Chapter 13.25
SYSTEM DEVELOPMENT CHARGES
Sections:
13.25.040 System development charge imposed – Method for establishment created.
13.25.060 Authorized expenditure.
13.25.080 Collection of charge.
13.25.090 Delinquent charges – Hearing.
13.25.140 Notification – Appeals.
13.25.150 Prohibited connection.
13.25.010 Purpose.
The purpose of this chapter is 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 funding for existing system capacity and for the installation, construction and extension of capital improvements. These charges shall be collected either at the time of connection, 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. 300 § 1, 2000; Ord. 243 § 1, 1991. Code 2002 § 13.20.010].
13.25.020 Scope.
The system development charges imposed in 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. 300 § 2, 2000; Ord. 243 § 2, 1991. Code 2002 § 13.20.020].
13.25.030 Definitions.
For purposes of this chapter, the following definitions shall apply:
“Capital improvements” means facilities or assets used for:
(1) Water supply, treatment and distribution;
(2) Sewage and waste water collection, transmission, treatment and disposal;
(3) Drainage and flood control;
(4) Transportation; or
(5) Parks and recreation.
“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 this chapter.
“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 development approval;
(2) Identified in the system development charge fund project plan; and
(3) Not located on or contiguous to a parcel of land that is the subject of the development approval, or 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.
“Reimbursement fee” means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to this chapter.
“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. 300 § 3, 2000; Ord. 243A § 1, 1996; Ord. 243 § 3, 1991. Code 2002 § 13.20.030].
13.25.040 System development charge imposed – Method for establishment created.
(1) Unless otherwise exempted by the provisions of this chapter or other local or state law, a systems development charge is hereby imposed upon all development within the designated areas of the city of Sisters.
(2) Systems development charges shall be established and may be revised by resolution of the council. 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 city, the geographic area subject to the charge. [Ord. 300 § 4, 2000; Ord. 243A § 2, 1996; Ord. 243 § 4, 1991. Code 2002 § 13.20.040].
13.25.050 Methodology.
(1) 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 publicly 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.
(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 and other relevant factors identified by the council.
(3) The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution. [Ord. 300 § 5, 2000; Ord. 243A § 3, 1996; Ord. 243 § 5, 1991. Code 2002 § 13.20.050].
13.25.060 Authorized expenditure.
(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 capacity increasing capital improvements, including expenditures relating to repayment of debt for such improvements. An increase in system capacity may be established 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.
(b) A capital improvement being funded wholly or in part from revenues derived from the improvement fee shall be included in the systems development charge fund project plan adopted by the city.
(3) 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. 300 § 6, 2000; Ord. 243 § 6, 1991. Code 2002 § 13.20.060].
13.25.070 Project plan.
(1) The council shall adopt by resolution the systems development charge fund project plan. This plan shall:
(a) Define the amount of current or under-construction capacity available for new development and the cost of the facilities comprising this capacity;
(b) List the capital improvements that may be funded with improvement fee revenues; and
(c) List the estimated cost and time of construction of each improvement.
(2) In adopting this plan, the council 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 city may modify this project plan at any time through the adoption of an appropriate resolution. [Ord. 300 § 7, 2000; Ord. 243A § 4, 1996; Ord. 243 § 7, 1991. Code 2002 § 13.20.070].
13.25.080 Collection of charge.
(1) The systems development charge is payable upon issuance of:
(a) A building permit;
(b) A development permit for development not requiring the issuance of a building permit;
(c) Approval to connect or increase the usage of the system or systems provided by the city; or
(d) A right-of-way access permit.
(2) The resolution which sets the amount of the charge shall designate the permit or systems to which the charge applies.
(3) If development is commenced or connection is made to the systems provided by the city without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required.
(4) The city community development director or his/her designee shall collect the applicable system development charge from the permittee or system user.
(5) The city community development director or his/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, unless an exemption is granted pursuant to this chapter.
