1. Heritage Park Area Mandatory Connection Final Information Meeting March 14, 2016

2. What is it and why do I have to connect? Mandatory connection is a process used by cities, counties, and authorities across the country to pay for construction and maintenance of infrastructure. It allows costs to be spread over the entire group of customers, making them more affordable overall. CFPUA Mandatory Connection Policy requires that all properties within 500 feet of available lines must be connected. It was also a requirement as part of the joint county-CFPUA project. The project’s purpose is to remove all residents from failing septic systems. Water was added to the project to address community concerns over groundwater issues. Mandatory Connection

3. What do I have to do to connect to water? How much will it cost? After receiving CFPUA’s Mandatory Connection packet via Certified Mail, contact a private plumber to connect your home to the CFPUA water main. The estimated cost for the private work is $750-$1500. It is suggested you work with your neighbors for a possible group rate. CFPUA does not suggest/approve of one plumber over another at any time. You can do the work yourself, if you meet the following requirements: Your residence is a single family home and also your primary residence A building permit approval is granted by New Hanover County Building Inspections. Water Connection

4. What do I have to do to connect to water? How much will it cost? Connection work must be inspected by a New Hanover County building inspector You will need to pay CFPUA Customer Service the following fees to begin water service as outlined in your packet: Water System Development Charge: $1,920 Water Connection (Tap) Fee: $1,850 Water meter set fee: $250 New Customer fee: $55 Water Connection

5. What do I have to do to connect to sewer? How much will it cost? After receiving CFPUA’s Mandatory Connection packet via Certified Mail, contact a private plumber to connect your home to the CFPUA sewer main. The estimated cost for the private work is $750-$1500. It is suggested you work with your neighbors for a possible group rate. CFPUA does not suggest/approve of one plumber over another at any time. You can do the work yourself, if you meet the following requirements: Your residence is a single family home and also your primary residence. A building permit approval is granted by New Hanover County Building Inspections. Sewer Connection

6. What do I have to do to connect to sewer? How much will it cost? Connection work must be inspected by a New Hanover County building inspector You will need to pay CFPUA Customer Service the following fees to begin sewer service as outlined in your packet: Sewer System Development Charge: $2,460 Sewer Connection (Tap) Fee: $0 (paid by state loan) You are strongly advised to abandon your septic system It cannot be connected to your home but there are not any specific rules that govern abandonment from the county or the state. The state recommends you 1) pump, 2) crush, and 3) backfill. The estimated costs for pump, crush, and backfill is $500-$750. Again, work with your neighbors to see if group rates are possible. Sewer Connection

7. We were informed we could defer connection. What are the deferral options? Two connection deferral options now being offered. You cannot choose one option for water and the other option for sewer. The first option, as detailed at the start of the project: Three year deferral, with potential for one three-year extension It is available for both water and sewer services It requires significant payments. It is not a true deferral of all charges. Payment of sewer & water System Development Charges Payment of sewer & water bi-monthly Availability Charges Well permits approved by New Hanover County Well bacteriological tests submitted to CFPUA Septic system inspected by licensed inspector. The inspection report is submitted to CFPUA. Deferral Process

8. We were informed we could defer connection. What are the deferral options? Two connection deferral options now being offered. You cannot choose one option for water and the other option for sewer. The new, second deferral option available for this project: There is no deferral for water service. This protects public health by keeping the water fresher through consistent use. One three-year deferral for sewer service Septic system inspected by licensed inspector. The report is submitted to CFPUA. How is this new option an improvement? This is a true deferral for sewer with no financial payments required for sewer. You would pay the sewer System Development Charge at the end of the deferral period. You would not pay the bi-monthly availability fees until you connect. Deferral Process

9. What are the deferral options? You cannot choose one option for water and the other option for sewer. Water Deferral Options: Sewer Deferral Options: Deferral Options

10. We have been told financing is available? What does it cover? What are the terms? CFPUA offers financing for the Sewer System Development Charge, Water System Development Charge, and/or Water Connection Fee. All available for financing at 5% over an 8-year term. Requires initial 10% down payment $250 meter set fee payment for water financing. $56 loan processing fee (one-time) Financing may also be available through the New Hanover County Water and Sewer Revolving Loan Program You may use private loan financing for the charges and fees. Financing Options

11. If I finance, what are the payments? For water, the initial financing payment is $627.00: $377.00 for 10% of financing of Water System Development Charge & Connection fee + $250.00 for the water meter set fee = $627.00 for the total initial payment for financing Your bi-monthly loan payment would equal $86.06 ($43.03 a month) For sewer, the initial financing payment is $246.00: $246.00 for 10% of total financing for the Sewer System Development Charge Your bi-monthly loan payment would equal $56.15 ($28.08 a month) You have the option to pay more initially, more per month, and/or pre-pay the full amount of the financing without penalty. Financing Options

12. Mandatory Connection Timeline Tonight: Last Information Meeting Later this month: Mandatory Connection packets mailed. Connection period begins (180 days). May/June ‘16: Connection deferral request deadline September/October ‘16: Final Connection Deadline November ‘16: Penalty billing could begin if the connections are not made to the systems by this date. $250 per unconnected service every two months Base water and sewer rates every two months

13. Contact Information After you receive your Mandatory Connection packet, ALL inquiries should be directed to: CFPUA Customer Service (910) 332-6550 Customer.Service@CFPUA.org Mention to our Customer Service agent that you are a resident of Heritage Park going through the Mandatory Connection process.