H344 Summary

• Clarifies that system development fees for water and wastewater services include fees imposed on new development to fund capital improvements, recoup existing facility costs, or both, and specifically includes wholesale arrangements between water and sewer authorities and local governmental units.

• Requires system development fee analysis be prepared by qualified financial professionals or licensed engineers using generally accepted methodologies, covering a 5-20 year planning horizon, with all assumptions, data, and calculations documented and adopted by local resolution or ordinance.

• Establishes maximum fee limits based on calculated analysis and mandates a minimum 25% revenue credit when using incremental, marginal, or combined cost methods, calculated from either outstanding debt principal or present value of projected revenues over the planning horizon.

• Allows local governmental units to credit system development fees for construction costs exceeding a development's proportionate share of connecting facilities, but prohibits credits for on-site capital improvements or connection facilities.

• Makes water and wastewater public utilities solely responsible for funding and recording income taxes on taxable contributions in aid of construction for accounting and rate-making purposes.