Facilities or assets used for any of the following infrastructure
types:
Water supply, treatment and distribution;
Sanitary sewers, including, but not limited to, collection,
transmission, treatment, and disposal;
Storm sewers, including, but not limited to, piped and unpiped
drainage, treatment, disposal, and flood control systems;
Transportation, including, but not limited to, streets, traffic
signals, sidewalks, bike paths, street lights, street trees, public
transportation, vehicle parking, and bridges; or
Parks and recreation, including, but not limited to, mini-neighborhood
parks, neighborhood parks, community parks, metropolitan parks, and
other recreational facilities.
A public way which abuts.
Undertaking a building or mining operation, or making a change
in the use or appearance of a structure or land, which increases the
usage of any capital improvements or which creates the need for additional
capital improvements.
A fee for public costs associated with capital improvements
to be constructed after the date of December 4, 2000. Notwithstanding
anything in this code to the contrary, it is an incurred charge or
cost based upon the use of or the availability for use of the systems
and capital improvements required to provide services and facilities
necessary to meet the routine obligations of the use and ownership
of property, and to provide for the public health and safety upon
development.
A plan adopted by the council describing the future needs
of the city for each type of capital improvement identified herein.
The existing or previously existing use which, based upon
the current evaluation by the city, is determined to have the largest
impact on an infrastructure system. Uses on each infrastructure system
shall be evaluated and determined separately.
A capital improvement that is:
Required as a condition of development approval;
Identified in the plan adopted pursuant to subsection 3.410(2); and
Not located on or contiguous to a parcel of land that is the
subject of the development approval,
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.
A fee for costs associated with capital improvements constructed
or under construction on December 4, 2000. Notwithstanding anything
in this code to the contrary, it is an incurred charge or cost based
upon the use of or the availability for use of the systems and capital
improvements required to provide services and facilities necessary
to meet the routine obligations of the use and ownership of property,
and to provide for the public health and safety upon development.
A reimbursement fee, an improvement fee or a combination thereof assessed or collected at any of the times specified in section 3.412. It may also include that portion of a sanitary sewer or storm sewer system connection charge that is greater than the amount necessary to reimburse the city for its average cost of inspecting and installing connections with sanitary sewer facilities and storm sewer facilities.
[Section 3.400 amended by Ordinance No. 5969, enacted December 4, 2000; further
amended by Ordinance No. 6264, enacted February
7, 2011]
The purpose of the system development charge is to impose an
equitable share, as defined in the rate-setting methodology of the
public cost of capital improvements upon the activity of development
that create the need for or increase the demands on such capital improvements.
The system development charge imposed by sections 3.400 through 3.420 is separate from and in addition to any applicable tax, assessment, charge, fee in lieu of assessment, or fee otherwise provided by law or imposed as a condition of development. A system development charge is to be considered in the nature of a charge for service rendered, a service hookup charge, or a charge for services to be rendered. It is an incurred charge or cost. See also section 3.406.
(1)
Unless
otherwise exempted by the provisions of this code or other local or
state law, effective July 1, 1991, a system development charge is
hereby imposed upon all new development activity within the city,
and all new development activity outside the city but within the city’s
urban growth boundary, with the exception that the sanitary sewer
system development charge shall not be imposed outside the city limits
until such time as the property is to be connected to the sanitary
sewer system. The SDC is imposed on the activity of developing property
which increases the demand for capital improvements. It is not a tax
on the land or the ownership of land. The developer has the discretion
of setting the level of development and therefore the extent of the
SDC to be paid.
[Section 3.406 amended by Ordinance No. 5969, enacted December 4, 2000]
(1)
The
methodology used to establish a 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 city manager. 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.
(2)
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 shall provide for a
credit against the improvement fee for the construction of any qualified
public improvement.
(4)
Except when authorized in the methodology adopted under subsection (3), the fees required by this code which are 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 are separate from and in addition to the system development charge and shall not be used as a credit against such charge.
(5)
The
methodologies used by the city manager for establishing the system
development charge shall be established by resolution of the city
council and may be adopted and amended concurrent with the establishment
or revision of the system development charge. In setting such fees,
the city manager shall consider the criteria in this section.
(1)
The
revenues received from the system development charges shall be budgeted
and expended as provided by state law.
