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 at the time of the development of properties which increase the use of capital improvements and generate a need for those facilities.
(Ord. 1707 § 1, 1991)
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. 1707 § 2, 1991)
"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.
"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 13.28.040 of 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, permit 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 required as a condition of development approval, identified in the plan adopted pursuant to Section 13.28.080 of this chapter and either:
1. 
Not located on or contiguous to a parcel of land 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"
means a fee for costs associated with capital improvements constructed or under construction on the date the fee is adopted pursuant to Section 13.28.040 of 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" 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.
(Ord. 1707 § 3, 1991; Ord. 1774 § 1, 1994)
A. 
Unless otherwise exempted by the provisions of this ordinance or other local or State law, effective July 1, 1991, a systems development charge is hereby imposed upon all development within the City, upon the act of making a connection to the City water or wastewater system within the City, and upon all development outside the boundary of the City that connects to or otherwise uses the wastewater or water facilities of the City.
B. 
Systems development charges 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 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. 1707 § 4, 1991)
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 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 and other relevant factors identified by the Council.
C. 
The methodology used to establish the improvement fee or the reimbursement fee, or both, shall be adopted by resolution.
(Ord. 1707 § 5, 1991)
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
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 Funding Project Plan adopted by the City pursuant to Section 13.28.080 of this chapter.
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 ordinance, including the costs of developing system development charge methodologies and providing an annual accounting of system development charge expenditures.
(Ord. 1707 § 6, 1991)
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. 1707 § 7, 1991)
The Council shall adopt by resolution the Systems Development Charge Funds Project Plan. This Plan:
A. 
Lists the capital improvements that may be funded with improvement fee revenues; and
B. 
Lists the estimated cost and time of construction of each improvement.
In adopting this Plan the City 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. 1707 § 8, 1991)
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. 
A permit to connect to the water system;
4. 
A permit to connect to the sewer system; or
5. 
A right-of-way access permit.
The resolution which sets the amount of the charge shall designate the permit or permits to which the charge applies.
B. 
If development is commenced or connection is made to the water system, wastewater system, or storm sewer system without an appropriate permit, the system development charge is immediately payable upon the earliest date that a permit was required.
C. 
The City Manager or designee shall collect the applicable system development charge from the permittee.
D. 
The City Manager or designee shall not issue such permit or allow connection until the charge has been paid in full, unless provision for installment payments has been made pursuant to Section 13.28.100 of this chapter, or unless an exemption is granted pursuant to Section 13.28.110 of this chapter.
(Ord. 1707 § 9, 1991)
A. 
System Development Charge Due
1. 
When a system development charge is due and payable, the permittee may apply for payment in 20 semiannual installments, secured by a lien on the property upon which the development is to occur or to which the utility connection is to be made, to include interest on the unpaid balance.
2. 
The permittee may irrevocably elect in writing to have the system development charge levied for a number of years less than 10, and according to such terms as the City Manager or designee may provide, pursuant to ORS 223.215.
B. 
The City Manager or designee 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. 
A permittee requesting installment payments shall have the burden of demonstrating the permittee's authority to assent to the imposition of a lien on the property and that the interest of the permittee is adequate to secure payment of the lien.
D. 
The City Manager or designee 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, and shall be superior to all other liens pursuant to ORS 223.230.
(Ord. 1707 § 10, 1991; Ord. 1725 § 1, 1992; Ord. 2108 § 1, 2015)
A. 
Structures and uses established and existing on or before the effective date of the resolution which sets the amount of the system development charge are exempt from the charge, except water and sewer charges, to the extent of the structure or use existing on that date 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.
B. 
Additions to single-family dwellings that do not constitute the addition of a dwelling unit, as defined by the Building Code adopted pursuant to Chapter 15.04 of this 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. 1707 § 11, 1991)
A. 
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, however, no refund or credit shall be given unless provided for by another subsection of this section.
B. 
A credit shall be given to the permittee for the cost of a qualified public improvement development upon acceptance by the City of the improvement. The credit provided for in this subsection shall be only for the improvement fee charged for the type of improvement being constructed, and credit for qualified public improvements 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 the particular development project or property. The applicant shall have the burden of demonstrating that a particular improvement qualified for credit under this subsection. The request for credit shall be filed in writing no later than 60 days after acceptance of the improvement by the City.
C. 
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 reduces the development's demand upon existing capital improvements or the need for future capital improvements, or a credit based upon any other rationale the Council finds reasonable.
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. Credit shall not be transferable from one development to another.
E. 
Credits shall not be transferable from one type of system development charge to another.
F. 
Credits shall be used within 10 years from the date the credit is given.
G. 
A credit may be given to a permittee for the costs of a public improvement provided by the permittee pursuant to a land division or land use condition of approval (other than a qualified public improvement) on acceptance of the improvement subject to the requirements of this section.
1. 
Credit may be given only for public improvements that cure existing deficiencies or provide excess capacity beyond that needed to accommodate the development. The fact that a facility is not extended to the property being developed is not an existing deficiency.
2. 
A reimbursement fee credit may be provided only to the extent that the public improvement cured an existing deficiency.
