System Development Fee Study

Request for Public Feedback

Hoke County Utilities- REQUEST FOR FEEDBACK ON RAFTELIS SYSTEM DEVELOPMENT FEE STUDY

Hoke County Utilities-Request for Feedback on Raftelis System Development Fee Study

About the Hoke County System Development Fees

System development fees are one-time charges assessed to new water and/or sewer customers for their use of system capacity and serve as an equitable method by which to recover up-front system capacity costs from those using the capacity. North Carolina General Statute 162A Article 8 (“Article 8”) provides for the uniform authority to implement system development fees for public water and sewer systems in North Carolina and was passed by the North Carolina General Assembly and signed into law on July 20, 2017, and has been modified since adoption. According to the statute, system development fees are required to be adopted in accordance with the conditions and limitations of Article 8, and the fees are required to conform to the requirements set forth in the Article. In addition, the system development fees must also be prepared by a financial professional or licensed professional engineer, qualified by experience and training or education, who, according to the Article, shall:

  • Document in reasonable detail the facts and data used in the analysis and their sufficiency and reliability.
  • Employ generally accepted accounting, engineering, and planning methodologies, including the buy-in, incremental cost or marginal cost, and combined cost methods for each service, setting forth appropriate analysis to the consideration and selection of an approach appropriate to the circumstances and adapted as necessary to satisfy all requirements of the Article.
  • Document and demonstrate the reliable application of the methodologies to the facts and data, including all reasoning, analysis, and interim calculations underlying each identifiable component of the system development fee and the aggregate thereof.
  • Identify all assumptions and limiting conditions affecting the analysis and demonstrate that they do not materially undermine the reliability of conclusions reached.
  • Calculate a final system development fee per service unit of new development and include an equivalency or conversion table for use in determining the fees applicable for various categories of demand.
  • Consider a planning horizon of not less than five years, nor more than 20 years.
  • Use the gallons per day per service unit that the local government unit applies to its water or sewer system engineering for planning purposes for water or sewer, as appropriate, in calculating the system development fee.

About the Raftelis Report

Raftelis has completed a System Development Fee Study analysis that is ready for public input.  North Carolina law requires the Water and Sewer System Development Fee Study analysis be posted on the Hoke County website for a 45-day public comment period. All comments will be forwarded to Raftelis for review. Raftelis must consider any comments made during this period and prepare possible modifications or revisions into the final report.

Raftelis System Development Study

Engagement Letter

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