(A) Extensions to approved subdivisions or developed property.
(1) When an application is received requesting the extension of water or sanitary sewer service or both to serve property within the corporate limits developed or previously approved as a subdivision or where streets have previously been dedicated and accepted by the city and such area is not part of a new subdivision which has not been approved by the city, the City Treasurer or other person designated by the City Council shall estimate the cost of the project and present the application for such extension and the estimated cost and other required information to the City Council for its 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 extension shall be financed in accordance with this division (A).
(2) When an approved water or sanitary sewer extension project has been completed and the total cost thereof has been determined, 50% of the cost of such water or sanitary sewer extension or both shall be assessed against the property abutting on both sides of such extension at an equal rate per front foot in accordance with and under the authority granted to the city by state law; provided, if the 50% cost to the applicant totals $500 or less, the applicant shall be required to pay the amount in cash at the time of the execution of the contract and agreement between the applicant and the city for the water and sewer extension. The remaining 50% of the total cost of such extensions shall be borne by the city from funds appropriated for this purpose.
(3) If the 50% of the cost to the applicant amounts to more than $500, any property owner shall have the opportunity to pay his or her 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 subdivision.
(1) When an application is received requesting the extensions and/or improvements of water or sanitary sewer service or both to proposed developments or subdivisions within the corporate limits that have not been approved by the City Council and when such extensions and/or improvements involving sharing of the cost, as set forth in § 51.43, the City Treasurer or other person designated by the City Council shall estimate the cost of the project and present the application for such extensions and/or improvements, the estimated cost, and other required information to the City Council for their consideration. If the application is approved, subject to the approval of the development or subdivision by the city and subject to the availability of funds, the city will install or have installed, by contract under its supervision, such extensions and/or improvements which shall be financed in accordance with this division (B).
(2) Prior to the beginning of any construction, the property owner or owners shall advance to the city funds in an amount equal to 50% of the total estimated cost of the proposed extensions and/or improvements.
(3) 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 extensions and/or improvements are completed and the total cost thereof is determined, if the amount deposited exceeds 50% 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 50% of the total cost, the owner 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 negotiable security that will ensure payment to the city of the owner’s proportionate share of the completed cost of extensions and/or improvements in accordance with this division (B)(2).
(d) No refund or reimbursement of funds shall be made to the owner who pays 50% of the total cost of extensions and/or improvements under the requirements of this subsection except as provided for in division (B)(2)(b) above.
(e) The city will finance, from funds appropriated for this purpose, the remaining 50% of the total cost of extensions and/or improvements to such proposed developments or subdivisions.
(Prior Code, § 51.059)
Statutory reference:
Authority, see G.S. §§ 160A-216