NC H718

Legislative Research Commission must study water and sewer service provision by public enterprises, with interim report due before 2018 reconvening and final report to 2019 Regular Session.

Study shall examine fee and charge setting by local governments for water and sewer systems, including collection rates and accounting controls for transparency in budgeting and interfund transfers.

Commission must evaluate legislation needed to ensure proper funding of infrastructure maintenance and improvements, including whether regionalization could lower fees and improve system financial health.

Commission shall consult with Local Government Commission, School of Government, Department of Environmental Quality, North Carolina League of Municipalities, and North Carolina County Commissioners Association during study.

General Assembly finds that public enterprise revenues should be used only for operating costs, debt service, infrastructure improvements, and reimbursement for direct services, with excess revenues used to lower rates and fund infrastructure.