FOR IMMEDIATE RELEASE                                                                            April 8, 2008

CARY TOWN COUNCIL APPROVES INCREASES IN WATER AND SEWER IMPACT FEES, HOLDS LINE ON TRANSPORTATION FEES FOR NOW

CARY, NC – In an ongoing effort to balance the impacts of growth with desired service levels, the Cary Town Council has unanimously approved an increase in water and sewer development fees to 75 percent of the maximum allowable fees effective on July 1, 2008; this translates into a an average seven percent increase over the existing fee for water and an average 31 percent increase over the existing sewer fee.  While the $374 fee for an irrigation meter remains the same, the Council approved a first-time meter fee for reclaimed water meters of $187, which is 50 percent of the current potable irrigation meter fee.  The Council also voted unanimously to keep transportation impact fees at current levels, which are already among the highest in the Triangle.  The decisions were made at the Council’s regular meeting on Monday, April 7, 2008 .

With every new development in Cary there is a cost associated with providing new infrastructure capacity to serve it. Through General Statutes 160A-314 and 153A-277, Cary has been granted the authority to recover part of the cost of new water, sewer, and road capacity by charging developers fees, also known as impact fees. Developers are typically charged a percentage of the total cost of the new capacity necessary to serve the new development. The amount not covered by the developers is left to be paid by existing citizens.

Under the new rates, the water and sewer development fees for a new 2,500 square foot home will increase by about $938 to a total of $5,261.  The same equation applies to commercial development.  Current water and sewer development fees for a 150,000 square foot office building are $108,000; as of July 1, the water and sewer development fees would increase by $22,230 to a total of $130,230. 

The increase in Cary fees follows a thorough study of the Town’s impact fees that was initiated on April 12, 2007 .  Two independent consulting firms were hired to prepare and present to Council an updated analysis of the Town’s development fee structures.  The results of the studies were presented to Council during a work session on December 18, 2007 .  The studies identified the “maximum” allowable rate structures for transportation, water, and sewer development fees.  While the Council could have charged the maximum allowable rate, they decided to charge only 75 percent of the maximum given concerns over the economy and in light of the long-term contributions new developments make to a community by increasing tax base, diversity, and opportunity.

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