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System Development Charge (SDC) Basics

System Development Charge (SDC) Basics. Presented by John Ghilarducci, FCS GROUP Principal. 8201 – 164 th Ave. NE, Suite 300, Redmond, WA 98052 425-867-1802 14020 SE Johnson Road, Suite 205, Milwaukie, OR 97267 503-353-7440.

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System Development Charge (SDC) Basics

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  1. System Development Charge (SDC) Basics Presented by John Ghilarducci, FCS GROUP Principal 8201 – 164th Ave. NE, Suite 300, Redmond, WA 98052 425-867-1802 14020 SE Johnson Road, Suite 205, Milwaukie, OR 97267 503-353-7440

  2. ORS 223.297 - 314, defines “a uniform framework for the imposition of” SDCs, “to provide equitable funding for orderly growth and development in Oregon’s communities” SDC Background 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. Reimbursement Fee Improvement Fee System Development Charge Eligible value of unused capacityin existing facilities Growth in system capacity demand Eligible cost of planned capacity increasing facilities Growth in system capacity demand per unit of capacity SDC Components and Calculation

  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 facilitiesplan, and • is either off-site or, if on-site,is required to provide morecapacity than needed by thedevelopment in question.

  7. Credit Requirements

  8. Credit Requirements, continued

  9. Sample SDC Calculation

  10. Improvement Fee Calculation Example Only

  11. Reimbursement Fee Calculation Example Only

  12. Reimbursement Fee Cost Basis Example Only

  13. Sample Charges Example Only

  14. 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

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