3. Scenarios for system development charges in the Draft Plan
Another type of fee is paid by property owners when they apply to the City to develop their property. When properties are developed in the City, they are required to pay an additional fee called a System Development Charge which recovers the costs of increasing the capacity of existing stormwater facilities to handle increased levels of runoff associated with development. This is important because development often increases impervious surfaces—those that don’t allow water to soak in - which create higher amounts of stormwater runoff that must be managed downstream by the City.
The Draft Plan proposes three scenarios for the System Development Charge:
- full cost recovery for services
- 75% cost recovery for services
- 50% cost recovery for services
The fees do not cover the cost of service. The difference, or subsidy, is made up by bimonthly utility rate payers. The Draft Plan shows how the additional costs are addressed where costs for development are not fully recovered.
For more details on System Development Charge Scenarios, see Section 10.8 of the Draft Plan.
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