Mayor, City Council Work Together For A Business Friendly Salisbury

At its meeting on Monday, February 14, 2011, the Salisbury City Council agreed to a policy proposed by Mayor Ireton to allow for the payment of water and sewer capacity fees over periods of up to two years.

The new policy is a change from the current policy that requires the payment of capacity fees in a lump sum at the time that the water meter is set. The purpose of the policy is to help make business creation in Salisbury easier by allowing the payment of these fees to be spread out over a longer period of time.

The capacity fee is charged for each new connection to the City’s system and to existing customers who increase their water and/or sewer usage. The purpose of the Capacity Fee is to pay for growth and expansion projects as outlined in the City’s ten-year water and sewer Capital Improvement Plan. It is used to finance planned future improvements such as treatment plant expansions and new water storage tanks. It is also used to reimburse the City for costs of “recent improvements” as defined by the City and includes debt service on prior growth-related improvements that have not yet been retired in the water and sewer rate structure.

Developers who propose a new project that will use more than two Equivalent Dwelling Units (EDU’s) as well as existing property owners who plan to increase their usage by more than two EDU’s will qualify for the payment plan. One EDU is defined as 250 gallons per day of water usage.

The payment plan enables property owners to pay up to 80 percent of the Capacity Fee over a one- to two-year period immediately following receipt of a 20 percent or two-EDU minimum down payment. The new policy was prompted by a request from Evolution Craft Brewery to pay the capacity fee for a proposed new brew pub over time. The City anticipates that Evolution Craft Brewery will be the first customer to take advantage of this payment plan. The brewery is being proposed for the former Messick’s Ice Plant on Vine Street.

Councilwoman Shanie Shields said, “I will support this ordinance. We are going in the right direction.” Mayor Ireton agreed, saying "Last evening's City Council meeting was one our residents can be proud of. We made Salisbury more business friendly, cleaning up many issues involving bond bills from this year and previous years. We had friendly amendments and a cordial atmosphere. We can be proud of our work."