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Council workshop details new system development charges; staff says growth should 'pay for growth'
Summary
Staff proposed system development charges (impact fees) and showed example calculations: a small theoretical development of 33 single‑family homes plus multifamily would yield about $114,000 in SDC revenue; staff also proposed a 14.9% surcharge for out‑of‑city accounts.
Michigan City staff proposed adding system development charges (SDCs) so new development contributes to sewer capacity and capital. Wendy Dasham said the charges are ‘‘basically an impact fee for sewer’’ and presented examples from other Indiana communities, noting Whitestown generated significant revenue with SDCs. She described a theoretical small subdivision (33 single‑family homes plus two multifamily buildings) that would generate about $114,000 in SDC revenue.
Dasham also said the ordinance includes a 14.9% surcharge on accounts outside Michigan City proper, allowed under state code, to reflect extra costs for non‑resident service. She emphasized SDC revenue would go into capital projects and working capital rather than rate revenue used for operations.
