Last week, the Anne Arundel County Council approved County Executive Steve Schuh’s plan to reduce Capital Facility Connection Charges (CFCCs) by 30 percent.
CFFCs are charged to new homes and businesses when they connect to public water and sewer to recover the cost of constructing water and sewer infrastructure such as pipes, water treatment plants, and pumping stations. The reform legislation also eliminates deferral and restocking fees, reduces interest rates, and allows testing for adequate public facilities at different stages of the development process.
“Lowering fees to help create jobs and expand our economy is my top priority,” said Schuh. “I want to thank Council Chairman Derek Fink for his leadership in leading the charge on the largest fee cut in county history. This fee cut will put $125 million back into the economy over the next three years.”
“We need to break down as many barriers as we can to new business formation and job creation in Anne Arundel County,” said Council Chairman Fink (R-3rd). “This historic fee cut will make it easier to live and work here.”
These fees have increased to the point where they are often cited as a major impediment to new business formation and job creation. The charge is passed on to business owners and new home buyers, increasing the cost of doing business and pushing the housing prices out of the reach of many purchasers. At current levels, these fees add nearly $20,000 to the cost of an average new home and substantially more to the cost of a medium-sized new business.
The legislation passed the County Council with a 6-1 vote.