Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Sdc Methodology topic
No spam. Unsubscribe anytime.
Council adopts revised SDC methodology and reduces proposed water SDC after CIP updates
Summary
After public hearings and consultant input, the council adopted revised water/wastewater SDC methodologies with clarified CIP attachments (Resolution 20‑26‑06), approved a revised water CIP reducing two project costs and adopted revised maximum defensible SDCs (Resolutions 20‑26‑07 and 20‑26‑08) that lowered the water SDC by $5,711 and applied a modest $7,500 total rollback; staff proposed refunds (~$42,000) for permits pulled under the higher rates.
The council conducted a lengthy public hearing on revisions to the city’s system development charge (SDC) methodologies and the resulting water and wastewater rate calculations. Staff and FCS Group reviewed the methodology and explained the basis: project lists and population projections embedded in the current water master plan (to 2050) and wastewater facilities plan (to 2040) inform the allocation of project costs to new growth.
An outside reviewer (Johnson Economics) and several developers questioned aspects of the methodology — notably that some project lists rely on older forecasts, that SDC‑eligible costs should be limited to capacity additions and not repairs for existing deficiencies, and that projects sized to last beyond the planning horizon should have costs allocated across a longer growth timeframe. FCS principal John Guillarducci responded that SDC analyses are snapshots based on adopted plans and that internal consistency between the growth projection and the projects intended to serve that growth is the key standard.
After public testimony and discussion, the council adopted Resolution 20‑26‑06 (revised methodology and explicit language about adopted capital improvement plans). Staff then updated the water CIP to reflect lower cost estimates for two large water projects (S3 and S4), reducing the maximum defensible water SDC from $18,477 to $12,766 (a $5,711 decrease). The council adopted the CIP adjustment (Resolution 20‑26‑07) and then approved Resolution 20‑26‑08 to implement the revised SDC package that included a combined rollback of $7,500 across water and wastewater; staff also recommended refunding about $42,000 to developers who had obtained building permits under the higher rates earlier in April. Several council members cautioned that reducing SDCs too far shifts costs back to existing ratepayers and that wastewater facility plan updates (expected soon) may change defensible amounts further. The council approved the resolutions by voice vote.
