Chapter 13.08
SYSTEM DEVELOPMENT CHARGES
Sections:
13.08.040 System development charge imposed—Method for establishment created.
13.08.060 Authorized expenditure.
13.08.080 Collection of charge.
13.08.110 Notification—Appeals.
13.08.130 Prohibited construction.
13.08.010 Purpose.
This chapter is intended to provide authorization for system development charges for capital improvements pursuant to ORS 223.297 through 223.314 for the purpose of creating a source of funds to pay for the installation, construction and extension of capital improvements. These charges shall be collected either at the time of increased usage or at the time of permitting development of properties which increase the use of capital improvements and generate a need for those facilities. (Ord. O-38-97 Exh. A § 1, 1997)
13.08.020 Scope.
The system development charges imposed by this chapter are separate from and in addition to any applicable tax, assessment, charge, or fee otherwise provided by law or imposed as a condition of development. (Ord. O-38-97 Exh. A § 2, 1997)
13.08.030 Definitions.
For purposes of this chapter, the following definitions apply:
“Capital improvements” means facilities or assets used for:
1. Water supply, treatment and distribution;
2. Sewage and wastewater collection, transmission, treatment and disposal;
3. Drainage and flood control;
4. Transportation; or
5. Parks and recreation.
“Capital improvement” does not include costs of the operation or routine maintenance of capital improvements.
“Development” means conducting a building or mining operation, making a physical change in the use or appearance of a structure or land, or creating or terminating a right of access.
“Improvement fee” means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to Section 13.08.040.
“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.
“Owner” means the owner(s) of record title or the purchaser(s) under a recorded sales agreement, and other persons having an interest of record in the described real property.
“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 includes the yards and other open spaces required under the zoning, subdivision, or other development ordinances.
“Permittee” means the person to whom a building permit, development permit, or right-of-way access permit is issued.
“Qualified public improvement” means a capital improvement that is:
1. Required as a condition of residential development approval;
2. Identified in the plan adopted pursuant to Section 13.08.070; and
3. Not located on or continuous to a parcel of land that is the subject of the residential development approval.
“Reimbursement fee” means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to Section 13.08.040.
“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” 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. (Ord. O-142-2000 § 2(I), 2000; Ord. O-38-97 Exh. A § 3, 1997)
13.08.040 System development charge imposed—Method for establishment created.
A. Unless otherwise exempted by the provisions of this chapter or other local or state law, a systems development charge is imposed upon all development within the designated areas of the unincorporated Jefferson County, upon all development outside the boundary of a city within the county that uses the systems, assets and facilities provided through the county.
B. Systems development charges shall be established and may be revised by resolution of the board of county commissioners. The resolution shall set the amount of the charge, the type of permit to which the charge applies, the methodology used to set the amount of the charge and, if the charge applies to a geographic area smaller than the entire county, the geographic area subject to the charge. (Ord. O-38-97 Exh. A § 4, 1997)
13.08.050 Methodology.
A. The methodology used to establish the reimbursement fee shall consider the cost of the then-existing facilities, prior contributions by then-existing system users, the value of unused capacity, rate-making principles employed to finance publicity owned capital improvements and other relevant factors identified by the commission. The methodology shall promote the objective that future systems users shall contribute not more than an equitable share of the cost of then-existing facilities.
B. 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 and other relevant factors identified by the board of commissioners.
C. The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution. (Ord. O-38-97 Exh. A § 5, 1997)
13.08.060 Authorized expenditure.
A. 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.
B. 1. Improvement fees shall be spent only on capacity increasing capital improvements, including expenditures relating to repayment of debt for such improvements. An increase in system capacity occurs if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of the improvements funded by improvement fees must be related to demands created by current or projected development.
2. A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the systems development charge eligible project plan adopted by the county pursuant to Section 13.08.070.
C. 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 funds. (Ord. O-38-97 Exh. A § 6, 1997)
13.08.070 Project plan.
A. The board of commissioners shall adopt by resolution the systems development charge eligible project plan. This plan:
1. Lists the capital improvements that may be funded with improvement fee revenues; and
2. Lists the estimated cost and time of construction of each improvement.
B. In adopting this plan, the board of commissioners may incorporate by reference all or a portion of any public facilities plan, master plan, capital improvements plan or similar plan that contains the information required by this section. The county may modify this project plan at any time through the adoption of an appropriate resolution. (Ord. O-38-97 Exh. A § 7, 1997)
13.08.080 Collection of charge.
A. The systems development charge is payable upon issuance of:
1. A building permit;
2. A development permit for development not requiring the issuance of a building permit;
3. Approval to connect or increase the usage of the system or systems provided by the county; or
4. A right-of-way access permit.
B. The resolution which sets the amount of the charge shall designate the permit or systems to which the charge applies.
C. If development is commenced or connection is made to the systems provided by the county without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required.
