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Council to consider capacity charge tied to Tri Cities wastewater expansion
Summary
Staff proposed a one-time capacity fee for new construction to help cover part of the Tri Cities wastewater treatment plant's roughly $150 million expansion; the fee would be based on water meter size and is intended to shift about 35% of expansion debt service to new development.
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Aaron told the council the proposed ordinance would establish a one-time pass-through capacity charge tied to the Tri Cities wastewater treatment plant expansion, designed to recover a portion of the project's debt service from new development rather than placing the entire cost on current ratepayers.
Aaron said the plant expansion is roughly $150,000,000 and the expanded capacity is about 6.1 million gallons per day; under the proposed structure roughly 35% of the total debt service would be attributed to future new customers. The proposal would calculate a one-time capacity charge based on water meter size and remit collected fees to Tri Cities quarterly or semiannually.
The fee would apply to future developments that have not yet received tap fees or permits; projects already permitted but not yet under construction would not be subject to the charge. Aaron said Tipp City and Miamisburg (Mandalia referenced in packet) are considering similar measures.
Council agreed to place the ordinance on Monday's agenda for two readings.
