board, the owner or owners shall be required to pay 100% of the total cost of all extension. Provided, the town may participate to the extent agreed upon by the Town Board in the cost of larger size mains that are in excess of the size mains required to serve the project.
(b) No reimbursement shall be made upon annexation and all water and sewer lines connected to the town system and located outside the corporate limits shall become the property of the town at the time such facilities are connected.
(3) Prior to the beginning of any construction, the owner or owners shall deposit with the town funds in an amount equal to 100% of the total estimated cost of such extensions. Upon receipt of such funds a written contract shall be entered into by and between the town and the property owner or owners in accordance with the requirements of this section. Such contract shall provide that in the event the funds deposited exceed the amount of the total extension cost when completed, then that portion in excess of the total cost will be refunded to the owner or owners without interest.
(4) In lieu of depositing funds the owner or owners may execute a surety bond guaranteeing payment for such extension or the owner or owners may have such extension work performed under private contract with the approval of the Town Board, provided, the work is to be performed in accordance with all construction requirements of the town and subject to inspection and approval of the town.
(5) In the event the property for which application has been made for water or sewer service is contiguous to the corporate limits and the owner or owners of such property agree to annexation and in the event such property is annexed to the town, extensions may be made to such property and the cost thereof financed in accordance with the requirements of divisions (B)(1) and (B)(2) above, whichever is applicable.
(Prior Code, § 15-36)
(Ord. passed 11-21-1985; Ord. passed 11-16-2000) Penalty, see § 50.99