The purpose of the system development charge is to impose a portion of the cost of capital improvements for water, sanitary sewer, stormwater, transportation, and park systems, and any other systems for which system development charges are authorized under Oregon law, upon those developments that create the need for or increase the demands on capital improvements.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
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. 1991-6 §1; Ord. 1999-14 §1)
For purposes of this chapter, the following words shall have the meanings set forth in this section:
"Capital improvements"
means facilities or assets used for:
1. 
Water supply, treatment and distribution;
2. 
Sewer collection, transmission, treatment and disposal;
3. 
Stormwater collection, transmission and disposal;
4. 
Drainage and flood control;
5. 
Transportation;
6. 
Parks and recreation;
7. 
Any other systems for which system development charges are allowable under Oregon law.
"Development"
means building or making a physical change in the use or appearance of a structure or land.
"Improvement fee"
means a fee for costs associated with capital improvements to be constructed after the date the fee is adopted pursuant to Section 13.14.040.
"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 chapters.
"Qualified public improvement"
means a capital improvement that is:
1. 
Required as a condition of development approval;
2. 
Identified in the plan adopted pursuant to Section 13.14.080; and either
a. 
Not located on or contiguous to property that is the subject of the 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.
"Reimbursement fee"
means a fee for costs associated with capital improvements already constructed or under construction on the date the fee is adopted pursuant to Section 13.14.040.
"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" 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. 1991-6 §1; Ord. 1999-14 §1)
A. 
System development charges shall be established and may be revised by resolution of the Council.
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 parcels of land within the City, and upon all lands outside the boundary of the City that connect to or otherwise use the capital improvements of the City.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
A. 
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 systems users shall contribute no 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.
C. 
The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be contained in a resolution adopted by the Council.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
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. 
Improvement fees shall be spent only on capacity increasing capital improvements, including expenditures relating to repayment of debt for such improvements.
1. 
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 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 plan adopted by the City pursuant to Section 13.14.080.
C. 
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. 1991-6 §1; Ord. 1999-14 §1)
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. 1991-6 §1; Ord. 1999-14 §1)
The Council shall adopt a plan that:
A. 
Lists the capital improvements that may be funded with improvement fee revenues;
B. 
Lists the estimated cost and time of construction of each improvement; and
C. 
Describes the process for modifying the plan.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
A. 
The system development charge is payable upon issuance of:
1. 
A building permit;
2. 
A development permit;
3. 
A permit to connect to the water system; or
4. 
A permit to connect to the sewer system.
B. 
If no building, development, or connection permit is required, the system development charge is payable at the time the usage of the capital improvement is increased.
C. 
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.
D. 
The City Recorder shall collect the applicable system development charge when a permit that allows building or development of a parcel is issued or when a connection to the water or sewer system of the City is made. However, in lieu of payment under this section, eligible applicants may exercise the right under ORS Chapter 223 to pay the charge in assessments pursuant to the Bancroft Bonding Act. In such case, the charge shall become a first lien against the property served and have the same effect as an assessment lien for a public improvement and shall be duly recorded in the Docket of City Liens.
E. 
The City Recorder shall not issue such permit or allow such connection until the charge has been paid in full or provision has been made to pay the charge under the Bancroft Bonding Act, unless an exemption is granted pursuant to Section 13.14.100.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
A. 
System development charges are immediately due and payable and shall be collected as provided in Section 13.14.090, unless deferred or installment payments are authorized in accordance with this section.
B. 
When the total of City system development charges due is less than $10,000.00, the City Manager may approve deferred payments of system development charges for up to one year. Interest on the balance shall accrue at a rate equal to nine percent per annum. The City will not issue an occupancy permit for the property until the developer executes an approved payment agreement with the City.
C. 
When the total of City system development charges due is equal to or exceeds $10,000.00, the City Manager may approve an agreement with the developer under which the developer will make installment payments equal to not less than one fifth of the original SDC assessment, on an annual basis, for a period not to exceed two years. Interest on the balance shall accrue at a rate equal to nine percent per annum. The City will not issue an occupancy permit for the property until the developer executes an approved installment payment agreement with the City.
