Johnston County adopts new water, sewer capacity fees; phases well‑disconnect charge for existing homes

The Johnston County Board of Commissioners on Aug. 18 adopted a revised schedule of water and sewer system development fees and bulk capacity charges for fiscal year 2025–26, approving the county staff recommendation to set most new‑construction rates at the study’s maximum allowed amounts while phasing the increased fee for existing homes that disconnect from private wells.

The board’s public utilities director, Chandra Farmer, said the fees reflect a 20‑year capital improvements plan and the cost to build new capacity to serve future growth. “System development fees are … the cost to create new capacity to build new capacity in your water and sewer system,” Farmer said during the presentation.

The board voted to adopt the consultant’s recommendations for sewer system development fees and for bulk water and bulk sewer capacity charges. For water system development fees the board approved staff’s recommendation to apply the full new‑construction rates immediately but to phase in the higher fee for the “existing residential — well disconnect” category over the schedule presented by staff. The motion passed with one member recorded as opposed.

Why it matters: County staff told commissioners their capital plan includes large‑scale projects — including a new water supply and transmission work — that create long‑term debt needs. System development fees are designed so that new growth funds the incremental capacity it requires; collected fees also can be used to pay debt service on bonds issued for those projects. Farmer said some planned projects are large enough that the county will still need to issue revenue bonds, but fee revenue helps reduce future borrowing and associated rate pressure on existing customers.

What was emphasized in debate: Commissioners pressed staff on timing, fairness and the effect on housing affordability. Farmer said the analysis looks at the cost of providing new capacity and reflects planned capital projects; she recommended repeating the analysis every two years (statute requires review every five years) because costs and project schedules change frequently. Board members said they favored growth paying for growth but were split on how quickly to impose higher fees for new construction.

Implementation details and timing: The new fees will be effective Oct. 1 for retail customers and, for bulk customers (towns that have interlocal agreements), Nov. 1 to allow notice to those customers. Bulk customers named in the discussion include Smithfield, Selma, Pine Level and Four Oaks. Farmer said the water treatment and transmission projects driving much of the fee increase are included in the county’s capital improvement plan and noted the single largest future project is a new water supply and associated transmission infrastructure.

Votes and next steps: The board adopted the fee schedules as described and authorized staff to implement the fee changes. The board also directed staff to continue monitoring capital costs and to return with updated analyses as conditions change.

Ending: Commissioners and staff said they expect to revisit fees and the capital plan as the county refines project schedules and cost estimates, with additional reviews possible in the annual budget process.