INFRASTRUCTURE FINANCING AND SDCS - Salem · 12/18/2017 · INFRASTRUCTURE FINANCING Economic...
Transcript of INFRASTRUCTURE FINANCING AND SDCS - Salem · 12/18/2017 · INFRASTRUCTURE FINANCING Economic...
INFRASTRUCTURE FINANCING AND SDCS
SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING
Economic Perspectives of SDCs
• Developer
• Infrastructure
• Home builder/home owner
Financing Alternatives
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• Example: Sabre Ridge Subdivision Phase 1
SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING
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• Example: Sabre Ridge Subdivision Phase 1
SYSTEMS DEVELOPMENT CHARGESINFRASTRUCTURE FINANCING
Reimbursements
12-inch water
Arterial street
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• 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
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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
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Phase 2: Dwelling Construction
Trunk main
Minimum pipe size
SYSTEMS DEVELOPMENT CHARGESCREDITS AND REIMBURSEMENTS
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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
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SYSTEMS DEVELOPMENT CHARGESREIMBURSEMENT DISTRICTS
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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
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SYSTEMS DEVELOPMENT CHARGESDEVELOPER COLLABORATION
Croisan Water Venture
DISCUSSION