Adjustment for Special Assessments Sample Clauses

Adjustment for Special Assessments. If the Using Party is purchasing capacity in the existing Shared Sewer to service properties annexed to the Using Party, the net local share project cost must be reduced by the amount of any special assessment(s) paid by current or previous owners of the annexed property that were applied to the eligible original project costs. Any contractual payments received by the Owner as a contribution toward the eligible project costs of the Shared Sewer shall be treated in the same manner as a special assessment for purposes of calculating the net local share project cost. Example: The original project cost was $4,000. After deducting 75% grant payments, the Owner's local share cost was $1,000, of which $600 was collected by special assessments. Ten properties were assessed for the project and 3 have since annexed to the Using Party. The Using Party's capacity share in the Shared Sewer is 25%. The Shared Sewer is 20 years old (80 years remaining service life), and CPI ratio since the year of construction is 2.5. The local share cost is reduced by the amount of special assessments collected from properties that have annexed:
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