System Development Fees
A system development fee is a one-time charge paid by a new customer to recover a portion or all of the cost of constructing water and sewer system capacity. The fees can also be assessed to existing customers requiring increased system capacity. In general, system development fees are based upon the costs of current and/or future utility infrastructure including, but not limited to, water supply facilities, treatment facilities, effluent disposal facilities, and transmission mains. System development fees serve as the mechanism by which growth can “pay its own way” and minimize the extent to which existing customers must bear the cost of facilities that will be used to serve new customers.
System Development Fee Ordinance:
Effective 1/1/2025, the City of Hendersonville will assess System Development Fees (SDFs) for new development requiring new water and/or sewer utility service or existing development that increases utility service demand. A complete application must be submitted prior to 1/1/2025 to be exempt from being assessed a SDF. Applications submitted on or after 1/1/2025 will be assessed the SDF amount in the adopted rate and fee schedule.