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Greenville Utilities Greenville NC - Rates to Go Up for Builder/Developer/Buyer

By
Real Estate Agent with RE/MAX Preferred Realty

WE NEED YOUR HELP!!!

Greenville Utilities Commission - Our Utilities Provider in Greenville NC

GUC Current and Future Service Fees:

  

 

Prices

  

  

  

Current

Effective

Price

Percent

Service

Fees

10/1/2008

Diff

Increase

 

 

 

 

 

Water Service 3/4"

 $   530.00

 $1,345.00

 $   815.00

154%

Water Service 1" *

 $   640.00

 $3,440.00

 $2,800.00

438%

Water Service 1 1/2"

 $1,600.00

 $3,722.00

 $2,122.00

133%

Water Service 2"

 $2,200.00

 $5,071.00

 $2,871.00

131%

Sewer Service 4"

 $   720.00

 $1,305.00

 $   585.00

81%

Sewer Service 6" w 2" water meter

 $1,900.00

 $4,059.00

 $2,159.00

114%

 

Minimum increase for single family home

 $1,250.00

 $2,650.00

 $1,400.00

112%

 

 

 

 

 

 

 

 

 

 

* New price for Tier 2 service which is service purchased majority of time.

 

GUC Service Fee Refunds: 

GUC currently refunds developers $460.00 for each water/sewer service developers install.  This refund is passed along to lot buyers.  GUC has announced elimination of this refund thereby increasing the cost of the lot and eventually the cost of the home that is built on the lot.

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PLEASE NOTE: 

The Greenville-Pitt Home Builders Association (HBA) needs our help. Greenville Utilities has proposed price increases to builders/developers for water and sewer connections. These increases range from 81% to 438%. The HBA has calculated that these increases will add a minimum of $2,650 to the price of a home. The timing of this couldn't be worse. In a market where only 18% of listed properties have sold this year, additional costs for builders (which ultimately are passed on to the consumer) will have the effect of making the dream of home ownership less affordable.  

The GPAR (Greenville-Pitt Association Realtors) Board of Directors has unanimously agreed that the association should support this issue. There is a form letter attached as well as a fee schedule. The form letter can be sent to GUCO commissioners and to the Greenville City Council. There will also be a petition. You can sign the petition at the HBA office on Turnberry Drive or at the HBA monthly meeting at the Shrine club.

Visit www.1SearchMLS.com to keep up to date as well!

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SAMPLE LETTER

{Date}

{Council/Committee Member Name}

{Address}

{City, State Zip}

 

Dear {Council/Committee Member Name}

 

I am writing you in protest to the Greenville Utilities Commission increases in their service connection fees effective October 1, 2008 and the elimination of service fee refunds on January 1, 2009. 

 

GUC's letter informing the Greenville-Pitt County HBA of these changes lists the following reasons for the increases:

 

•-         Add new charges for water and sewer "capacity fees" to provide for future capacity needs.

•-         Increase service connection fees (water/sewer taps)

 

I feel GUC is assigning all the costs of increasing capacity on developers, builders and the eventual customers that purchase new homes or businesses.  I feel that every GUC customer contributes to the need for additional capacity and therefore every GUC customer should pay for a portion of future capital needs. 

 

GUC's decision to pass along these increases only to new customers will dramatically increase the cost of new homes in their service area.  Greenville-Pitt County HBA calculates that with all the approved price increases, the cost of a home and lot will increase approximately $2,800.00!  We are entering our second year of historical lows in home sales and falling home values.  With these trends, the market can not absorb this large overnight price increase.  Homes priced under $250,000 are especially sensitive to such price spikes.  I feel this overnight jump in housing costs will take many buyers out of the market at a time when builders, subcontractors, etc need buyers the most.

 

GUC hired a consulting firm to help develop this new fee structure.  I do not believe this consulting firm considered the impacts of these fee increases to local businesses, home buyers and our economy.  We have not been told the reasons for these dramatic increases and why these increases need to be implemented at one time.  With Pitt County's unemployment rate at its highest level in 25 years, government officials do not need to implement policies that will increase our unemployment rate.  I ask that you review this information and ask GUC to slow down these fee increases and spread these increases out to all their customers, not a select few.  Thank you for your consideration.

 

Sincerely,

 

{Your Name}

{Company}

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