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Proposed Water System Impact Fee Frequently Asked Questions Q: What is a water system impact fee? A: An impact fee is a fee charged to customers who request a new connection to the Black Mountain water system to help defray the costs of producing new water and reading new water meters. Q: Why is the Town considering the imposition of an impact fee? A: The Town is anticipating significant new growth in the next 3 to 5 years. New homes and businesses will require more water, and the Town will need to invest significant funds to pay for new water production. The Board of Aldermen directed staff to explore options that would ensure existing water customers did not bear the cost of expanding the system to pay for new customers. Q: Is the proposed impact fee different from the tap fee? A: Yes. The tap fee pays for the direct costs associated with installing a new tap on an existing water line (in most cases) and also helps pay for previous investments in the development of the water system. It is essentially a one-time payment for access to the Town’s water system. The impact fee funds the expansion of the existing system that will be required to serve the new customers. New customers connecting to the system will pay both fees. Q: What would happen if the Town did not charge this new fee? A: If this fee were not charged, the Town would supply the new customers by purchasing more water from the City of Asheville. Because it costs more to buy water from Asheville than it does to produce water ourselves, the water rate charged to all of our customers would need to rise to cover the increased costs. Q: Couldn’t the Town just charge a higher rate to new customers instead of an impact fee? A: No. State law prohibits the Town from charging residential customers a different rate for this purpose. Q: What is the amount of the fee being proposed? If approved, when will it take effect? A: Staff proposes an initial fee of $700. If approved, the fee will be imposed on the first day of the first month after the Board of Aldermen takes action to implement the fee. Q: How will the new money be used? A: The funds will be used to explore for new water and to install wells and connections where sufficient water is found. It may also fund the purchase of property where water is located. It will also fund the purchase of new water meters and new electronic meter reading equipment for the new homes and businesses that pay the fee. The new equipment will greatly improve the Town’s ability to read the meters quickly and accurately, and will help keep future operating costs under control by eliminating the need to hire new meter reading staff. Q: How can I provide input about the proposed fee? A: You may speak on this matter at a public hearing scheduled for February 13, 2006, during the regularly scheduled meeting of the Board of Aldermen. The meeting begins at 6 PM in the Boardroom of the Town of Black Mountain Public Safety Building, 106 Montreat Road, Black Mountain, NC 28711. Q: When will a final decision be made about the fee? A: The Board is scheduled to consider the proposed fee after the public hearing on Monday, February, 13, 2006. Q: Where can I get more information? A: Contact The Water Administration Department 828-419-9300 |
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