The Parks, Public Utilities, and Technology Committee on May 25 recommended passage of three ordinances (Council Bills 120966–120968) from Seattle Public Utilities (SPU) that revise and consolidate system development charges (SDCs) for water, sewer and drainage; authorize municipal assessment reimbursement areas and latecomer agreements; and amend the 2025 budget to add staffing to administer the program. Committee members adopted two amendments before recommending passage; the committee’s recommendations will be sent to the full council on 06/03/2025.

Why it matters: The package changes how developers and property owners pay for water, sewer and drainage mainline extensions and capacity improvements. SPU said the changes are intended to finance and expand the city’s infrastructure capacity and to provide mechanisms for the utility to participate in and recover investments in mainline extensions.

Key provisions and amendments: Council Bill 120966 revises SDCs, establishes drainage and wastewater SDCs and consolidates code language. Council Bill 120967 authorizes the general manager/CEO to establish municipal assessment reimbursement areas (latecomer agreements) so SPU can participate in mainline extension projects and recover costs from benefiting parcels. Council Bill 120968 provides budget authority to add six positions ($950,000 total appropriation across SPU funds) to administer the program; the positions are expected to be funded by anticipated SDC revenues.

The committee adopted two amendments. Amendment 1 was technical: it corrected drafting language in the introduced bill. Amendment 2 (moved by Council Member Rivera) expanded eligibility for an optional SDC deferral: under the amendment, owner-occupied homeowners who meet income criteria may defer SDC payments until the property is sold or transferred. The bill as introduced referenced a definition tied to 200% of the federal poverty level; the amendment changes the eligibility standard to households at or below 80% of area median income (AMI) for the Seattle Metropolitan Statistical Area. Committee discussion noted 80% AMI in 2025 is approximately $97,000 for a family of two and about $121,000 for a family of four (figures provided by central staff as illustrative examples). The amendment also added participation for accessory dwelling units and qualifying neighborhood-residential ownership configurations.

Committee discussion and votes: Council President Nelson said the package could unlock housing by reducing barriers related to infrastructure costs; Council Member Rivera said the measures were difficult but necessary to expand infrastructure to allow more housing and thanked staff for working on affordability options for retirees and fixed‑income homeowners. After debate and adoption of the two amendments, the committee voted to recommend passage of each ordinance. Roll-call votes were unanimous (5-0) on the amended bills; the committee record states the recommendation will be sent to the full City Council meeting on 06/03/2025.

Implementation notes and risks: SPU staff said the added positions are needed to handle engineering, contractual and administrative aspects of latecomer agreements. The positions would be funded by future SDC revenue; implementation therefore depends on revenue build-up and development activity. The latecomer mechanism creates a future-reimbursement stream but also shifts some initial financing risk to the utility until revenues are collected.

Next steps: The three ordinances, as amended, will be transmitted to full council on 06/03/2025. Committee members requested ongoing reporting from SPU on program implementation, revenue buildup and impacts to development costs.