Letter to the Editor: Pending Developer Reimbursement Policy

*Pending Cost Increase for Connecting to Water/Sewer Services*

As a quick heads up for Chapel Hill/Carrboro/Orange County neighbors I represent…

OWASA is planning a final vote on a new policy, requested by real estate developers, whereby development companies will have the right to charge a sizable reimbursement fee to any party connecting to new water and/or sewer lines installed after September 2026. The aim of the policy is to incentivize more construction by dividing water/sewer installation costs among private developers, although no exemptions for single families or not-for-profit entities are foreseen. One estimate puts the anticipated new fee at about $11,000 per household, on top of (a) the cost of installing connecting pipe to the property line and (b) the current system development fee paid to OWASA (between $346-$8,160, depending on the home’s meter size and square footage). The actual amount of the new reimbursement fee would not be fixed and may vary widely.

Typically, about 5-6 new water/sewer line installations per year are considered large enough to qualify for the fee arrangement, assuming any other party connects to that pipe within 20 years of its completion. New construction home buyers would likely see the fee built into their sale or build cost. Existing homeowners on well water or septic systems who live adjacent to newly installed lines could choose to remain off-grid, pay the added fee to connect, or wait 20 years until the reimbursement rights expire to connect.

Because no comments from members of the public have been received to date, additional perspective from residents and ratepayers would be beneficial (including those who are not currently on municipal water/sewer). If you have questions about the proposed developer reimbursement policy, you can view the most recent agenda packet (posted at: https://pub-owasa.escribemeetings.com/filestream.ashx?DocumentId=1379) or contact OWASA customer service. Please direct any formal written comments to the clerk to the board (gboyce@owasa.org), the full board and leadership (board_and_leadership@owasa.org), and/or attend in person on September 10 at 6pm in the community room of the Jones Ferry Road facility (you will be asked to sign in, give your name, and speak for no more than four minutes). Note that informal comments left on this post cannot be monitored.