Fayetteville City Council approves increased water and sewer tap connection fees

During the Fayetteville City Council meeting on February 18, 2025, significant discussions centered around proposed amendments to the city's water and sewer tap connection fees, reflecting a broader effort to align user fees with the actual costs of city services. This initiative follows a user fee study conducted by MGT, which revealed a substantial discrepancy of over $2.6 million between the costs incurred by the city for development services and the fees currently charged to users.

The proposed ordinance aims to increase water and sewer tap connection fees by one-third of the recommended amounts, marking the first adjustment in two decades. This change is intended to ease the financial impact on developers while gradually moving towards full cost recovery over the next two years. The adjustments will also eliminate the distinction between fees for connections made inside and outside the city, simplifying the fee structure.

City officials highlighted that the water and sewer department has been recovering only 22% of its costs through existing fees, necessitating these changes to ensure the sustainability of city services. The council's resolution to implement these fee increases is part of a broader strategy to address the financial challenges faced by the city in providing essential services.

In addition to the water and sewer fees, the council discussed changes to business regulation fees, including those for small cell facilities and door-to-door solicitor permits, which will also see a one-third increase. These adjustments are part of a comprehensive review of the city's fee structure aimed at improving cost recovery across various departments.

The meeting underscored the city's commitment to updating its fee structures to reflect current economic realities and service demands. As the council moves forward with these proposals, the staggered implementation plan aims to minimize disruption while ensuring that the city can adequately fund its services in the long term. The council anticipates further discussions on tying these fees to the consumer price index to prevent future discrepancies and maintain fiscal responsibility.