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Staff proposes developer prepayment of sewer impact fees to close wastewater funding gap
Summary
Staff told council that Dove Reserve (near Bertram Oaks and Lennar) requested a utilities meeting and suggested developer prepayment of sewer impact fees as a voluntary developer agreement to bring roughly $832,000 toward a $1.8 million gap; staff cautioned prepayments won't cover existing debt service on a $4.7 million loan.
Staff said Dove Reserve and nearby developers asked to meet about when utilities will be available and suggested the town could offer a developer agreement allowing voluntary prepayment of sewer impact fees to accelerate construction without increasing fees.
"We could ask them the same thing. They're pushing us to move faster. We have a funding gap. They're gonna have to pay the fees anyway. We could just ask them," the staff member said, proposing that prepayment would not change the total fee but would move its timing earlier in the development process.
Committee members discussed the math: staff estimated about 149–150 lots in the development, and a committee member calculated a prepayment could bring in roughly $832,000 toward the town's roughly $1.8 million gap. Staff cautioned that prepayments help with capital funding but "doesn't help with making their debt service payments back on that $4,700,000 that we borrowed." Council asked staff to pursue meetings and draft a developer agreement if the parties express interest.
