The City of Fayetteville is expanding its public electric vehicle charging network as part of a broader commitment to sustainable transportation. This report documents the financial model, site configurations, capital costs, and recommended pricing strategy for the program’s initial deployment phase.
The program deploys 16 chargers across 8 dual port units at five sites. Two new CP4021B dual port chargers are installed at Freedom Park and City Plaza 2 via turnkey contracts with Tayco Electric. Three existing dual port units at the Franklin Street Parking Garage are repositioned to unlock previously inaccessible connections, and four chargers are transferred from PWC at minimal cost. The Transportation Museum retains its existing unit unchanged.
The central financial goal is revenue neutrality, meaning charging fees must cover all operating costs and recover the full $150,493 capital investment over the five year program horizon. The model demonstrates this is achievable at $0.29 per kWh with no idle fee, or as low as $0.11 per kWh when combined with a $0.50 per minute idle fee (idle fee begins sometime after full charge). At the recommended launch rate of $0.35 per kWh with a $1.00 per minute idle fee, the program generates a Year 1 surplus of approximately $57,786 above break even.
demonstrates this is achievable at $0 29 per kWh with no idle fee, or as low as $0 11 per kWh when combined with a $0 50 per minute idle fee At the recommended launch rate of $0 35 per kWh with a $1 00 per minute idle fee, the program generates a Year 1 surplus of approximately $57,786 above break even
$315,610
Target Program Launch 2027 (all sites fully operational)
2. PROGRAM BACKGROUND AND OBJECTIVES
The City of Fayetteville is expanding its public electric vehicle charging network as part of a broader commitment to sustainable transportation. This report documents the financial model, site configurations, capital costs, and recommended pricing strategy for the program’s initial deployment phase.
The program deploys 16 chargers across 8 dual port units at five sites. Two new CP4021B dual port chargers are installed at Freedom Park and City Plaza 2 via turnkey contracts with Tayco Electric. Three existing dual port units at the Franklin Street Parking Garage are repositioned to unlock previously inaccessible connections, and four chargers are transferred from PWC at minimal cost. The Transportation Museum retains its existing unit unchanged.
The central financial goal is revenue neutrality charging fees must cover all operating costs and recover the full $150,493 capital investment over the five year program horizon. The model demonstrates this is achievable at $0.29 per kWh with no idle fee, or as low as $0.11 per kWh when combined with a $0.50 per minute idle fee. At the recommended launch rate of $0.35 per kWh with a $1.00 per minute idle fee, the program generates a Year 1 surplus of approximately $57,786 above break even.
2.1 CONTEXT
The City of Fayetteville partnered with PWC (Public Works Commission) and Blue Strike to evaluate the transition of existing EV charging infrastructure from PWC ownership to City ownership, and to plan an expansion of the public charging network. The program is designed to:
2. Program Background and Objectives
1. Provide accessible, reliable public EV charging at key municipal locations
2.1 Context
2. Achieve revenue neutrality through user fees, eliminating ongoing cost to taxpayers
The City of Fayetteville partnered with PWC (Public Works Commission) and Blue Strike to evaluate the transition of existing EV charging infrastructure from PWC ownership to City ownership, and to plan an expansion of the public charging network The program is designed to:
3. Recover the full capital investment within the five year program horizon
4. Support EV adoption aligned with regional sustainability goals and the City’s Sustainability Action Plan
1. Provide accessible, reliable public EV charging at key municipal locations
2 Achieve revenue neutrality through user fees, eliminating ongoing cost to taxpayers
5. Leverage existing assets through the PWC charger transfer to minimize capital outlay
3. Recover the full capital investment within the five year program horizon
4. Support EV adoption aligned with regional sustainability goals and the City’s Sustainability Action Plan
5. Leverage existing assets through the PWC charger transfer to minimize capital outlay
2.2
KEY STAKEHOLDERS
2.2 Key Stakeholders
City of Fayetteville
Program owner PWC Board approval required for PWC charger transfer resolution
PWC Utility / asset transfer Transferring 4 chargers at minimal cost; supports marketing; no transformer charge
Tayco Electric / Blue Strike Vendor / installer Turnkey installation; software under City existing plan
Sustainable Sandhills Outreach partner EV marketing support; Dogwood Festival (Apr 25 & 26); grant monitoring
Whitney Pricing / coordination Confirming pricing alignment with financial model
3. SITE OVERVIEW AND INFRASTRUCTURE COSTS
3. Site Overview and Infrastructure Costs
The
The program encompasses five sites. All quotes are confirmed. Total installation cost across the three active installation sites is $113,897, plus $36,596 in hardware and transfer fees, bringing total committed capex to $150,493.
