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West Lafayette council tables proposed $2,500 wastewater system development charge after builders press for more outreach
Summary
Councilors heard detailed testimony on a proposed wastewater system development charge (SDC) that would replace the $400 tap fee with a $2,500 charge for new connections; builders and residents urged a work session and better notice, and the council voted to table the ordinance until August.
The West Lafayette City Council voted to table an ordinance that would replace the city’s $400 tap fee with a $2,500 system development charge (SDC) for new wastewater connections, after an extended presentation and robust public comment from local builders and residents.
Consultant Corby Thompson of Krohn & Associates explained that the proposed SDC — computed using an equity method — is intended to create a restricted improvement fund for future wastewater-plant expansion. "This charge would apply to new connections only; it would not impact existing ratepayers," Thompson said during the council discussion. He said an alternate incremental calculation produced about $3,400 per equivalent dwelling unit (EDU), and the $2,500 figure was chosen to be the lower of the two approaches.
The proposal drew technical questions from councilors about meter-size tiers, effective dates, and waiver authority. Thompson said the charge would be effective immediately upon passage for anyone applying for new permits and that waivers or alternative payment terms would typically be decided at the Board of Works. He also estimated revenue could range from roughly $500,000 to $1,000,000 annually depending on development pace.
Builders and residents urged delay and more outreach. "I believe the fair and equitable thing to do is to tax all rate payers or all users of the system in the same way," Ryan Kennedy, a local home builder, told the council, warning that the fee could make housing less affordable. Steve Schreckengas of the building community said he was surprised the industry learned of the proposal so late and asked for a work session so technical questions could be answered.
Mary Ellis, director of the Builders Association, offered to convene developers and city staff to vet the ordinance before another vote, and several commenters asked the council to clarify how the SDC would interact with existing permits, park impact fees and other development charges.
After discussion, a motion to table the ordinance until the August meeting carried on roll call (7 yeas, 1 nay, 1 abstention). The council recorded that Ordinance 12-20-26 will be reintroduced at the August meeting for first reading.