D. The county community development director or his or her designee shall collect the applicable system development charge from the permittee or system user.
E. The county community development director or his or her designee shall not issue such permit or allow connection or increased usage of the system(s) until the charge has been paid in full, or unless an exemption is granted pursuant to Section 13.08.090.
F. All moneys collected through the system development charge shall be retained in a separate fund and segregated by type of system development charge and by reimbursement vs. improvement fees. (Ord. O-38-97 Exh. A § 8, 1997)
13.08.090 Exemptions.
A. Structures and uses established and existing on or before the effective date of the resolution.
B. Additions to single-family dwellings that do not constitute the addition of a dwelling unit, as defined by the county’s building code are exempt from all portions of the system development charge.
C. An alteration, addition, replacement or change in use that does not increase the parcel’s or structure’s use of a capital improvement are exempt from all portions of the system development charge. (Ord. O-38-97 Exh. A § 9, 1997)
13.08.100 Credits.
A. A permittee is eligible for credit against the system development charge for constructing a qualified capital improvement. A qualified capital improvement means one that meets all of the following criteria:
1. Required as a condition of development approval by the board of commissioners; and
2. Identified in an adopted system development charge funds project plan; and
3. a. Not located within or contiguous to the property or parcel that is subject to development approval; or
b. Located in whole or in part on, or contiguous to, property that is the subject of development approval and required to be built larger or with greater capacity than is necessary for the particular development project to which the improvement fee is related.
4. This credit shall be only for the improvement fee charged for the type of improvement being constructed. Credit under this section may be granted only for the cost of that portion of the improvement that exceeds the facility size or capacity needed to serve the development project.
B. Applying the adopted methodology, the county may grant a credit against the improvement charge for capital facilities provided as part of the development that reduces the development’s demand upon existing capital improvements or the need for further capital improvements or that would otherwise have to be constructed at county expense under the then-existing board of commissioner’s policies.
C. When the construction of a qualified public improvement gives rise to a credit amount greater than the improvement fee that would otherwise be levied against the project receiving development approval, the excess credit may be applied against improvement fees that accrue in subsequent phases of the original development project.
D. All credit requests must be in writing and filed with the county before the issuance of a building permit. Improvement acceptance shall be in accordance with the usual and customary practices, procedures and standards of Jefferson County. The amount of any credit shall be determined by the county and based upon the subject improvement construction contract documents, or other appropriate information, provided by the applicant for the credit. Upon a finding by the county that the contract amounts exceed prevailing market rate for a similar project, the credit shall be based upon market rates. The county shall provide the applicant with a credit on a form provided by the county. The credit shall state the actual dollar amount that may be applied against any system development charge imposed against the subject property. The applicant has the burden of demonstrating qualification for a credit.
E. Credits shall be apportioned against the property which was subject to the requirements to construct an improvement eligible for credit. Unless otherwise requested, apportionment against lots or parcels constituting the property shall be proportionate to the anticipated public facility service requirements generated by the respective lots or parcels. Upon written application to the county, however, credits shall be reapportioned from any lot or parcel to any other lot or parcel within the confines of the property originally eligible for the credit. Reapportionment shall be noted on the original credit form retained by the county community development director.
F. Any credits are assignable; however, they shall be calculated based on only that property subject to the original condition for land use approval upon which the credit is based or any partitioned or subdivided parcel or lots of such property to which the credit has been apportioned. Credits shall only apply against system development charges, are limited to the amount of the fee attributable to the development of the specific lot or parcel for which the credit is sought and shall not be a basis for any refund.
G. Any credit request must be submitted before the issuance of a building permit. The applicant is responsible for presentation of any credit and no credit shall be considered after issuance of a building permit.
H. Credits shall be used by the applicant within ten (10) years of their issuance by the county. (Ord. O-38-97 Exh. A § 10, 1997)
13.08.110 Notification—Appeals.
The county shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of the system development charge methodology. These persons shall be so notified in writing of any such proposed changes at least forty-five (45) days prior to the first hearing to adopt or amend such methodology(ies). This methodology shall be available at least thirty (30) days prior to the public hearing. No challenge to the system development charge methodology shall be accepted after sixty (60) days following final adoption by the board of commissioners. (Ord. O-38-97 Exh. A § 11, 1997)
13.08.120 Annual accounting.
The county shall provide an annual accounting for system development charges showing the total amount of system development charges collected for each system along with a list of projects funded in whole or in part through system development charges. (Ord. O-38-97 Exh. A § 12, 1997)
13.08.130 Prohibited construction.
A. No person, firm, corporation, organization or other entity shall commence construction of a structure to which a system development charge applies unless the applicable system development charge has been paid.
B. Violation of subsection A of this section shall be punishable by a fine not to exceed five hundred dollars ($500.00) per violation.
C. Each day that a violation continues may be considered a separate violation of this chapter. (Ord. O-38-97 Exh. A § 13, 1997)