Capital Facilities Fee Draft Report

Adequate water and sewer capacity is a critical success factor for Durham’s economic health and well-being and City staff plan carefully for infrastructure investments to support both current and future customers. To accomplish this, the City charges Capital Facility Fees to fund costs of capital improvements necessitated by and attributable to new development, or to recoup costs of existing facilities which serve new development.

These Capital Facility Fees (also known as cap fees) recover some of the costs of available capacity from new users. Cap fees represent a significant component of City resources to finance utility infrastructure; these fees have generated more than $5 million in each of the last two fiscal years. Development fee revenues along with debt, utility rates, and developer constructed pipelines have contributed to the construction of utility assets that deliver quality services to our community.

In 2017, the North Carolina legislature passed House Bill 436 which contained new requirements for utility development fees. The City’s long-time water and sewer rate consultant was retained to conduct a new system development fee analysis as required by the legislation. The report is a final draft; the City is seeking public comment on the analysis. After 45 days of public comment, the consultant will consider the public comments for possible adjustments to the calculated fees. After the 45-day period, Council will hold a public hearing at the June 18, 2018 Council meeting before consideration and adoption of new development fee rates. Council cannot adopt a fee that is higher than the fee calculated in the analysis.

Questions and comments about the study should be directed to Water Management online at the link below, or via U.S. mail at the following address:
City of Durham Capital Facility Fee Analysis
Attn: Donald F. Greeley, Director
Department of Water Management
101 City Hall Plaza
Durham, NC  27701

Residents may provide comments directly to City Council at the public hearing on June 18, 2018 at 7:00 pm in the City Hall Council Chambers OR also use the form below to submit comments. Comments must be received no later than June 15, 2018 to be considered by the City’s consultant.

Please click here to submit comments about the draft report.

Please click here to download the draft report (PDF).