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WES presents system development charge methodology update; advisory committee recommends phased increases
Summary
Water Environment Services presented proposed updates to sewer and stormwater system development charge (SDC) methodology. Staff reported a maximum statutory wastewater SDC of $12,285 and stormwater SDC of $480 under the updated methodology; the WES advisory committee recommended adopting the methodology and phasing in fees over five years.
Water Environment Services (WES) staff presented an update to the system development charge (SDC) methodology for sewer and stormwater and described next steps for public notice and adoption.
Aaron Blue, WES Finance Manager, said the methodology update uses the 2022 population forecast for capacity assumptions and the county’s adopted capital improvement plan and fixed‑asset records for cost bases. Using that approach, WES staff calculated a maximum wastewater SDC of $12,285 per equivalent dwelling unit (EDU) composed of a $572 reimbursement fee and an $11,128 improvement fee; the stormwater SDC maximum would be $480 (reimbursement fee $207; improvement fee $251). The proposed methodology includes the required compliance fee set at 5% of total costs.
Blue said state statute provides the structure for SDCs but not a single calculation method; each utility’s methodology defines cost and capacity bases and how costs are allocated. A methodology update requires a 90‑day public notice and a public hearing; an inflationary adjustment to an established SDC can be done annually by resolution.
WES staff reported the WES advisory committee considered the methodology and on March motioned to (1) adopt the methodology and (2) recommend phasing in the maximum SDCs. Under the advisory committee recommendation, wastewater SDCs would increase about 6.2% annually and stormwater SDCs about 14.3% annually over the proposed phase‑in period. Blue and Director Greg Geist noted SDC revenue typically comprises a minority of WES total revenue (about 7% in a low development year) and that SDC changes have a limited but cumulative effect on monthly rates because SDCs are restricted to capital projects while rates support operations and rehabilitation.
Commissioners discussed the balance between SDCs and monthly rate impacts, housing affordability and regional competitiveness. WES staff said a status‑quo approach (continue inflationary adjustments) would keep current SDCs and that lowering SDCs (for example, to align with a neighboring county level cited in discussion) would shift more cost to monthly rates. Staff said they will return with the formal methodology and fee amounts for adoption following required public notice and hearings; the record shows staff planned a return on or after April 15 and adoption steps toward mid‑July.
