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.
Revenue from capital Facility Fees (also known as cap fees) represent a significant component of City resources to finance utility infrastructure; these fees have generated more than $7.5 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.
As a requirement of the 2017 House Bill 436, modified in 2021, the City has again retained a consultant to conduct a new system development fee analysis. A copy of the fee analysis can be viewed on the Department of Water Management's website /DocumentCenter/View/52048/Water-Management_Capital-Facility-Fee_FY23-24. The analysis resulted in the proposed fees presented in Table 1 below. The City is now seeking public comment on the proposed fees. The City will consider the public comments for possible adjustments to the calculated fees, which will be updated in the current fiscal year (FY24). City Council will hold a public hearing at the October 2, 2023, City Council meeting before consideration and adoption of new development fee rates. City Council cannot adopt a fee that is higher than the fee calculated in the analysis.
Letter to Industry regarding the Capital Facilities Fee Report
Questions and comments about the study should be directed to Water Management online at the following Iink https://www.durhamnc.gov/FormCenter/Water-Management-16/CapitaI-Facilities-Fee-Draft-ReportComm-354 or via U.S. mail at the following address:
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 comment to City Council at the public hearing on October 2, 2023 at 7:00 pm in the City Hall Council Chambers. Or you may use the form below to submit comments. Comments must be received no later than September 29, 2023 to be considered by the City’s consultant.
Table 1 - Proposed Capital Facility Fee Increases
*Note this page was revised on September 11, 2023 to update the link to the fee analysis and to add Table 1.