H436 Summary: Public Water and Sewer System Development Fee Act

• Establishes uniform statewide authority for counties, cities, and water/sewer authorities to implement system development fees for new water and sewer development through new Article 8 of Chapter 162A.

• Requires system development fees to be based on written analysis prepared by qualified financial or engineering professionals using generally accepted methodologies (buy-in, incremental cost, marginal cost, or combined cost methods) covering a 10-20 year planning horizon.

• Mandates fees not exceed calculated amounts, include minimum 25% revenue credit for projected water/sewer revenues or outstanding debt, and provide credits for oversized connecting facilities benefiting outside development.

• Requires 45-day public notice, website posting, written comment period, and public hearing before adoption; fees must be updated every five years and published in annual budget or rate plan.

• Restricts revenue use to construction costs, surveying/engineering fees, land acquisition, bond principal and interest, and professional fees; establishes capital reserve fund accounting with narrow judicial construction to protect new development from undue burden.