(6) All monies collected through the system development charge shall be retained in a separate fund and segregated by type of system development charge and by reimbursement versus improvement fees. [Ord. 300 § 8, 2000; Ord. 243 § 8, 1991. Code 2002 § 13.20.080].
13.25.090 Delinquent charges – Hearing.
(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 owner.
(2) The council shall schedule a public hearing on the matter and direct that notice of the hearing be given to each owner 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 10 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. If the council finds that a system development charge is unpaid and uncollected, subject to subsection (4) of this section, it shall direct the city administrator to docket the unpaid and uncollected system development charge in the lien docket. Upon completion of the docketing, the city shall have a lien against the described land for the full amount of the unpaid charge, together with interest at the legal rate of 10 percent and with the city’s actual cost of serving notice of the hearing on the owners. The lien shall be enforceable in the manner provided in ORS Chapter 223.
(4) Where the obligation to pay the unpaid system development charge and interest thereon is secured by bond, deposit, letter of credit or other security accepted by the city administrator other than property, the council may direct the city administrator to take action appropriate to the form of security. [Ord. 243 § 9, 1991].
13.25.100 Security.
The obligation to pay the unpaid system development charge and interest thereon may be secured by bond, deposits, letter of credit or other security acceptable to the city administrator. [Ord. 243 § 10, 1991].
13.25.110 Exemptions.
(1) Structures and uses established and existing on or before the effective date of the resolution.
(2) Additions to single-family dwellings that do not constitute the addition of a dwelling unit, as defined by the city’s 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 a capital improvement is exempt from all portions of the system development charge. [Ord. 300 § 9, 2000; Ord. 243 § 11, 1991. Code 2002 § 13.20.110].
13.25.120 Credits.
(1) A permittee is eligible for credit against the system development charge constructing a qualified public improvement. 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.
(2) Applying the adopted methodology, the city 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 city expense under the then-existing council policies.
(3) 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.
(4) All credit requests must be in writing and filed with the city before the issuance of a building permit. Improvement acceptance shall be in accordance with the usual and customary practices, procedures and standards of the city of Sisters. The amount of any credit shall be determined by the city 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 city that the contract amounts exceed prevailing market rate for a similar project, the credit shall be based upon market rates. The city shall provide the applicant with a credit on a form provided by the city. 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.
(5) 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 city, 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 city.
(6) Any credits are assignable; however, they shall apply only to 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.
(7) 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.
(8) Credits shall be used by the applicant within 10 years of their issuance by the city. [Ord. 300 § 10, 2000; Ord. 243 § 12, 1991. Code 2002 § 13.20.120].
13.25.130 Annual accounting.
(1) The city 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.
(2) Any city resident or other interested person may challenge an expenditure of system development charge revenues. The challenge shall be in writing and shall be submitted to the city administrator. The challenge shall include the date of the expenditure, the amount and purpose of the expenditure and the basis for the challenge. The challenge must be filed within two years of the expenditure of the system development charge revenues and shall be reviewed as provided by state law. [Ord. 300 § 12, 2000; Ord. 243 § 13, 1991. Code 2002 § 13.20.170].
13.25.140 Notification – Appeals.
The city 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 notified in writing of any such proposed changes at least 45 days prior to the first hearing to adopt or amend such methodology(ies). This methodology shall be available at least 30 days prior to the public hearing. No challenge to the system development charge methodology will be accepted after 60 days following final adoption by the council. [Ord. 300 § 11, 2000; Ord. 243 § 14, 1991. Code 2002 § 13.20.140].
13.25.150 Prohibited connection.
(1) No person may connect to the city water system unless the appropriate system development charge has been paid or the lien or installment payment method has been applied for and approved.
(2) Violation of this section is punishable by a fine not to exceed $500.00. Each day that a prohibited connection exists constitutes a separate violation. [Ord. 243 § 15, 1991].