City raises development fees for new water connections

ASHEBORO —  As part of the Asheboro’s budget for coming year, the city approved its schedule of fees, adding system development fees (SDF) for building development.

Asheboro City Manager Donald Duncan and Water Resources Director Michael Rhoney explained at this month’s City Council Meeting that these help cover the costs of new water and sewer connections without passing the burden to current customers.

Under state law, Asheboro first had to do a study that set a maximum SDF. Rhoney said based on meter size, the city can charge developers up to $9,900 per the standard 3/4-inch meter. For the largest 10-inch meter, they can charge $2,145,400.

At a public hearing, representatives for realtors and developers asked for a phased-in schedule to protect the projects they’ve already begun.

Kim Phillips, regulatory affairs director of the Triad Real Estate and Building Industry Coalition, said every $1,000 increase prices out about 300 homebuyers. She said it would be hard on developments that already have financing agreements with a bank.

Tom Flanagan, vice president of development services for Blue Ridge Companies, also backed the phased-in approach. He said his company is in the middle of engineering and design for 429 homes for Old Cox and Humble Mill Roads. Starting at the maximum SDF would equate to an extra $44,000.

“We do not debate the system improvement need,” Flanagan said. “The implementation and timing of the fees is what we’re asking for discussion on.”

David Michaels spoke on behalf of Stanley Martin Homes, which just got approval to build 191 homes on Crestview Church Road. He said they’ve worked with other cities that impose SDF, and they use a phased-in approach.

Councilwoman Kelly Heath made a motion to phase in SDF over three years, starting at 33.3 percent. Mayor Joey Trogdon also recommended they wait to roll them out on Jan. 1, 2027, and give current projects some flexibility.

The council approved that plan. Council member Phil Skeen said, “100 to 200 houses aren’t going up overnight.”

Council member Cam Mill said, “We don’t want to make it hard on anybody. We want the growth, obviously.”