(2)
The
capital improvement plan required by state law as the basis for expending
system development charge revenues for capital improvements shall
be the Springfield Capital Improvements Plan (CIP), the Springfield
System Development Charge Project List, and the Metropolitan Area
general Plan (Plan) as adopted by the council, or the capital improvement
plan adopted by another governmental body which was used by the city
council in establishing the methodology for the system development
charge provided such capital improvement plan is consistent with the
CIP and the Plan.
(2)
If development
is commenced or connection is made to the water system, sanitary sewer
system, or storm sewer system without an appropriate permit, approval,
or deferred payment agreement, the system development charge is immediately
payable upon the earliest date that a permit was required.
(3)
The city manager shall collect the system development charges from the person responsible for or receiving the benefit of the development. The city manager shall not issue any permit or allow connection described in subsection (1) until the charge has been paid in full or until provision for payment satisfactory to the city has been made.
(4)
The
purchaser of a home or multifamily dwelling may elect to finance system
development charges over a period of 10 years, billed in equal semiannual
installments, plus interest and fees, with the following conditions:
(a)
The
property owner shall sign a promissory note prior to being issued
a permit;
(b)
The
obligation to pay the unpaid systems development charges, and any
interest or fee thereon, shall be secured by a lien on the property
upon which development is to occur. Such liens shall arise upon issuance
of the permit requiring the system development charges and shall be
entered on the city’s lien docket and the debt secured thereby
may be collected in the same manner as allowed by law for street improvement
assessment liens. Such liens shall be superior to all other liens,
and encumbrances whatsoever except as may be otherwise provided by
law;
(c)
The
interest rate, at the time of signing the promissory note, shall be
calculated at the rate of the previous month’s average interest
earned on the city of Springfield’s investments, plus two percent;
(d)
If,
at some future time, the system development charge account balances
are cashed out to a bond, then the interest rate will change to the
rate paid on that bond, plus one and one-half percent;
(e)
There
will be a one-time fee of $50.00 added to the system development charges
to cover administrative expenses of financing the charges;
(f)
If
any system development charge installment has not been paid when due
and remains unpaid at the time the next installment becomes due, then
a late charge penalty of 10 percent of the delinquent installment
shall be added to the assessment;
(g)
The
city may proceed to foreclose as delinquent any such lien after the
same shall have been entered in the lien docket, as provided for foreclosures
of liens in ORS 223.505 or ORS 223.650;
(h)
The
property owner shall waive any and all irregularities or defects,
jurisdictional or otherwise, regarding the calculation, imposition,
lien, and collection of the systems development charges;
(i)
At
the discretion of the city manager, financing may be secured by bond,
deposits, or letter of credit in lieu of full payment or promissory
note.
[Section 3.412 amended by Ordinance No. 5969, enacted December 4, 2000]
The following are exempt from the system development charge imposed in section 3.406:
(1)
Except
for the system development charge attributable to the sanitary sewer
system and the storm sewer system, development which existed on July
1, 1991, or for which a building permit was applied for or issued
before July 1, 1991;
(2)
Alteration,
addition, replacement or change in existing use that does not increase
the use of capital improvements.
[Section 3.414 amended by Ordinance No. 5898, enacted November 2, 1998]
(1)
When development occurs that must pay a systems development charge under section 3.406 of this chapter, the systems development charge for the most intense use documented to have existed since the adoption of the then current infrastructure facilities plan, if any, shall be calculated using the current fee. If such amount is less than the systems development charge for the proposed use, the difference between such calculation and the systems development charge for the proposed use shall be the systems development charge required under section 3.406. If the change in use results in the systems development charge for the proposed use being less than the calculation, no systems development charge shall be required; however, no refund or credit shall be given.
(2)
A credit
shall be given based on the actual dollar cost of a qualified public
improvement associated with a development, as determined by the city
engineer based on a review of documentation establishing the reasonable
and necessary cost of the qualified public improvement. If a qualified
public improvement is wholly not located on or contiguous to the parcel
of land that is subject to development approval, the amount of the
credit shall be the cost of the qualified public improvement. If a
qualified public improvement is located on or wholly contiguous to
the parcel of land, the credit shall be the cost of that portion of
such improvement that exceeds the minimum standard facility size for
capacity needed to serve the particular development project or property.
