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RMWD amendments to sewer capacity fees address changes in use

Developers who connect their projects to the Rainbow Municipal Water District sewer system pay capacity fees to cover their project’s share of the existing infrastructure system.

The April 23 Rainbow board meeting included amendments to the district’s Administrative Code to address capacity fees and monthly charges due to a change in use.

The amendments were approved on a 5-0 vote. The changes included financing options for additional capacity fee payment. “You don’t want to discourage development, redevelopment,” said Rainbow general manager Jake Wiley.

The sewer fees are based on equivalent dwelling units. The changes address both the capacity fees and the monthly service charge. “Both of those things are potentially impacted,” Wiley said.

For a site with an existing or proposed change in use, a district representative will review the charges which would apply to the current connection and the charges applicable to the expanded connection and collect the incremental difference.

The capacity fees will be based on Rainbow’s fee schedule at the time of expansion. If expanded use has previously occurred and the increased fees have not been paid, Rainbow may collect up to four years of the incremental difference.

Financing options will be available for customers who owe additional capacity fees due to a change in use. Any amount financed by the district will require a signed agreement and a promissory note. Any amount greater than $10,000 will also require a trust deed.

Amounts up to $5,000 are eligible for a 12-month repayment plan at no interest. Amounts from $5,000 to $10,000 may have repayment terms of up to two years at the Local Agency Investment Fund (LAIF) interest rate which will be recalculated annually on the anniversary of the financing arrangement.

Amounts greater than $10,000 may have repayment terms of up to three years at the LAIF interest rate with the interest rate recalculated annually. Liens will not be offered as a method of postponing payment of fees.

“We wanted to provide some flexible options for basically financing these charges,” Wiley said.

Author Bio

Joe Naiman, Writer

Joe Naiman has been writing for the Village News since 2001

 

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