Chapter 13.24
SYSTEM DEVELOPMENT CHARGES
Sections:
13.24.040 System development charge established.
13.24.060 Authorized expenditures.
13.24.070 Expenditure restrictions.
13.24.090 Collection of charge.
13.24.100 Delinquent charges – Hearing.
13.24.110 Installment payment.
13.24.150 Segregation and use of revenue.
13.24.170 Prohibited connection.
13.24.010 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 upon those developments that create the need for or increase the demand on capital improvements. (Ord. 2836 § 1, 2001)
13.24.020 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. (Ord. 2836 § 2, 2001)
13.24.030 Definitions.
For the purposes of this chapter, the following mean:
“Capital improvements” means:
(a) Facilities or assets used for:
(i) Water supply, treatment and distribution;
(ii) Wastewater collection, transmission, treatment and disposal;
(iii) Drainage and flood control;
(iv) Transportation; or
(v) Parks and recreation.
(b) “Capital improvement” does not include costs of the operation or routine maintenance of capital improvements.
“Development” means any manmade change to improved or unimproved real estate, including but not limited to buildings or other structures, mining, dredging, filling, grading, paving, excavation, or drilling operations.
“Development permit” means any city of St. Helens permit to authorize development.
“Improvement fee” means a fee for costs associated with capital improvements to construction after the date the fee is adopted pursuant to SHMC 13.24.040.
“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 purposes.
“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.
“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 ordinances.
“Permittee” means the person to whom a building permit, development permit, a permit or plan approval to connect to the sewer or water system, or right-of-way access permit is issued.
“Qualified public improvement” means a capital improvement that is:
(a) Required as a condition of development approval;
(b) Identified in the plan adopted pursuant to SHMC 13.24.080, and either:
(i) Not located on or contiguous to a parcel of land that is the subject of the development approval; or
(ii) 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;
(c) For purposes of this definition, “contiguous” means in a public way which abuts the parcel.
“Reimbursement fee” means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to SHMC 13.24.040.
“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 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, expedited land division or limited land use decision. (Ord. 3082 § 1, 2008; Ord. 2836 § 3, 2001)
13.24.040 System development charge established.
(1) System 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, and, if the charge applies to a geographic area smaller than the entire city, the geographic area subject to the charge.
(2) Unless otherwise exempted by the provisions of this chapter or other local or state law, a system development charge is hereby imposed upon all development within the city, and upon all development outside the boundary of the city that connects to or otherwise uses the sewer facilities, storm sewers, or water facilities of the city. (Ord. 2836 § 4, 2001)
13.24.050 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 principles employed to finance publicly owned capital improvements, and other relevant factors identified by the council. The methodology shall promote the objective that future system users shall contribute no more than an equitable share of the costs of then-existing facilities.
(2) The methodology used to establish the improvement fee shall consider the cost of projected capital improvements identified in the plan adopted pursuant to SHMC 13.24.080 that are needed to increase the capacity of the system to which the fee is related and the need for increased capacity that will be required to serve the demands placed on the system by future users.
(3) The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be available for public inspection at least 60 days prior to the first public hearing and shall be contained in an ordinance adopted by the council. (Ord. 3082 § 2, 2008; Ord. 2836 § 5, 2001)
13.24.060 Authorized expenditures.
(1) Reimbursement fees shall be applied only to capital improvements associated with the system for which the fees are assessed, including expenditures relating to repayment of indebtedness.
(2) 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 capital improvement funded by improvement fees must be related to demands created by projected development.
(3) 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 or for the expenses of the operation or maintenance of the facilities constructed with system development charge revenue.
(4) A capital improvement being funded wholly or in part from system development charge revenues shall be included in the plan adopted by the city pursuant to SHMC 13.24.080.
(5) Notwithstanding subsections (1) and (2) of this section, system development charge revenues may be expended on the 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 and collections expenditures. (Ord. 3082 § 3, 2008; Ord. 2836 § 6, 2001)
13.24.070 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. (Ord. 2836 § 7, 2001)
13.24.080 Improvement plan.
The council shall adopt a plan 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;
(3) Lists the percentage of costs eligible to be funded with revenues from the improvement fee for each improvement; and
(4) Describes the process for modifying the plan.
(5) 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. (Ord. 3082 § 4, 2008; Ord. 2836 § 8, 2001)
13.24.090 Collection of charge.
(1) The system development charge shall be paid upon issuance of:
(a) A building permit;
(b) Any other permit for development not requiring the issuance of a building permit;
(c) A permit to connect to the water system;
(d) A permit to connect to the sewer system; or
(e) A right-of-way access permit.
(2) If no building, development, or connection permit is required, the system development charge is payable at the time the usage of a capital improvement is increased.
(3) If development is commenced or connection is made to the water or sewer system without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required.
(4) The permittee shall pay applicable system development charges when a building permit is issued or when a connection to the water or sewer system of the city is made.
(5) No permit shall be issued or connection allowed until the charge has been paid in full, until provision for installment payment has been made pursuant to SHMC 13.24.110, or unless an exemption is granted pursuant to SHMC 13.24.120. (Ord. 3082 § 5, 2008; Ord. 2836 § 9, 2001)
13.24.100 Delinquent charges – Hearing.
(1) When, for any reason, the system development charge has not been paid, the finance officer shall report to the council the amount of the uncollected charge, the description of the real property to which the charge is attributed, the date upon which the charge was due, and the name of the owner.
