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Council presses utility board for SIF review as members push developers to pay more
Summary
Council members asked the utility board to begin a capacity‑improvement‑fee (SIF) review in January 2025 and debated whether developers are paying an adequate share of sewer expansion costs; the newly seated Director Maxey said the review will be done 'efficiently, quickly, transparently.'
Several council members said they want developers to shoulder a larger portion of growth‑related sewer costs rather than shifting them to current ratepayers. Director Maxey, who said he would lead or participate in the review process, told the council the SIF study will be designed to withstand legal challenges and to ensure developers pay their fair share: “It will result in a capacity improvement fee that is fair and accurate and backed up by data,” he said.
Council members raised specific questions about how growth and non‑growth portions of the Flowing Springs project were allocated, whether contingency amounts were placed appropriately on the loan or SIF side, and how previously expended internal funds will be reimbursed. Staff and the utility board said they will produce a consultant proposal and that a full study would likely take several months once initiated in January 2025. The board also committed to updating assessments every three years per its stated policy.
Why it matters: changes to SIFs (capacity improvement fees) determine how much developers — and, indirectly, future ratepayers — will pay for system expansion. Council direction to complete a joint SIF study signals a possible policy shift and a timeline for re‑calculating fees that could affect future building permits and developer agreements.
