One way that Cary plans for future success is through the provision of water and sewer capacity. Investments in utility infrastructure support both our current service connections and new connections. Like most utilities, the Town charges development fees to fund costs of capital improvements necessitated by and attributable to new development, or to recoup costs of existing facilities which serve new development. These development fees recover some of the costs of available capacity from new users. Development fees represent a significant component of Town resources to finance utility infrastructure; these fees have generated over $11 million in each of the last two fiscal years. Development fee revenues along with debt, utility rates, and developer constructed pipelines have contributed to the construction of more than $1 billion of utility assets used to deliver quality service to our community.
In 2017 new requirements for utility development fees were established by the North Carolina legislature in House Bill 436. The Town hired a consultant to conduct a new system development fee analysis as required by the legislation. This analysis is in final draft form, and the Town is seeking public comment on the analysis. After 45 days of public comment, the consultant will consider the public comments for possible adjustments to the calculated fees. After the 45-day period, Council will hold a public hearing before consideration and adoption of new development fee rates. Council cannot adopt a fee that is higher than the fee calculated in the analysis.
The analysis reflects three changes from current fees. First, the 2018 analysis includes the costs of Cary’s reclaimed system in the sewer fee calculations, and the current reclaimed water development fee would be eliminated in FY 2019. Reclaimed water facilities are generally recognized by federal and state regulations as part of the sewer system because of their reliance on highly treated wastewater effluent as supply source. Reclaimed water is, however, a valuable resource that offsets potable water demand, and thus has a relationship with both water and sewer systems.
Second, a new use type has been added for breweries, wineries, cideries, meaderies, and distilleries, reflecting the growth in this industry since the last fee study.
Finally, the analysis calculates lower fees for residential sewer capacity because average demand for service per account has decreased. A small increase for residential water capacity is calculated as average demand for service per account in that area has increased.
Questions and comments about the study should be directed to Stacey Teachey, Financial Strategy Manager via email at firstname.lastname@example.org or at this address:
Town of Cary System Development Fee Analysis
Attn: Stacey Teachey
P.O. Box 8005
Cary, NC 27512-8005
You may also provide your comments directly to Town Council at the public hearing on May 3, 2018 at 6:30 pm in the Town Hall Council Chambers.
You may also use the form below to submit your comments. Comments must be received by May 3, 2018 to be considered by the Town’s consultant.