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Harnett commissioners ask staff to revisit system development and tap fees
Summary
After a presentation on Harnett Regional Water’s 2023 system development fee study, commissioners asked staff to prepare a plan to lower system development fees and water tap fees where possible and return for further consideration.
HARNETT COUNTY — After a staff presentation on system development fees for Harnett Regional Water, the Board of Commissioners asked staff to return with a proposal to lower system development fees and water tap fees if feasible.
Sean Byrd, a staff member, told the commissioners the purpose of the presentation was to “answer the questions posed by the board in our last meeting and to help facilitate discussion if the board wishes to pursue any potential changes to our current system development fees.” Byrd described the 2023 study by Willdan Financial Services and said systems are required to perform a system development fee (SDF) study at least every five years.
The presentation explained the county used the buy-in method to calculate SDFs — a method that divides the net recoverable cost of existing infrastructure by estimated system capacity to derive a cost-per-gallon figure. Byrd noted the industry standard AWWA level of service used in the calculation is 360 gallons per day for a single-family household. He said Harnett Regional Water recommended a water fee of $3,000 for a three-quarter-inch meter and a wastewater figure of $4,320 (Harnett Regional recommended $4,000 in 2023).
Commissioners asked clarifying questions about methodology, meter equivalency factors and comparisons with surrounding jurisdictions. One commissioner moved that staff be asked to return with a plan to lower system development fees and water tap fees where possible; the board directed staff to prepare that plan and add the item to the consent agenda for follow-up.
The presentation also noted that system development fees differ from tap fees, which cover the cost of connecting a property to a water or sewer main. Byrd said the 2023 Willdan report includes history, methodology and recommended figures and that a regional comparison was suggested to be completed after July 2023 when neighboring governments had finalized their adjustments.
The board’s direction at the meeting was to have staff prepare a suggested adjustment for the commissioners to review, not to adopt a new fee schedule at the meeting.
