The purpose of the system development charge is to impose a
portion of the cost of capital improvements for water, wastewater,
drainage and flood control, transportation, and parks and recreation
upon those developments and redevelopments that create the need for
or increase the demands on city of Jefferson (“city”)
capital improvements.
(Ord. 574 § 1, 1997; Ord. 692 § 1, 2016)
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. 574 § 2, 1997; Ord. 692 § 1, 2016)
For purposes of this chapter, the following mean:
Administrative charge.
The amount charged to each development to cover the cost
of developing the methodologies, providing an annual accounting or
system development charge expenditures, implementation, and operational
costs associated with the system development charge program.
Capital improvements.
Facilities or assets used for:
1.
Water supply, treatment and distribution;
2.
Waste water collection, transmission, treatment and disposal;
3.
Drainage and flood control;
6.
“Capital improvement” does not include costs of
the operation or routine maintenance of capital improvement.
Development.
The change in character, occupancy, or use of land or buildings,
including redevelopment and demolition of a building for the conversion
of property to another use. Development includes, but is not limited
to, all improvements on a site, including buildings, other structures,
parking and loading areas, landscaping, paved or graveled areas improved
open areas such as plazas and walkways, and areas devoted to exterior
display, storage or activities, but does not include natural geologic
forms or unimproved lands.
Improvement fee.
A fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to Section
10.16.040.
Owner.
The owner or owners of record, title, or the purchaser or
purchasers under a recorded land sales agreement, and other persons
having an interest of record in the described real property.
Parcel of land.
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 applicable
zoning, subdivision, or other development requirements.
Qualified public improvements.
A capital improvement that is required as a condition of development approval, identified in the plan adopted pursuant to Section
10.16.080; and either:
1.
Not located on or contiguous to property that is the subject
of the development approval; or
2.
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.
A fee for costs associated with capital improvements already constructed or under construction on the date the fee is adopted pursuant to Section
10.16.040, for which the council determines capacity exists.
System development charge.
A reimbursement fee, an improvement fee or a combination
thereof assessed or collected at the time of increased usage of a
capital improvement, or issuance of a development permit or building
permit, or 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 sewer and water facilities. “System development charge”
does not include fees assessed or collected as part of a local improvement
district assessment, 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. 574 § 3, 1997; Ord. 692 § 1, 2016)
A. A system
development charge shall be established and may be revised by resolution
of the city council. The resolution shall set the amount of the charge,
the type of charge, and, if the charge applies to a geographic area
smaller than the entire city, the geographic area subject to the charge.
B. 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, upon increased usage of a capital improvement,
issuance of a development permit or building permit, or connection
to the capital improvement, and upon all development outside the boundary
of the city that connects to or otherwise uses the sewer, water or
storm sewer facilities of the city.
C. An
administrative charge associated with the cost of the city’s
system development charge program, including the periodic and on-going
direct and indirect costs associated with complying with the requirement
of state law and the cost of administering system development charges,
may be established by council resolution or included within the system
development charge.
(Ord. 574 § 4, 1997; Ord. 692 § 1, 2016)
A. The
methodology used to establish or modify a reimbursement fee shall,
as applicable, be based upon rate-making principals employed to finance
publicly owned capital improvements, prior contributions by then-existing
users, gifts or grants from federal or state government or private
persons, the value of unused capacity available to future system users
or the cost of the then-existing facilities, and other relevant factors
identified by the council.
B. The methodology used to establish or modify an improvement fee shall consider the estimated cost of capital improvements identified in the plan adopted pursuant to Section
10.16.080 that are needed to increase the capacity of the system to which the fee is related and are required to serve the demands placed on the system by future users. The methodology shall be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future system users.
C. The
methodology used to establish or modify an improvement fee or a reimbursement
fee, or both, shall be contained in a resolution adopted by the council.
D. The
methodology used to establish or modify an improvement fee or a reimbursement
fee shall not:
1. Include
or incorporate a method or system under which the payment of the fee
or the amount of the fee is determined by the number of employees
of an employer without regard to new construction, new development
or new use of an existing structure by the employer;
2. Include
or incorporate any method or system under which the payment of the
fee or the amount of the fee is based on the number of individuals
hired by the employer after a specified date; or
3. Assume
that costs are necessarily incurred where capital improvements when
an employer hires an additional employee.
E. All
methodologies for establishing or modifying reimbursement or improvement
fees shall be available for public inspection.
F. A change in the amount of a reimbursement fee or an improvement fee is not a modification of the system development charge if the change in amount is based on a change in the cost of materials, labor or real property applied to the projects or project capacity as set forth in the plan adopted pursuant to Section
10.16.080; or the periodic application of one or more specific cost indexes or other periodic data sources.
A specific cost index or periodic data source must be:
1. A
relevant measurement of the average change in prices or costs over
an identified time period for materials, labor, real property, or
a combination of the three;
2. Published
by a recognized organization or agency that produces the index or
data source for reasons that are independent of the system development
charge methodology; and
3. Incorporated
as part of the established methodology or identified and adopted in
a separate city resolution or order.
