Response from Mayor Sean Flower...
Arbors CID Explanation: The city does not pay to provide utilities to private developments (the city does not install roads, water, sewer, or other utilities for private developments). In the normal situation, the developer pays to install all of these items in a project, then dedicates the public items (sewer, water, roads, storm sewers, etc…) to the city or utility companies at no charge. The developer typically puts all of this cost into the cost of their lots, and sells the home to the buyer based on this lot cost. In some cases a city will allow the developer to put an annual assessment on the lots owners for a certain number of years instead of putting all the cost up front into the lots. This is only done where there are extraordinary costs (in the case of the arbors building a new water tank, the large parkway entrance, boring sewer under the highway, etc…). The developer still pays the full cost of all public improvements (the city still does not pay to install these utilities), but then puts some of this cost into the lot, and collects some from the buyer after closing for a set number of years. This allows the up front lot/house cost to be lower, and for buyers to pay the additional “extraordinary “ cost over time while they actually live there. In the case of the Arbors the developer paid the full cost of all the public improvements. They dedicated it to the city. The city has no debt and no obligations to pay for this asset, it owns it free and clear. The developer paid for part of this cost in the price of the lot, and the developer is also reimbursed for part of it through the annual CID assessment on homeowners. The city cannot redirect public funds (sale proceeds) to payoff CID payments as that would be causing all residents of the city to pay off the debt owed by the arbors residents to the private developer for the install of the utilities necessary to build their subdivision. In effect, the city would be paying to put in the water, sewer, and part of the roads for a private development if they were to pay off the CID payments. I hope this helps explain this topic. And just for clarity, I was neither at the city when this program was set up, I am not the developer, so I am just explaining what has happened in the past.