(A) Financing provided. SDC financing is provided through installment loans secured by a lien on the benefitted property. Loan requirements are consistent with the city’s fiscal policies.
(B) Terms and interest.
(1) The terms and interest rates available for financing are based on the amount financed. The total amount may be accumulative of all SDCs for a single project. The interest base rate will be based on the Local Government Investment Pool (LGIP) rate at the time of application.
(2) An additional percentage will be applied to the base rate depending upon the amount and term of financing:
(a) $25,000 - $49,999.99: three years at LGIP rate plus 1%;
(b) $50,000 - $149,999.99: five years at LGIP rate plus 2%; and
(c) $150,000 and up: seven years at LGIP rate plus 3%.
(C) Application and requirements for approval.
(1) An application for financing must be submitted to the City Finance Officer for consideration and final approval by the City Treasurer. The application form shall be approved by the City Manager prior.
(2) The following are requirements for SDC financing to be approved.
(a) Applications require a one-time nonrefundable application processing fee of $50.
(b) Financing approval is subject to a credit check through a third-party vendor contracted by the city, the cost of which shall be paid by the applicant.
(c) All successful applicants must sign an installment contract.
(d) The SDC financing installment contract creates a lien on the property and additional security in compliance with § 52.083(D) may be required.
(e) For installment loans, applicants shall make semi-annual payments over the term of the contract.
(f) There is no prepayment penalty.
(g) Installment billings begin 30 to 60 days after the loan contract is received by the city.
(h) Interest is charged through the bill due date. Late payments are subject to penalties and collection charges as provided by City Code.
(3) SDCs must be paid or financed before a building permit is issued. Additionally, applicants must pay all other utility service costs which may be needed to receive a building permit.
(D) Effective date. The SDC finance option shall be available for application beginning July 1, 2019.
(Res. 1792, passed 6-17-2019)