The City of Salem is proposing revisions to the System Development Charge methodologies for Parks, Transportation, Water, Wastewater, and Stormwater.
What are Systems Development Charges?
Systems Development Charges (SDCs) are a financing mechanism for funding of Parks, Transportation, Water, Wastewater, and Stormwater systems that are needed to serve new developments. SDCs are collected from developers at the time of building permit issuance based on the relative impacts of each project and are used to pay for construction of new public infrastructure.
What is a Systems Development Charge methodology?
An SDC methodology determines the relative impacts of each project so that SDCs are collected equitably for all development projects. The methodology is summarized by the equation below:
Growth Costs / Growth Units = Cost per Unit of Growth
Why did I receive a notice of public hearing?
State law has a specific provision related to SDC methodologies that requires a public hearing notice to be sent at least 90 days prior to the hearing. The notice has been sent to individuals who have requested to be notified about SDC methodology adoption, administrative rule promulgation, or land use procedures.
What can I expect to happen next?
By the end of December of this year, the proposed SDC methodology will be posted to the City website and available for public review. Additional information will be posted at that time to explain the methodology in more detail. The public hearing is scheduled to take place during the City Council meeting on February 25, 2019.
What work has been done on the methodology already?
For a year and a half, a seven-member committee of interested stakeholders has been meeting to direct creation of the methodology. The committee includes two City councilors, a member of the Planning Commission, a member of the Salem Parks and Recreation Advisory Board, and three other citizen stakeholders. A team of City staff and consultants is performing the analysis needed to complete the methodology.