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Council rescinds 1991 prepaid sewer connection resolution; staff to consult auditor on historic deposits
Summary
Council adopted a resolution rescinding a 1991 measure that allowed prepaid sewer connection fees; staff said the original resolution froze fees for three years and that some property owners had misinterpreted the practice as a perpetual credit. Staff will consult the auditor on how to treat about $75,000 in long‑standing deposits.
Ken, a city staff member, explained that a 1991 city resolution allowed developers to prepay sewer connection fees and freeze the fee for three years; over time some property owners assumed the payment covered future hookups permanently. Staff said that misunderstanding has led to accounting confusion and that the resolution should be rescinded to clear the books and clarify how credits will be applied when building permits are pulled.
Ken said roughly 44 to 50 properties have prepaid connections recorded and that the city is holding about $75,000 in deposit money from decades ago. He told council staff will consult the auditor and city attorney about whether to refund deposits or retain the funds as credits against future connection charges and how to document credits when ownership has changed.
Council moved to approve a resolution rescinding the 1991 prepaid connection resolution; the motion passed by voice vote.
Staff said property owners who can document they paid a prepaid connection historically would receive credit for the paid amount at the time they pull building permits; staff will return with a plan for accounting and owner notification.
