AWWA ACE92009

This paper is one of five papers on system development charges (SDCs). This term is used to mean front end contributions to recover nonlocal facility costs, variously referred to as capital recovery fee, impact fee, facility charge, plant investment fee, or availability fee. The term system development charge is used for all of these terms. This, the third paper in the series, discusses the implementation, administration, and accounting issues of establishing system development charges. The paper follows the process through initial setting of objectives, through educating the water board and public, and assembling a project team to plan the charges. The two most common approaches to the formation of SDC are the system buy-in method and the growth-related cost allocation method, as presented in AWWA's Manual M26. The guiding premise in determining SDC is the rational Nexus test, which relates the cost of new development to the amount raised by the SDC. Typical data requirements for each approach are listed. Issues relating to administration include assessment and collection, service units, credits, accounting, management, and other issues, such as reimbursement, refund, and income tax.

Product Details

Published:

01/01/1992

ISBN(s):

0898676495

Number of Pages:

9

File Size:

1 file , 380 KB