If a qualified public improvement is located partially on and partially
off the parcel of land that is the subject of the approval, the credit
shall be the sum of the cost of the portion of the improvement not
located on or wholly contiguous to the parcel of land and the cost
of that portion of such improvement located on or wholly contiguous
to the parcel of land that exceeds the minimum standard facility size
or capacity needed to serve the particular development project or
property. The credit provided for by this subsection shall be only
for the improvement fee charged for the type of improvement being
constructed.
(3)
Credits
shall not be transferable for one type of capital improvement to another.
(4)
Credits
shall be used only against an applicable improvement fee and shall
not be redeemable in any other manner.
[Section 3.416 amended by Ordinance No. 5898, enacted November 2, 1998; further
amended by Ordinance No. 6141, enacted September
19, 2005; further amended by Ordinance
No. 6264, enacted February 7, 2011]
(1)
In the event a credit authorized under section 3.416(2) is greater than the amount of the charge due, the city shall upon request of the developer, issue to the developer a certificate, documenting the amount of the credit in excess of the charge.
(2)
Such
certificate may be redeemed by the developer and applied to future
charges for that type of capital improvement, provided such redemption
shall occur not later than 10 years after the date of issuance of
the certificate.
(3)
Any
developer issued a certificate shall pay to the city, at the time
of issuance, and annually thereafter until such certificate is redeemed,
an administrative fee fixed by resolution of the council. Failure
to timely pay such annual fee shall not invalidate a certificate,
but no certificate shall be transferred or redeemed until all annual
fees shall have been paid.
(4)
The
certificate may be redeemed in whole or in parts. If the certificate
is redeemed in part, the city shall, upon delivery of the certificate,
issue a new certificate documenting the remaining credit available.
Such reissued certificate shall expire 10 years after the date of
the original certificate, and shall be considered a new certificate
for purposes of the administrative fee.
(5)
Such
certificate may be transferred, in whole or in part, to another person,
provided, however, that no such transfer shall be effective until
the holder of the certificate shall surrender the same and a new certificate
or certificates issued.
[Section 3.417 added by Ordinance No. 6264, enacted February 7, 2011]
(1)
A person challenging the rate setting methodology or a person challenging the propriety of an expenditure of system development charge revenues may appeal the methodology or the expenditure by filing a written request with the city manager’s office for consideration by the city council. A person aggrieved by any other decision made under sections 3.400 through 3.416 may file an appeal by filing a written request with the city manager’s office for consideration by the city manager. All appeals shall describe with particularity the methodology, decision, or expenditure from which the person appeals and shall comply with subsection (5).
(2)
An appeal
of an expenditure must be filed within two years of the date of the
improper expenditure as alleged by the appellant. An appeal of rate
setting methodology must be filed within 10 days of the adoption or
modification of such methodology by the city council. Appeals to the
city of any other decision must be filed within 10 working days of
the date of the decision.
(4)
An appellant
who fails to file such a statement within the time permitted waives
the objections, and the appeal shall be dismissed.
(5)
Unless
the appellant and the city agree to a longer period, an appeal shall
be heard by the city manager or council within 20 working days of
the receipt of the notice of intent to appeal. At least 10 working
days prior to the hearing, the city shall mail notice of the time
and location thereof to the appellant.
(6)
The
city manager or council shall hear and determine the appeal on the
basis of the appellant’s written statement and any additional
evidence deemed appropriate. At the hearing the appellant may present
testimony and oral argument personally or by counsel. The rules of
evidence as used by courts of law do not apply.
(7)
The
appellant shall carry the burden of proving that the determination
being appealed is incorrect and that the determination alleged by
the appellant is correct.
(8)
On appeals
heard by the city manager, the city manager shall issue a written
decision within 10 working days after the hearing date and the decision
of the city manager shall be appealable to the city council.
(9)
When
the decision of the city manager is appealed to the council, the city
manager shall prepare a written report and recommendation and submit
it to the council within 10 working days of the hearing date for presentation
to the council at its next regular meeting. Further testimony regarding
the appeal may be received by the council only with the consent of
two-thirds of the members of the council. By council resolution the
report and recommendations of the city manager shall be approved,
modified or rejected.
[Section 3.418 amended by Ordinance No. 5969, enacted December 4, 2000]
No person may connect to the sanitary sewer or storm sewer system
of the city unless the appropriate system development charge has been
paid or the payment method has been applied for and approved.
