System Development Charges, or also known as SDC fees are a one-time fee that’s charged on any new development or certain types of re-development to help pay for capacity increasing improvements to the city’s infrastructure. They’re a means of financing growth related impacts by development without impacting existing property owners and residents. Cities are authorized by state law to assess SDC fees and specifies how, when, and for what improvements the fees can be used.
SDC’s offset the impact of development and growth on a city’s stormwater, sanitary sewer, water, transportation, and parks and recreation facilities. Local governments have collected SDC fees as early as the 1970’s, for water and sewer improvements. State law regulating SDC fees passed in 1989 to provide consistency in the process and to limit the SDC to certain capital improvements.
The City of Independence conducts periodic updates to its master plans, support documents to the comprehensive plan, to provide orderly and sustainable growth of municipal infrastructure. A key component of funding these facilities is with the SDC’s. SDC’s are assessed when a development permit or building permits are issued.