SURF CITY — Wastewater capacity continues to be addressed in Surf City as council may consider amending a policy to help guide its desired goals for growth and expansion. Changes, if accepted, could also equitably provide resources to residential developments, according to city management.
Surf City’s public utilities director, David Price, went before council last week to address changes to the Wastewater Allocation Policy. Currently, the policy states wastewater is broken down by three percentages:
- 20% reserve, to ensure the resource is always available to the town
- 30% commercial
- 50% residential
These percentages were implemented based on input gathered through the town’s comprehensive plan, updated a few years ago.
“Before this, commercial was in direct competition with larger developments,” Price reminded council at last week’s meeting.
However, now he wants to get more granular on the residential percentage allocated, primarily as bigger country-wide developers often eke out smaller developments. This is due to their larger-scale needs, including with wastewater resources.
Price reminded the board that while it agreed to the trifecta of percentages last December, they also wanted to closely monitor and make further adjustments if needed.
“A discussion point that got brought up was: How do we make it more equitable between larger builders and smaller builders?” he said. “Since wastewater is a finite resource, it kind of crowds the market out for smaller builders.”
Price has proposed public utilities now allot 20% of the residential allocation to subdivisions that will be 99 homes or less and the remaining 30% to any other size development. He told city council he came up with the breakdown based on the state’s fire code regulations that note any development of 99 homes would need two entrances.
“In my opinion, it also complements the comprehensive land use plan,” Price told council. “Everyone wants less density and more commercial. We are preserving the commercial aspect. It is encouraging less density by not having these large two, three, 400-home developments.”
He said the residential allocation also would benefit infill development, proposed frequently across the southeastern region.
Regardless of the size of developments, the Town of Surf City has faced wastewater capacity issues since 2020. Located on North Carolina Highway 50, the plant is on more than 30 acres consisting of storage ponds and 200 acres including solid set irrigation, operated under a non-discharge permit. Compliant with all emissions, the city treated 238 millions gallons of wastewater last year, but properly disposing of the effluent is where capacity issues come into play.
Because the town is a coastal community, water bodies are protected through nearby shellfish designation and “less-than desirable soil,” according to city manager Kyle Breuer.
However, the town is working with the Department of Environmental Quality to increase capacity, hopefully. The goal is to have a National Pollutant Discharge Elimination System approved.
“By having a discharge permit under the highly treated effluent provision of state law, the town would be able to potentially utilize land owned off of NC 50 in which we currently operate traditional land application and supporting infrastructure,” Breuer said.
The town utilizes around 0.776 million gallons a day, according to Price, but growth numbers indicate estimates of needing 3 million gallons a day by 2040. The North Carolina Office of State Budget and Management show Surf City’s population was 4,798 in 2023; staff have it currently sitting around 5,373.
Council member Hugh Cannady made a comment about density infiltrating the town in December’s council meeting. While discussing a land annexation and rezoning proposal for a development, he said:
“Surf City’s gonna grow. It’s like trying to stop the tide out there, man. We’re not gonna do it. But can we manage it? … [We] try to mitigate — what’s the benefit, what’s the downside? Find some way to meet in the middle.”
The council asked Price during the same meeting how long it would take the developer attached to the R10 rezoning and land annexation to get wastewater if it moved forward. Price answered three years.
Developments are often waitlisted for wastewater in Surf City; however, Price noted to council last week that developers don’t often buy land and then wait that long to build on it.
“The waitlist lasts until new infrastructure is completed,” Breuer further explained to Port City Daily. “We are anticipating our next project to come online in three years.”
Projects are added to the list as approved and while none are currently in the queue, Breuer said that will soon change.
Mayor Pro Tem Jeremy Shugarts asked at last week’s workshop if further breaking down the residential percentage would provide relief to small developers in the immediate future. Price answered no. All residential wastewater capacity has been allocated and the 20%-30% residential breakdown would become effective by 2028 at the earliest.
“Keep in mind, we still have reserves in commercial,” Price told council.
Shugarts also wanted to understand the reserves, asking what 20% equates to exactly. Price clarified it would assure the town never outgrows its wastewater needs: “We don’t want to create environmental damage or be accused of not being able to handle what we allow to be developed.”
Shugarts asked what that means in terms of a “taps” count in the pipeline: “100, 200, 400, 500?”
According to Breuer, that’s roughly 213 homes.
“The exact number of homes and commercial properties is dependent on bedrooms and commercial use,” he explained, noting 213 is an example based on a three-bedroom, single-family home.
Wastewater allocation is measured by gallons and last fall 240,000 came online, meaning it held roughly 48,000 gallons a day in reserve, 72,000 for non-residential projects, and 120,000 in residential
“Viability of a project is dependent on the amount of effluent discharge and allocation that can be achieved,” Breuer further explained to PCD. “The capital costs would prohibit the town from completing projects less than 240,000 gallons per day.”
Breuer said addressing the Wastewater Allocation Policy revisions is important in that it will assist the town in diversifying its community and tax base as people continue to move to the area.
Projects are evaluated by a rubric and utilize a points system, with at least 50 needed to gain access to wastewater allocations. Bonus points can also be awarded if a developer’s plans include items considered important to the city’s development goals, such as additional amenities — fire pits, community gardens — or providing a 25% minimum masonry façade on buildings.
The Wastewater Allocation Policy states “a hierarchy shall apply to the evaluation of utility allocation requests,” including:
• Non-residential properties with quality development projects
• Development projects with a mixed-use element
• Industrial projects and other major employer entities
• Additional phases attached to residential projects with a proven record of quality products and economic success
• Residential projects that include tangible, high quality community amenities
• Residential projects that include diverse products and opportunities
• Residential projects not otherwise described above
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