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Council to consider updating sewer impact fee for new homes to $5,500 (study max $6,454)
Summary
An impact-fee study identified a potential sewer impact fee of up to $6,454 per ERC; the council previously set $5,500 and discussed raising the fee to shore up reserves for plant replacement and infrastructure. Council directed staff to schedule a public hearing and prepare a resolution for the next meeting.
Council members reviewed an impact-fee study that calculated a possible maximum sewer impact fee of $6,454 per equivalent residential connection (ERC) and noted the council had previously set a working fee of $5,500.
A committee member argued that increasing the fee on new home construction would contribute directly to needed sewer capital reserves: “when you're building a house … it's not that much more money and a whole lot more that goes towards the sewer,” the member said in support of the higher fee. Members discussed current practice: impact fees collected historically have been used to pay bonds and, in some cases, the city lacks a separate impact-fee reserve because proceeds were used for debt service.
Council members asked whether the fee can be split (it cannot under current rules discussed) and emphasized the need to formalize fund management so the city can save for future sewer-plant replacement. Staff noted that updating the fee schedule requires a public hearing, a seven-day public notice and a council resolution. Several members expressed urgency to refresh the fee schedule at the next meeting so the city can better position itself for future growth and for grant considerations.
Why it matters: Impact-fee policy affects how growth pays for infrastructure and the city’s long-term capital planning; a higher impact fee increases the upfront cost of new homes but provides funds to maintain and replace sewer infrastructure.
Next steps: Council directed staff to prepare a proposed fee update, public-notice language and a resolution so the item can go onto the next meeting agenda for formal action.
