Systems constructed after June 30, 1991: Disposition of proceeds of assessments.
1. The proceeds of any assessments upon lots or parcels must be deposited with the treasurer of the local governing body which received them, and they may be expended only for the:
(a) Continued maintenance and operation of the water system;
(b) Replacement of the water system if necessary; and
(c) Payment of the costs, including, but not limited to, the direct costs of connection and the costs of necessary new or rehabilitated facilities and any necessary water rights, associated with connection to any water system provided by a public utility or a municipality or other public entity that becomes reasonably available.
2. If any surplus exists in the proceeds of assessments after all purposes of the assessments have been fully met, the surplus must be refunded to the persons who paid the assessments, in the proportion that their respective assessments bear to the gross proceeds of all assessments collected by the local governing body.
Last modified: February 26, 2006