System Development Charges
The Corvallis City Council has established system development charges (SDCs) for water, wastewater, stormwater, transportation, and park facilities.
- Background
- What is a System Development Charge?
- SDC Methodologies
- Current SDC Rates
- Estimating and Paying SDC Fees
- Contact for More Information
- Other SDC Information
Background
System Development Charges (SDCs) are an important funding source for public utility, transportation, and park infrastructure. The City of Corvallis has had SDCs in place since 1973. Oregon Revised Statutes (ORS) 223.297 - 223.314 defines SDCs and specifies how they shall be calculated, applied, and accounted for by local government. The City of Corvallis collects SDCs for:
What is a System Development Charge?
An SDC is a charge applied to new development to help offset the impacts to public facilities. The City must invest in public infrastructure in order to support new development and growth within the community. SDC fees are intended to recover a fair share of the costs of existing and planned infrastructure that provides additional capacity to serve new growth.
SDCs are typically charged when development, redevelopment, or an intensification of use results in:
- The creation of an additional dwelling unit
- An increase in calculated transportation related trips
- An increase in the number of plumbing fixtures
- An increase in floor space
- An increase in impervious surface area
- New connection(s) to City utilities
An SDC may include a reimbursement fee, an improvement fee, or a combination of the two.
Reimbursement Fee
The reimbursement fee is based on the value of available capacity associated with capital improvements already constructed or under construction. The methodology used to calculate the reimbursement fee must consider the cost of existing facilities, prior contributions by existing users, the value of unused capacity, grants, and other relevant factors. The objective of the reimbursement fee methodology is to require new users to contribute an equitable share of the capital costs of existing facilities.
Improvement Fee
The improvement fee is designed to recover the costs of planned capital improvements that add system capacity to serve future users. An increase in system capacity may be established if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of the capital project funded by improvement fees must be related to the need for increased capacity for future users.
SDC Methodologies
Methodologies for establishing SDCs will vary among transportation, utility, and park SDC fees. In general, an SDC methodology identifies the value of extra capacity in existing and planned facilities and distributes it to projected growth using a reasonable metric. SDC methodologies identify the maximum allowable SDC fee that a community can legally charge. That does not mean a community must charge that amount and establishing the actual rates to be charged is a separate City Council decision.
SDC methodologies are reviewed and revised periodically, typically following an update to a City infrastructure master plan. Below are links to all Corvallis SDC methodologies. While the previous practice was for the City Council to adopt SDC methodologies into the Corvallis Municipal Code, the current practice adopts updated methodologies by Council resolution, typically including significantly more detail than provided by the older ordinances. As a result, the links below for the recently adopted Water and Parks SDC will connect you with a resolution and methodology report, while the Transportation, Stormwater, and Wastewater SDC methodologies are as defined in Corvallis Municipal Code Chapter 2.08.
An update to the Transportation SDC methodology is currently in progress. Click here for more information. The Wastewater and Stormwater SDC methodologies will also be updated in upcoming years as their associated master plans are updated.
Click on the links below for more information on individual SDCs including methodologies and lists of capital projects eligible for SDC funding.
Transportation SDC Methodology / Project List
Stormwater SDC Methodology / Project List
Wastewater SDC Methodology / Project List
Water SDC Methodology / Project List
Parks SDC Methodology / Project List
Current SDC Rates
Transportation and utility SDC rates are adjusted annually for inflation using the Engineering News Record (ENR) Construction Cost Index (CCI) for Seattle. The Parks SDC also uses the ENR CCI for Seattle but does so in conjunction with the change in Benton County real property values to determine an annual adjustment. The revised rates are adopted by resolution of the City Council. Visit the methodology links above for more information on the annual adjustment. Click on the link below to review current SDC rates.
Current Resolution Establishing SDC Rates
Estimating & Paying SDC Fees
It is common practice for SDC charges to be determined during the plan review process, with payment required prior to permit issuance. Click on the link below for a System Development Charge Worksheet that should accompany building or plumbing permit applications.
Clicking on the "SDC Fee Calculator" link below will give you the opportunity to download a Microsoft Excel spreadsheet, from which you can generate a customized SDC fee estimate by entering project data. You must have Excel available on your computer to be able to use the fee calculator. Once the spreadsheet is open, please follow the instructions on the "Directions" tab. Please contact Development Services (541-766-6929) if you have questions about the worksheet or fee calculator.
System Development Charge Worksheet
Contact for More Information
Questions regarding how SDCs will be applied to a specific site or development project should be directed to the Development Services Division at 541-766-6929.
General questions regarding the Transportation, Stormwater, Water, and Wastewater SDC programs should be directed to the Public Works Assistant Director at 541-766-6916 or public.works@corvallisoregon.gov.
General questions regarding the Parks SDC program should be directed to the Parks and Recreation Park Planner at 541-766-6918 or PRreception@corvallisoregon.gov.
Other SDC Information
SDC Annual Accounting Report – FY 23-24
