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Homebuilders sue North Carolina city over sewer, water fees

Homebuilders in North Carolina are suing a city over what they say were millions of dollars of unlawfully charged fees for sewer and water connections.
The Charlotte Observer reports that a dozen of Charlotte’s largest homebuilders filed a class-action federal lawsuit last week on behalf of all homebuilders active for the past three years, which could include hundreds of companies and individuals.
The lawsuit contends homebuilders were charged capacity fees assessed at the time of building applications, not the time service was actually started. Charlotte Water uses fees from new developments to help cover the costs of enlarging capacity.
A recent state Supreme Court decision says cities don’t have the authority to charge for future services.
The city and Charlotte Water declined to comment to the newspaper, citing pending legislation.

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