(A) The maximum amount of any reimbursement shall be identified in the agreement and shall not exceed 100% of the total certified construction cost of the extension. Interest to be compounded yearly and calculated based on the interest rate of U.S. Government Treasury Bills dated January 1 of each year following the date of acceptance of the line extension. The interest rate for the last months of a reimbursement period, if short of a full year, shall be at the interest rate as of January 1 of that year.
(B) The reimbursement cost shall be calculated using the reimbursement charge and multiplying it by the appropriate interest rate for each one-year period or portion of one-year period, interest begins at the date of acceptance of the line and ends at the date of connection to that line by that particular applicant. Compound interest to be calculated by adding the calculated interest in the succeeding years period to the reimbursement charge amount before that period’s interest is calculated. The reimbursement cost will then be the sum of the reimbursement charge and each of the periods interest amounts.
(C) The reimbursement agreement shall have a maximum term of five years and shall close at the end of that period whether or not the total amount of reimbursement has been made.
(D) All reimbursement agreements shall comply with the above terms.
(Prior Code, § 17-1-6) (Ord. 96-03, passed - -1996; Res. 96-01, passed - -1996; Ord. 00-05, passed - -2000; Ord. 10-02, passed - -2010)