Surf City Growth Fees: What Residents Should Know About the Water and Sewer Study

Surf City is asking residents, property owners, builders, and other interested parties to review a new study that could shape how future water and sewer infrastructure is paid for as the town continues to grow.

The study focuses on System Development Fees, often shortened to SDFs. These are one-time fees charged to new water and sewer customers. In plain English, the idea is that new development should help pay for the water and sewer capacity it needs, rather than placing the full burden on existing ratepayers.

The issue matters because Surf City continues to face the same balancing act many fast-growing coastal communities are dealing with: how to support new homes, businesses, and services without overloading public infrastructure or pushing more costs onto people already living here.

What Surf City Is Reviewing

The Town of Surf City has completed a professional System Development Fee Study for its water and sewer systems.

According to the town’s public notice, the study explains how the proposed fees are calculated, why they may be needed, and how they support future system capacity.

This does not mean every number in the study is automatically final. The study calculates the maximum fees that could be charged under the analysis. Town Council still has discretion to adopt fees below those maximums.

What Is a System Development Fee?

A System Development Fee is a one-time charge tied to new connections to a public water or sewer system.

These fees are separate from routine utility bills, tap fees, inspection fees, administrative fees, availability charges, and other development-related costs.

The basic concept is simple: existing customers have already helped pay for the system, while new development creates additional demand on that system. SDFs are designed to help recover a portion of the cost of existing and future capacity needed to serve that new demand.

The Surf City study says SDFs are charged only to new customers and are intended to reduce the burden on existing users for future capital costs tied to new development.

How Much Could the Fees Be?

For a standard single-family residential connection using a 5/8-inch or 3/4-inch water meter, the draft study calculates the following maximum fees:

Fee Type	Maximum Fee
Water System Development Fee	$9,410
Sewer System Development Fee	$15,770
Combined Maximum	$25,180

That combined number is likely to get attention.

But there is an important distinction: the study calculates the maximum allowable fees under the analysis. Town Council can choose to adopt lower fees.

The study notes that the town may charge a fraction of the calculated system value, such as 75% or 50%, as long as the adopted fee does not exceed the maximum calculated in the report.

How That Compares to Current Fees

Surf City already has water and sewer System Development Fees in its adopted fee schedule.

For fiscal year 2025-2026, the town’s fee schedule lists a 3/4-inch water SDF at $3,000 and a 3/4-inch sewer SDF at $9,200, for a combined total of $12,200.

That means the maximum combined fee calculated in the new study, $25,180, is more than double the currently listed combined 3/4-inch fee.

That does not mean the town will adopt the full amount. But it does show why residents, builders, and property owners may want to pay attention before the town moves further through the process.

Why the Sewer Number Is Higher

The sewer fee is the larger part of the combined total.

That reflects the town’s ongoing need to plan for wastewater treatment and disposal capacity. The study identifies major sewer-related capital needs and uses those capital needs as part of the calculation.

This fits into a larger local conversation that has been building for years: Surf City’s growth is not just about roads, homes, and commercial space. It is also about whether the town has enough utility capacity to serve future demand.

Who Would Pay These Fees?

These fees are aimed at new development and new utility customers, not current customers simply continuing their existing service.

That means the fees would generally matter most to:

• Builders and developers
• New homes connecting to the system
• New commercial projects
• Larger projects requiring larger meters or more utility capacity

For current residents, the main question is indirect but important: if growth-related infrastructure is not paid for through new development fees, how much of that cost eventually lands on existing utility customers through rates, taxes, or other funding sources?

Why This Matters Locally

Surf City’s growth affects more than the people buying or building new property.

Water and sewer capacity influences where development can happen, how quickly it can happen, and how much future infrastructure will cost. It can also affect the balance between residential growth, commercial growth, and the town’s long-term budget planning.

For residents concerned about growth, density, taxes, utility bills, and infrastructure, this is one of those local government topics that is easy to overlook but worth understanding.

The debate is not as simple as “higher fees are good” or “higher fees are bad.”

Higher development fees can help shift more infrastructure cost to new growth. They may also affect the economics of new housing, commercial projects, and future development decisions.

Lower fees may make development less costly up front. But if those fees do not cover enough growth-related infrastructure cost, the difference may need to be covered elsewhere.

How to Comment

Surf City is asking residents, property owners, and interested parties to review the full System Development Fee Study and submit questions or comments.

Questions and comments can be sent to:

David Price
dprice@surfcitync.gov

Residents who care about growth, infrastructure, utility rates, housing costs, or the future of Surf City should take time to review the study and comment before the town moves further through the adoption process.

Bottom Line

Surf City’s System Development Fee Study is really about a bigger local question:

As Surf City grows, who should pay for the water and sewer infrastructure needed to support that growth?

The study gives the town a legal and financial framework for charging new development more of that cost. What Town Council ultimately adopts, and whether it chooses the maximum fees or something lower, will be the part residents and builders will want to watch closely.

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Sources: Town of Surf City public notice, Town of Surf City System Development Fee Study, and Town of Surf City FY 2025-2026 Fee Schedule.