2014.04.08 EDA Agenda Packet - Laserfiche WebLink

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N SAC Deferral Program Description and Application To promote business development, Metropolitan Council Environmental Services (MCES) provides communities the option to participate in the SAC Deferral Program to defer some SAC payment obligations. This option allows deferral of up to 80% of SAC due for the wastewater demand created by businesses (communities are required to pass on the benefits of deferred SAC payments to the participating businesses). Businesses allowed to participate are those within an eligible city and where a new SAC determination of 25 or fewer SAC units occurs (total charge before credits). To obtain these deferments, communities must first complete and submit to MCES a signed master SAC Deferral Agreement (Agreement). This Agreement will be sent to interested communities for signature after the information in the following is completed and returned to MCES. 1. Community: 2. Community Address: 3. Contact (Finance Director or CFO): 4. Community -Wide Maximum Percent of SAC that can be Deferred (80% maximum): 5. Community -Wide SAC Deferment Period (years): 6. Payment Month(s): For 4, 5 and 6 above, each participating community has additional implementation options that will apply to all its deferrals: 4. For qualifying SAC liabilities (businesses with total determinations of 25 units or fewer), MCES allows the community to defer up to 80% of SAC due; however, a community can set a maximum that is lower than this (fill in the percentage on line 4 above). Once this community maximum is set, the percentage deferred for each individual site deferral can be lower than this maximum but cannot be higher (e.g., a community chooses a 75% maximum, but a business chooses to pay 50% up front). For each individual deferment, this site-specific percentage must be noted on the MCES SAC -E Form, available at: http://www.metrocouncii.org/Wastewater-Water/Funding- Fi n a n ce/Rates-Cha roes/Sewe r-Ava i la bi l ity-Ch ar&e/SAC- Form s. as Px#Activity 5. Deferment period (term): Choose any whole number up to a maximum of 10 years. This term will apply to all individual deferments from the community. However, note that the Agreement allows any individual deferment to prepay the remaining principal (and interest up to the payoff date) at any time. 6. Timing of payments: MCES prefers annual payments due each year on the anniversary the Agreement was signed, but Communities may request a different payment schedule, as long as it applies to all deferments in the community. Semi-annual payments are also allowed, on any month-end during the year - such a schedule may be preferred that corresponds with local SAC collections, assessments, or other payments from businesses.