News & Observer | newsobserver.com | Impact fees to rise in Cary

Published: Apr 09, 2008 12:30 AM
Modified: Apr 09, 2008 02:43 AM

Impact fees to rise in Cary

 

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CARY - Developers will pay higher fees in Cary starting this summer.

The Town Council has voted to raise water impact fees an average of 7 percent for new development and increase sewer impact fees by 31 percent. The new rates take effect July 1.

The new rates, unanimously approved Monday, raise water and sewer development fees by about $938 for the average new 2,500-square-foot home, pushing the total to $5,261. For a 150,000-square-foot commercial building, the water and sewer fees jump $22,230 to $130,230.

The higher water and sewer fees amount to 75 percent of the maximum fees allowed under state law to increase capacity, town spokeswoman Susan Moran said. The rest of the infrastructure costs triggered by new development are borne by current taxpayers, as well as the increased tax base that comes with development, Moran said.

The Town Council is trying to balance the benefits of new development -- including new jobs and a larger tax base -- with the extra costs it generates, she said.

The council unanimously agreed to keep transportation impact fees at their current level.

Cary's action comes as the city of Raleigh is considering doubling the fees it charges for new development. That proposal is being reviewed by the Raleigh Planning Commission.

Cary last adjusted its impact fees in 2004, when it lowered the charges on new development, Moran said. The town initiated a study of its impact fees a year ago, hiring two independent consulting firms to analyze them.

Cary's current water impact fee is 70 percent of the maximum allowed by the state, while the current sewer impact fee is 57 percent of the maximum, said Stacey Teachey, senior budget and management analyst.

david.ranii@newsobserver.com or (919) 829-4877
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