The MMSD (Madison Area Sewerage District) is attempting to increase the TPCC (Treatment Plant Connection Charge) by 415%. The current charge is $21.37/1,000 sq.ft. The new charge would be $110/$1,000 sq. ft.
For a typical 10,000 sf lot, this portion of the connection charge would rise from $214 to $1100.
The proposal is inequitable because the entire increase will be solely applied to new construction. None of the proposed increase will be shared by the current users paying a monthly fee. Large developments will incur significant hardship and every purchaser of a new home will get less home for the dollar as a result of this fee increase.
This increase will have a dramatic impact on the upfront cost of new construction and the ability to secure bank financing for needed new housing in the Madison area. These costs will translate into even higher costs of new housing at a time when Madison specifically and Dane County in general are experiencing cost of living increases across the board.
Fees paid to MMSD through new connection charges amount to roughly $1,000,000 per year compared to $30,000,000 per year from current users. Adding this cost solely onto a much smaller portion of the income stream disproportionately impacts builders and provides incentive to look elsewhere for development or find other means to keep rising costs in balance.
Click here to view the proposed rate chart. These new rates could be in effect as early as July of 2017.
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