DISTRICT FACILITATED WATERLINE EXTENSION (DFWLE) PROGRAM
DISTRICT FACILITATED WATERLINE EXTENSIONS (DFWLE)
The goal of this program is to assist with the expansion of residential water service to new customers of existing neighborhood groups actively seeking the extension of treated waterline(s) into their community. Assistance offered by this program includes facilitating informative group meetings, contracting for special consulting services, contracting for project design and construction services, securing funding, and providing a means for recovering project costs through County tax rolls over time via an Assessment District (AD) or Community Facilities District (CFD). See below for an overview of the Assessment District and Community Facilities District tax systems. A project implemented through this program shall be referred to as “District Facilitated Waterline Extension”, or “DFWLE”.
ELIGIBILITY
Neighborhood groups representing existing single-family residential dwellings, including duplex units, and to a limited extent, unimproved lots, are eligible for the DFWLE program. The DFWLE program will not be used to expand treated water facilities for commercial or industrial land uses, or for lands under development through a use permit or for subdivisions, including planned unit developments or similar developments. The intent of the DFWLE policy is to provide treated water to existing developed neighborhoods.
An eligible DFWLE must contain a minimum of 6 parcels, of which at least 5 must be improved. A request must be submitted in writing and must include: 1) a contact person and telephone number, 2) parcel numbers of each parcel requesting water service, 3) owner(s) name and address for each parcel, and 4) signatures from each owner. The District will determine the proposed project boundaries or limits identifying all parcels that could potentially be served by the DFWLE.
To be placed on the District’s Eligibility List, the written request must be brought before the Board of Directors for consideration. Priority will be established based on the date of addition to the Eligibility List, and on active participation. The Board of Directors will determine the next neighborhood group eligible under the DFWLE program. All DFWLE projects shall be subject to the discretion of the Board and to limitations imposed by the Board of Directors as part of its budgeting authority and may be reduced or restricted as the Board deems necessary given the other financial demands on the District.
Once a project is deemed eligible as a DFWLE project, the District will incorporate the general program provisions, complete a Water Service Study, and solicit neighborhood commitment through informative group meetings.
Assessment Districts (AD) and Community Facility Districts (CFD)
AD and CFD are two different types of taxing systems. The AD and CFD programs are typically funded using bond proceeds based on the property owners voting in self-imposed taxation.
Special districts such as NID, may establish Assessment Districts for the purposes of financing all or a portion of the cost of certain public improvements and services. Each property within an assessment district is assessed an amount sufficient to cover the proportional cost of the special benefit that it receives from the improvements or services that are paid for by the assessment.
Community Facilities Districts (CFDs) are special tax districts, by which property owners in an established geographic area agree to impose a tax on property within the area to fund services, public improvements, or infrastructure. CFD’s are created through sponsorship by NID, and the district includes all properties that will benefit from improvements or services resulting from its formation.
Due to the size and complexity, these projects require significant input from the residents/property owners. Costs are based on estimates, and if exceeded, the time of the bond is extended to recoup the cost. This type of financing system is also referred to as Mello-Roos financing.
The District has completed two successful projects using this system, Cement Hill CFD and the Rodeo Flat AD.
Getting started with a DFWLE Project
If you have a group of neighbors that have an interest in receiving treated water utilizing the DFWLE Program, contact Tricia Panock, the District’s Business Services Technician at (530) 273-6185, ext. 1240, or by email at panockt@nidwater.com
Additional information regarding the DFWLE program can be found in Section 10 of the
