Tacoma proposes new system development charges for wastewater and stormwater management

Tacoma's Infrastructure, Planning, and Sustainability Committee convened on August 27, 2025, to address critical updates regarding wastewater and stormwater system development charges. The committee's discussions highlighted the need for a new financial mechanism to support the city's anticipated growth and infrastructure demands.

Haley Fulk from Environmental Services presented the current challenges facing Tacoma's wastewater and stormwater systems. She emphasized that existing rates are insufficient to accommodate the expected population growth and increased density outlined in the Home in Tacoma initiative. To address this, the committee is proposing the implementation of system development charges, which would allow for individualized impact fee assessments based on the specific needs of different development types.

These one-time charges would be assessed when establishing new connections or upsizing existing ones, ensuring that developers contribute fairly to the costs associated with system upgrades. This approach aims to alleviate the financial burden on current ratepayers, who are already facing rate increases due to aging infrastructure and deferred maintenance.

Fulk outlined three major financial gaps that need to be addressed: maintaining current service levels, funding increased capacity for growth, and meeting future regulatory requirements. The proposed system development charges are designed to specifically tackle the second gap, ensuring that new developments contribute to the necessary infrastructure improvements.

Nathan Crane, a business service analyst, further explained the rationale behind these charges, noting that they are a common practice among similar jurisdictions in the Puget Sound region. By linking the charges to actual growth rates, the city can more effectively manage its financial resources and infrastructure needs.

The committee's discussions reflect a proactive approach to urban planning and sustainability, aiming to create a fair and equitable system for funding essential services as Tacoma continues to grow. As the city moves forward with these proposals, stakeholders will be closely monitoring the implementation and its impact on both developers and residents.