SYSTEM DEVELOPMENT FEES UPDATE.

View NCGA Bill Details2021
House Bill 344 (Public) Filed Monday, March 22, 2021
AN ACT TO CLARIFY THE PROCESS WITH WHICH A LOCAL GOVERNMENTAL UNIT MAY IMPOSE AND COLLECT SYSTEM DEVELOPMENT FEES.
Intro. by Arp, Hardister, Hanig, Meyer.

Status: Ref To Com On Rules and Operations of the Senate (Senate action) (May 6 2021)
H 344

Bill Summaries:

  • Summary date: Apr 29 2021 - More information

    House committee substitute to the 1st edition makes the following changes.

    Further amends GS 162A-201, which sets forth the defined terms for Article 8 governing system development fees, adding to the definitions for the defined terms service and system development fee to explicitly provide that the services identified in each include services provided pursuant to a wholesale arrangement between a water and sewer authority and a local governmental unit. 

    Deletes the proposed changes to the language used to calculate revenue from system development fees using the buy-in method under GS 162A-211(b). 


  • Summary date: Mar 22 2021 - More information

    Amends GS 162A-201, which sets forth the defined terms for Article 8 governing system development fees, to specify that a facility must provide a general benefit to the area the facility serves. Makes technical changes. 

    Amends GS 162A-205, which requires a system development fee imposed by a local government to be calculated based on a written analysis that meets eight criteria. Adds to the required criteria of the written analysis to support a system development fee to require the use of the gallons per day service unit that the local government unit applies to its water or sewer system engineering or planning purposes for water or sewer, as appropriate, in calculating the fee. 

    Modifies the minimum requirements for calculation of a system development fee set out in GS 162A-207 to no longer specifically refer to water or sewer capital improvements and water or sewer facilities, but instead refer to capital improvements and facilities.

    Modifies the language used to calculate revenue from system development fees using the buy-in method under GS 162A-211(b) to require the deduction of outstanding debt principal rather than debt credits. 

    Specifies that the act clarifies existing law with minimum standards employed by all generally accepted accounting, engineering, and planning methodologies used to calculate system development fees for public water and sewer systems. 


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