Chapter 13.16
SYSTEM DEVELOPMENT FEES
Sections:
13.16.040 System development charge established.
13.16.060 Authorized expenditures.
13.16.070 Expenditure restrictions.
13.16.090 Collection of charge.
13.16.100 Delinquent charges—Hearings.
13.16.110 Installment payment.
13.16.120 Exemptions, reductions and waivers.
13.16.140 Segregation and use of revenue.
13.16.160 Prohibited connection.
13.16.010 Purpose.
The purpose of the system development charge is to impose a portion of the cost of capital improvements for water, wastewater, drainage, streets, flood control, and parks and recreation upon those developments that create the need for or increase the demands on capital improvements.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.020 Scope.
The system development charge imposed by this chapter is separate from and in addition to any applicable tax, assessment, charge or fee otherwise provided by law or imposed as a condition of development.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.030 Definitions.
For purposes of this chapter, the following mean:
(1) “Capital improvements” means facilities or assets used for:
(a) Water supply, treatment and distribution;
(b) Wastewater collection, transmission, treatment and disposal;
(c) Drainage and flood control;
(d) Transportation; or
(e) Parks and recreation.
(2) “Development” means a building or mining operation making a physical change in the use or appearance of a structure or land, dividing land into two or more parcels (including partitions and subdivisions), and creating or termination of a right of access.
(3) “Improvement fee” means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to this chapter.
(4) “Land area” means the area of a parcel of land as measured by projection of the parcel boundaries upon a horizontal plane with the exception of a portion of the parcel within a recorded right-of-way or easement subject to a servitude for a public street or scenic or preservation purpose.
(5) “Owner” means the owner or owners of record title or the purchaser or purchasers under a recorded sales agreement and other persons having an interest of record in the described real property.
(6) “Parcel of land” means a lot, parcel, block or other tract of land that is occupied or may be occupied by a structure or structures or other use and that includes the yards and other open spaces required under the zoning, subdivision or other development ordinance.
(7) “Qualified public improvement” means a capital improvement that is:
(a) Required as a condition of residential development approval;
(b) Identified in the improvement plan adopted pursuant to this chapter; and
(c) Not located on or contiguous to a parcel of land that is the subject of the residential development approval.
(8) “Reimbursement fee” means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to GMC Section 13.16.040.
(9) “System development charge” means a reimbursement fee, an improvement fee or a combination thereof assessed or collected at the time of increased usage of a capital improvement, at the time of issuance of a development permit or building permit, or at the time of connection to the capital improvement. System development charge includes that portion of a sewer or water system connection charge that is greater than the amount necessary to reimburse the city for its average cost of inspecting and installing connections with water and sewer facilities. “System development charge” does not include fees assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed by a land use decision.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.040 System development charge established.
(1) System development charges shall be established and may be revised by resolution of the council.
(2) Unless otherwise exempted by the provisions of this chapter or other local or state law, a system development charge is imposed upon all persons who develop parcels of land that connect to or which will otherwise use or create a need for the sewer facilities, storm sewers, water facilities, streets, or parks and open spaces of the city.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.050 Methodology.
(1) The methodology used to establish the reimbursement fee shall consider the cost of then existing facilities, prior contributions by then existing users, the value of unused capacity, rate making principals employed to finance publicly owned capital improvements, and other relevant factors identified by the council. The methodology shall promote the objective that future systems users shall contribute no more than an equitable share of the cost of then existing facilities.
(2) The methodology used to establish the improvement fee shall consider the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related.
(3) The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be contained in a resolution adopted by the council.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.060 Authorized expenditures.
(1) Reimbursement fees shall be applied only to capital improvements associated with the systems for which the fees are assessed, including expenditures relating to repayment of indebtedness.
(2) Improvement Fees.
(a) Improvement fees shall be spent only on improvements associated with the systems for which the fees are assessed, including expenditures relating to repayment of indebtedness;
(b) A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the improvement plan adopted by the city pursuant to this chapter.
(3) Notwithstanding subsections (1) and (2) of this section, system development charge revenues may be expended on the direct costs of complying with the provisions of this chapter, including the costs of developing system development charge methodologies and providing an annual accounting of system development charge expenditures.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.070 Expenditure restrictions.
(1) System development charges shall not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements.
(2) System development charges shall not be expended for costs of the operation or routine maintenance of capital improvements.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.080 Improvement plan.
The council shall adopt a plan by resolution that:
(1) Lists the capital improvements that may be funded with improvement fee revenues;
(2) Lists the estimated cost and time of construction of each improvement; and
(3) Describes the process for modifying the plan.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]
13.16.090 Collection of charge.
(1) The system development charge is payable upon issuance of:
(a) A building permit;
(b) A permit to connect to the water system; or
(c) A permit to connect to the sewer system.
(2) If development is commenced or connection is made to the water or sewer systems without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required.
(3) The City Administrator or his designee shall collect the applicable system development charge when a permit that allows the building or development of a parcel is issued or when a connection to the water or power system of the city is made.
(4) The City Administrator or his designee shall not issue such permit or allow such connection until the charge has been paid in full, or until provision for installment payments has been made pursuant to GMC Section 13.16.110 or unless an exemption is granted pursuant to GMC Section 13.16.120.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.100 Delinquent charges—Hearings.
