The City of Oregon City undertook an update of its transportation system development charge (TSDC). A system development charge is a one-time fee imposed on new development at the time of development. The charge is intended to recover a fair share of the cost of system capacity needed to serve growth. System development charges provide a means for “growth to pay for growth”.

ORS 223.297 – 223.314 provides “a uniform framework for the imposition of system development charges by governmental units” and establishes “that the charges may be used only for capital improvements.” An SDC can be constructed to include one or both of the following components: (1) a reimbursement fee, intended to recover an equitable share of the cost of facilities already constructed or under construction and (2) an improvement fee, intended to recover a fair share of future, planned, capital improvements needed to increase the capacity of the system.

The City last updated its TSDC methodology in 1997, and has increased it annually to keep pace with inflation. However, these inflationary increases have not kept up with the cost of infrastructure improvements. With this effort, the City aimed to bring current its charges and “determine, using industry standard analyses, a fair and equitable TSDC methodology.”

To meet this objective, the City took the following general approach:

• Policy Framework. City staff and its consultant met with the Oregon City Transportation Advisory Committee (TAC) several times to develop a set of recommendations on key TSDC policy issues. These recommendations have provided guidance for the technical analysis. The Committee will provide input for the Commission to consider in its decision on adoption.
• Technical Analysis. The technical analysis included several tasks, including the creation of a comprehensive SDC project list using the 2001 Transportation System Plan, and the Beavercreek Road and Park Place Concept Plans. The list was carefully examined to determine the portion of each project that will add system capacity to serve growth. Only those costs are includable in the SDC improvement fee calculation. The charge was then calculated to incorporate both the data received and the agreed-upon policy guidance from the previous task.
• Documentation. The law requires that a methodology report be provided, describing the recommended policies and resulting charges. As per that statute, the methodology will be made available for review at least sixty days in advance of the first public hearing to consider the TSDC.
• Public Process. The project team will meet with the City Commission and with other interested parties, including members of the development community, to explain and discuss the findings and obtain input.

The Final Report for Transportation System Development Charge Study is now available on line. The resolution and staff report are also available on line. Any further questions/comments can be addressed to Nancy Kraushaar, City Engineer/Public Works Director at nkraushaar@ci.oregon-city.or.us or by phone at 503-496-1545.