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Public Hearing - System Development Fee Study
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INFORMATION CONTACT:
Amy McCaskill, Union County Water - Business Operations, Director, 704-283-3508
ACTION REQUESTED:
Conduct Public Hearing Required by General Statute for System Development Fees.
PRIOR BOARD ACTIONS:
1) March 19, 2018, Special Meeting, Agenda Item # 2 - Directed staff to post system development fee analysis on website and to solicit and furnish a means of submittal of written comments.
2) June 11, 2018, Board of Governors Meeting, Agenda Item # 1 - Held Public Hearing regarding System Development Fees and Supporting Analysis.
3) June 11, 2018, Regular Meeting, Agenda Item # 11 - Adopted resolution electing the combined cost method with no changes made to rates.
4) December 2, 2019, Special Meeting, Agenda Item # 1 - Voted to increase rates to maximum of combined method effective February 2020.
5) April 17, 2023, Regular Meeting, Agenda Item # 23-234 - Received information on 2023 System Development Fee Study and provided direction on capital plan scenarios to provide consultant with necessary direction for final calculation of the fees and study document that has to be posted for 45 day public comment period.
6) June 19, 2023, Regular Meeting, Agenda Item # 23-354 - Public Hearing held as required by general statute.
7) June 19, 2023, Regular Meeting, Agenda Item # 23-355 - Resolution to Approve System Development Fee Analysis and Methodology.
8) April 7, 2025, Regular Meeting, Agenda Item # 25-194 - Received information on 2025 System Development Fee Study and gave direction to post study document for 45-day public comment period.
BACKGROUND:
Public Water and Sewer System Development Fee Act, also known as House Bill 436 (“HB 436”) was approved in July 2017 and amended in 2018 and 2020. Some of the HB 436’s requirements include:
• Documentation of all facts and data used in fee calculation
• Identification of assumptions and limiting conditions
• Calculation of fee per service unit (ERU) based on generally accepted engineering/planning standards
• Include a credit calculation of at least 25% of aggregate cost of “capital improvements”
• Cover not less than 5 and no more than 20-year planning horizon
• New fees should have 45 days of public comments period
• Public hearing required prior to formal adoption
• Calculation / analysis update at least every 5 years
Stantec Consulting Services was contracted to conduct this update based on the direction received from the Board on the Capital Improvement Plan in April of 2024. Their study showed that the fees for water and sewer would change based on the expansion projects expected to be constructed as well as the methodology selected. The list attached shows the proposed changes to the fees based on the final study. Both the water fee and the sewer fee are based on the incremental method. The study was posted on the County’s website for 45 days as required by general statute. Comment data received will be included in the presentation to the Board in this Public Hearing.
FINANCIAL IMPACT:
System Development Fees are typically used to help fund capital projects. The method adopted for each calculation determines specifically how the fees can be used.