Development fees: a legislative history

Abstract

This article collates the history of system development fee legislation in 25 different jurisdictions. With increasing frequency, public water supply systems are having to investigate alternative funding sources to raise the capital needed for expansion. System development charges have surfaced as the financing mechanism of choice in municipal settings across the country. Legislation regulating such capital charges has been adopted in a surprising number of states in recent years. The author surveyed AWWA sections and conducted research to document recent legislative action in the United States to assess the variety and nature of state legislation regulating system development charges. The findings paint a vivid picture of a current trend prevalent in the United States. If continued, the trend does little to move us any closer to standardizing the procedures and ground rules for others to consider in implementing system development charges.

An empirical analysis of Halifax municipal water consumption

“…To deal with the abnormally high costs of construction during such periods, Halifax Water may also consider implementing impact fees. While generally unpopular among construction developers, there is a long history of such assessments with many fee schedule designs available to water system authorities (Clark, 1994). Because water tariffs have increased substantially in recent years in Halifax, impact fees might offer an additional source of funding that may prove useful.…”