SDC Quick Reference & Examples

Updated: January 2013

A System Development Charge (SDC) is a one-time fee imposed on new development to equitably recover the cost to increase capacity needed to serve new customers.

The method of calculating SDC’s is determined by state law and is based on the cities need for capital improvements to accommodate future growth.

The reason the city charges SDC’s is to assure that there are adequate funds for public facilities (streets, storm, water, sewer and parks) to serve new development and future growth.  SDC Law requires new developments to contribute to the costs of these facilities. Therefore, existing customers are saved the cost of unfairly paying the entire cost of these facilities.