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DEC 17 1,,91 f; BOOK; TO: Members of the Board of County Commissioners `:DATE: December 10, 1991 SUBJECT: COUNTY FINANCING OF UTILITY IMPACT FEES - 10 YEARS - FROM: Joseph A. Baird t c:' OMB Director .DESCRIPTION AND CONDITIONS To better assist County property owners affected by recent water main expansion projects, the Board, asked our staff to investigate the possibility of financing utility impact fees over a longer period than is currently available.—The projects under- consideration include not only the 12th Street and Phase I Water Distribution Systems, but also the upcoming Phase II through VI (as projected - see Comprehensive Plan). _ s The works under study are considered non voluntary assessment projects. As defined; this; means that property owners would always be required to pay the proportionate share of new utility lines laid in their area, although they are not necessarily required to hook-up ,to the new system. However, those who do wish to hook-up are immediately subject to a ;second assessment defraying this cost, a situation which can create tremendous monetary f.. hardship for some. The Board has requested that we try to find some method of relieving 'this extra financial burden to those wishing to join the system. :RECOMMENDATIONS _ - County financing of utility impact fees for up to S years is currently available to distressed homeowners. Using the best assumptions possible, staff created a series of preliminary projections which we feel would allow the County to finance impact fees for as long as 10 years for above mentioned projects. Although we do not anticipate immediate problems with cash flow as a result, it should be noted that the extended lending term will eventually require the County to borrow money at some point in the future. Staff will address the Board in the near future with the various and appropriate funding mechanisms. In order to carry out the longer term financing plan, staff recommends that the actual mechanics be similar to the North County Sewer and Route 60 Water Projects. 'Whose utility projects required individuals interested in hooking up to the system to sign up within a specified period of time so that both financing needs and an assessment roll can eventually be determined in a logical fashion. ON MOTION by Commissioner Eggert, SECONDED by Commissioner Bowman, the Board -unanimously approved County financing of Utility Impact Fees for ten years, as recommended by staff. 76