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New and Existing Development – Who Pays for What?

Post Date:09/28/2017 8:27 AM

There can sometimes be tension surrounding new development and existing community. A common concern is those that are already here want to be assured newcomers pay their fair share of capital infrastructure that has been (or will be) put in place for the newcomers’ benefit. City policy supports this concept and one of the ways in which this occurs is through the City’s development impact fee program.

For the City’s water and wastewater utilities this development fee is called the capacity and connection fee. On a highly simplified level, the fee is calculated using information found in 1) the existing asset database, 2) master plans (which are technical guidance documents about replacing all the pipes and treatment facilities) and 3) the City’s General Plan expected growth data. The infrastructure costs are split 84% existing ratepayer; 16% future development.

People frequently think taxes (like property and sales) help pay for water and wastewater services. Taxes do not fund these services. Revenue comes from 1) monthly bills (90 percent of revenue), 2) capacity and connection fees (seven percent), and 3) miscellaneous fees and income (three percent).

The City Council will be considering updated capacity and connection fees. You are invited to attend the meeting, ask questions if desired, and learn more about how your water and wastewater utilities financially operate.

WHEN:                  October 17, 2017, 4 PM Study Session and 6 PM

WHERE:                City Hall Council Chambers, 990 Palm Street

For information on the Draft Water and Wastewater Capacity and Connection Fee Study and the City's master planning documents please see below.

Water Resource Recovery Facility Facilities Plan

Wastewater Collection Infrastructure Renewal Strategy

Potable Water Distribution System Operations Master Plan

Recycled Water Master Plan

Draft Water and Wastewater Capacity and Connection Fee Study

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