ve
3.1 Freedom Park
3.1 FREEDOM PARK
One new CP4021B dual port charger provides access to one ADA accessible and one standard space at the front of the park. Installation is turnkey including all site work. A separate meter is included to future proof the site for additional chargers. Site work is coordinated with City Plaza 2 on the same day to reduce mobilization cost.
One new CP4021B dual port charger at City Plaza 2 serves one ADA accessible and one standard parking space. A 1¼” conduit stub is included to provide capacity for future expansion.
1. Hardware: $17,800 (1 CP4021B dual port unit)
2. Installation (Tayco Electric, turnkey including conduit stub): $17,750
3. Total site cost: $35,550
3.3 FRANKLIN STREET PARKING GARAGE
3.3 Franklin Street Parking Garage
The Franklin Street Parking Garage houses three existing dual port charger units being transferred from PWC. Currently, only one of the two connections on each unit is accessible due to positioning. Repositioning the chargers unlocks the second connection on each unit, effectively doubling accessible capacity at this site with no new hardware cost.
The Franklin Street Parking Garage houses three existing dual port charger units being transferred from PWC. Currently, only one of the two connections on each unit is accessible due to positioning Repositioning the chargers unlocks the second connection on each unit, effectively doubling accessible capacity at this site with no new hardware cost
Scope of work
Hardware cost
Installation cost (Tayco Electric)
Result
Permitting timeline
3.4 Transportation Museum
Relocate 3 existing dual port chargers, install new circuits, new sub panel, permitting, 6 wheel stops
None existing PWC units repositioned, no new hardware required
$78,897 confirmed
6 accessible connections (up from 3) connection capacity doubled at this site
Approximately 10 days from plan submission; Technical Review Committee involvement expected
3.4 TRANSPORTATION MUSEUM
An existing dual port charger is already operational at the Transportation Museum. Given its multi meter configuration, no changes are recommended at this time The unit will remain as is under the current setup
An existing dual port charger is already operational at the Transportation Museum. Given its multi-meter configuration, no changes are recommended at this time. The unit will remain as is under the current setup.
4. CAPITAL BUDGET SUMMARY
The
The City has an approved capital budget of $750,000. Confirmed expenditures total $150,493 across all sites, leaving $599,507 available for future expansion phases.
5. FINANCIAL MODEL AND REVENUE NEUTRAL PRICING
5.1 APPROACH
The financial model evaluates the program over a five year horizon (2027 to 2031). It uses observed utilization data from the existing PWC chargers as the baseline demand assumption and models revenue against operating costs to identify the minimum user facing price required to break even annually while recovering the full capital investment.
Revenue neutrality is defined here as covering all operating expenses plus recovering the $150,493 capital investment through a straight line annual charge of $30,099 per year over five years. A program that only covers operating costs but does not recover capital is not considered revenue neutral for the purposes of this analysis.
Two pricing levers are modeled The first is a flat per kWh charge The second is a per minute idle fee applied after a 10 minute grace period, which both supplements revenue and encourages charger turnover
5.3 REVENUE NEUTRAL PRICING
5.3 Revenue Neutral Pricing
Two pricing levers are modeled The first is a flat per kWh charge The second is a per minute idle fee applied after a 10 minute grace period, which both supplements revenue and encourages charger turnover
Two pricing levers are modeled. The first is a flat per kWh charge. The second is a per minute idle fee applied after a 10 minute grace period, which both supplements revenue and encourages charger turnover.
Why $0.35/kWh at $1.00/min idle fee?
