MONTHLY MEETING HI- COUNTRY ESTATES II HOMEOWNERS ASSOCIATION MARCH 28, 2009
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1 MONTHLY MEETING HI- COUNTRY ESTATES II HOMEOWNERS ASSOCIATION MARCH 28, 2009 Infrastructure deterioration can be reversed and expansions of systems to serve new development are possible but all solutions will require funding.
2 Situation: New development and infrastructure maintenance are interrelated and there are shared responsibilities for managing these systems. Hi-Country Estates II HOA Board Maintain roads owned by HCEII Maintain and operate water system owned by HCEII Enforce and interpret HOA protective covenants Manage the construction of capital improvement projects. Salt Lake County Government Maintain Rose Canyon Road Provide Law Enforcement and Animal Control Enforce Zoning Regulations Administer Foothills and Canyon Overlay Zone (FCOZ) Provide Building Inspection and Permits Provide Health Inspections (Septic Tank Permits) Interpret State Greenbelt rules - Tax Assessor Individual Property Owners Development of main roads Development and maintain private property Qualify for Greenbelt as a property tax break Decide for or against annexation into Herriman Research constraints to development of property
3 There is no sewer service within HCE II and there are limitations to septic tank locations and design. The SL Valley Health Department will not permit septic tanks Within a source protection area (Parts of Area D) Where a percolation test fails (Several locations within HCEII) Within 100 feet of a stream (Rose Creek) Challenges in Installing a Sewer System Property owners will need to annex to the sewer district. (This would increase the average residential property tax in HCE II by about $100 per year.) The sewer district would install the pipe then allocate cost to users. (In June 2006, the Sewer District estimated this would cost $20,000 to $45,000) If a house is within 500 feet of a sewer line, the owners will have to abandon their septic tank and connect to the sewer as required by State law.
4 Meeting with Herriman, Water Quality Board and South Valley Sewer District March 25th Stimulus grants available Annexation into Sewer District Apply for grant from Water Quality Board They will fund 2/3 of the project South Valley will bond for remaining amount Cost and repayment Everyone will pay $ connection fee Property owners will pay $17, impact fee Everyone will pay for trenching to hook up to sewer Some will pay for grinder/injector system South Valley will charge $20.00 per month for services Water Quality will assess $50.00 per month to individuals connected until the amount bonded for is re-paid. Now is the time to act while construction cost is low and grant money is available!!!!
5 The roads owned by HCE II are unsafe and not adequate for a standard subdivision. Maintained Unmaintained Area A 2.74 miles 0.15 miles Area B 1.72 miles 0.38 miles Area C 2.19 miles Area D 3.88 miles 3.37 miles Challenges: miles 3.90 miles The existing gravel roads were never properly engineered for storm water runoff. This creates ruts and washouts several times per year. The roads are steeper and narrower than standard residential roads. This limits fire truck access, large service vehicle access and speed. Routine maintenance is not frequent enough to stop the continual deterioration of high travel areas such as the S curve and Sharose Road. On steep hills, washboarding develops within a short time after grading. Association members do not want to pay additional money for road improvements
6 The water system owned by HCEII is not adequate to serve both existing residents and new development. 17 miles of distribution pipe 171 connections with the future demand to expand to 500 connections In 2008 HCEII purchased 22,453,000 gallons of water from Herriman City and pumped 15,659,500 gallons from upper well for a total of 38,112,500 gallons of water consumed in Challenges: Six inch diameter distribution pipe is not standard size Aging pipe and connectors are prone to failures In 2005 Herriman City estimated that it would cost $2,000,000 to upgrade the distribution system Inadequate storage for future growth During the summer months tanks are drained by landscape watering There is no back up water source for Area D
7 Water Right Size of Water Right: 1,048 Acre-feet Requirement to proof right and demonstrate its entire capacity is put to beneficial use Capacity of Pump = 124 acre-feet Retention of right for future growth even though it is not in use to its capacity Management of water right sale to Herriman Improvement / expansion of water sources for future use
8 Unpaid assessments are almost equal to the annual roads and administrative budget of the HCEII HOA HCE II Roads and Administrative Budget ( ) Road Maintenance $30,573 Snow Removal $30,000 Legal Fees $35,000 Administrative $18,937 Common Area Maintenance $ 1,300 Subtotal: $115,810 Unpaid Assessments $26,325 Total: $142,135 Annual Assessments( 08-09) Total Delinquent Assessments (Feb. 2009) Area A $ 30,070 $ 6,362 Area B $ 18,290 $ 12,122 Area C $ 48,205 $ 13,766 Area D $ 45,570 $ 82,714 Total: $142,135 $114,912
9 The Foothill and Canyon Overlay Zone (FCOZ) Restricts Development SLCO FCOZ Code Chapter Purpose of FCOZ-Provide for the preservation of environmentally sensitive areas and open space by encouraging clustering or other design techniques to preserve the natural terrain, minimize disturbance to existing trees and vegetation, preserve wildlife habitat, and protect aquifer recharge areas. Land on hillsides and side canyons is included in FCOZ; the area is mapped by SLCo Development Services Division Building permits in this area will not be granted on hilltops, slopes, steep accesses or washes FCOZ review process may add six months to one year to the time for getting a building permit Salt Lake County has the power to determine what and where you can landscape your property, the color of your house and if you can have an out building Advantage - The final product is a well placed, attractive development that adds value to the area
10 Developers of land adjacent to HCEII want to use our Water and Roads At the 2006 annual meeting the membership voted to NOT open our roads to neighboring developments. There are no plans to sell water outside of our development.