(2) The city council shall, by motion, schedule a public hearing on the matter and direct that notice of the hearing be given to each owner with a copy of the finance officer’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 finance officer as set forth in the report. If the council finds that a system development charge is unpaid and uncollected, it shall, by motion, place a lien on the property in the appropriate form. 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. (Ord. 2836 § 10, 2001)
13.24.110 Installment payment.
(1) Except as provided for in SHMC 13.24.090(3), when a system development charge of $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 20 semiannual installments, to include interest on the unpaid balance, in accordance with ORS 223.210 and 223.215.
(2) The city administrator 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 payments 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 administrator shall report to the city finance officer 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 finance officer 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 the council. The lien shall be enforceable in the manner provided in ORS Chapter 223. (Ord. 3082 § 6, 2008; Ord. 2836 § 11, 2001)
13.24.120 Exemptions.
(1) Structures and uses established and existing on or before June 19, 1991, are exempt from a system development charge, except water and sewer charges, 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) Alterations, additions, replacements, or changes in use that do not increase the parcel or structure’s use of the public improvement facility are exempt from all portions of the system development charge.
(4) A project financed by city revenues is exempt from all portions of the system development charge. (Ord. 2836 § 12, 2001)
13.24.130 Credits.
(1) When development occurs that is subject to a system development charge, the system development charge for the existing use, if applicable, shall be calculated and if it is less than the system development charge for the use that will result from the development, the difference between the system development charge for the existing use and the system development charge for the proposed use shall be the system development charge. If the change in the use results in the system development charge for the proposed use being less than the system development charge for the existing use, no system development charge shall be required. No refund or credit shall be given unless provided for by another subsection of this section.
(2) A credit shall be given to the permittee for the cost of a qualified public improvement upon acceptance by the city of the public improvement. The credit shall only be for the improvement fee charged for the type of improvement being constructed, and the applied credit shall not exceed the amount of the improvement fee. When the construction of a qualified public improvement gives rise to a credit amount greater than the improvement fee, the excess credit may be applied against improvement fees that accrue in subsequent phases of the project.
(3) If a qualified public improvement is located in whole or in part on or contiguous to the property that is the subject of development approval and is required to be built larger or with greater capacity than is necessary for the particular development project, a credit shall be given for the cost of the portion of the improvement that exceeds the city’s minimum standard facility size or capacity needed to serve the particular development project or property. The applicant shall have the burden of demonstrating that a particular improvement qualifies for credit under this section. The request for credit shall be filed in writing no later than 60 days after acceptance of the improvement by the city.
(4) Notwithstanding subsection (3) of this section, when establishing a methodology for a system development charge, the city may provide for a credit against the improvement fee, the reimbursement fee, or both, for capital improvements constructed as part of the development which reduce the development’s demand upon existing capital improvements and/or the need for future capital improvements, or a credit based upon any other rationale the council finds reasonable.
(5) Credit shall not be transferable from one development to another except in compliance with standards adopted by the city council.
(6) Credit shall not be transferable from one type of system development charge to another.
(7) Credits shall be used within 10 years from the date the credit is given. (Ord. 3082 § 7, 2008; Ord. 2836 § 13, 2001)
13.24.140 Notice.
(1) The city shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any system development charge. Written notice shall be mailed to persons on the list at least 90 days prior to the first hearing to adopt or amend a system development charge, and the methodology supporting the adoption or amendment shall be available at least 60 days prior to the first hearing to adopt or amend. The failure of a person on the list to receive a notice that was mailed shall not invalidate the action of the city council.
(2) If a system development charge will increase due to the modification of the plan adopted pursuant to SHMC 13.24.080 to include a capacity-increasing capital improvement, the city shall provide notice of at least 30 days prior to the adoption of the modification to the persons who have requested written notice as described in subsection (1) of this section.
(3) The city may periodically delete names from the list, but at least 30 days prior to removing a name from the list must notify the person whose name is to be deleted that a new written request for notification is required if the person wishes to remain on the notification list. No legal action intended to contest the methodology used for calculating a system development charge shall be filed after 60 days following adoption or modification of the system development charge ordinance or resolution by the city. A person shall contest the methodology used for calculating a system development charge only as provided in ORS 34.010 through 34.100, and not otherwise. (Ord. 3082 § 8, 2008; Ord. 2836 § 14, 2001)
13.24.150 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 SHMC 13.24.060.
(2) The finance officer 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 revenue collected for each type of facility and the projects funded from each account. (Ord. 2836 § 15, 2001)
13.24.160 Appeals procedure.
(1) A person challenging the propriety of an expenditure of system development charge revenues may appeal the decision or the expenditure to the city council by filing a written request with the city administrator describing with particularity the decision of the city council 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 10 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 ORS 223.297 through 223.314 and may affirm, modify, or overrule the decisions. 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. The decision of the council shall be reviewed only as provided in ORS 34.010 through 34.100, and not otherwise. (Ord. 3082 § 9, 2008; Ord. 2836 § 16, 2001)
13.24.170 Prohibited connection.
No person may connect to the water or sewer system of the city unless the appropriate system development charge has been paid or the lien or installment payment method has been applied for and approved. (Ord. 2836 § 17, 2001)
13.24.180 Penalty.
Violation of this chapter is punishable by a fine not to exceed $500.00, or any other remedy as provided by law. (Ord. 2836 § 18, 2001)
13.24.190 Construction.
The rules of statutory construction contained in ORS Chapter 174 are adopted and by reference made a part of this chapter. (Ord. 2836 § 19, 2001)