Brunswick County Modifies Impact Fees to a Consumption Based Model
On Monday night the Brunswick County Commissioners modified their current rate structure for water and sewer Capital Recovery and Transmission Capital Recovery fees from a flat rate based charge to more of a consumption based rate. The Current fee structure, which has been in place for quite some time, uses a flat rate model that in essence charges the impact fees based on the flow of a three bedroom unit regardless of the actual number of bedrooms. The new approved policy moves away from this flat rate model and shifts more to a consumption based model, which would charge water/sewer fees for residential dwelling units based on the actual number of bedrooms or the design flow rate. (360gpd for a 3 bedroom house or 120gpd per a bedroom) These flow rates are calculated based upon the NCDENR Wastewater Design Flow Rates (2T Rules).
Your Governmental Affairs staff questioned some of the intended logic surrounding the proposed consumption based model as it would in fact allow two bedroom units to pay about one-third less than the current impact fees, three bedroom units would have no change whatsoever, and builders of residential dwellings with more than three bedrooms would pay more in water and sewer capital recovery fees.
One of the biggest challenges was the unintended consequences for many of our members that build the typical three bedroom house with a front room over a garage (FROG) or bonus room, based upon the definition of a bedroom as proposed. (Proposed Definition: Any room that could reasonably be expected to be used as a bedroom would be any room that consists of a minimum of 70 square feet of conditioned space located along an exterior wall, includes a door, a minimum of one window, contains a closet and is within thirty feet of a bathroom). We were concerned from the onset and BASE along with Association members had a multitude of conversations with the Commissioners of just how many homes at all price points have been built in Brunswick County with these types of rooms. We stressed with the Commissioners that the proposed definition certainly created a significant hurdle for many of our builders as just about every bonus room, or FROG had the potential to be placed into the 4 bedroom category.
The Commissioners agreed with our points and changed the definition of a bedroom by amending the policy to say that a bedroom would only be counted as a bedroom if in fact it was depicted as such on the plans. If the room is depicted as a bonus room, study, media room, etc. then it would not be counted as a bedroom. This was a major modification as many of the 3 bedroom homes with FROGs, or bonus rooms will not see any type of fee increase. At the same time we stressed to the Commissioners that just because a house has three, four, five bedrooms it does not mean that every room is being used or lived in. Many of these homes are actually lived in by retirees who may also use one to two of the bedrooms and their associated facilities. Again the Commissioners considered and agreed with our comments and placed a cap on the tiered consumption based rate at 4 bedrooms. So in essence if you are building more than a five, six, + bedroom home you will only pay the four bedroom rate.
We would like to emphasize that this policy is effective immediately. This means that all impact fees are due and payable at time of application for a building permit unless a request is made to pay all impact fees due immediately prior to issuance of a Certficate of Occupancy. A written agreement must be executed to document the delayed terms of payment prior to release of the Certificate of Occupancy.
Below is the approved consumption based rates.