The following definitions apply unless inconsistent with the
context:
facilities or assets used for water supply, treatment, distribution
and storage; wastewater collection, transmission, treatment and disposal;
drainage and flood control (surface water management); transportation;
or parks and recreation.
conducting a building or mining operation, making a physical
change in the use or appearance of a building or land, dividing land
into two or more lots or parcels (including partitions and subdivisions),
and creating or terminating a right of access.
a fee adopted pursuant to this subchapter for costs associated
with capital improvements to be constructed.
a capital improvement that is required as a condition of
development approval; identified in a plan adopted pursuant to this
subchapter; and not located on or contiguous to property 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 to which an improvement fee is related.
a fee adopted under this subchapter for costs associated
with capital improvements constructed or under construction, where
capacity exists in such improvements.
a reimbursement fee, improvement fee or combination thereof
assessed or collected at the time of increased usage of a capital
improvement, at the time of issuance of a development 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. SDC does not include fees assessed
or collected as part of an LID, a charge in lieu of an LID assessment
or the costs of complying with requirements or conditions imposed
by a land use decision, expedited land division or limited land use
decision, or other separately adopted fee or charge not subject to
this subchapter.
The purpose of SDCs is to impose a portion of the cost of capital
improvements for water, sanitary sewerage, streets, traffic, surface
water management, flood control and parks upon those developments
that create the need for, or increase the demands on, capital improvements.
The SDCs imposed by this subchapter 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 approval.
A.
SDCs
are established, will be reviewed annually by the manager, and may
be revised by council resolution and, where applicable, the UC.
B.
Unless
otherwise exempted by this subchapter or other law, an SDC is imposed
upon all developments within the city and outside the boundary of
the city that connect to, or otherwise use, the sewer facilities,
storm sewers, transportation/streets, parks or water facilities of
the city.
A.
The
methodology used to establish the reimbursement fee considers 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 manager. The methodology promotes the objective
that future systems users contribute no more than an equitable share
of the cost of then-existing facilities.
B.
The
methodology used to establish the improvement fee considers the cost
of projected capital improvements needed to increase the capacity
of the systems to which the fee relates.
C.
Any
methodology to support a new or increased SDC will be prepared, reviewed
and adopted as required by state law.
A.
Reimbursement
fees are 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 are spent only on capacity increasing capital improvements, including
expenditures relating to repayment of future 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 improvements funded
by improvement fees must be related to the need for increased capacity
to provide service for future users.
C.
A capital
improvement funded wholly or in part from revenues from the improvement
fee must be included in the plan adopted by the city under this subchapter.
D.
Notwithstanding
HMC 3.28.060(A) through (C), SDC revenues may be expended on the direct
costs of complying with the provisions of this subchapter, including
the costs of developing SDC methodologies and providing an annual
accounting of SDC expenditures.
A.
SDCs
must 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.
SDCs
must not be expended for costs of the operation or routine maintenance
of capital improvements.
C.
SDC
expenditures are subject to any applicable limitations in state law.
The council will adopt a plan that:
A.
The
manager is authorized to administer the collection of SDCs in accordance
with state law and the code. This authorization specifically includes
the authority to administer all aspects of installment payment of
SDCs.
C.
If development
is commenced or connection is made to the water or sewer systems without
an appropriate permit, the SDC is immediately payable upon the earliest
day that a permit was required.
D.
The
manager will collect the applicable SDC from the owner of the property
when a permit that allows building or development of a property is
issued or when a connection is made to the city water or sewer system.
E.
The
manager will not issue such permit or allow such connection until
the charge is paid in full, until provision for installment payments
have been made or unless an exemption is granted under this subchapter.
(Ord. 5993 § 1, 2011)
A.
When
an SDC or installment payment authorized in this subchapter is not
paid, the manager may 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 responsible party.
B.
The
council will schedule a public hearing on the matter and direct notice
of the hearing to each party of interest with a copy of the manager
report about the unpaid charge. Notice of the hearing will be given
either personally or by certified mail, return receipt requested,
or by both personal and mailed notice, by mailing notice at least
10 days before the hearing date.
C.
At the
hearing, the council may accept, reject or modify the determination
of the manager. If the council finds that an SDC is unpaid and uncollected,
it may by motion direct the manager to docket the unpaid and uncollected
SDC in the lien docket. Upon completion of the docketing, the city
has a lien against the described land for the full amount of the unpaid
charge, together with interest at the rate set by the council and
the city's actual costs of collection and of scheduling and conducting
the hearing.
