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Council approves sewer surcharges to fund two trunk projects serving future annexation area
Summary
Council adopted an ordinance (Council Bill 24-1021) to levy sewer surcharges on properties in a 438.718-acre annexation area to fund the Fairway trunk main ($2.4M) and Riverside Interceptor ($10.5M). Officials said fees are assessed by ERU at permitting and escalate with the ENR construction index.
Coeur d'Alene ' The City Council on Dec. 17 approved an ordinance establishing sewer surcharges for properties in a 438.718-acre area annexed as part of a recent development agreement (referred to in staff materials as 'Cortere'). The fees are intended to fund two near-term projects: the Fairway trunk main (estimated $2.4 million) and a parallel Riverside Interceptor (estimated $10.5 million).
Mike Anderson (Wastewater) presented the formula: cost allocation by ERU (equivalent residential unit) tied to mapped service areas. Anderson explained the Fairway trunk main surcharge breaks down to about $1,005 per ERU for the affected sub-area; the Riverside Interceptor surcharge was roughly $25.90 per ERU, using the ERU counts from the annexation agreement. Properties that use both mains would pay both surcharges; fees are assessed when building permits are issued and will escalate annually with the ENR construction cost index to reflect inflation.
Council asked about timing (the city will construct when capacity is needed and will reimburse costs from future fees as development occurs), current pipe occupancy (present flows estimated at ~15–20% of capacity), why the city preferred adding a parallel pipe rather than upsizing the existing line (cost and constructability considerations), and the treatment of future annexations such as US Forest Service property.
After questions, council moved to read and adopt Council Bill 24-1021; roll call recorded affirmative votes and the ordinance passed. Staff said the city will use collected surcharge revenue toward project construction and manage interim financing from capital reserves as necessary.
What this means for developers and homeowners: Surcharges will be assessed at permit and added to typical capacity/capital fees; property owners in designated zones will pay the surcharge amounts when they build. The charge is intended to keep the broader rate base from bearing the full cost of targeted capacity projects.
