Council adopts change to reimbursement agreement rules for developer-installed infrastructure

Payson City Council voted on Aug. 20 to amend the city’s reimbursement agreement ordinance so that developers who install off-site public infrastructure (water, sewer, roads) can be reimbursed over a 20-year period rather than the prior 10-year limit. "Our current ordinance says it's 10 years that they can get reimbursed. This will change it to 20, and then it will also give a ability for them to extend that to another 10 years if they meet certain requirements," a staff member explained to council. The amendment also allows staff to require additional condition assessments if applicants request an extension beyond 20 years; the longer term includes a requirement that the city inspect and confirm the utility condition before extending reimbursement. Councilors discussed the administrative burden and title-record mechanisms used to preserve reimbursement obligations in property records; staff said typical practice includes recording agreements so obligations appear in title searches. The ordinance amendment passed on a roll call vote at the meeting. The approved change will appear in Title 10.16.0.21 and staff said they will develop guidance for future agreements and any inspection/reporting requirements tied to extensions.