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Council reviews draft ordinance to allow sale of sewer credits from joint treatment allocation
Summary
City legal staff explained a new code chapter to permit the city to transfer or sell sewer credits allocated under the Binghamton‑Johnson City joint sewage treatment arrangement; staff said the city has not sold credits previously but can make unused allocations available to developers that need them to proceed.
City legal and engineering staff briefed council on a proposed ordinance to adopt code chapter 339a to establish procedures for transferring or selling sewer credits that the city holds under the Binghamton‑Johnson City joint sewage treatment agreement.
Corporation counsel Robert Herry told the council that sewer credits originated as use allocations that set how much flow each municipality may send to the joint treatment plant. Over time, municipalities have freed credits by separating stormwater or completing remediation; those unused credits can become available for projects that otherwise would exceed their allowed flow.
Herry explained that other municipalities have previously set up transfer mechanisms and that the proposed city code would allow Binghamton to make otherwise unused credits available rather than letting them sit idle. He said credits sold to a developer must be used within a year to prevent private parties from stockpiling them.
Councilors asked how engineers determine credit needs for a project. Staff said that credit needs are driven by the expected increase in sewage flow caused by redevelopment (for example, converting an industrial site to residential use can increase flow) and that the city’s engineering office evaluates project plans and flow calculations when a developer applies. Staff identified a potential current case (187 Clinton Street) that “might need” credits depending on its remediation and flow reduction measures.
Herry noted Binghamton has not historically sold sewer credits. The proposed chapter creates a mechanism for the city to price credits (staff will recommend a valuation approach based on market comparables and city cost impacts), establish application rules, and ensure transfers are used promptly. Council members asked for follow up on pricing methodology and the engineering rules for calculating credits.