G. A combination
of a reimbursement fee and an improvement fee may be imposed, if the
methodology demonstrates that the charge is not based upon providing
the same system capacity.
(Ord. 574 § 5, 1997; Ord. 692 § 1, 2016)
A. Reimbursement
fees shall be applied only to capital improvements associated with
the systems for which the fees are assessed, including expenditures
relating to the repayment of indebtedness.
B. Improvement
fees shall be spent only on capacity-increasing capital improvements,
including expenditures relating to the repayment of debt for the 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 improvements
funded by improvement fees must be related to the need for increased
capacity to provide service for future users.
C. A capital improvement being funded wholly or in part from revenues derived from an improvement fee shall be included in the plan adopted by the city pursuant to Section
10.16.080.
D. Notwithstanding subsections
A and
B 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.
(Ord. 574 § 6, 1997; Ord. 692 § 1, 2016)
A. 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.
B. System
development charges shall not be expended for costs of the operation
or routine maintenance of capital improvements.
(Ord. 574 § 7, 1997; Ord. 692 § 1, 2016)
Prior to the establishment of a system development charge by
resolution, the council shall adopt a plan that:
A. Lists
the capital improvements that may be funded with improvement fee revenues,
including the estimated cost and time of construction of each improvement,
and the estimated percentage of costs eligible to be funded with revenues
from improvement fees for each improvement; and
B. Describes the process for modifying the plan. The council may modify the plan and list at any time. If a system development charge will be increased by a proposed modification of the list to include a capacity increasing capital improvement, as referenced in Section
10.16.060(B), the city shall provide at least 30 days’ notice of the proposed plan modification to persons who have previously requested written notice under Section
10.16.150(B). A public hearing on such proposed plan modifications will be held if the city receives a written request for such a hearing within seven days of the date the proposed modification is scheduled for adoption. If no such request is received within this time period, a hearing is not required, but may be held in the city’s sole discretion.
(Ord. 574 § 8, 1997; Ord. 692 § 1, 2016)
A. The
system development charge is payable upon: annexation, issuance of
a building permit, a development permit, a development permit for
development not requiring the issuance of a building permit, or a
permit; or approval to connect to the water or sewer system, or a
right-of-way access permit.
B. If
no building, development, or connection permit is required, the system
development charge is payable at the time usage of the capital improvement
is increased based on changes in the use of the property.
C. The
applicant for a connection permit shall be required to state in writing
the intended use of the building in sufficient detail to enable the
city to determine the appropriate category of use. If the use of a
building changes or if the stated use is incorrect, the occupant shall
report the change of use to the city within 30 days and promptly pay
any additional system development charges. If the occupant fails to
report a correct statement of use or a change of use within 30 days
or fails to pay the additional system development charge within 10
days after invoice, the occupant shall pay a penalty of 10% of the
balance due plus interest on the unpaid balance at the rate of one
and one-half percent per month.
D. The city shall not issue such permit or allow such connection until the charge has been paid in full, provision for installment payments has been made pursuant to Section
10.16.110, or an exemption is granted pursuant to Section
10.16.120.
(Ord. 574 § 9, 1997; Ord. 692 § 1, 2016)
A. The
owner of a parcel of land subject to a system development charge of
over $15,000 may apply for payment in installments, to include interest
at the legal rate of 10% on the unpaid balance, in accordance with
ORS 223.208. Payment may be over a period of less than 10 years, if
so elected by the property owner. Otherwise, system development charges
are payable over a period of no less than 10, nor more than 30 years,
in accordance with such terms as set by the city.
B. The
city SDC 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.
C. 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 property interest of the applicant is adequate
to secure payment of the lien.
D. The
city SDC administrator shall report to the city recorder the amount
of the system development charge, the dates on which payments are
due, the name of the owner, and the description of the parcel.
E. The
city recorder 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. The lien shall be enforceable in the manner provided
in ORS Chapter 223.
F. Upon
written request of the city SDC administrator, the city recorder is
authorized to cancel assessments of system development charges, without
further council action, where the new development approved by the
building permit is not constructed and the building permit is cancelled.
G. For
property that has been subject to a cancellation of assessed system
development charges, any future installment payment contract shall
be subject to the code provisions applicable to system development
charges and installment payment contracts on file on the date the
new contract is received by the city.
(Ord. 574 § 10, 1997; Ord. 692 § 1, 2016)
A. Structures
and uses established and legally existing on or before the effective
date of the ordinance codified in this chapter that are connected
to city sewer and water systems are exempt from system development
charges imposed hereunder, until the parcel is further developed and
increases the parcel’s or structure’s use of one or more
public improvement facilities.
B. An
alteration, addition, replacement or change in use that does not increase
the parcel’s or structure’s use of any city’s public
improvement facility are exempt from all portions of the system development
charge.
C. City
of Jefferson projects are exempt from all system development charges.
