CED Annexation Policy Plan 1992 - Laserfiche WebLink

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South Bend has used a modified Barrett Law procedure to make sanitary sewer extensions more attractive to developing areas. This program has provided a revolving fund to cover one-half of new sewer construction costs. This program was effective in extending such service into unsewered areas of the incorporated City. The remaining costs were assessed against the property served on the basis of the Barrett Law formula. This process has been used for comparatively small projects and requires supplemental funding of the City's share for larger projects. Under a Barrett Law funding procedure, the Contractor is paid in Barrett Bonds which are redeemed by the City from area -based assessments. Traditionally, the Contractor will sell the bonds, for example, to a financial institution. This bond sale provides the project financing plus the Contractor's overhead and profit. Because of the large discount on the face value of the bonds, this procedure has not been extensively used in recent years. The modified program used by the City has provided the initial construction costs with one-half of the cost recovered in a five-year period from area -based assessments. A sanitary sewer master plan for the extension of sewers into the annexation area should be developed. Sewer service should be developed on the basis of a network on a mile -square grid. Liftstation locations should be established. Costs should be assigned to the service area on the basis of the Barrett Law formula or a similar formula. A decision should be made regarding the application of incentive funding. Incentive funding may be considered for either the total service area or for existing development with new development funding total costs. This latter aspect should receive a careful review by the City's legal department. Development within the mile -square grid should be the responsibility of the developers. A policy regarding incentive financing for these sub -areas needs to be developed and in place at the time of annexation. For the purpose of identifying the future limits of urban growth and any priority annexation areas to be identified through this study, four sanitary sewer assessment categories were developed based upon the availability of any existing sewers located within, or which could be extended into, the annexation study area. The location of these four assessment categories are shown on Map 6. 34