INFRASTRUCTURE FINANCING AND SDCS

SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING

Economic Perspectives of SDCs

• Developer

• Infrastructure

• Home builder/home owner

Financing Alternatives

3

• Example: Sabre Ridge Subdivision Phase 1

SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING

4

• Example: Sabre Ridge Subdivision Phase 1

SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING

Reimbursements

12-inch water

Arterial street

5

• Example: Sabre Ridge Subdivision Phase 1

SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING

Reimbursements Expenses

12-inch water Non-SDC

reimbursement

district (water)Arterial street

SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING

Perspective SDC Benefits SDC Drawbacks

Developer • Reimbursement eligibility

• Developable land inventory

• Potential for reduced property

values at lot sale

Infrastructure • Stable funding to

accommodate growth

• Reduced impact on tax/rate

payers

• Non-SDC matching funds

Home Builder/Owner • Developable land inventory • Additional expense

• Home affordability

SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING

Financing Alternatives

• Credits

• Reimbursement in Excess

• Reimbursement District Fees

• Temporary Access Fees

• Developer Collaboration

8

Phase 2: Dwelling Construction

Water Costs Developer Builder City SDC

Phase 1 ($100,000)

Phase 2 ($80,000) $80,000

Total ($100,000) ($80,000) $80,000

SYSTEMS DEVELOPMENT CHARGESCREDITS AND REIMBURSEMENTS

9

Phase 2: Dwelling Construction

Trunk main

Minimum pipe size

SYSTEMS DEVELOPMENT CHARGESCREDITS AND REIMBURSEMENTS

10

Phase 2: Dwelling Construction

Water Costs Developer Builder City SDC

Phase 1 ($250,000) ($70,000)

Phase 2 ($150,000) ($80,000)

Total ($100,000) ($80,000) ($70,000)

Pass-thru credit

Reimbursement in excess

SYSTEMS DEVELOPMENT CHARGESCREDITS AND REIMBURSEMENTS

11

SYSTEMS DEVELOPMENT CHARGESREIMBURSEMENT DISTRICTS

12

100% SDC

(Excess)

100% SDC

(District)

Non-SDC

(District)

Developer Expense $1,000,000 $1,000,000 $1,000,000

Developer’s Share ($100,000) ($100,000) ($100,000)

Developer Credits ($300,000) ($300,000) ($300,000)

Remainder $600,000 $600,000 $600,000

Neighbor’s Share $0 $0 ($400,000)

SDC Reimbursement in Excess ($600,000) $0 $0

SDC Reimbursement District $0 ($600,000) ($200,000)

Non-SDC Reimbursement

District

$0 $0 ($400,000)

Total SDC Expenditure ($900,000) ($900,000) ($500,000)

Total Non-SDC Out of Pocket ($100,000) ($100,000) ($500,000)

SYSTEMS DEVELOPMENT CHARGESREIMBURSEMENT DISTRICTS

• Complies with Master Plan

• No Temporary Access Fee

SKYLINE #2 RESERVOIR

(Future)

CHAMPION HILL RESERVOIR

(Existing)

SYSTEMS DEVELOPMENT CHARGESTEMPORARY ACCESS FEES

• Complies with Master Plan

• No Temporary Access Fee

SKYLINE #2 RESERVOIR

(Future)

CHAMPION HILL RESERVOIR

(Existing)

• Non-compliant with Master Plan

• Temporary capacity available

• Temporary Access Fee

$2 million SDCs

$1 million rates

SYSTEMS DEVELOPMENT CHARGESTEMPORARY ACCESS FEES

15

SYSTEMS DEVELOPMENT CHARGESDEVELOPER COLLABORATION

Croisan Water Venture

DISCUSSION