Cement Hill CFD Project

In 2005, three neighborhood groups within the NID boundary worked with NID Board
and Staff to revise NID policies to reduce the cost to property owners for waterline
extensions. As such, NID revised its Capacity Charges to include storage tanks, pump
stations, and pressure reducing stations, thereby reducing the cost for waterline
extensions and increasing the cost for all future connections to water mains (flat land
parcels and hillside parcels). The revised Capacity Charges are deposited in a restricted
account (the “NID Treated Water Improvement Reserve”) for the purpose of funding
major infrastructure. Also in 2005, a new policy was developed at NID called the
Community Investment Program, whereby funds would be set aside each year to help
groups seeking waterline extensions with start up costs (engineering and environmental
studies), up to $250,000 per project, and the cost of fire hydrants.

As a continuing effort to bring treated water to the Cement Hill area, NID applied for,
and community members lobbied for a California Department of Health Services State
Revolving Fund (SRF) Loan for the Cement Hill Treated Waterline Project. In 2007, the
SRF Loan was awarded to NID in the amount of $9,834,973 for 20 years at an interest
rate of 2.2836% per annum. As a condition of the SRF Loan, NID was required to form
an assessment district or Community Facilities District (CFD) to secure payments for the
loan.

In 2007, NID annexed 16 parcels in the Cement Hill area to allow those parcels to receive
treated water with the Cement Hill Treated Waterline Project.
A combination of the new NID policies and the SRF Loan made the Cement Hill treated
waterline project more affordable; with costs ranging from of $20,000-$23,000 per
parcel. Construction on the 11 miles of pipeline began in 2010 and water flowed to all
parts of the project in 2012.

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