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System Development Charges
What is a System Development Charge (SDC)?
SDCs are a one-time fee imposed on new development and some types of redevelopment. The fee is intended to recover a fair share of the costs of existing and planned future improvements to the water, sewer, storm drainage, street and park systems that provide capacity to serve new growth. Oregon law (ORS 223.297 – 223.314) defines SDCs and specifies how they shall be calculated, applied and accounted for by local government.
When is a System Development Charge (SDC) Due?
SDCs are determined by the Building Division during the plan review process and are due when a development permit or building permit is issued, or at the time of connection to a public system.
Background
The City of Lebanon has had System Development Charges (SDCs) in place since 1976. As part of the most recent update, adopted by City Council in December 2008, the City evaluated the basis for its SDCs and tested the adequacy and equity of the existing fee structures. The program review used the expertise of professional consultants, as well as the assistance of a citizen's advisory committee to bring the City's SDC fee structure up to date and ensure that the new charges are adequate for planned future development and in compliance with state laws.
City Council adopted new charges for transportation in September 2021. SDCs for transportation will be phased in over a two years. City Council also adopted a three tier system for single family residential development.
Questions regarding SDCs and how they are applied to a specific site or construction project should be directed to the Tammy Dickey at 541-258-4257 or at tammy.dickey@lebanonoregon.gov
