JACKSONVILLE, Fla. — The Northeast Florida Builders Association is warning future homeowners that buying their first house could get more expensive, due to a proposed JEA fee increase that would more than triple capacity fees.
A proposed JEA increase to capacity fees, and to tap and meter fees could make building new properties in Jacksonville more expensive.
"It's’s going to create a substantial increase in the price of homes eventually," said Gregory Matovina, interim executive director of the Northeast Florida Builders Association.
Leaders with JEA explained:
- Capacity fees are upfront costs that builders or developers pay to connect to the JEA system. The fee amounts are based on water/sewer meter size or flow.
- Meter fees are paid by customers (predominantly builders) connecting to the system to recover the cost of the meter, materials and labor to set a meter.
- Tap fees are paid by customers when a connection is made to the water or sewer system in an established area. This fee covers materials and labor to tap into JEA’s existing lines.
The fee for water and sewer plant capacity is currently around $1,900, but if approved, the fee will increase to around $7,100 by the year 2023. A similar increase is proposed for water and sewer tap and meter fees, which will nearly quadruple in costs.
This is the first time JEA has increased fees in more than 15 years. Leaders point to a growing population and increase in market demand.
"With growth, JEA also has to be prepared to serve, and with that comes a cost. And JEA has to recover our cost and be prepared for the future," JEA Spokesperson Karen McAllister said.
If adopted, the fee increases will start in October 2021 and reach the total increase in 2023.
"We are phasing in the increase so that builders and developers can appropriately budget for these increases," McAllister said.
The Northeast Florida Builders Association warns this increase will be reflected in house prices, as builders and developers will need to pass the costs to home-buyers.
"It really pushes the price of the home out of reach even further for first-time home buyers and a first-time home buyer who wants to move to the next home," Matovina said.
The fee increase is set to be voted on next month. If approved, the fee adjustments will be phased in starting October of this year and ending in 2023.