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System Development Charges
What is a System Development Charge?
A system development charge (SDC) is a one-time fee imposed on new development to recover the cost of building the infrastructure needed to serve that development. Oregon law allows SDCs for five types of infrastructure: water, wastewater, stormwater, park and recreation and transportation. The City of Prineville currently collects SDCs for water, wastewater, transportation and parks and recreation. The parks and recreation SDC is collected by the city but managed by the Park & Rec. District. The basic concept of an SDC is that “growth pays for growth”. This protects the city’s existing utility customers from subsidizing new development through higher taxes and utility rates.
How are SDCs calculated?
Water, sewer and transportation SDCs are charged on new commercial, industrial, and residential development and also for changes of use that increase the demand on the system. Fees are based on a fee established for one Equivalent Dwelling Unit (EDU). The fee resolution adopted by City Council sets the amount for an EDU based on the projected improvement costs needed to accommodate future growth. These improvements and their costs are found in the City’s adopted Facility Plans.
Water and sewer charges are calculated based on the water meter size with a ¾” meter being the base for an EDU. The transportation SDCs are based on a trip rate from the latest Institute for Transportation Engineers (ITE) Manual, with a multiplying variable such as building square footage. The transportation base rate for an EDU is one charge, which is the equivalent of 1 P.M. Peak Hour trip. The Parks & Recreation SDC is only charged for residential development and based on one charge per EDU. Please note that shell buildings will be charged based upon an estimated use and will be reviewed with each tenant improvement.
