Princeton raises water capacity fee for new construction to $25, effective Sept. 9

The Princeton Board of Commissioners voted 4-0 on Sept. 8 to raise the town's water capacity fee for new construction to $25 per unit (based on the 250 gallons-per-day calculation used in staff materials), effective the next day.

Town staff presented the adjustment as a response to a Johnston County bulk rate increase the county will implement Nov. 1 and to cover the town's recent purchase of extra capacity. The change will apply to new development and not to existing residents or transfers of existing service.

A staff member told the board that the current capacity charge is $15.20 per unit, which the town applies on a 250-gallons-per-day basis; at that basis the present per-lot charge is $3,800. Raising the fee to $25 per unit would increase the per-lot capacity charge to $6,250 (an increase of $2,450 per lot on the 250-gpd basis), staff said. The staff recommendation cited town purchases of 30,000 gallons of additional capacity for $405,000 as part of the fiscal response to county rate changes.

Explaining the recommendation, a town staff member said, "It is my recommendation that we charge $25," and noted that adopting that level now would likely reduce the need for a larger increase next year if county rates continue to climb. The staff presentation included a chart projecting further county increases in coming years and showed that a $25 rate would cover the town's projected costs for the near term.

Commissioners asked whether the change would be passed on to developers; staff said developers and builders have been notified and typically the fee increase is passed along. The board voted to adopt the $25 rate and directed staff to make the change effective immediately; the motion passed by a 4-0 vote.

Action details: motion to modify the town's water capacity fee to $25 per unit (250 gpd basis), effective Sept. 9; majority approved 4-0. The change affects only new construction and not existing accounts, per staff.