[ Council Communication ]  [ Draft Resolution ]  [ ORS 223.297-314 ]  [ SDCs Q & A ]

Memo

TO: Mayor and City Council
FROM: Greg Scoles, City Administrator
DATE: August 1, 2002
RE: Other Business from the Council. Police, Fire, Libraries and School SDCs.

Councilor Hartzell requested that I forward the attached information for council consideration prior to her raising this issue under Business from the Council at the next council meeting.

The attached draft resolution would recommend that police, fire, library and school facilities be added to ORS 223.299(1 ), so that system development charges can be collected for them.

I have also included a copy of the letter from Oregon Communities for a Voice in Annexations that transmitted the draft resolution, a copy of ORS 223.297-223.314 (System Development Charges) and a Question & Answer Fact Sheet for System Development Charges from the League of Oregon Cities.

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FOR THE PURPOSE OF URGING AMENDMENT OF ORS 223.297, ET SEQ. RELATING TO IMPACT FEES AND SYSTEM DEVELOPMENT CHARGES TO INCLUDE FACILITIES FOR POLICE, FIRE, LIBRARIES AND SCHOOLS

RESOLUTION NO. 02-

WHEREAS, Growth can create significant fiscal impacts on the citizens and governments of our community; and

WHEREAS, the purpose of ORS 223.297 to ORS 223.314, the system development charges statutes, serve to provide a uniform framework for establishing SDCs by local governments; and

WHEREAS, ORS 223.299(1 )a. currently excludes for police, fire, libraries, and schools from the list of urban capital improvements for which local jurisdictions may collect impact fees or system development charges; and

WHEREAS, Prohibiting communities from being able to collect the full costs of providing for police, fire, library and school facilities is a tax on existing residents; and

WHEREAS, Inequity can occur when broad-based taxes paid by all residents of a community are used to fund facilities and services that primarily benefit new development; and

WHEREAS, Subsidy of new development can distort the balance of supply and demand and cause overproduction or overbuilding; and

WHEREAS, Providing a free market without government subsidies that mask the true costs of population growth can help to establish a carrying capacity process for our community and region; now, therefore,

BE IT RESOLVED

That ORS 223.299(1) should be amended to add police, fire, library, and school facilities to the list of capital improvements for which local jurisdictions may collect impact fees and system development charges.

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