1. Whenever the property owner being assessed charges under Chapter 15.12 BMC elects to connect to the city sewer system improvement, the property owner subject to assessment shall make payment as provided for in BMC 15.12.050; or

2. Alternatively, the property owner may elect to finance the property owner’s equitable share of the costs of a city sewer system improvement (the “equitable share costs”) and any applicable interest thereon for a period of either five or 10 years, at the property owner’s election. Payments shall be made on a monthly basis as determined by the city. Early payoff of the entire amount owed at the time of payoff is authorized in accordance with the procedure that will be set by the finance director. An administrative setup fee will be charged to allow the city to recover the administrative costs and expenses incurred in setting up the financing. This administrative setup fee shall be set by the finance director and shall be adjusted annually to reflect any applicable inflation or cost increases. The financing shall not include any fees or charges other than the equitable share costs and the interest thereon. By way of example and not limitation, the property owner will not be allowed to finance the actual connection charges, any permit fees or the administrative fee to set up the financing option. If this financing option is chosen, the financed equitable share costs shall incur interest at a rate fixed at the federal reserve rate for a five- or 10-year treasury note, depending upon the length of financing. The federal reserve rate for the applicable treasury note shall be determined by the finance director based upon the rate on the date the financing agreement is signed by the property owner.

1. The project being assessed must be a city sewer system improvement. As used in this section, “city sewer system improvement” shall mean a city of Bellingham sewer system project and not a private developer’s sewer project; and

2. The property owner applying for the financing payment method must be an existing city water customer and must be legally receiving city water service; and

3. The property owner applying for the financing payment method must be current on all utility payments to the city and must agree to stay current throughout the term of the financing agreement; and

4. The property being served must be an owner-occupied single-family residence and the property owner must agree to maintain single-family residence status during the entire term of the financing agreement; and

5. A financing agreement must be executed before hookup to the city sewer system improvement; and

6. As a condition precedent to the city signing the financing agreement, the property owner must execute a lien against the property served to secure payment of the equitable share costs and interest thereon and agree that water service may be discontinued for nonpayment of the equitable share costs and interest financed hereunder; and

7. Under this financing payment method, no sewer permit will be issued without all applicable fees being paid in full.