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The original item was published from 7/13/2016 11:15:00 AM to 7/13/2016 11:16:39 AM.

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Posted on: June 8, 2016

[ARCHIVED] CFPUA offers adjusted System Development Charges (SDCs) to specific Mandatory Connection areas

CFPUA to offer adjusted System Development Charges (SDCs) to specific Mandatory Connection areas

Lower SDCs for Fiscal Year 2017 to apply to areas where 180-day Mandatory Connection period overlapped both Fiscal Years 2016 and 2017;
Covers 315 water and 255 sewer connections in four areas, including Heritage Park

FOR IMMEDIATE RELEASE

CONTACT: Mike McGill
(910) 332-6704
After Hours: (910) 622-8472
mike.mcgill@cfpua.org

Wilmington, NC (June 8, 2016): Earlier today, the Board of Cape Fear Public Utility Authority (CFPUA) adjusted the System Development Charges (SDCs) to be paid by four specific Mandatory Connection areas, including the Heritage Park area. SDCs are one-time fees, evaluated every year as part of the budget process, that are charged to new customers to help pay for infrastructure construction and upgrades needed to take them on as customers. Due to lower interest rates and updated estimates for infrastructure costs, CFPUA reduced its water and sewer System Development Charges (SDCs) for Fiscal Year 2017, which begins on July 1, 2016. The water SDC will change on July 1 from $1,920 to $1,510 while the residential sewer SDC will change from $2,460 to $2,030.

Following the completion of SDC calculations for the FY ’17 budget proposal, four Mandatory Connection areas were found to be uniquely affected by the changes. These areas – Heritage Park; Kerr Avenue Phase 1; a collection of homes known as Area 2, Group 2; and an individual mobile home park – are in the middle of their respective 180-day Mandatory Connection periods. (Mandatory Connection periods last 180 days to provide homeowners with time to arrange finances, secure financing, and manage the plumbing connections.) In the these four areas, the 180-day periods overlap both Fiscal Year 2016 and Fiscal Year 2017. Due to the SDC changes for Fiscal Year 2017, the possibility was created that different properties in these four areas could end up paying different SDCs.

Because the affected properties are already developed and required to connect to CFPUA services, are in 180-day Mandatory Connection periods that overlaps two fiscal years, and are subject to changes in the SDCs their owners could not have predicted, CFPUA will offer adjustments to the property owners who have already paid their SDCs at the Fiscal Year 2016 amount. As a result of the adjustments, all property owners subject to Mandatory Connection in the four areas listed will pay the lower Fiscal Year 2017 System Development Charges.

315 water connections and 255 sewer connections are located with the four specific Mandatory Connection areas. When the cost reduction in the SDCs for Fiscal Year 2017 became likely, CFPUA stopped taking SDC payments for the four affected areas and informed the property owners they could wait until July 1, 2016 to pay the lower charges. To date, only 71 water connections and 50 sewer connections have paid the SDCs at the Fiscal Year 2016 amount. As a result, the total amount of the adjustment for water connections will be $29,100 ($410 in savings for each of the 71 connections). The total amount of the adjustment for sewer connections will be $41,180 ($430 in savings for 50 properties). Customers who financed the SDCs will have the calculated difference applied to their principal.

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Cape Fear Public Utility Authority (CFPUA) was formed by the City of Wilmington and New Hanover County to combine their water and sewer operations. It began operations on July 1, 2008. Today, the Authority serves more than 67,000 water customer accounts and more than 65,000 wastewater customer accounts. It oversees more than 1,000 miles of water distribution mains and nearly 1,000 miles of sewer mains. For more information, visit www.cfpua.org or contact CFPUA’s Communications staff at communications@cfpua.org.

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