[Adopted 4-15-2020 by Ord. No. 2020-05[1]]
[1]
Editor's Note: This ordinance also repealed former Art. I,
Water Investment Fee, adopted by Ord. No. 16A, effective 3-18-1981.
The title of this article of the Code is "City of Lebanon Water
Investment Fee and Water Development Fee."
A.
It is regarded as inequitable to finance future capital improvements
to the municipal water system solely through water user rates. Major
capital improvements to a municipal water source, distribution and
treatment system are most frequently required in order to service
present and future customers, and it appears unfair to require present
users to finance this future development, except on some equitable
basis. Persons and organizations responsible for development within
the City (e.g., developers) are in the best position to allocate costs
applicable to the development to the persons and organizations requiring
the future services.
B.
Studies done to date by the City of Lebanon identify projects needed
to upgrade and reinforce the existing water system in order to best
meet existing service requirements and to accommodate system expansion.
It is the purpose of this article to establish a system of fees for
the following purposes:
(1)
A capacity charge [hereinafter a water investment fee (WIF)] to recover
the costs of developing new water sources and expanding the water
system to serve new customers directly from those customers.
(2)
A development fee [hereinafter a water development fee (WDF)] to
recover the costs of maintaining the system to serve existing and
new customers directly from those customers.
C.
By imposing the charges set forth in this article, the costs of maintenance
and expansion will be distributed more equitably than if they were
to be recovered through the water user rates. This is because the
charges set forth in this article allow the investment made by existing
customers in core facilities on behalf of future customers, and the
higher capital costs of serving new customers to be recognized.
A.
A water investment fee (WIF) is hereby imposed on all future customers of the Water Department and on all existing customers who seek to enlarge existing water services. (Notwithstanding the foregoing, this article shall not apply to the City, itself, in its role as a developer.) No person or organization shall be legally entitled to connect to the City water system or to enlarge an existing water service until the water investment fee imposed by this section is paid. This section is not in derogation of, but is in addition to, all other fees which may be required by the City of Lebanon under any other applicable section of the City Code. All WIF's imposed by this article shall be determined by an equivalent sewer unit of 210 gallons per day (10,000 cf per year) or as otherwise defined in City Code Chapter 136, Sewer Service, § 136-6, Definitions, sewer unit.
B.
WIF's for connecting to or enlarging a service to the City water
system are as follows:
Water Investment Fee
| ||
---|---|---|
Equivalent Sewer Unit
|
Cost per ESU
| |
Single-family house
|
1.000
|
$70
|
1-bedroom unit, 60 gpd
|
0.286
|
$306
|
2-bedroom unit, 90 gpd
|
0.429
|
$209
|
3-bedroom unit, 120 gpd
|
0.571
|
$111
|
Commercial/industrial
|
Based on the projected number of ESUs
|
$70
|
C.
With respect to persons or organizations seeking to enlarge an existing
water service:
(1)
The water investment fee imposed shall be the difference between
the current water investment fee and the water investment fee that
would have been imposed if a water investment fee had been assessed
on the average actual usage for the previous five years.
(2)
The water development fee imposed shall be the difference between
the current water development fee and the water development fee that
would have been imposed if a water development fee had been assessed
on the average actual usage for the previous five years. The Director
of Public Works may take other factors into account when determining
the valuation of the water system.
D.
Replacement connections necessitated by normal maintenance or wear
and tear shall not be regarded as new connections, and no water investment
fee shall be due as a result of these replacements.
A.
A water development fee (WDF) is hereby imposed on all future customers
of the City water system and on all existing customers who seek to
enlarge existing water services. This requirement shall apply to customers
both within the City and outside the boundaries of the City. (Notwithstanding
the foregoing, this article shall not apply to the City, itself, in
its role as a developer.) No person or organization shall be legally
entitled to connect to the City water system or to enlarge an existing
water service until the water development fee imposed by this section
is paid. This section is not in derogation of, but is in addition
to, all other fees which may be required by the City of Lebanon under
any other applicable section of the City Code.
