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SDC Report
System Development Charges (SDCs) are one time fees charged to new development to help pay a portion of the costs associated with building capital facilities to meet growth related needs. SDCs are a key issue for the development community. While the community understands the need for mechanisms to provide funding for the expansion and improvement of infrastructure, questions arise when the fees increase, without a comprehensive review of the cost of fees and charges in aggregate.
DRAC established a subcommittee in 2008 to examine SDCs in the City of Portland and develop recommendations that would foster transparency, streamline process, provide technical assistance, and encourage the market through incentives. The Subcommittee, comprised of 3 DRAC members, was charged with the following:
- Determine who annually reviews all development related fees and charges (SDCs);
- Identify how SDC revenues support City of Portland goals and initiatives;
- Examine how SDC revenues are spent:
- A) Identify who reviews where SDC revenues are spent City wide, and
- B) Identify who decides on SDC allocations city wide.
The Subcommittee met over a period of 11 months with City staff from each of the bureaus that assess SDCs, and also the Public Utility Review Board (PURB). During the year, the DRAC SDC Subcommittee developed questions to guide its review, noted key findings, identified and prioritized recommendations for actions, and presented them to the full DRAC for approval. The findings and recommendations of the SDC Review Subcommittee of the DRAC are embodied in the
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