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Posted on: February 5, 2024

SYSTEM DEVELOPMENT FEE UPDATE

Blue And White Water tower News Update

As required by NCGS 162A – Article 8, the City has recently completed a study to evaluate our water and sewer connection fees (System Development Fees).  A draft report of this study is available for public review and a Public Hearing on the matter is expected at the March 26, 2024, City Council meeting.

In 2017, the North Carolina General Assembly sought to establish a uniform approach for local governments to calculate System Development Fees (SDFs).  SDFs are defined as a one-time charge imposed on new development to recover a portion or all of the costs associated in establishing necessary water and/or sewer capacity.  In Archdale, this SDF is referred to as a Connection Fee.  A new development’s Connection Fee(s) serve as the mechanism by which growth can ‘pay its own way’ and minimize the extent to which existing customers must bear the cost of facilities that will be used to serve new customers.

The City is required to partner with a third-party firm to study the existing fee structure.  Archdale contracted with Raftelis, an engineering consulting firm, to conduct a review of Archdale’s adopted fees.  A DRAFT report of their findings is available at this link.  Public Comments are currently being sought regarding this study.  Questions or comments about the SDF study can be sent to zholden@archdale-nc.gov.  A Public Hearing regarding the approval of this report will be held at the March 26, 2024, City Council meeting.

Archdale 2023 SDF Report (PDF)


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