§ 17-103. Financing extensions within corporate limits

(a) Extensions to approved subdivisions or developed property:

(1) When application is received requesting the extension of water or sanitary sewer service or both, to service property within the corporate limits which is developed or has been previously approved as a subdivision, or where streets have previously been dedicated and accepted by the town, and where such area is not part of a new subdivision, or where streets have previously been dedicated and accepted by the town, and where such area is not part of a new subdivision which has not been approved by the town, the director of public works or other person designated by the town council shall estimate the cost of the project and present the application for such extension, the estimated cost and other required information by the council and, subject to the availability of funds, the town will install or have installed by contract, under its supervision, the extensions which have been approved, and such extension shall be financed in accordance with this subsection.

(2) When an approved water or sanitary sewer extension project has been completed and the total cost thereof has been determined, one hundred (100) percent of the total cost of such water or sanitary sewer extension or both shall be assessed against the property owners whose property abuts upon such extension at an equal rate per front foot in accordance with and under the authority granted to the town by general statutes.

(3) Any property owner or owners shall have the opportunity to pay his or their proportionate share of the cost of such extensions after the assessment roll is confirmed rather than paying his or their share in equal annual installments with interest as required by the statute.

(b) Extensions to proposed developments or subdivisions:

(1) When an application is received requesting the extension of water or sanitary sewer service or both to proposed developments or subdivisions within the corporate limits which have not been approved by the council:

a. The director of public works or other person designated by the town council shall estimate the cost of the project and present the application for such extension, the estimated cost and other required information to the council for their approval.

b. The applicant must make a cash deposit equal to ten (10) percent of the preliminary cost estimate to secure a contract for preparation of the construction plans and specifications.

c. After construction bids are received by the town, the remainder of the total deposit required under the appropriate procedure must be made by the applicant before construction will be authorized. Failure to make deposits necessary for construction authorization within thirty (30) days after receipt of bids will result in forfeiture of the actual engineering and administrative costs, not to exceed the original ten (10) percent deposit.

d. If the application is approved and subject to the approval of the development or subdivision by the town, and subject to the availability of funds, the town will install or have installed by contract under its supervision such extensions which shall be financed in accordance with this subsection.

(2) Prior to beginning of any construction, the property owner or owners shall advance to the town funds in an amount equal to one hundred (100) percent of the total estimated cost of the proposed extensions. Upon receipt of such funds, a written contract shall be entered into by and between the town and the property owner or owners, under which the town will use such funds upon the following terms and conditions:

a. The funds shall be deposited in a special account of the town for which a separate accounting will be made.

b. At the time construction of the extension is completed and the total cost thereof is determined, if the amount deposited exceeds one hundred (100) percent of the total cost, that portion in excess of the cost will be refunded to the owner or owners without interest. If the amount deposited is less than one hundred (100) percent of the total cost, the owner or owners shall pay such additional amount to the town and this condition shall be a part of the written contract.

c. No refund or reimbursement of funds shall be made to the owner or owners who pay one hundred (100) percent of the total cost of extension under the requirements of this subsection except as provided for in paragraph b. above.

(c) Facilities excluded in determining owner's share of cost:

(1) When the town determines that it is advisable to install larger size facilities than are necessary to serve the property requesting such extension, the difference in the cost of the larger size facilities over and above the cost of the facilities required to serve the property requesting such extension shall be paid with funds advanced by the developer and refunded to the developer at the rate of twenty (20) percent, per year, of the water and sewer income from the development requesting such extension up to a maximum of twenty (20) years.

(2) System facilities installed for general public use which are expressly identified in the application or agreement approved by the council shall be paid for by the town and excluded from the total cost to be shared by the property owner or owners as provided for herein.

(d) Exceptions authorized. Nothing in this article shall prevent the council from extending water or sanitary sewer mains or both within the corporate limits on their own motion without receipt of an application from property owners, and to assess the cost of such extensions in accordance with subsection (a) of this section when, in the opinion of the council the general public interest demands such extension of service.

(Code 1973, § 25-52)