11 Hi-Country II folks have diverse interests and have offered various solutions to development issues.
12 The Greenbelt tax break saves money for some property owners but it has created conflict with residents. Residents, not on Greenbelt Pay full property tax on their land Real estate investment in Rose Canyon is also their home The livestock that that qualifies property for Greenbelt grazes on residential landscaping Loose livestock is dangerous in traffic Overgrazing causes erosion and invasive plants Non Residents on Greenbelt Property must be greater than five acres and be used for a qualified agricultural use This is a low cost method to hold property until it is developable and the real estate market returns Landowners who do not live in the area may view their property as an investment. 75% of the unpaid HOA assessments belong to properties on greenbelt.
13 Taxed value of property in HCEII in 2008 illustrates the value of property in Greenbelt Value of Taxed Real Estate Residential Land HCE II Assessed Value $53,675,048 51% $13,238,059 12% Subtotal: Value of Non-Taxed Real Estate Real Estate on Greenbelt $66,913,107 $38,841,652 37% Subtotal: $38,841,652 Total $105,754,759
14 The 64% of the land in HCE II is on greenbelt and 37% of the taxable value is property tax-free because of Greenbelt. Year Acres In Greenbelt Area A Area B Area C Area D Total Total Acres % of Area in Greenbelt 69% 79% 32% 79% 64% Greenbelt Value (Not taxed) $12,948,960 $7,893,682 $8,829,530 $9,169,480 $38,841,652 27,616,566 13,378,488 47,126,889 17,631, ,754,759 Total Taxable Value % Taxed Value in Greenbelt 47% 59% 19% 52% 37%
15 In 2008 HCEII property owners contributed $43,895 in property tax to Salt Lake County for basic government services. If we were in Herriman, we would have paid $21,478 to Herriman. Basic Government Services are funded by property and sales tax (Municipal Services) Maintain Rose Canyon Road Law Enforcement (Herriman residents pay for this in their water bill) Animal Control Zoning Enforcement Building Inspection and Permits Neighborhood Parks (Herriman Residents pay for this in their water bill) Total HCE II Taxed value = $66,913,106 SLCo Municipal Services mill levy = $66,913,106 X = $43,895 If were in Herriman: Herriman City mill levy = $66,913,106 X = $21,479
16 Annexing to Herriman could solve some of the problems but could Herriman City afford to service our area? Stay the Same whether we annex or not Homeowners Association 2.5 Acre minimum lots Water System Lack of Sewer Gravel Roads Law Enforcement Animal Control Fire Protection Health Regulations Tax Assessor Garbage Collection Change if we annex Building Permits Zoning Enforcement FCOZ restrictions may be lifted Local Representation More funding potential for projects Lower Property Tax (In 2008) It is unknown if Herriman will need to increase property tax in future years to off-set the reduction of fees from the slow down in development. Rose Canyon Road Maintenance
17 If we were part of Herriman in 2008, the owner of a house with a tax value of $330,346 would have paid $143 less in property tax but at least $360 more in fees. Hi-Country Estates II Property Tax (2008) Jordan School District $1,619 Jordan School Basic 413 SLCo General Fund 403 SLCo Cap Imp 4 SLCo Bond Int/Sink 80 SLCo Flood Control 20 SLCo Health 45 SLCo Planetarium 13 SLCo Library 163 Mosquito Abatement 7 Central Ut Water Cons 94 MultiCnty Assess/Col Levy 40 Cnty Assess/ Coll Levy 28 SL Valley Fire 517 Jordan Valley Water Cons 127 County Municipal Services 217 Total Tax : $3,790 Herriman Property Tax (2008) Jordan School District $1,619 Jordan School Basic 413 SLCo General Fund 403 SLCo Cap Imp 4 SLCo Bond Int/Sink 80 SLCo Flood Control 20 SLCo Health 45 SLCo Planetarium 13 SLCo Library 163 Mosquito Abatement 7 Central Ut Water Cons 94 MultiCnty Assess/Col Levy 40 Cnty Assess/ Coll Levy 28 SL Valley Fire 517 Jordan Valley Water Cons 94 Herriman City 106 Total Tax : $3,647 Fees added to water bill $ 360 Other fees added to Utility bills varies
18 Some Methods of Funding Development and Infrastructure Improvements Special Assessments: Vote by geographic area to increase the annual assessment paid to the HOA. Developer: The Developer funds his entire impact. ( Roads, water, sewer, etc.) Special Taxing District: This would increase property tax and use the revenue for infrastructure improvements. (For every $20,000 in revenue, property tax on the average house in HCEII would increase by $100) Federal and State funds
19 Call to Action Educate yourself on the issues in HCEII Participate in a lobby group to gain support for the sewer district If there is a strong reason to annex to Herriman, participate in an annexation group to gain support and circulate petitions Come to monthly meetings and participate in solutions
20 Volunteers are Needed!
21 Annual Meeting June 13, :00 PM
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