Fairhope considering utility connection charge updates

By Guy Busby, guy@gulfcoastmedia.com
Posted 12/29/21

FAIRHOPE – Proposed changes in water and sewer system charges could simplify rates for Fairhope customers, city officials said.

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Fairhope considering utility connection charge updates

Posted

FAIRHOPE – Proposed changes in water and sewer system charges could simplify rates for Fairhope customers, city officials said.

Jason Langley, water and sewer system director, told City Council members that the charges for system development fees would be similar to those charged by systems that are about the same size in other areas of the state.

“It just simplifies,” Langley said. “Instead of having a table to figure units served and all, this, with master meters especially, it gives a flat rate number. But it’s all based on the $1,500 for a three-quarter service, which is residential, single family.”

Mayor Sherry Sullivan said city utilities customers are often confused about connection charges.

“One thing that’s really difficult for us and what we spend a lot of time in the Utilities answering questions about is how to calculate what these charges are. The current ordinance is very cumbersome. You all have looked at it. You know how difficult it is to read. This will allow us to put these flat charges on the website. Give them to the operators. Give them to the utility assistant and everybody will be very much aware of what these charges are without us having to do calculations and stuff,” Sullivan said.

“It looks like it is a good rate that Jason has established based on other areas around the state of Alabama,” she added.

Councilman Jack Burrell said charges in many areas around the country are much more than those being considered by Fairhope.

“I was talking to someone who does developments around the country and they were talking about the charges that they pay and they were talking about not only about these type of charges, system development charges, but they have school charges and road charges,” Burrell said. “We have impact fees, but they literally break this down. He was giving me an example of, I think, they bought a piece of property for $400,000 and they had $380,000 worth of fees associated with that.”

Sullivan said the charges are an investment in city services.

“We have people who’ve been on the system for a long time but when new people come in, they have to make an investment in the system as well and so the system development charge is that investment that they’re making, into either our sewer system or our water system,”

Langley said setting standard rates will help officials and users calculate charges.

“When they ask for a meter size upfront at the beginning of the project, we can give them this and then when we review the project, then it will be up to the determination with our engineers and ourselves what size meter they actually do need,” Langley said.

Charges for a three-quarter inch meter are $1,800 in Auburn, $1,500 in Montgomery, $1,000 in Mobile, $1,500 in Madison, $2,900 for Riviera in Foley and $1,700 in Orange Beach, according to a Fairhope city report.