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Metropolitan Wastewater Management Commission <br /> <br /> partners in wastewater management <br /> <br />System Development Charges: An Explanation <br /> <br />What is a System Development Charge (SDC)? <br /> A system development charge is a one-time charge to new development which <br /> requires new customers to pay a proportionate share of existing utility capital <br /> investment and/or future growth-related capital costs - in this case, the regional <br /> wastewater system infrastructure which is used for the collection, treatment and <br /> disposal of sewage. If the charge requires CUStomers to pay only a share of the <br /> existing utility capital investment, it is known as a reimbursement fee SDC. If the <br /> charge recovers only future growth related costs, it is known as an improvement <br /> fee SDC. A charge which incorporates both a reimbursement fee and <br /> improvement fee is called a comb~ed fee SDC. <br /> <br /> Oregon state law authorizes local governments to assess SDCs for capital <br /> improvements. State law also specifies what must be considered in the <br /> development of SDCs and how revenue from each type of SDC may be spent. <br /> <br /> SDCs are charged for the following types of development: <br /> <br /> · New or expanding residential, commercial or industrial development <br /> · New connections to the wastewater and stormwater systems <br /> · Intensification of use for existing development <br /> <br />Why have them? <br /> SDCs help to assure that there are adequate public facilities to serve hew <br /> development. They are a way for new development to help pay for the impact of <br /> the development without imposing additional cost on the people and businesses <br /> that are already here. <br /> <br />What would happen without SDCs? <br /> State law allows for SDCs to be charged butdoes not require them. If MWMC <br /> chose not to charge SDCs, much of the f'mancial responsibility for developing <br /> existing system capacity and providing capacity for new customers would fall on <br /> those who currently use the systems - sewer customers. <br /> <br /> Without SDCs, sewer .rates, would have to increase to produce .enough income to <br /> pay for those systems. .. <br /> <br />How do MWMC's fees compare to those in other communities? <br /> Since the fee is based on specific projects, as well.as local policies, each city's fee <br /> is unique. <br /> <br /> <br />