System Development Charge (SDC) Basics 8201 – 164 th Ave. NE, Suite 300, Redmond, WA 98052 425-867-1802 14020 SE Johnson Road, Suite 205, Milwaukie, OR.

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System Development Charge (SDC) Basics

Presentation transcript:

System Development Charge (SDC) Basics 8201 – 164 th Ave. NE, Suite 300, Redmond, WA SE Johnson Road, Suite 205, Milwaukie, OR Presented by John Ghilarducci, FCS GROUP Principal

Lane County 2 ORS , defines “a uniform framework for the imposition of” SDCs, “to provide equitable funding for orderly growth and development in Oregon’s communities” SDC Background 1.SDCs are one-time charges, not ongoing rates. 2.SDCs are for capital only, in both their calculation and in their use. 3.Properties which are already developed do not pay SDCs unless they “redevelop”. 4.SDCs include both future and existing cost components. 5.SDCs are for general facilities, not “local” facilities. Key Characteristics

Lane County 3 SDC Components and Calculation Reimbursement Fee Eligible value of unused capacity in existing facilities Growth in system capacity demand Improvement Fee Eligible cost of planned capacity increasing facilities Growth in system capacity demand System Development Charge per unit of capacity

Lane County 4 Reimbursement Fee Methodology

Lane County 5 Improvement Fee Methodology

Lane County 6  required as a condition of development,  identified in an adopted capital facilities plan, and  is either off-site or, if on-site, is required to provide more capacity than needed by the development in question. Credits against the improvement fee must be provided for the construction of a capital improvement, which is:

Lane County 7 Credit Requirements

Lane County 8 Credit Requirements, continued

Lane County 9 Sample SDC Calculation

Lane County 10 Improvement Fee Calculation Example Only

Lane County 11

Lane County 12

Lane County 13

Lane County 14 Reimbursement Fee Calculation Example Only

Lane County 15 Reimbursement Fee Cost Basis Example Only

Lane County 16 Sample Charges Example Only

Lane County 17 Key Study Issues  Appropriateness / Basis of reimbursement fee  Improvement fee allocation methods / Status of project lists  Basis of charging  Parks: Residential DU distinctions / Commercial?  Transportation: Average daily vs. Peak-hour trip basis  Area-specific charges  SDC credit / indexing policy