North Carolina § 162A-207 - Minimum requirements.

§ 162A-207. Minimum requirements.

Maximum. - A system development fee shall not exceed that calculated based on the system development fee analysis. Revenue Credit. - In applying the incremental cost or marginal cost, or the combined cost, method to calculate a system development fee with respect to capital improvements, the system development fee analysis must include as part of that methodology a credit against the projected aggregate cost of capital improvements. That credit shall be determined based upon generally accepted calculations and shall reflect a deduction of either the outstanding debt principal or the present value of projected water and sewer revenues received by the local governmental unit for the capital improvements necessitated by and attributable to such new development, anticipated over the course of the planning horizon. In no case shall the credit be less than twenty-five percent (25%) of the aggregate cost of capital improvements. Construction or Contributions Credit. - In calculating the system development fee with respect to new development, the local governmental unit shall credit the value of costs in excess of the development's proportionate share of connecting facilities required to be oversized for use of others outside of the development. No credit shall be applied, however, for capital improvements on-site or to connect new development to facilities. History (2017-138, s. 1; 2021-76, s. 3.) Editor's Note. - Session Laws 2017-138, s. 11, made this section effective October 1, 2017, and applicable to system development fees imposed on or after that date. Session Laws 2017-138, s. 11, further provides: "Nothing in this act provides retroactive authority for any system development fee, or any similar fee for water or sewer services to be furnished, collected by a local governmental unit prior to October 1, 2017." Session Laws 2021-76, s. 5, made the deletion of "water or sewer" throughout this section by Session Laws 2021-76, s. 3, effective July 2, 2021, and further provides that it "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." Effect of Amendments. - Session Laws 2021-76, s. 3, deleted "water or sewer" preceding "capital improvements" twice in the first sentence of subsection (b) and once in the last sentence of subsection (c) and preceding "facilities" at the end of subsection (c). For effective date and clarification of existing law, see editor's note. § 162A-208: Reserved for future codification purposes.