Sec. 18-65. Financing outside town limits.
   (a)   All applications for water and sewer extensions outside the corporate limits shall be made in the same manner and under the same requirements as provided for in section 18-62 and 18-63.
   (b)   If an application is approved by the council, the owner shall be required to pay the entire cost of all such extensions, including necessary town construction inspection costs; provided that the town may participate, to the extent agreed upon by council, in the cost of mains which are in excess of the size required to serve the project. 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.
   (c)   Prior to the beginning of any construction, the owner shall deposit with the town an amount equal to 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 in accordance with the requirements of this division. Such contract shall provide that in the event the amount of the total funds deposited exceeds the amount of the total extension cost when completed, that portion in excess of the total cost shall be refunded to the owner without interest. Such contract shall also provide that if the amount deposited is less than the total cost, the owner shall pay such additional amount to the town.
   (d)   In lieu of depositing funds, the owner may execute a surety bond guaranteeing payment for such extensions, which is acceptable to the town, or the owner may have such extension work performed under private contract with the approval of the council; provided, that the work is to be performed in accordance with all construction requirements of the town and subject to inspection and approval by the town and its agents.
   (e)   If the property for which application has been made for water and sewer service is contiguous to the corporate limits, and the owner(s) of such property petitions the town for annexation, applicants requesting annexation shall pay for and extend all municipal utilities to the properties proposed for annexation prior to annexation. Said utilities shall meet the requirements of the town.
(Ord. No. 1992-1, 1-7-92; Ord. No. 1992-29, § 3, 9-1-92; Ord. No. 2001-2, § 12, 1-8-01; Ord. No. 2021-09, 5-4-21)