Proposed System Development Fees

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Public Input Requested

The NC General Assembly recently passed House Bill 436 (HB 436) authorizing local governments to implement system development fees for public water and sewer systems. The fee is to be assessed for:

  • Service imposed with respect to new development to fund costs of capital improvements necessary for the new development
  • To recoup costs of existing facilities that serve new development.

This fee is proposed to take the place of the City’s existing capacity use fee for new development and would be calculated based upon a written analysis prepared by a financial professional or a licensed professional engineer with qualified training, experience, or education to employ generally accepted accounting, engineering, and planning methodologies.

The system development fee analysis for the City’s water and sewer system was conducted by Willdan Financial Services using conservative assumptions. The calculated fee is the maximum that can be charged, however, it is not the City’s intent to charge the maximum amount at this time, but to recover the revenue that would be lost due to the elimination of the capacity use fee.

Do you have input on this proposal you would like to share? E-mail your written comments to City officials by 5 pm April 30.