3. 
An improvement fee credit may be provided only to the extent that the public improvement provides excess capacity to meet the needs of future growth.
4. 
The maximum total credit shall take into account the extent of use by the development on which the condition of approval requiring the public improvement was imposed. For example, if the total cost of a public improvement is $100,000 and the development will use 10% of the capacity of that improvement, the total credit may not exceed $90,000.
5. 
When a permittee seeks a credit for a capital improvement that is not a qualified public improvement the following process shall be applied:
a. 
The permittee shall submit a written request for a credit and obtain preliminary conceptual approval for the credit from the City Engineering Director prior to beginning work on the capital improvement.
b. 
The permittee and the City Engineering Director shall meet and establish the maximum credit that will be allowed for the improvement prior to construction. The maximum credit will be based on at least one cost estimate prepared by an engineer and shall take into account the limitations on credit established in this section.
c. 
A request for final determination of credit shall be filed by the permittee in writing no later than 30 days after written acceptance of the improvement by the City. The final determination shall be made by the Engineering Director and shall be based upon actual project cost, with adjustments as provided by this section, but shall not exceed the maximum credit established under this subsection.
(Ord. 1707 § 12, 1991; Ord. 1774 § 2, 1994; Ord. 1946 § 1, 2005)
The City shall maintain a list of persons who have made a written request for a methodology for any system development charge. Written notice shall be mailed to persons on the list at least 45 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 30 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. 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 persons 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.
(Ord. 1774 § 3, 1994)
A. 
All funds derived from a particular type of system development charge are to be segregated by accounting practices from all other funds by 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 this chapter.
B. 
The City Manager shall provide an annual accounting, based on the City's fiscal year, of system development charges showing the total amount of system development charge revenues collected for each type of charge and the projects funded from each account.
(Ord. 1707 § 13, 1991)
A. 
A person aggrieved by a decision required or permitted to be made by the City Manager under this ordinance or 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 Manager describing with particularity the decision of the City Manager or the expenditure from which the person appeals.
B. 
An appeal of an expenditure must be filed within two years of the date of the alleged improper expenditure. Appeals of any other decision must be filed within 30 days of the date of the decision.
C. 
The Council shall determine whether the City Manager's decision or the expenditure is in accordance with this ordinance 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 of the date of that determination to the credit of the account or fund from which it was spent.
D. 
A legal action challenging the methodology adopted by the Council pursuant to Sections 13.28.040 and 13.28.050 shall not be filed later than 60 days after the adoption.
(Ord. 1707 § 14, 1991)
A. 
Loan and Deferral Program
Low-income property owners unable to pay system development charges may apply for a program to pay their system development charges in installments. Depending upon eligibility, a property owner may apply for the installment payment program or the low-interest five year deferral program.
B. 
Installment Payment Program
This program is designed for those low-income properties that are unable to make a lump sum payment of the systems development charge at time of permit issuance. Commercial establishments are not eligible for this deferral program. This program will allow applicants to make monthly payments with interest until the amount due is paid, not to exceed 10 years. The interest rate shall be the rate of the local government investment pool on the date of approval of the application. Participants must not exceed the low-income level adopted by resolution of the City Council. In addition to the application eligibility requirements, the full amount plus interest is due and payable upon the sale or change in use of the property or death of the applicant.
C. 
Low-Interest Five-Year Deferral Program
This deferral program is designed for those participants that meet the low-income levels adopted by resolution of the City Council for low-interest long-term repayment of systems development charge. Commercial establishments are not eligible for this deferral program. This program allows applicants to defer payment of the systems development charge for five years. At the end of five years the permittee will pay the full amount plus 6% interest (annually compounded). In addition to the application eligibility requirements, the full amount plus interest is due and payable upon the sale or change in use of the property or the death of the permittee.
D. 
Application—Eligibility
1. 
To the extent that the requirements of this chapter are met, a permittee may make application to obtain an installment payment or deferred payment program for systems development charges.
2. 
To be eligible for the installment or the deferred payment program:
a. 
The property must meet the requirements of ORS 223 for improvement financing;
b. 
The property involved must be occupied and used by the permittee as his or her principal residence;
c. 
No other City assessments or accounts may be in arrears on the property;
d. 
The income of the family, of which the permittee is a member, shall not exceed the income level adopted by resolution of the City Council;
e. 
"Family" means one person or two or more persons related by blood, marriage, legal adoption, or guardianship; or a group of not more than five persons, all or part of whom are not related by blood, marriage, legal adoption, or guardianship, living together as a simple housekeeping and economic unit in the dwelling occupying the property for which the installment or deferred payment program is applied for;
f. 
The permittee shall file an application to obtain the installment or deferred payment with the City Finance Director prior to qualifying for the program;
g. 
Proof of total household income must be given to the City Finance Director prior to qualifying for the program.
(Ord. 1707 § 15, 1991)
No person may connect to the water or sewer systems of the City unless the appropriate system development charge has been paid.
(Ord. 1707 § 16, 1991)
Violation of this chapter is punishable by a fine not to exceed $500.
(Ord. 1707 § 17, 1991)