TO: Mayor Colvin and Members of City Council
THRU: Lachelle H. Pulliam, City Attorney
FROM: Joy Haddock, Deputy Tax Collector, PWC
DATE: September 22, 2025
RE:Title
Appeal of Sewer Assessment - 3162 Bittersweet Drive, 28306Title
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COUNCIL DISTRICT(S):
Council District(s)
6
b
Relationship To Strategic Plan:
Goal I - The City of Fayetteville will be a highly desirable place to live, work and recreate.
Executive Summary:
On June 25, 2025, PWC received a Utility Assessment Appeal from property owners Winkler D. Oxendine and Lauren M. Brannon (Oxendine) regarding 3162 Bittersweet Drive, Fayetteville, NC 28306, pursuant to NCGS 105-381. The subject property is in Phase 5 Project Area 32 East, Section 1 and was listed on the assessment roll confirmed by City Council on February 10, 2025 for sewer service. The property owners do not want to connect to the sewer lateral because their septic lines have recently been replaced, and the sewer lateral will not be placed in front of their house. They argue that they should not have to pay the assessment until the property is connected to PWC sewer.
Under the statute, the governing body of the taxing unit must determine whether the taxpayer has a valid defense to the tax imposed or any part thereof. Based on the statute, it appears that the property owners do not have a valid defense to the enforcement of the collection of the tax assessed upon their property.
Background:
On January 13, 2025, the City Council held a public hearing on the assessment roll proposed for the extension of a sanitary sewer collection system to serve all or a portion of the Area 32 East Section 1. On February 10, 2025, City Council adopted a resolution confirming the Phase 5 Area 32 East Section 1 assessment roll and levying assessments.
PWC and the City entered into an agreement dated as of May 12, 2008 (and amended December 2009, May 2010, June 2012, June 2016 and May 2017), whereby PWC is to install water and sanitary sewer infrastructure for services to an area identified as Annexation Phase V. To fund the construction of the infrastructure, the City shall assess each residential lot the full cost for water and sanitary sewer improvements, or $5,000 whichever is less. If the City assesses less than $5,000, the difference shall be deducted from the Electric Operating Transfer, which is an amount payable from PWC to the City.
The property owners submitted a statement of defense to PWC on June 25, 2025. PWC submitted the statement to the City on July 29, 2025. The City Council must respond no later than September 23, 2025.The property owners’ statement of defense is attached as well as additional background documentation, for Council’s consideration.
Under NCGS § 105-381, any taxpayer may assert a valid defense to the enforcement of the collection of a tax assessed upon his property. The statute outlines the three valid defenses: 1) A tax imposed through clerical error; 2) An illegal tax or 3) A tax levied for an illegal purpose. Upon receiving a taxpayer's written statement of defense and request for release or refund, the governing body of the taxing unit shall within 90 days after receipt of such request determine whether the taxpayer has a valid defense to the tax imposed or any part thereof and shall either release or refund that portion of the amount that is determined to be in excess of the correct tax liability or notify the taxpayer in writing that no release or refund will be made.
NCGS 160A-216 authorizes cities to make special assessments against benefited property within its corporate limits for constructing, reconstructing, extending, or otherwise building or improving water, sewage collection and disposal systems of all types.
NCGS 160A-317 and Fayetteville City Code Section 28-5 authorize the City of Fayetteville to require connections to water and sewer service.
Additionally, Section 28-6 of the Code provides that PWC shall have the sole and exclusive right to tap or connect with the water and sewer lines in the municipality, charging for such taps or connections, and any repairs or replacements thereto, the reasonable cost to be fixed by and paid to the commission by the person for whom such work shall be done.
Issues/Analysis:
The property owners do not want to pay the assessment fee because the lateral will not be located in front of the property, causing the cost to be higher; also, their septic lines were recently replaced.
Budget Impact:
The City must cover any amount that is forgiven.
Options:
1. Determine that the property owners do not have a valid defense to the tax imposed or any part thereof and notify them in writing that no release or refund will be made.
2. Determine that the property owners have a valid defense to the tax imposed or any part thereof, and release or refund that portion of the amount that is determined to be in excess of the correct tax liability, and notify them of such.
Recommended Action::Recommended Action
Staff recommends that Council determine that the property owners do not have a valid defense to the $5,000.00 assessment levied for sewer service.
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Attachments:
Appellants’ Documents
Background Documents