1. System Development Charge (SDC) Basics
Presented by
John Ghilarducci, FCS GROUP Principal
8201 – 164th Ave. NE, Suite 300, Redmond, WA
14020 SE Johnson Road, Suite 205, Milwaukie, OR

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

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

4. Reimbursement Fee Methodology

5. Improvement Fee Methodology

6. Credits against the improvement fee must be provided for the construction of a capital improvement, which is:
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.

7. Credit Requirements

8. Credit Requirements, continued

9. Sample SDC Calculation

10. Improvement Fee Calculation
Example Only

14. Reimbursement Fee Calculation
Example Only

15. Reimbursement Fee Cost Basis
Example Only

16. Sample Charges
Example Only

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