Leavenworth council reopens SDC conversation; consultants to return with cost-backed proposal

The council resumed discussion of utility rates and system development charges (SDCs), directing staff and HDR consultant Kevin to prepare a concrete proposal grounded in local cost data and phasing options. Staff recapped prior action: water SDCs were raised in 2024 to roughly 50% of the legal maximum while sewer and stormwater remained unchanged; staff said the combined SDC package for a typical single-family one-year baseline connection currently totals roughly $9,305 at the present percentages.

Kevin, HDRs consultant, explained that SDCs are intended to do two things: charge incoming connections for capacity that existing ratepayers previously funded and recover the share of future expansion costs attributable to new connections. He recommended the council consider phased increases rather than moving immediately to a legal maximum, and noted that some neighboring jurisdictions lack stormwater SDCs, which limits direct comparables.

Multiple councilmembers requested a clear, local cost-based justification showing current system capacity (ERUs supported), specific capital projects tied to fees, and a recommended phase-in schedule that limits shocks to development. Council directed staff to draft a proposal with an explicit rationale, developer comparables, phasing options, and a communications plan so the council can consider adoption as part of the 2026 rates process.

Next steps: HDR and staff will return with a proposal that ties SDC changes to documented local system costs and offers phasing and communication options for stakeholders; council requested a dedicated study session to consider monthly-rate and SDC details.