Water and Sewer System Development Fee Analysis
The North Carolina General Assembly passed House Bill 436 in July 2017, amending Chapter 162A of the General Statutes by adding “Article 8, System Development Fees.” This amendment was enacted as “An Act to Provide for Uniform Authority to Implement System Development Fees for Public Water and Sewer Systems in North Carolina and to clarify the Applicable Statute of Limitations.” As a requirement of the amended General Statute, Brunswick County contracted with Raftelis Financial Consultants, Inc. (“RFC”) to complete a system development fee analysis. The statute specifies that a written analysis be performed to calculate a system development fee, based upon the required criteria.
RFC calculated system development fees using generally accepted accounting, engineering, and planning methodologies to include the buy-in, incremental cost, and combined cost methods for each service as referenced Article 8. RFC analyzed the county’s water and sewer fixed asset data, outstanding debt and debt service information, capital improvement plan, contributed capital, system capacity, water production reports, sewer inflow and infiltration factors and a history of system development fees collected.
Prior to considering adoption of the professional analysis, House Bill 436 requires that a local governmental unit post the analysis on its webpage for public review and comment. The public review and comment period shall extend for a minimum of 45 days and provide the means for written comments to be submitted to the preparer of the professional analysis. After public review, the governing body of the local governmental unit shall conduct a public hearing prior to considering adoption of the analysis with any modifications or revisions.
In accordance with House Bill 436, the analysis will be available, and written comments may be submitted, from Apr. 17 through May 31. View the analysis here. A public hearing will also be held after the 45-day period for review and commenting has completed, and prior to the Board of Commissioners considering adoption of the analysis.
The 45-day period for review and commenting has now passed.