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Consultant warns extensions and outside parcels historically paid nothing toward excess capacity
Summary
The consultant said parcels added to the district by extension historically paid nothing into the assessment pools and that connecting such parcels depletes excess capacity; he recommended charging extensions an amount reflective of the maximum historic contribution.
During the Victor workshop, Mark Terryan addressed how extensions affect the consolidated district's capital balance. He explained that parcels outside the district that are later included by extension typically have paid no prior assessments: "the answer is nothing," he said when asked how much they'd paid since 2010. Terryan said when such parcels connect they consume units of excess capacity that earlier-connected parcels helped fund.
To address that inequity, Terryan recommended that the connection fee for extensions be calculated to reflect the maximum amount a comparable parcel might have paid historically, noting that the fee schedule includes footnotes and unit assumptions (for example, a single-family residential parcel is one unit; multiunit or mall-type properties are multiplied by units). He said the schedule should be updated periodically so latecomers do not benefit from historical underpayment.