(Ord. 574 § 11, 1997; Ord. 692 § 1, 2016)
A. 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 the effective date of the ordinance
codified in this chapter. The credit so computed shall not exceed
the calculated system development charge. No refund shall be made
on account of such credit.
B. A credit
shall also be given for construction of a qualified public improvement,
upon acceptance by the city of that public improvement. The credit
shall be only for the improvement fee charged for the type of improvement
being constructed, and may be granted only for the cost of that portion
of such improvement that exceeds the city’s minimum standard
facility size or capacity needed to serve that 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.
C. The city may deny a credit if it demonstrates that the application is not for a qualified public improvement, as defined in Section
10.16.030, or by showing that the improvement for which credit is sought is not included in the plan adopted pursuant to Section
10.16.080.
D. 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. However, this subsection shall not prohibit the city from providing a greater credit, or from establishing a system by resolution providing for the transferability of credits, or from providing a credit for a capital improvement not identified in the plan adopted pursuant to Section
10.16.080, or from providing a share of the cost of such improvement by other means, if the city so chooses.
E. Credit
shall be used within 10 years from the date the credit is given.
(Ord. 574 § 12, 1997; Ord. 692 § 1, 2016)
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. The system development charge calculated and collected shall be used for no purpose other than those set forth in Section
10.16.060. The city shall provide an annual accounting to be completed by January 1st of each year for system development charges showing the total amount of system development charge revenues collected for each system and the projects that were funded in the previous fiscal year. The city shall include in the annual accounting, a list of the amounts spent on each project funded, in whole or in part, with system development charge revenues, and the amount of revenue collected by the city from system development charges and attributed to the cost of complying with the provisions of this chapter, including the costs of developing system development charge methodologies and providing annual accountings.
(Ord. 574 § 14, 1997; Ord. 692 § 1, 2016)
A. Expenditure
Review.
1. Any
citizen or other interested person may challenge an expenditure of
system development charge revenues by filing a written complaint with
the city describing with particularity the decision of the city and
the expenditure which the person challenges. Such challenges must
be filed within two years of the expenditure of the system development
charge revenues.
2. A
hearing shall be held by the council within 60 days of the filing
of the complaint. After providing notice to the challenger, the council
shall determine whether the expenditure was in accordance with this
chapter and the applicable Oregon Revised Statutes, and may affirm,
modify or overrule the decision. If the council determines that there
has been an improper expenditure of systems development charge revenues,
the council shall direct that a sum equal to the misspent amount be
deposited within one year to the credit of the account or fund from
which it was spent.
3. The
decision of the council shall be judicially reviewed only as provided
in ORS 34.010 to 34.100.
B. Methodology
Review.
1. The
city shall maintain a list of persons who have made written requests
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 establish
or modify a system development charge, and the methodology supporting
the system development charge shall be available at least 60 days
prior to the first hearing. The failure of a person on the list to
receive a notice that was mailed does not invalidate the action of
the city.
2. 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.
3. Legal
action intended to contest the methodology used for calculating a
system development charge may not be filed after 60 days following
adoption or modification of the system development charge resolution
by the city. Persons shall request judicial review of the methodology
used for calculating a system development charge only as provided
in ORS 34.010 to 34.100.
C. Other
Review.
1. Challenges
of any other decisions required or permitted to be made by the city
under this chapter or associated resolutions including, but not limited
to, objections to the calculation of a system development charge must
be filed in writing with the city office within 20 days of the date
of the decision. The complaint must describe with particularity the
challenged city decision, and state:
a. The name and address of the appellant;
b. The nature of the calculation being appealed;
c. The reason the calculation is incorrect; and
d. What the correct determination of the appeal should be or how the
correct calculation should be derived.
A person who fails to file such a written challenge within the
time permitted waives all objections, and any filed objections shall
be dismissed.
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An appeal fee in an amount as set by council resolution shall
accompany the complaint. A separate complaint and fee must be filed
for each decision being appealed.
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2. A
hearing shall be held by the council within 60 days of the filing
of the complaint. After providing notice to the complainant, the council
shall determine whether the decision challenged is in accordance with
this chapter and the applicable Oregon Revised Statutes, and may affirm,
modify, or overrule the decision.
3. The
council must advise a person making written objection to a system
development charge calculation of the review procedures provided by
this section, and the right to petition for review of the council’s
determination pursuant to ORS 34.010 to ORS 34.100.
4. A decision to increase a system development charge by modifying the plan adopted pursuant to Section
10.16.080 may be judicially reviewed only as provided in ORS 34.010 to 34.100.
(Ord. 574 § 15, 1997; Ord. 692 § 1, 2016)
No person may increase usage of a capital improvement or connect
to the water, sewer or storm water systems of the city unless the
appropriate system development charge has been paid, or an installment
payment plan has been applied for and approved.
(Ord. 574 § 16, 1997; Ord. 692 § 1, 2016)
Violation of this chapter is punishable by a fine not to exceed
$1,000. Each day that the violation continues shall constitute a separate
and distinct violation.
(Ord. 574 § 17, 1997; Ord. 692 § 1, 2016)