Greeley continues Johnson Subdivision sewer assessment hearing to Nov. 17

Greeley City Council continued the public hearing and second reading on a proposed $12,631.57 sewer assessment for each of 38 Johnson Subdivision properties to Nov. 17.

Under the proposed ordinance, an assessment would become due when a property connects to city sewer, whether the owner requests it or city code requires it. City charges would be $12,000 and change for the assessment plus a $9,050 tap fee, without interest on either amount, a staff member said. Sewer stubs reach the edge of the right-of-way to avoid future street excavation, but owners would still need to run lines from their homes, the staff member said. The Water and Sewer director could authorize repayment of an assessment in installments over no more than five years.

The ordinance describes the vast majority of residential lots in Johnson Subdivision, north of 4th Street and west of 35th Avenue, as having relied on aging private septic systems. State law requires properties within 400 feet of existing sewer to extend the main and connect, though individual requirements depend on location and circumstances, a staff member said. “When this happens, it can be a significant cost to a single or multiple homeowners, which can be $30,000 to $60,000,” the staff member said. The district was intended to spread construction costs across the neighborhood, the staff member said.

A resident who moved to Johnson Subdivision in 2025 said the household knew nothing of the project until receiving a notice addressed to the home's previous owners. The resident knew of no neighborhood vote approving the assessment and called it unfair to charge people who bought homes after the project was decided. Recording the assessment could affect future home sales, the resident said, asking the city to pay the neighborhood's $480,000 assessment. “But I can't support this tonight,” Councilmember Melissa McDonald said, citing concerns about fixed-income residents and insurance coverage.

The proposed ordinance finds sewer construction complete and would set the total district assessment at $480,000. Project costs reached about $580,000, about $100,000 over the cap; the excess would not be assessed to district properties, a staff member said. Sandy soil widened excavations and drove up road-repair costs, the staff member said. Added service connections were intended to reduce future street work and connection costs.

Councilmember Deb DeBoutez urged a pause over communication problems and the six-year delay, seeking a compromise or subsidy that would not shift costs to other city ratepayers. A council member said the member was not comfortable making a motion to approve the assessment without more information and proposed continuing the hearing to Nov. 17 while staff met with property owners. Another council member asked staff to look for grants or other funding that could cover the cost without burdening residents or other city ratepayers.