(A) The purpose of the system development charge (“SDC”) is to impose a portion of the cost of capital improvements for sanitary sewer, water, storm drainage, streets and parks upon those developments and redevelopments that create the need for or increase the demands on capital improvements.
(B) During the 1989 session of the legislative assembly of the state, a uniform framework for the imposition of a Systems Development Charge (SDC) by local governments was established by the provisions of ORS 223.297 through 223.314. The 2001 and 2003 legislature enacted certain amendments to the SDC statutory scheme.
(C) Among other things, the statutory provisions, as amended, define and limit the purpose, use and method of calculation of and accounting for SDC imposed and collected by a municipal corporation.
(D) In order to analyze and evaluate the method for calculation, imposition, collection and expenditure of a SDC for the city, and to determine compliance with the provisions of ORS 223.297 through 223.314, inclusive, the city retained the services of a consulting engineer, HBH Consulting Engineers, Inc. (hereinafter “HBH”), who completed an SDC methodology report in September 2006. A copy of this report is on file in the office of the City Manager of the city for examination by the public.
(E) Based upon this report the city finds that it is appropriate to implement a method of calculating, imposing and administering the a SDC for capital improvements within or connected to the city, by providing that:
(1) Any capital improvement being funded wholly or in part with SDC revenues shall be included in an approved improvements plan, public facilities plan, master plan or comparable plan which includes a list of the capital improvements which the city intends to fund, in whole or in part, with improvement fee revenues and the estimated cost, timing and percentage of costs eligible to be funded from the improvement fee for each improvement;
(2) SDC revenues must be deposited in accounts designated for such moneys. The city shall implement an accounting system that provides an annual accounting of SDC revenue, to be completed by January 1 of each year, showing the total amount of SDC revenues collected and the projects that were funded in the previous fiscal year with the revenue. The city shall include in the annual accounting a list of the amount spent on each project funded, in whole or in part, with SDC revenue, and the amount of revenue collected by the governmental unit from system development charges and attributed to the costs of complying with the provisions of ORS 223.297 through 223.314, as described in ORS 223.307 if any compliance costs are included in the adopted SDC;
(3) The city shall establish by resolution administrative review procedures by which any citizen or other interested person may challenge in expenditure of SDC revenues in accordance with the requirements of ORS 223.302(2) and (3);
(4) The portion of the city’s SDC defined as “reimbursement fees” under the provisions of ORS 223.299(3) shall be spent only on capital improvements associated with the systems for which the fees were imposed, including expenditures related to the payment of indebtedness;
(5) The portion of the city’s SDC defined as an “improvement fee” under the provisions of ORS 223.229(2) shall be spent only on capacity increasing capital improvements, including expenditures related to the payment of the debt for such improvement;
(6) The SDC be a fee imposed by the city upon the permittee (as defined in this chapter) seeking to develop property within the city or connect to the city’s water or sewer system;
(7) The SDC imposed by this chapter is based upon the actual cost of providing existing or planned for capital improvements and is intended to be a financing mechanism for city capital improvements necessitated by new development and for reimbursement for existing facilities. Future growth within the geographic area served by the city should contribute its fair share to the cost of improvements to public facilities. The imposition of a systems development charge by the city will provide a source of revenue to fund the construction or improvement of city facilities necessitated by growth. The SDC imposed by this chapter does not impose charges on persons not receiving services from the city;
(8) The purpose of the SDC is to promote the objective of future system users contributing not more than an equitable share to the cost of existing facilities and to impose a portion of the cost of capital improvements for city services upon those who create the need for or increase the demands on capital improvements by connection to city public facilities or assets; and
(9) The SDC revenues imposed and collected by the city shall be placed in a separate, restricted fund, and accounted for expended in compliance with the provisions of ORS 223.297 through 223.314, inclusive.
(Ord. 1247, passed 3-6-2007)