BPU to adjust development fees

By Chris Swick
March 02, 2016

Cost increases are coming later this year for the Board of Public Utilities development agreements.

BPU general manager Tim Maier says they offer two development agreements, residential and commercial.

“So, if it's served by a city street, it's considered residential,” Maier said. “And then, if it's not, it's considered commercial-type property, or if it is a commerical business. Part of that depends on like an apartment complex and how that would be served. It really effects water installation more than anything.”

Starting in November, the cost for installation of underground electric lines will be $6 per foot for a shared installation and $9 per foot for a solo installation for commercial properties.

The major residential change comes from water line installation, Maier says. Currently, developers are responsible for 50 percent of the install cost, with the BPU refunding that money over five years.

“So if a development was fully developed in five years, the water line was free,” Maier said. “The change that's really being made in that regard is they are now only eligible to get a half of that half back.”

That means developers will be paying for 25 percent of the installation of utilities for a property. Maier added he feels the changes are still very much pro-development for the City of McPherson.