System Development Fees Study

Purpose and Statement

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” which requires compliance with designated calculation methodology. 

Through House Bill 436 (HB 436), the General Assembly of North Carolina established a uniform approach and associated methodology required for local governmental units to calculate and implement System Development Fees (SDF) for public water and sewer systems. 

What are System Development Fees?

System Development Fees are defined as a charge imposed on each new customer or development that generally offsets the incremental cost of replacing existing and/or constructing new capital assets to provide capacity that will continue to meet the demands placed on the system by each new customer or development. Since water system capacity must, without exception, exceed customer demands, the major infrastructure components providing this capacity, such as water treatment plants, reservoirs, wells, pump stations, etc., must be planned and constructed well in advance and in large enough increments to keep pace with anticipated demand on the available system capacity.

More Information

The Town of Black Mountain retained McGill Associates (McGill) to review and make recommendations for revisions as necessary to water system system development fees (SDFs) to conform with HB436. McGill Associates is a qualified in engineering disciplines and financial analysis and has the expertise and experience to determine system development fees. McGill has prepared a report of their findings and are encouraging public comment. 

Public Presentation & Hearing Notice

McGill Associates will present the System Development Fee Study Findings to the Town of Black Mountain Board of Aldermen and Citizens at the regularly scheduled Board of Aldermen meeting on Monday, June 10, 2019 at 6:00 p.m. in the board room of Town Hall located at 160 Midland Ave. Black Mountain NC 28711. 

The Town of Black Mountain will hold a public hearing on the System Development Fee Study during their regularly scheduled meeting on Monday, July 8, 2019 at 6:00 p.m. in the board room of Town Hall located at 160 Midland Ave. Black Mountain NC 28711.

Public Comment

Public comments regarding system development fees are encouraged and may be submitted via email to comments-sffs@townofblackmountain.org . There will also be a comment period during the public hearing on this matter. 

Related Documents