Town of Coats – Water System Development Fees

As allowed by law, the Town of Coats will be considering charging water system development fees as of November 12th, 2026, and has undertaken an analysis in order to assess those fees on new development. Willdan Financial Services (“Willdan”) was authorized to conduct a study of the statues allowing for a fee to reserve funds for needed future repairs and improvements to the town’s existing water system. The study was initiated because of the Town’s need to address the impact of new growth development in and adjacent to the Town’s present corporate limits and to assist the town with new revenues essential to offset the impact of new growth on existing internal utility facilities.

What is a System Development Fee?

A system development fee includes any charge or assessment for services imposed on new development to fund costs of capital improvements necessitated by and attributable to such new development (incremental costs), to recoup costs of existing facilities which serve such new development (buy-in costs), or a combination of those costs (combination costs).

What procedures must the town follow to set this fee?

Article 8 of Chapter 162A of the NC General Statutes, entitled "System Development Fees," provides legal authority for municipalities to charge system development fees for its water systems as long as conditions are met, and statutory procedures are followed.

There are five steps that the Town must follow in order to comply with the procedural requirements to establish a water system development fee:
Step 1: Supporting Analysis and Fee Calculation
Step 2: 45-Day Public Comment Period (Public Comment Form)
Step 3: Public Hearing
Step 4: Town Adoption
Step 5: Publication of Adopted Fee

How is the System Development Fee calculated??

Supporting analysis and fee calculation.

A supporting analysis must be undertaken by a qualified professional firm to determine the maximum system development fee that the Town can charge new development for water system development fees. Willdan was engaged by the town to perform this work. That analysis has been completed and the Willdan System Development Fee Report was presented to Town Council and is now available for public inspection at Town Hall and on the Town's website.

CLICK FOR WILLDAN DRAFT REPORT

This draft report provides calculations of the maximum allowable system development fees that the Town could charge under each of the following methods: buy-in cost method, incremental cost method, and combination method. It should be noted that the Town can set system development fees that are lower than the maximum fee calculated in the report. Look here for the Comparison of Fees per ERU report. 

Public Hearing

The Town will hold a public hearing on the Willdan System Development Fee Report and water system development fees for the Town of Coats to be held during the Regular Council Meeting November 12th, 2026, starting at 7:00 p.m., at the Board Meeting Room, Town Hall, 25 E. Main Street, Coats, NC. The public is requested to attend the public hearing and submit comments during the hearing if they haven't already done so in writing. Written comments may be submitted for the 45-day period by email to wblount@coatsnc.org , by mail at P.O. Box 675, Coats, NC 27521, or by dropping off completed submittals to Town Hall located at 25 E. Main Street, Coats, NC 27521. All comments will be provided to Willdan, Town Administration and/or the Town Attorney for further review and evaluation. All written public comments must be received by 5:00 p.m., on Thursday, October 29th, 2026. The public comment form is linked here for your convenience . 

When will town council adopt a System Development Fee?

Town Council anticipates taking action to establish water system development fees at its regular meeting on November 12th, 2026. Any system development fee adopted by Town Council will be effective as of November 13th, 2026, and will be published, along with other fees, in the Town's Fee Schedule.