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Resolution - System Development Fee Capital Reserve Fund
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INFORMATION CONTACT:
Amy McCaskill, UC Water - Utility Business Services, Director, 704-283-3508; Beverly Liles, Finance Director, 704-283-3675
ACTION REQUESTED:
1) Adopt Union County Water Budget Amendment #4 and 2) adopt Resolution of the Union County Board of County Commissioners amending the System Development Fee Capital Reserve Fund.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
On June 17, 2019, the System Development Fee Capital Reserve Fund was created in accordance with the General Statues of the State of North Carolina 162A-211(d) and Chapter 159, Article 3, Part 2 for the purpose of allocating system development fees to the cost of constructing capital improvements, professional fees and debt service for the construction or acquisition of capital improvements. The System Development Fee Capital Reserve Fund may be amended from time to time by adopting an amended resolution.
The attached resolution establishes system development fees as a funding source and accounts for SDFs collected for current projects and/or debt service associated with current projects as defined in the attached resolution.
Any projects that are allocated in the resolution that are not currently in progress will remain as restricted fund balance in the capital reserve fund until the funding is needed.
FINANCIAL IMPACT:
System Development Fees in the amount of $14,025,945.50 will be used as a funding source for capital projects and/or debt service cost related to capacity expansion of the water and sewer infrastructure system.