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This paper describes the development of a tiered system of water and sewerservice availability fees based on the finished area of single family homes.Orange Water and Sewer Authority (OWASA), of Carrboro/Chapel Hill, NorthCarolina, customer data exhibit a consistent pattern of increased average andseasonal water use with increasing home size, as indicated by building permit andutility billing records. Customers with more modest homes generally use lesstotal water and exert a lower summer demand than those with larger homes. OWASA'sservice availability fees--utility capital recovery charges (or impact fees)assessed to new development --were traditionally based on meter capacity factors,and all single family homes were charged the same one-time fee when connecting tothe water or sewer system, regardless of home size or expected water usepatterns. Data developed for this analysis provided a valid utility basis forestablishing availability fees that are more responsive to the actual patterns ofwater and sewer use that characterize different subsets of residential customers.A new tiered approach adopted by OWASA's Board of Directors established fiveseparate size classes for new single family homes. Availability fees for homes inthe smallest size class (less than 1700 square feet) are now 38 percent lowerthan under the previous rate structure, while new fees for the largest homes(greater than 3800 square feet) are 70 percent higher than previously. Theanalysis of water use patterns also provided a basis for revising serviceavailability fees for multi-family residences (apartments, townhouses, andcondominiums with individually metered units), which use an average of 35 percentless water than single family detached homes. The tiered approach represents amore precise cost-of-service focus than uniform availability fees, because itconsiders the actual demand patterns of different residential user groups, ratherthan treating all residential customers in the same way. Another benefit has beenthe reduction of fees charged for smaller homes, thus lowering one of theeconomic barriers to more affordable housing in OWASA's service area. Includes reference, figures.

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Edition: Vol. - No. Published: 01/01/2000 Number of Pages: 11File Size: 1 file , 580 KB