Town of Murphy System Development Fee Draft Study
WR Martin was commissioned by the Town of Murphy to analyze their Water and Sewer System Development Fees (SDF) considering current events, so they comply with North Carolina House Bills 436 and 826 (HB 436/826) ratified during the 2017 and 2018 legislative sessions respectively. The bills were endorsed to address fee inconsistencies among public providers, including calculation methodologies and implementation. The new law provides specific guidelines that public water and sewer providers must follow to charge SDFs effective October 1, 2017. The law provides a grace period through July 1, 2018 for public providers to update fees in accordance with the new procedures and conditions. This analysis focused on reviewing the latest available fixed asset information and debt service costs as of June 30, 2018 to determine the cost of capacity for the Town, and on developing other assumptions necessary to establish appropriate fee levels for different types of customers using the American Water Works Association (AWWA) System Buy In approach. This analysis documents the results of the various analyses and our recommendations for implementing SDFs to be charged to new customers connecting to the water and sewer systems. SDFs are defined as one-time charges assessed against new development to recover a proportional share of the costs of capital facilities constructed to provide service capacity for new customers connecting to the water and sewer systems.
A full-copy of the study can be found here.