System Development Fees

The City of Hendersonville contracted with Stantec Consulting Services to calculate system development fees for its utility systems in accordance with the North Carolina Public Water and Sewer System Development Fee Act, set forth in North Carolina General Statute 162A, Article 8. A system development fee is a one-time charge paid by a new customer to recover a portion or all of the cost of constructing water and sewer system capacity. The fees can also be assessed to existing customers requiring increased system capacity. In general, system development fees are based upon the costs of current and/or future utility infrastructure including, but not limited to, water supply facilities, treatment facilities, effluent disposal facilities, and transmission mains. System development fees serve as the mechanism by which growth can “pay its own way” and minimize the extent to which existing customers must bear the cost of facilities that will be used to serve new customers. Currently, the City does not assess system development fees and therefore does not recover the cost of providing water and sewer capacity from new connections to the utility systems.

The Water and Sewer System Development Fee Study will be available for public review and comment from Thursday, September 7, 2023, through Sunday, October 22, 2023, at 5 p.m. Comments received during this time will be considered as part of the final preparation of the system development fee report.