Systems Development Charges
What is a System Development Charge?
SDCs are fee scheduled charges applied to new development to help offset the impact of development, redevelopment or an intensification of use. The fee is intended to recover a fair share of the costs of existing and planned infrastructure that provide capacity to serve new growth.
SDCs may be charged when:
- There is a change of use in an existing development
- Additional dwelling unit is created
- Increase of floor space or living area
- Addition of impervious surface coverage
There are two types of SDCs fees:
- Reimbursement fee
- Improvement fee
Reimbursement Fee - Is the portion of the specific system SDC charged to recoup the communities investment in extra capacity in anticipation of future growth. The reimbursement fee shall promote the objective that the future system user contribute no more than an equitable share to the cost of reserve capacity in the existing facilities.
Improvement Fee - Is the portion of the system-specific SDC charged to cover an equitable share of the capital improvements required to increase capacity of the system to accommodate new development and to protect the health, safety and well being of the community
Adopted SDC Fee Schedule
Adopted SDC Fee Schedule: Current Rates PDF
of capacity in
|+ Eligible cost of planned
Basis for SDC Charge
SDCs have been collected by the City of Eugene since 1978. They are presently collected on new development in the city and are used to fund that portion of the construction of infrastructure required to support new developments. These SDCs help the city provide increased capacity needs and recoup a portion of the community’s investment in specific infrastructure reserve capacity that is already in place.
SDCs are collected for the following systems:
- Wastewater (local and regional)
SDC charges are determined by Public Works Engineering Technicians at the Permit and Information Center during the plan review process and are due at the time of permit issuance. Questions regarding SDCs applied to a specific site or construction should be directed to Public Works Engineering Technicians
SDC News & Other Items of Interest
FY 22 Inflationary Adjustments
EC 7.710(5) and Section 2.4 of the Systems Development Charge (SDC) Methodologies authorize the City Manager to adopt by administrative order pursuant to EC 2.020, a change in the amount of a reimbursement fee or an improvement fee if the change in amount is based on:
(1) The periodic application of an adopted specific cost index (inflationary adjustment); or
(2) A modification to any of the factors related to rates that are incorporated in the established methodologies, so long as the fees are not increased by more than five percent within any 12-month period.
There are five SDC rates that were part of this review: Local Wastewater (LWSDC), Park (PSDC), Stormwater (SWSDC), Transportation (TSDC) and Regional Wastewater (MWMC).
Inflationary Adjustment Review
Eugene utilizes the 20-city national average Construction Cost Index (CCI), as published by Engineering News Record (ENR) when tracking and preparing periodic cost index adjustments. The CCI are widely used in the construction industry to track changes in the cost of wages and material prices. The City uses CCI to adjust SDC rates to keep our funding sources current with the cost of construction when expanding capacity in the different SDC systems. The average rate increase during the 12-month period, dating from March 2020 to April 2021.
The CCI rate increase is 2.01 %.
The City uses the Lane County Assessment and Taxation office’s Sales Ratio Report as a cost index to measure changes to the acquisition cost component of proposed park land acquisitions. The City experienced a change to real property values between 2019 and 2020. The Sales Ratio Report’s Market Land Values Change From 2019 to 2020 summary, provided by the Lane County Assessment and Taxation office, indicated that land value has increased by 7.52%. This rate is combined with the CCI rate to determine the inflationary adjustment to the Parks SDC.
The rate increase for Parks SDC is 2.46%
The Metropolitan Wastewater Management Commission (MWMC) requests the adjustment of regional wastewater SDC rates ranging from +1.62% to +1.958% depending upon assigned strength categories.
The proposed AO can be found by clicking below -
Comments on the proposed amendments may be submitted in writing to the City Engineer, Public Works Department, 99 East Broadway, Suite 400, Eugene, Oregon 97401, or via email to email@example.com
To be considered, written and email comments must be received within 15 days from the date of publication and posting as indicated below. If the City Manager chooses to take action after considering the comments received, the proposed or modified fees will be adopted by administrative order.
Date of Publication : Tuesday, June 8, 2021
Date of Posting: Tuesday, June 8, 2021