Directors of the Nevada Irrigation District on Wednesday (Apr. 25) allocated the final costs for the recently completed $10.3 million Cement Hill Water Supply Project.
The project, which included a new 1 million gallon storage tank and more than 11 miles of new pipelines to supply up to 240 parcels near Nevada City, was made possible by local property owners who petitioned NID and then voted to form the Cement Hill Community Facilities District (CFD).
To finance the water improvements, property owners who would benefit from the new water supply agreed to pay annual assessments of $1385 for a period of up to 25 years, however, property owners have asked that the term be limited to 20 years.
Changes in the original project led to increased costs of approximately $900,000, which were paid by NID. These included the addition of more fire hydrants and service lateral pipelines installed before area roads were repaved.
Directors this week approved several measures to allocate project budget, grant, loan and interest funding while keeping property owner assessments at the original level and holding the term of payments to 20 years.
The district aims to recoup the investment through additional customers, who may pay higher fees to connect to the water system, and increased tax revenues due to improved property values.
“We’re doing everything we can to find a way to make this work, without placing extra costs on our existing customers,” said Director Scott Miller. Board President Nick Wilcox added, “We want to keep the deal we made.”
Submitted to KNCO