SDCs are collected from developers and then used to pay for infrastructure facilities City-wide. The methodology establishes fee amounts to be collected from each individual development project to ensure that adequate funds are available to provide the public infrastructure needed in developing areas.
The City's current SDC methodology was generated through a nearly two-year process involving a seven-member committee of interested stakeholders. The committee included 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 performed the analysis needed to complete the methodology. Key features of the current methodology are described below.
Parks SDCs for residential developments are collected based on the number and type of dwelling units. Parks SDCs for non-residential developments are collected based on building square footage and zoning. The current Parks SDC methodology has two main differences than the prior methodology:
- This methodology collects Parks
SDCs from both residential and non-residential development, where the prior methodology collected
SDCs from residential developments only. This approach accounts for park use of employees in non-residential areas, not just Salem residents.
- This methodology authorizes new parks to be funded entirely with
SDCs, where the prior methodology generally required that other funds be used over and above SDCs when developing park land. This approach will follow in more parks being developed because grants or other funding are not needed to augment
The current Transportation
SDC methodology has two main differences than the prior methodology:
- The basis for calculating SDCs has changed to ensure that developers are funding transportation projects at levels commensurate with current users. The methodology establishes SDC amounts based on the level of funding being expended for major transportation projects by current users, which is approximately double the rate of the prior SDCs. This approach provides a more equitable basis to ensure consistency among all sources of transportation revenues.
- This methodology authorizes most new transportation projects to be funded entirely with
SDCs, where the prior methodology generally required that other funds be used over and above
SDCs when constructing street improvements. This approach will for greater flexibility in how transportation projects are funded.
This methodology collects an additional
SDC for existing capacity in 8-inch pipes that was previously collected through a connection fee pursuant to Salem Revised Code (SRC) Chapter 21. This approach eliminates a disincentive to infill development that had occurred under
SRC Chapter 21, by distributing costs to all development rather than a limited number of infill projects.
Two common types of area-based fees are used in conjunction with development projects: (1) temporary access fees are authorized pursuant to
SRC 200.080; and (2) reimbursement district fees are authorized pursuant to
SRC 200.350. These area-based fees are generally collected over and above
SDCs. As a result, not all growth costs are attributed to
SDCs in order to prevent duplication of funds from area-based fees.
In general, water/wastewater
SDCs do not directly affect water/wastewater utility rates. However, a number of infrastructure projects are dual-funded by both utility rates and
SDCs because the projects benefit both existing and future users. These dual-funded projects can provide a substantial cost savings for each fund in comparison to the cost of projects with only one fund source.
The Stormwater SDC methodology is based on the Stormwater Master Plan adopted in year 2000. City Council adopted a new Stormwater Master Plan in year 2020 after adoption of the SDC methodology. At an unspecified future date, City staff anticipates that the SDC methodology will be modified to include projects identified in the updated Stormwater Master Plan.
Fairview Development District
On June 13, 2005, the City Council adopted an order approving the establishment of the Fairview Development District encompassing approximately 275 acres of property between Pringle Road SE, Battle Creek Road SE, Reed Road SE, and Strong Road SE. Development projects within the Fairview Development District are required to pay Development District Fees (DDFs) in lieu of SDCs. The District process includes publication of a Project List to determine which improvements are eligible for funding by DDFs. The current list of approved projects is available through the link below.