(1) When, for any reason, the system development charge has not been paid, the City Administrator shall report to the council the amount of the uncollected charge, the description of the real property to which the charge is attributable, the date upon which the charge was due, and the name of the person responsible for the payment of the fee.
(2) The City Council shall schedule a public hearing on the matter and direct that notice of the hearing be given to each owner or person responsible for payment of the fee, with a copy of the City Administrator’s report concerning the unpaid charge. Notice of the hearing shall be given either personally or by certified mail, return receipt requested, or by both personal and mailed notice and by posting notice on the parcel at least ten days before the date set for the hearing.
(3) At the hearing the council may accept, reject or modify the determination of the City Administrator as set forth in the report.
(4) The City Recorder shall report to the City Administrator the amount of the system development charge, the dates on which the payments are due, the name of the owner, and the description of the parcel.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.110 Installment payment.
(1) When a system development charge of twenty-five dollars ($25.00) or more is due and collectible, the owner of the parcel of land subject to the development charge may apply for payment in at least ten semiannual installments, to include interest on the unpaid balance, in accordance with Oregon Revised Statutes 223.208.
(2) The City Recorder shall provide application forms for installment payments which shall include a waiver of all rights to contest the validity of the lien, except for the correction of computational errors.
(3) An applicant for installment payment shall have the burden of demonstrating the applicant’s authority to assent to the imposition of a lien on the parcel and that the interest of the applicant is adequate to secure payment of the lien.
(4) The City Recorder shall report to the City Administrator the amount of the system development charge, the dates on which the payments are due, the name of the owner, and the description of the parcel.
(5) The City Administrator shall docket the lien in the lien docket. From that time the city shall have a lien upon the described parcel for the amount of the system development charge, together with interest on the unpaid balance at the rate established by resolution of the council. The lien shall be enforceable in the manner provided in Oregon Revised Statutes Chapter 223.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]
13.16.120 Exemptions, reductions and waivers.
(1) Structures and uses established and existing on or before July 1, 1991, are exempt from system development charges imposed by this chapter, except water and sewer charge, to the extent of the structure or use then existing and to the extent of the parcel of land as it is constituted on that date. Structures and uses affected by this subsection shall pay the water or sewer charges pursuant to the terms of this chapter upon the receipt of a permit to connect to the water or sewer system.
(2) Additions to single-family dwellings that do not constitute the addition of a dwelling unit, as defined by the State Uniform Building Code, are exempt from all portions of the system development charge.
(3) An alteration, addition, replacement or change in use that does not increase the parcel’s or structure’s use of the public improvement facility is exempt from all portions of the system development charge.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]
13.16.130 Credits.
(1) A system development charge shall be imposed when a change of use of a parcel or structure occurs, but credit shall be given for the computed system development charge to the extent that prior structures existed and services were established on or before July 1, 1991. The credit so computed shall not exceed the calculated system development charge. No refund shall be made on account of such credit.
(2) A credit shall be given for the cost of a qualified public improvement which is located partially on and partially off the parcel that is the subject of the residential development approval. The credit shall be given only for the cost of the portion of the improvement not located on or wholly contiguous to the property. The credit provided for by this subsection shall be only for the improvement fee charges for the type of improvement being constructed and shall not exceed the improvement fee even if the cost of the capital improvement exceeds the applicable improvement fee.
(3) Credit shall not be transferable from one development to another except in compliance with standards adopted by the City Council.
(4) Credit shall not be transferable from one type of capital improvement to another.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.140 Segregation and use of revenue.
(1) All funds derived from a particular type of system development charge are to be segregated by accounting practices from all other funds of the city. That portion of the system development charge calculated and collected on account of a specific facility system shall be used for no purpose other than those set forth in GMC Section 13.16.060.
(2) The City Administrator shall provide the City Council with an annual accounting, based on the city’s fiscal year, for system development charges showing the total amount of system development charge revenues collected for each type of facility and the projects funded from each account.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
13.16.150 Appeal procedure.
(1) A person challenging the propriety of an expenditure of system development charge revenues may appeal the decision of the expenditure to the City Council by filing a written request with the City Administrator describing with particularity the decision and the expenditure from which the person appeals. An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure.
(2) Appeals of any other decision required or permitted to be made by the City Administrator under this chapter must be filed within ten days of the date of the decision.
(3) After providing notice to the appellant, the council shall determine whether the City Administrator’s decision or the expenditure is in accordance with this chapter and the provisions of Oregon Revised Statutes 223.297 to 233.314 and may affirm, modify or overrule the decision. If the council determines that there has been an improper expenditure of system development charge revenues, the council shall direct that a sum equal to the misspent amount shall be deposited within one year to the credit of the account or fund from which it was spent.
Statutory Reference: ORS 223.297 to 223.314
History: Ord. 1147 §2, 1991.
[Ed. Note: The publication(s) referred to or incorporated by reference in this ordinance are available from the office of the City Recorder.]
13.16.160 Prohibited connection.
(1) No person may connect to the water or sewer systems of the city, connect a driveway to a city street, or directly connect to the city’s storm water collection facility unless the appropriate system development charge has been paid or the installment payment method has been applied for and approved.
(2) Violation of this section constitutes a Class “A” infraction.
Statutory Reference: ORS 221.410, 223.297 to 223.314
History: Ord. 1147 §2, 1991.