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City staff say water system development charges should fall after updated SDC study
Summary
A consultant review found West Linn's water system development charges (SDCs) can be substantially reduced because the city is largely built out and only a small share of capital projects expand capacity; staff recommended moving to an adoption hearing on the reduced SDCs.
City staff and the Utility Advisory Board presented an updated System Development Charge analysis and recommended the council move toward an adoption hearing for reduced water SDCs. Eric Lays, the city's public works director, introduced the study and said it reflects the city's water system master plan and limited future growth.
Amanda, the consultant presenter, summarized the methodology and calculations that produced a proposed SDC of roughly $2,644 per unit of demand. "So when we add those together, we get a total of $2,644 per unit of demand," Amanda said, explaining that the calculation combines reimbursement and improvement fees divided by projected system growth through 2043. Staff explained that because much of the city's system is already built to larger pipe sizes and only about 12% of the capital plan was identified as capacity‑expanding, the allowable SDCs calculated under state rules fall well below the current charges.
Councilors asked questions about how densification, large industrial users and recent replacements factor into the calculation; staff said the master plan modeling and recent upgrades reduce the capacity component and that staff will bring more detail back prior to any adoption hearing. The council directed staff to return with adoption materials; no adoption vote occurred at this meeting.
