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Improvement Plan Summary

The Improvement Plan outlining details of the Natural Gas Homer Assessment District (HSAD) was approved by Council September 24th, 2012. A synopsis is provided below or you can view the plan in its entirety here.


Proposed Boundaries: Homer City limits. About 10% of City lots will be excluded. You can check and see if your lot is included by searching the preliminary assessment roll here. A map of the location and extent of gas mains can be found here.

Design: Seventy-three miles of 2 to 4 inch diameter pipe plus the portion of the trunk like that runs through the City are included in the HSAD. Design specifications are the responsibility of Enstar. The distribution system will be built over two construction seasons. If the HSAD is approved by January 2013, construction could begin in the downtown area in spring of 2013.

Cost Estimate: $12,657,147. Cost for Enstar to build the distribution system, excluding the trunk line: Not to exceed $12,160, 632. This translated to $31.55 per linear foot. Administration fee: $316,515 (consistent with City of Homer fee schedule). Direct construction cost estimate: $180,000. This will pay for seasonal inspectors, utility locates, project management and equipment.

Financing: the City can finance the project a variety of ways; selling special assessment bonds, commercial loan, revenue bonds, or borrowing from Kenai Peninsula Borough. The City will pass the interest rate it receives to the lot owner or the assessment can be paid up front in full.

Percentage of improvement cost to be assessed against Properties in the District: 75% of the cost of the project, including administrative and direct costs, will be assessed against properties in the District. 25% will be paid from grant funds.

Assessment per lot: $3,283.30

Time period over which assessments will be financed: 10 years