Union City Administrator Terrell Jacobs and City Attorney Dennis Davenport were given the go ahead to discuss the creation of special districts and the method to a fund plan to address infrastructure improvements in several city condominium complexes. If the measure were to come about the city would be repaid over time.

Jacobs told council members March 21 the Old Virginia Condominium Association had approached the city for help in making improvements to water and sewer systems within the property. Jacobs said the complexes were constructed at a time when the city did not have regulations on quality infrastructure installation. Some of the privately owned condominium complexes, including Shannon Villas and Windham Creek, have experienced significant problems with water and sewer systems over the years. The installation of master meters appears to have demonstrated the cause of the problems, Jacobs said, citing the belief that the current water loss to individual units is due to problems that exist between the master meters recently installed by the city and the units themselves.

Jacobs said the condo association had requested that the city make the needed infrastructure improvements but was told that the city could not make the improvements on private property. The city did say that it would attempt to assist the association if possible. Jacobs said he subsequently discussed the issue with Davenport and a bond attorney. They concluded that the only option would be for the owners of the complex to convey the streets and the water and sewer system to the city.

The discussion phase authorized by the council March 21 will involve a multi-step process of consideration.

“This would look at a mechanism to get the infrastructure up to city standards and, hopefully, deed the system over to the city to maintain,” Jacobs told the council.

If eventually approved by the council, the move would give Union City management responsibility over the infrastructure. Union City would then create a special taxing district that includes each affected condo complex and would issue revenue bonds under the existing bond resolution. The proceeds from that revenue, Jacobs said, would be used to make improvements to the water and sewer system. Additionally, the city would use moneys on deposit in the General Fund for area road improvements. Finally, the city would levy an annual assessment within each special taxing district in an amount needed to repay the city for the improvements over a period of time. Those assessments, said Jacobs, would be used to repay the revenue bonds and replenish the General Fund.

login to post comments