Why $0.35/kWh at $1.00/min idle fee? At $0 35/kWh with a $1 00/min idle fee, Year 1 revenue is approximately $96,741 against total costs of $38,955 (including $30,099 capital recovery) This generates a surplus of $57,786 above break even in Year 1 and $315,610 over five years The rate sits comfortably above the $0 292 break even floor, provides a buffer for electricity cost escalation, and aligns with regional market norms of $0 25 to $0 45 per kWh
At $0 35/kWh with a $1 00/min idle fee, Year 1 revenue is approximately $96,741 against total costs of $38,955 (including $30,099 capital recovery) This generates a surplus of $57,786 above break even in Year 1 and $315,610 over five years The rate sits comfortably above the $0 292 break even floor, provides a buffer for electricity cost escalation, and aligns with regional market norms of $0 25 to $0 45 per kWh
WHY $0.35/KWH AT $1.00/MIN IDLE FEE?
At $0.35/kWh with a $1.00/min idle fee, Year 1 revenue is approximately $96,741 against total costs of $38,955 (including $30,099 capital recovery). This generates a surplus of $57,786 above break even in Year 1 and $315,610 over five years. The rate sits comfortably above the $0.292 break even floor, provides a buffer for electricity cost escalation, and aligns with regional market norms of $0.25 to $0.45 per kWh.
REVENUE MIX AT RECOMMENDED PRICING
Figure 1. Five year revenue mix: kWh charging $263k (49%) vs idle fee revenue $286k (53%)
REVENUE MIX (5-YEAR TOTAL)
5.4 SENSITIVITY ANALYSIS ELECTRICITY COST
ESCALATION
The model stress tests revenue neutrality against annual electricity cost increases from 1% to 8%. Key findings from the sensitivity analysis:
1. At the base case 2% escalation rate, the break even $/kWh rises approximately $0.01 to $0.02 per year over the five year horizon.
2. Setting the initial user rate $0.05 above the Year 1 break even provides a sufficient buffer to avoid rate increases through at least Year 3 under most scenarios.
3. At escalation rates above 5%, a rate adjustment in Year 3 or 4 may be necessary to maintain revenue neutrality.
4. The idle fee provides meaningful protection against cost increases. At $1.00/min, idle fee revenue contributes approximately 53% of total annual revenue, significantly reducing reliance on the per kWh rate.
HOW THE IDLE FEE REDUCES THE REQUIRED $/KWH
Figure 2 . Required $/kWh rate at each idle fee level at $1.00/min the idle fee alone covers all program costs
6. FIVE YEAR FINANCIAL PROJECTIONS
The following projections reflect a launch pricing of $0.35/kWh with a $1.00/min idle fee, 16 total chargers, and the confirmed cost structure.
REVENUE AND COST OVERVIEW
Figure 3 . Annual net revenue, total operating expenses, and surplus above break even (2027 2031)
Figure 2. Cumulative net position program recovers full $150,493 capex and generates $335,612 net by 2031
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6.1 REVENUE PROJECTION
6.1 Revenue Projection
6.2 OPERATING COST AND NET POSITION
6.2 Operating Cost and Net Position
7. IMPLEMENTATION TIMELINE
7. Implementation Timeline
Board approval of PWC transfer resolution
March / April 2025 Legal team to draft resolution; board vote required
PWC bill of sale executed April 2025
Freedom Park and City Plaza 2 installation April 2025
Franklin St Garage repositioning complete 2026
Dogwood Festival EV outreach April 25 26, 2025
Pricing and billing go live 2027
Year 1 performance review Q1 2028
Following board approval; 4 chargers transferred to City
Same day site work; permitting approximately 10 days from plan submission
Quote confirmed at $78,897; permitting to be initiated
Sustainable Sandhills to lead; potential public launch opportunity
All 16 chargers fully operational; financial model year 1 begins
Compare actual utilization and revenue vs. model assumptions
8. Outstanding Items and Next Steps
The following items require resolution before the program can be fully finalized.
8. OUTSTANDING ITEMS AND NEXT STEPS
8. Outstanding Items and Next Steps
The
The
8.1 RECOMMENDATION
Proceed with Freedom Park and City Plaza 2 installations in April 2025 as planned. Initiate Franklin Street Parking Garage permitting to maintain the 2026 repositioning timeline. Set launch pricing at $0.35/kWh with a $1.00/min idle fee after a 10 minute grace period, consistent with the financial model recommendations.
Once the program goes live in 2027, Year 1 actuals should be compared against model assumptions with particular attention to sessions per charger per day and idle fee incidence rate, as these are the two variables with the greatest impact on revenue projections.
