St. Cloud City Council Approves Phase In Period for WAC and SAC and New Trunk Access Charge

(KNSI) — St. Cloud approved phasing in changes to its sewer and water access fees and a new trunk access charge.

The city will need nearly $244 million in sewer and water infrastructure improvements over the next 20 years. The SAC/WAC/TAC fees should cover about $42 million. The increased charges start on January 1st, 2024. Developers will get a 75% discount that first year, a 50% discount in 2025 and a 25% reduction in 2026. The fees would be completely phased in starting in 2027.

Mayor Dave Kleis spoke with KNSI News immediately after Monday night’s city council meeting. “A lot of the development community wanted a five year phase in. Our staff would probably have no phasing in at all. But I think phasing it in makes sense, as long as it doesn’t jeopardize our bond rating and, and shift it to the rate payer.”

Without the fees, Kleis says most of the new sewer and water infrastructure costs would fall on existing customers. Kleis told KNSI News that the area needs workforce housing and didn’t want the fees to halt that. “The reason I picked the date in the future is because it will incentivize trying to actually create some of that housing. That housing is needed now.”

The Central Minnesota Builder’s Association agreed, saying the two sides have been negotiating since August and worried if something weren’t done, it would kill desperately needed housing at a time when the city could least afford it.

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