As sewerage systems have obsolete, as quality and service level standards increase, and as rain characteristics change, the sewerage utility authorities are challenged to develop cost recovery strategies that assure financial sustainability. In this study, we conducted scenario analysis to examine the effect of three alternatives of partial or full sewerage cost recovery in Seoul during 2014-30 periods. It turned out that the alternative 1 is optimal and recommended. According to alternative 1, we had better increase annually sewerage fee by 14.8% until 2020 and thereafter apply only the inflation rate in setting sewerage fee. It would gradually decrease the deficit after 2019. The accumulated deficit of 13 billion Won in 2030 was estimated.We expect that this kind of analysis may provide useful informations to help sewage utility staffs, decision makers, and regulatory authorities understand, develop and implement ultimate full cost recovery strategy for many municipalities.

As sewer flooding frequents due to localized and concentrated stormwater and increased non-permeable surface area after urbanization, building cities with sound water recycle and accordingly efficient management of rainwater is demanded. To do this, the existing sewage (including rainwater) fee imposition system should be philosophically evaluated. This study presents problematic issues of the existing domestic sewage fee imposition system considering the principle of sharing costs on the service of sewage and rainwater collection and treatment. Four methods to improve the existing sewage fee imposition system are suggested: 1) imposing stormwater fee according to Polluter Pays Principle, 2) clarification of the share of public sector, 3) reducing or exempting the sewerage fee for inhabitants reducing urban runoff by constructing their own rainwater management facilities, 4) imposing charge for discharging rainwater to sewers due to new development action. Short, mid, or long term planning for rainwater management is recommended considering the situation of each municipality.