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Gold Hill council adopts updated water system development charges
Summary
The Gold Hill City Council adopted Ordinance 26-01 updating water system development charges (SDCs) tied to projects in the water master plan; staff said the new fees are based on an Atkins Engineering study and will be reviewed after the master plan update.
The Gold Hill City Council voted to adopt Ordinance 26-01, updating the city's water system development charges (SDCs) tied to projects in its water master plan.
City staff explained the changes are based on an engineering study by Atkins Engineering and reflected the capital projects and cost allocations in the city's planning documents. Staff told the council the ordinance is not an emergency measure and would take effect 30 days after adoption; it also includes a 15-day appeal window for assessments.
Staff (Lily) said the SDC methodology allocates project costs across four categories and then divides those costs by percentages to arrive at per-connection charges. She said Atkins presented the study last year, that the city has grant funding to update its water master plan, and that Atkins will be asked to revise SDC recommendations after the master plan update. "We're trying very intentionally to do a very thorough water master plan," Lily told the council, and adopting the recommended SDCs now would keep the city consistent with the existing methodology and state law.
Councilors asked about what SDCs cover and how they differ from water rates. Lily clarified SDCs are one-time development charges to help cover the cost of existing infrastructure and future expansion when someone new connects to the system; they do not cover routine water bills, meters, service-line installation, backflow devices or customer-side shutoffs. A councilor noted the proposed 3/4-inch connection charge was roughly $2,812 under the recommendation and said the fee had been about $2,130 when SDCs were first adopted in 1999.
A councilor also asked whether Atkins would reevaluate fees that were lower than comparable cities for particular meter sizes; Lily said the firm was willing to revisit specific items and that the master plan update could affect some recommended rates.
After questions and public comment, a councilor moved to adopt Ordinance 26-01, the motion was seconded, and the council approved the ordinance by roll call.
The ordinance language specifies that future changes to SDCs may be adopted by resolution so rates can be adjusted more easily after the master plan update. Staff said they will return with updated recommendations after Atkins incorporates new master-plan numbers.
