City of Fairhope is discussing new system development charges (SDCs) for connections to the city's water and sewage system through Fairhope Public Utilities.

During a city council meeting on Monday, June 8, city leaders discussed two separate ordinances that would implement an increase in SDC fees applied to new connections and hookups specific to water and sewage.

SDCs are a one-time fee for new developments within the city limits for properties owners who want to connect to Fairhope's water and sewage system. Mayor Sherry Sullivan told GCM the increase is based on a evaluation done by Jackson Thornton, a group of certified public accountants and consultants, which analyzed the costs for expansion of treatment capacity for the water system of Fairhope Public Utilities and made recommendations to the city.

City officials say the updated charges will help cover the costs of capital improvements within Fairhope, such as increasing capacity as the Public Utilities department take on more customers.

Although SDCs have already been in place, the proposed increases range between hundreds of dollars depending on pipe size and commercial and residential property distinctions. For example, a 1-inch pipe, which currently has a water charge of $2,000 for residential properties, would be $2,700 under the proposed increase. A typical pipe size for residential properties ranges between 3/4 inches and 2 inches, but pipe sizes can go all the way up to 12 inches for larger properties.

If approved, it would apply to new customers in areas where the City of Fairhope provides water services, with an implementation date for all new or unpaid applications to occur on Aug. 1. A vote on the ordinances has been put off until the next city council meeting, which will take place June 22.

"We're just trying to make sure that we can provide water to people, reliable service and we can afford to upgrade our systems, and so these fees are necessary," Councilman Jack Burrell said.