Stormwater System Development Fee
At a glance
- What: Proposed one-time system development fee (SDF) on new development to fund stormwater infrastructure capacity needed for growth. Base rate $967 per equivalent residential unit (ERU); commercial rates $513/ERU (47% credit) and $329/ERU (disconnected).
- Where it stands: Council approved directing staff to present to City Council at the October 26, 2026 regular meeting.
- Next: Council consideration and potential adoption at October 26 regular meeting. If adopted, builder outreach in November-December, January 1, 2027 implementation target.
- Why it matters: Estimated to generate approximately $950,000 annually to accelerate infrastructure in underserved growth areas rather than relying solely on operations/maintenance rates.
Details (October 5, 2026)
Engineer Westrope presented proposed stormwater system development fee as a one-time charge to new development intended to help fund infrastructure capacity needed for growth rather than operations or maintenance.
Fee Structure
- Proposed base charge: $967 per equivalent residential unit (ERU)
- Developed from existing system assets attributable to growth and a ten-year capital improvement program
- Residential and commercial developments subject to different stormwater design requirements
Based on analysis of 29 commercial sites, the advisory committee recommended:
- 47 percent design credit for commercial developments connected to stormwater system: $513/ERU
- Larger credit for commercial disconnected from system: $329/ERU
- Flexibility proposed for unusual properties or site-specific conditions
Financial Impact
- Estimated fee could generate approximately $950,000 annually (compared with approximately $10.7 million in existing stormwater rate revenue)
- Help accelerate infrastructure construction in underserved growth areas
Implementation Timeline
If Council later adopts the fee at October 26 regular meeting:
- Builder outreach in November and December
- January 1, 2027 implementation target
Council Discussion
- How the residential fee was calculated
- How staff would explain it to homebuilders
- Whether the added cost could affect housing affordability
- How the fee would apply to existing homes
- Treatment of accessory dwelling units
- Deed-restricted affordable housing
- Small infill projects
Staff clarified:
- Existing homes would not be charged retroactively
- Current proposal does not exempt affordable housing or establish reduced rate for infill
Public Comment
- Jeff Ketelsen supported the proposed fee, saying it would shift some infrastructure costs from existing residents and businesses to new development and help reduce pressure on current taxpayers.
Vote (October 5, 2026)
Motion to direct staff to present proposed stormwater system development fee at soonest available regular business meeting
- Vote: 10-0 (passed; Councilmember Kennedy absent/excused)
- Moved by: Councilmember Neese
- Seconded by: Councilmember Aspenlieder
Sources
Log
2026-10-05 - City Council Work Session
Engineer Westrope presented proposed stormwater system development fee. Base charge $967/ERU; commercial rates $513/ERU (47% credit) and $329/ERU (disconnected). Estimated approximately $950,000 annual revenue. If adopted October 26, implementation January 1, 2027. Council discussed cost impact on housing, treatment of existing homes, ADUs, affordable housing, infill. Jeff Ketelsen supported, noting fee shifts costs from existing residents/businesses to new development. Motion to direct staff to present at October 26 regular meeting passed 10-0.
2026-10-26 - City Council Regular Business Meeting
Public hearing and resolution adopting the storm system development fees were on the regular agenda. The result is not recorded (minutes not yet posted).
2026-10-19 - City Council Work Session
- Staff flagged the storm system development fees for the next Monday regular meeting.