An SDC is a one-time charge assessed to new development to recover the cost for the capacity required to provide service. SDCs are also assessed to existing customers that require an increase in capacity. SDCs, sometimes referred to as tap fees, provide a source of funds that allow utilities to finance future projects to serve growth as well as a reimbursement mechanism for the up-front funds that have been contributed by existing rate-payers to fund expansion projects. SDCs serve to mitigate inequities between new and existing customers by requiring ‘growth to pay its own way.’ Denver Water's SDCs are among the lowest on the Front Range, based on a regional survey of single-family SDCs.
The primary drivers of SDCs include:
- Increase cost of water rights.
- Change in the estimates of capacity available in the existing system.
- Increase in the replacement cost of existing assets, such as: conduits, transmission mains, water storage, treatment plants, and pumping facilities.
- Addition of growth-related projects.
| I. Single-family residential | ||||
|---|---|---|---|---|
| Treated Water | ||||
| Inside Denver | Outside Denver | |||
| Base Charge | $3,030 | $4,240 | ||
| First 22,000 sq ft, $per sq ft (lot size) | $0.70 | $0.98 | ||
| Over 22,000 sq ft, $ per sq ft (lot size) | $0.35 | $0.49 | ||
| Accessory Dwelling Units 1 | $1,940 | $2,710 | ||
| II. Multifamily | ||||
| Treated Water | ||||
| Inside Denver | Outside Denver | |||
| First two dwelling units | $10,040 | $14,060 | ||
| Next 6 dwelling units, $ per unit | $2,420 | $3,390 | ||
| Over 8 dwelling units, $ per unit | $1,940 | $2,710 | ||
| III. Irrigation only5 | ||||
| Treated Water | ||||
| Inside Denver | Outside Denver | |||
| Minimum charge: first 5,000 sq ft | $5,820 | $8,150 | ||
| Over 5,000 sq ft, $ per sq ft | $0.87 | $1.22 | ||
| IV. Nonresidential2,3 | ||||
| Treated Water | Nonpotable Water | |||
| Tap Size | Inside Denver | Outside Denver | Inside Denver | Outside Denver |
| ¾ | $10,730 | $15,030 | $9,370 | $13,120 |
| 1 | $19,170 | $26,840 | $16,730 | $23,420 |
| 1 ½ | $42,180 | $59,050 | $36,810 | $51,540 |
| 2 | $76,690 | $107,360 | $66,930 | $93,710 |
| 3 | $126,426 | $132,818 | $110,402 | $154,586 |
| 4 | $229,917 | $322,055 | $200,776 | $281,139 |
| 6 | $517,374 | $724,709 | $451,798 | $632,614 |
| 8 | $774,957 | $1,043,495 | $650,536 | $910,889 |
| 10 | $1,200,204 | $1,681,181 | $1,048,081 | $1,467,538 |
| 12 | $1,235,855 | $1,731,118 | $1,079,213 | $1,511,129 |
| V. Mixed use4 (sum of the following SDCs) | ||||
| Inside Denver | Outside Denver | |||
| Multifamily component | As set forth in Section II of this schedule | |||
| Nonresidential component $ per square foot of nonresidential gross floor area |
$2.91 | $4.08 | ||
| VI. Special contracts, fixed volume contracts, and large volume customers | ||||
| Treated Water | Nonpotable Water | |||
| Inside Denver | Outside Denver | Inside Denver | Outside Denver | |
| Inside Combined Service Area | ||||
| $ per acre-foot | $18,980 | $26,570 | $16,570 | $23,190 |
| $ per 1,000 gallons | $58.26 | $81.57 | $50.85 | $71.19 |
| Outside Combined Service Area | ||||
| $ per acre-foot | $37,210 | $32,470 | ||
| $ per 1,000 gallons | $114.10 | $99.60 | ||
Notes:
- Units such as a guest house or carriage house that are detached from the primary residence and contain provisions for sleeping cooking, and sanitation.
- Includes commercial, industrial, institutional development.
- Tap sizes greater than 2 inches are determined on an individual basis.
- Development containing two or more different principal or primary uses such as residential, office, manufacturing, retail, public or entertainment uses.
- Irrigation SDC will be based on the size of the entire licensed property OR the volume of water to be taken on an annual basis but will not be less than the SDC for the size of the tap to be installed.