B.
All WDFs imposed by this section shall be determined by the estimated gallons per day of sewer use by a sewer user. All WDFs imposed by this article shall be determined by an equivalent sewer unit of 210 gallons per day (10,000 cf per year) or as otherwise defined in City Code Chapter 136, Sewer Service, § 136-6, Definitions, sewer unit.
C.
Water development fee:
Water Development Fee
| ||
---|---|---|
Equivalent Sewer Unit
|
Cost per ESU
| |
Single-family house
|
1.000
|
$680
|
1-bedroom unit, 60 gpd
|
0.286
|
$194
|
2-bedroom unit, 90 gpd
|
0.429
|
$291
|
3-bedroom unit, 120 gpd
|
0.571
|
$389
|
Commercial/industrial
|
Based on the projected number of ESUs
|
$680
|
D.
With respect to persons or organizations seeking to enlarge an existing
water service, the water development charge imposed shall be the difference
between the current water development charge and the water development
charge that would have been imposed if a water development charge
had been assessed on the average actual usage for the previous five
years. The Director of Public Works may take other factors into account
when determining the valuation of the water system.
A.
The water investment fee and water development fee imposed by this
article shall be received and updated on a biannual basis. Subsequent
updates of both fees shall be determined generally in accordance with
the procedure set forth in Underwood Engineers User Rate Assistance
Report dated August 26, 2014 and updated by the Department of Public
Works in 2020.
B.
It shall be the responsibility of the City Council to establish the
rates for both fees. The Council shall set rates following a biannual
report and recommendation of the City Manager, and only after a public
hearing has been held by the Council to receive input on the City
Manager's report and recommendation. The City Manager's report shall
include a five-year projection of capital expenditures for projects
to be funded by moneys generated under the fees and shall further
include a proposed fee rate schedule. In addition to the foregoing,
the City Manager's biannual report shall include a projected schedule
of improvements for the City's water system for the succeeding 10
years.
C.
Following the report and recommendation of the City Manager, the
City Council shall review the report and shall act to accept or modify
the City Manager's proposed schedule of fees. The City Council shall
act on the City Manager's recommendation within two months after the
filing of the Manager's report with the Council.
A.
All extensions of the City water system which are made or requested to be made prior to planned extensions as indicated in the report entitled "Water Investment Fee Policy" done by Camp, Dresser and McKee, Inc., on August 7, 1980, or in the reports and recommendations made on a biannual basis by the City Manager as may be adjusted by the City Council, shall be deemed a premature extension of the City water system. Extensions of the City water system may be approved by the City Council or City Manager under the procedure described in City Code Chapter 182, Water Service. Where City Council or City Manager approval is given for a water system extension based upon a petition by a developer, the costs of extending the system shall be borne by the developer and shall not be separately assessed to the property owners fronting on the improvement.
B.
In the event an extention is approved, and the Department of Public
Works determines that the required line size is in excess of the standard
minimum eight-inch size, then the City shall absorb the difference
in material costs for the pipe and appurtenances only as necessary
to oversize the line. The cost of construction of the extension, except
for the oversizing costs as defined herein, shall be borne by the
property owners through special assessment or by the developer to
whom the petition was granted as noted above.
If any person shall unlawfully connect to the City water system
without payment of the water investment fee or water development fee
set forth in this article, all unpaid water investment fee and water
development fee charges shall constitute a lien upon the property
which is connected to the system. The lien pursuant to this article
shall be placed on the property in accordance with the provisions
of RSA 38:22. Interest on these liens shall be calculated in accordance
with the provisions of RSA 76:13.
The City Council may abate, for good cause shown, any water
investment fee or water development fee assessed on any person or
organization pursuant to this article. Such abatements may be made
on such terms and conditions as the City Council shall deem equitable
under the circumstances.