(Ord. 5993 § 1, 2011)
A.
When
an SDC of $25 or more is due and collectable, the owner of the property
subject to the development charge may apply for payment in 20 semi-annual
installments, to include interest on the unpaid balance in accordance
with state law.
B.
The
manager will provide application forms for installment payments that
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 must demonstrate the applicant's authority
to assent to the imposition of a lien on the property and that the
interest of the applicant is adequate to secure payment of the lien.
D.
The
manager will document the amount of the SDC, the dates on which the
payments are due, the name of the owner and the description of the
property.
E.
The
manager will docket the lien in the lien docket. From that time the
city has a lien upon the described property for the amount of the
SDC, together with interest on the unpaid balance.
A.
Buildings
and uses established and existing on or before July 27, 1991 are exempt
from an SDC under this subchapter, except water and sewer charges
to the extent the building or use of them existed and to the extent
of the property as constituted on that date. Owners of buildings and
uses affected by this subsection must pay the water or sewer charges
under this subchapter 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 State Uniform Building Code, are
exempt from the SDC.
C.
An alteration,
addition, replacement or change in use that does not increase the
use by the property or building of the public improvement facility
is exempt.
A.
An SDC
is imposed when a change of use of a property or building occurs,
but credit is given for the computed SDC to the extent that prior
buildings existed and services were established on or after July 27,
1991. The credit so computed will not exceed the calculated SDC. No
refund will be made on account of such credit.
B.
A credit
may be given for the cost of a qualified public improvement associated
with a development. The credit provided for by this subsection is
only for the improvement fee charged for the type of improvement being
constructed and will not exceed the improvement fee even if the cost
of the capital improvement exceeds the applicable improvement fee.
Calculation of credit will be consistent with applicable state law.
For purposes of calculating the credit to be given, the value of real
property dedicated or otherwise conveyed to the city and otherwise
eligible for credit may constitute all or part of the credit amount
for such improvement.
C.
Credit
is transferable from one development to another in compliance with
any standards adopted by the council. Credit is further transferable
as authorized by state law.
D.
Credit
is not transferable from one type of capital improvement to another.
E.
Credits
issued pursuant to this section are valid for a period of 10 years
from the date they are issued.
F.
Application
for credit. Application for SDC credits for a qualified public improvement
must be made on a form provided by the manager and must be submitted
within 90 days of city acceptance of the improvement. The applicant
shall have the burden of demonstrating: (1) that a particular improvement
qualifies for credit pursuant to this section; and (2) that the amount
of requested credit is supported by documentation acceptable to the
manager.
(Ord. 6048 §§ 1,
2, 2013)
A.
All
funds derived from a particular type of SDC are segregated by accounting
practices from all other funds of the city. That portion of the SDC
calculated and collected on account of a specific facility system
must be used for no purpose other than those set forth in HMC 3.28.060.
B.
The
manager will provide the council or UC, as appropriate, with an annual
accounting, based on the fiscal year, showing the total amount of
SDC revenues collected for each type of facility, the projects funded
from each account and a balanced account.
A.
A person
aggrieved by a decision under this subchapter or a person challenging
the propriety of an expenditure of SDC revenues may appeal to the
council by filing a written request with the recorder describing with
particularity the decision or expenditure.
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 10 days of the date of the decision.
C.
The
council will determine whether the decision or expenditure is in accordance
with this subchapter and state law and may affirm, modify or overrule
the decision. If the council determines that there has been an improper
expenditure of SDC revenues, the council will direct that an equal
sum be deposited within one year to the credit of the account or fund
from which it was spent.
D.
A legal
action challenging the methodology adopted by the council under HMC
3.28.050 may not be filed later than 60 days after its adoption.
A.
The
provisions of this subchapter are intended to establish the basic
methods and procedures for city SDCs generally. Methods and procedures
for transportation system development charges in the South Hillsboro
Community Plan Area are set forth in Hillsboro Municipal Code, Chapter
3, Subchapter 3.30.
B.
The
provisions of this subchapter may be supplemented by any methodologies
and procedures contained in the council and UC resolutions establishing
the actual fees charged so that city SDCs comply with state law. If
there are conflicts between language contained in this subchapter
and ordinances or resolutions, the more specific methodologies and
procedures apply unless they do not comply with state law.
(Ord. 6161 § 1, 2016)
No person may connect to the water or sewer systems of the city
unless the appropriate SDC is paid or there is an agreement with the
city to pay the amount due by installment payments as provided in
this code.
