Wastewater System Capacity Charge

The Wastewater System Capacity Charge (SCC) helps fund expansion of the city's wastewater infrastructure necessitated by development through a one-time fee when a new water meter is bought from the City of Sioux Falls. This charge is based on the size of a property’s water meter and is designed as a “pay for what you use” model.

This fee is not charged to existing homeowners or other utility customers unless a larger water meter needs to be installed at the property. The Wastewater SCC is not an ongoing utility rate or tax to be paid each year, nor is it included in the monthly utility bill.

What Developers, Home Builders, and Plumbers Need to Know

The previous fee model, a Cost Recovery Fee (CRF), was collected at platting, early in the development process. The Wastewater SCC will eventually replace the CRF model and is collected during the purchase of a water meter from the City of Sioux Falls. This is typically one of the last steps before occupancy, when the nature of the development is determined. In most cases, the SCC will be paid for by the developer, builder, or plumber.

Redevelopment

If a property is redeveloped and requires a larger water meter, the Wastewater SCC will be collected. The customer receives credit for the previous water meter(s) and pays the difference.

Transition Plan

During a 10-year period between 2025 and 2035, the City of Sioux Falls will follow a transition plan as it switches models:

Cost Estimates

Public Works has calculated the average impact for seven typical water meter sizes. Please note that these fees are estimated and the assessed Wastewater SCC may differ depending on whether a property is located within an existing cost-recovery fee area.

See cost estimate charts

Background

The City previously used the Cost Recovery Fee, which divided Sioux Falls into cost recovery areas. Each area was assessed a specific CRF based on the cost to serve a basin divided by number of serviceable acres in each basin.

In 2025, the Sioux Falls City Council approved a plan to transition from the CRF model to the SCC model by 2035. This new model mirrors similar capacity charge models used in other communities, such as Brandon, Tea, Omaha, NE, and other similarly sized municipalities.

Read the approved proposal