Testimony in Support of Authorization of Additional SDC Charges

System Development Charges (SDCs) are Oregon's method of financing city and state services when new development occurs. But many studies show that the SDCs currently being charged by most towns do not even come close to paying for the real cost of new development.

Currently, towns are allowed by state law, through ORS 223.297, et. seq., to recover costs from new development in only five categories of SDCs. These categories are: water system facilities, stormwater drainage, sanitary sewerage, transportation facilities and parks and recreation facilities.

State law does not allow towns to collect SDCs for: schools, libraries, police facilities, fire protection facilities and general government facilities.

Not only does state law currently exclude a number of key SDC categories, it causes inequity by utilizing broad-based taxes paid by all residents of a community to fund facilities and infrastructure that are primarily  of benefit to new development.

This current law forces local communities to increase their own debt burdens, and to increase the tax burden on existing residents. I believe that local communities should have the right and the ability to charge new development for its full and true cost, inclusive of all the SDC categories mentioned above as determined by each individual community.

Given these facts, I would like to request that the city council to pass a resolution urging the state to amend ORS 223.297, et. seq. to add police, fire, library, school and general government facilities to the list of capital improvements for which local jurisdictions may collect impact fees and system development charges.

Thank you for your consideration of my request.