D. 
If the developer elects to defer payment of system development charges or to pay the system development charges in installments, the developer or a principle of the developer shall execute a promissory note in favor of the City in an amount equal to not less than the outstanding balance of unpaid charges on the date the note is executed.
E. 
In the event a developer elects to defer payment of system development charges or to pay the system development charges in installments, the City shall cause a lien to be placed upon the property in an amount equal to the balance owed, including interest, until payment has been received in full. Alternatively, the developer may provide the City with an irrevocable stand-by letter of credit in favor of the City in an amount equal to the unpaid balance of system development charges. The City shall release the lien or letter of credit upon full payment of all system development charges owed.
F. 
Failure to pay the system development charges within 60 days of the due date shall result in a penalty equal to 10% of the outstanding balance. Interest on the balance shall accrue from the 61st day following the due date at the rate of nine percent per annum.
G. 
In addition to any other remedy provided in law or equity, when system development charges are delinquent, the City may:
1. 
Refuse to issue development permits to the delinquent party;
2. 
Refuse to issue development permits for the subject property;
3. 
Refuse to honor any system development charge credits held by the delinquent party for any development;
4. 
Condition any development approval requested by the delinquent party on payment in full of the unpaid system development charges, including penalties and interest;
5. 
Remove any previous system development charges due, including penalties and interest, from any offset account held by the City for the delinquent party, in which case the system development charges shall immediately be due, and refuse to issue any new deferrals;
6. 
Withdraw the amount of system development charges due, including penalties and interest, from any offset account held by the City for the delinquent party.
H. 
For purposes of this section, the terms "developer" and "delinquent party" include a person controlling a delinquent corporate permittee and any corporation controlled by a delinquent individual permittee.
I. 
Only one deferral or installment payment agreement between the City and a developer shall be in effect at any time. Upon payment of SDCs owed and termination of a deferral or installment agreement, a new agreement may be sought.
(Ord. 2008-22; Ord. 2010-06; Ord. 2011-02 §1)
A. 
Structures and uses established and existing on or before the effective date of the ordinance codified in this chapter are exempt from a system development charge, to the extent that such structures and uses are not altered, added to, replaced, or changed in use so as to increase demands on any capital improvement for which systems development charges are imposed.
B. 
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.
C. 
An alteration, addition, replacement or change in use that does not increase the parcel's or structure's use of the capital improvement facility is exempt from all portions of the system development charge.
D. 
A project financed by City revenues is exempt from all portions of the system development charge.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
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 existing and services were established on or after 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 be given for the cost of a qualified public improvement associated with a development. For qualified public improvements which are located in whole or in part on or contiguous to property that is the subject of development approval, and are required to be built larger or with greater capacity than is necessary for the particular development to which the improvement fee is related, credit shall be granted only for the cost of that portion of such improvement that exceeds the 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 credit provided for by this subsection shall be only for the improvement fee charged 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.
C. 
Credit shall not be transferable from one development to another except in compliance with standards adopted by the City Council.
D. 
Credit shall not be transferable from one type of capital improvement to another.
E. 
Credits shall be used not later than 10 years from the date the credit is given.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
A. 
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 Section 13.14.060.
B. 
The City Recorder 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.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
A. 
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 Recorder describing with particularity the decision of the City Recorder 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.
B. 
Appeals of any other decision required or permitted to be made by the City Recorder under this chapter must be filed within 10 days of the date of the decision.
C. 
After providing notice to the appellant, the Council shall determine whether the City Recorder's decision or the expenditure is in accordance with this chapter and the provisions of ORS 223.297 to 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.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
No person may connect to the water or sewer systems of the City unless the appropriate system development charge has been paid.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
Violation of this chapter is punishable by a fine not to exceed $500.00. Each day's violation of this chapter shall constitute a separate offense.
(Ord. 1991-6 §1; Ord. 1999-14 §1)
The rules of statutory construction contained in ORS Chapter 174 are adopted and by this reference made a part of this chapter.
(Ord. 1991-6 §1; Ord. 1999-14 §1)