SDC Sewer Surcharge Assistance Program

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System Development Charges

System Development Charges (SDCs) help offset the impacts of new development on city infrastructure like sewer and water systems. When a business or property owner pays SDCs, they effectively purchase the sewer capacity needed to run their business.

Food and beverage businesses have a larger impact on city sewer and water infrastructure because of the level of use such businesses generate. To account for increased usage, applicants opening or remodeling food or beverage businesses may be required to pay a sewer surcharge in the form of additional System Development Charges.

Calculating SDCs

Sewer SDCs are based on indoor seat count. For example, a café proposing 10 seats would owe approximately $2,358 in SDCs. A restaurant proposing 30 seats would owe $6,925 in SDCs. Food and beverage facilities proposing 0 seats are still subject to some SDCs.

Seat Credits May Apply

If the business that formerly occupied the space paid SDCs based on seating, seat credits may apply. For example, if SDCs for 30 seats were paid by the previous business owner and the new restaurant will have 45 seats, the new tenant will pay SDCs for 15 seats.

Sewer Surcharge Program

The City recognizes that SDCs constitute a substantial upfront cost for new business owners. In response, we have created a sewer surcharge program that allows eligible tenants to lease sewer capacity on a monthly basis, rather than purchase it up front.

Lease Payments are attached to bi-monthly utility bills and calculated as a percentage of the total SDC assessment. The interest amount is based on the Federal Municipal Bond Rate, which fluctuates monthly but is generally about 3%.

The surcharge program works like a lease, in that payments never go toward the original SDC total, or principal. If at some point the business owner would like to purchase sewer capacity rather than paying the monthly interest-only lease payment, they will be assessed the full SDC amount based on seat count, using the interest rate applicable at the time they decide to pay the full amount.

To learn more about the program or apply, contact Mayra Cardenas with City Engineering at:
(360) 487-7809 or Mayra.cardenas@cityofvancouver.us.

For more information on Business Assistance in the City of Vancouver, please contact Rebecca Kennedy at: (360) 487-7896 or rebecca.kennedy@cityofvancouver.us.