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Staff propose wastewater SDC methodology that would raise Redmond's sewer SDC to about $8,000
Summary
City staff presented a wastewater SDC methodology tied to the wastewater system master plan and growth projections. Preliminary calculations yield an SDC of roughly $8,000 per new single-family-equivalent meter (up from $5,362 today), a potential 51% increase; staff scheduled outreach and a public hearing for July.
Jessica (staff) presented the wastewater system development charge (SDC) methodology, explaining how the numerator (SDC-eligible capital costs) and denominator (projected growth) were calculated under two growth assumptions: a 20-year treatment plant horizon (treatment denominator) and a longer build-out for pipes (collection denominator).
Key figures: Jessica said the treatment project cost was roughly $88.8 million and that about $36.7 million of that cost was SDC-eligible for treatment. For collection (pipes and interceptors) the eligible cost used in the calculation was approximately $65 million. Dividing the eligible costs by the projected growth produced a preliminary new wastewater SDC of about $8,000, compared with Redmond's current $5,362 SDC — a roughly 51% increase. Jessica emphasized these are methodology outputs and that council has options in how to phase or set the final charge.
Jessica explained technical points that affect the calculation: the treatment plant planning horizon is 20 years and is expressed in average dry weather flow (MGD) and that pipes are often sized for a much longer service life; the methodology therefore uses different denominators for treatment and collection. The presentation included comparable SDCs for other cities and a discussion of what a maximum defensible SDC would look like under the methodology.
Process and timing: staff said the report and methodology have been publicly available, statutory notifications (90 days) have been completed, and the next touchpoint is a June 23 regular council meeting (no action) followed by a formal hearing on July 14. Staff said they will continue outreach to stakeholders such as COBA and REDI and return with refined data and proposed rates.
Council discussion focused on how SDCs affect housing costs and whether the proposed increase would materially influence the price of a new home; staff said SDCs are one component of development costs and provided comparisons showing SDCs are a share of median home prices over time.
Next steps: staff to update source data, finalize the calculator and present a recommended SDC schedule and outreach materials before the July hearing.
