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Tacoma presents proposed wastewater and stormwater system development charges to pay growth-related capacity costs
Summary
Environmental Services staff proposed one-time system development charges (SDCs) for wastewater and stormwater to recover a portion of capacity costs attributable to growth; staff described the formula, peer comparisons and incentives/credits, and signaled state funding options for affordability.
Environmental Services staff briefed a Tacoma City Council committee on proposed wastewater and stormwater system development charges (SDCs), a one-time charge assessed when new connections are added or existing connections are upsized to recover a proportionate share of system capacity costs.
Haley Fulk, business services manager for Environmental Services, said SDCs are intended to separate the cost of adding new capacity for growth from the ratepayer burden of maintaining the existing system and paying for deferred maintenance. "System development charges are the method that we are proposing to pay for this system growth," Fulk said.
Analyst Nathan Crane explained the standard SDC methodology: take system cost (original cost paid by the city for assets in service, minus donated or grant-funded components) and divide by system capacity (for wastewater, treatment-plant capacity in…
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