System Development Fees

The Town of Fuquay-Varina commissioned Rafatellis Financial Consultants, Inc. to analyze their Water and Sewer System Development Fees (SDF) in accordance with a new law, the Public Water and Sewer System Development Fee Act (S.L. 2017-138), which clarifies a local government utility’s authority to assess upfront charges for water and sewer. The new law grants local government utilities specific authority to assess one type of upfront charge—a system development fee— with some legal limitations.

System Development Fees are defined as one-time charges assessed against new development to recover a proportional share of the costs of capital facilities constructed to provide service capacity for new customers connecting to the water and sewer systems. This analysis focused on reviewing the latest available fixed asset information and debt service costs as of June 30, 2017, to determine the cost of capacity for the Town, and on developing other assumptions necessary to establish appropriate fee levels for different types of customers using the American Water Works Association System Buy In approach.

Prior to considering adoption of the professional analysis, House Bill 436 requires that a local governmental unit post the analysis on its web page for public review and comment. You can access the analysis here. 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. Submit your comments online here or by mail to: Town of Fuquay-Varina , Attn: Jay Meyers, 401 Old Honeycutt Road, Fuquay-Varina, NC 27526. Comments will be received through June 1, 2018.