Who Pays for Water and Sewer?
The proposed capital structure of the project is designed to not cost ANYTHING to the citizens of the Town of Summerfield (those not choosing to live in the village), the citizens of the City of Greensboro, or those in Guilford County.
The cost is paid for 100% only by the future homeowners choosing to live in the Village at Summerfield Farms.
The proposed financing mechanism has the following components:
The capital cost would be paid by water-sewer revenue bonds issued by the City of Greensboro at the prevailing market interest rate of their bond debt. Water-Sewer revenue bonds do not require a referendum approved by the citizens of Greensboro. The repayment of this debt would be guaranteed by the tax increment program described below:
The annual debt service will be paid for by Guilford County’s new tax revenues from the property tax-increment increase that is generated from the gradual build out of the Village at Summerfield Farms. The property tax increment is the difference between the property taxes currently being collected prior to the project’s inception and the additional property taxes paid after the project is initiated that will continue to grow.
The project is projected to produce sufficient tax increment revenues to fully cover the debt service by the sixth year. The bond repayment is planned to be structured as interest only for the first 5 years, and interest and principal for the remaining 20 years. The interest for the first 5 years will be capitalized and included in the original loan amount.
The Special Tax District to be established by Guilford County and approved by the Town of Summerfield (for the Village at Summerfield) will generate special tax revenues that will be directed to Greensboro to compensate it for the allocation of a small portion of its water and sewer capacity dedicated to this world class master planned community. Only properties in the Village at Summerfield Farms or any other approved properties that elect to tap on to the water and sewer would be included in the special tax district. The special tax district rate is proposed to be $0.25 per hundred dollars of valuation. This will continue to go to Greensboro after the initial capital debt is fully repaid, as Greensboro may eventually have maintenance costs involved in the upkeep of the newly constructed service lines.
Greensboro will charge customers in the Village at Summerfield Farms the customary rate charged to customers that are outside of Greensboro’s city limits, which is double the rates charged inside the city. There will not be any other fees.