System Development Fee Analysis Report
The Roanoke Rapids Sanitary District invited the public to review and comment on proposed changes to the public water and sewer System Development Fees (SDFs); previously referred to as capacity fees or impact fees.
The North Carolina General Assembly recently passed legislation amending Chapter 162A of the General Statutes by adding “Article 8, System Development Fees.” This legislation was aimed to help address fee inconsistencies among public providers, including calculation methodologies and implementation. The legislation requires local governments, like Roanoke Rapids Sanitary District, that provide water and sewer services to establish a cost-based justification for charging System Development Fees. RRSD currently collects a system development fee (capacity fee) as a charge for service imposed with respect to new development to fund water and sanitary sewer costs of capital improvements necessitated by and attributable to such new development, to recoup the costs of existing facilities which serve such new development, or a combination of those costs. As a requirement of the amended General Statute, the Roanoke Rapids Sanitary District employed Raftelis Financial Consultants, Inc., a professional utilities financial consulting firm, to complete a system development fee analysis. Raftelis Financial Consultants calculated the system development fee for the Roanoke Rapids Sanitary District using the “Buy-In Approach” method. This method focuses on existing facilities with available capacity to serve new development, and the analysis is based on fixed asset records. The statute specifies that a written analysis be performed to calculate a system development fee, based upon prescriptive criteria.
The SDF analysis may be viewed in the RRSD Business Office, 1000 Jackson Street, Roanoke Rapids, NC; or on this site.
Per 162A-209 guidelines, the Roanoke Rapids Sanitary District offered a minimum 45-day public comment and review period on the analysis and its recommendations prior to an advertised public hearing. The public hearing on the System Development Fees was held at the Board of Commissioners meeting on May 14, 2019 at 5 p.m. in the RRSD business office located at 1000 Jackson Street, Roanoke Rapids, NC 27870.
For any questions regarding System Development Fees and this analysis, please contact us at 252-537-9137 or send us a message.