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Chapter 17.14 Financing Systems Development Charges

- Note

(Chapter added by Ordinance No. 145785; amended by Ordinance No. 166334, effective March 17, 1993.)

17.14.010 Purpose.

(Amended by Ordinance No. 183447, effective July 1, 2010.)  The purpose of this Chapter is to authorize financing agreements that provide for payments deferrals and installment payments of City system development charges.  This Chapter fulfills the mandate of Chapter 722 Oregon Laws of 1977 (ORS 223.207 and 223.208) by providing that the rights and duties accorded the City and property owners by the laws relating to assessments and financing of local improvement districts shall also apply to assessments and financing of those charges imposed by the City that are defined by Subsections 1 (a) and (b) of Section 2, Chapter 722 Oregon Laws of 1977 (ORS 223.208 (1) (a) and (b)).

17.14.020 Definitions.

(Amended by Ordinance No. 183447, effective July 1, 2010.)  As used in this Chapter the following terms shall be defined as follows:

A.  “System development charge” means a charge imposed pursuant to Chapters 17.13, 17.15, 17.36 and 21.16 of this Code.

B.  “Owner or property owner” means all persons who appear on the County property tax record for the property subject to the system development charge.

C.   “Responsible Bureau” means the City agency, office, organization, division or bureau which is responsible for calculating and maintaining records regarding system development charges.

17.14.030 Application, Consent to Assessment.

(Amended by Ordinance No. 183447, effective July 1, 2010.)  Any owner of real property subject to a systems development charge may apply to defer the payment of system development charges, or to pay the charge in installments in a manner similar to that provided for local improvement district assessments.  As a condition to such application, the owner shall waive any right to challenge the validity or applicability of the charge and shall consent to the assessment of the property subject to the charge.

17.14.040 Terms and Conditions of Deferred Payment and Installment Payment Agreements.

(Amended by Ordinance Nos. 183447 and 185326, effective July 1, 2012.) 

A.  Deferred Payments.

1.  The City shall authorize the deferred payment of system development charges for periods not to exceed 6 months for projects valued less than or equal to $750,000, 9 months for projects valued greater than $750,000 and less than or equal to $7 million, and 12 months for projects that are valued greater than $7 million.

2.  For purposes of this Section, the City shall rely on the value assigned to projects by the City when calculating building permit fees.

3.  The City shall charge simple interest during the deferral period at the interim interest rate established by ordinance pursuant to Chapter 17.12 of this Code.

4.  The City shall collect fees and charges for the processing and administration of deferred payment agreements as set by general ordinance.

5.  The City shall authorize the deferred payment of system development charges for periods not to exceed 18 months for new single family residential dwellings (detached, duplex, row house, townhouse)  regardless of project value; this option shall include the requirements of Subsections 3. and 4. of this Section and shall be offered on projects for which complete building permit applications and SDC deferral applications in accordance with Section 17.14.030 are received between July 1, 2012 through June 30, 2014.  Development for which a complete building permit application or a SDC deferral application under Section 17.14.030 are received after June 30, 2014 are not eligible for the deferral provided by this Subsection.

B.  Installment Payment Agreements.

Payment of principal and interest shall be made in installments as set forth in the signed installment payment contract.

17.14.050 Assessment.

The City Auditor shall report to the Council from time to time the contracts to pay system development charges pursuant to this Chapter. If the Council finds that the contracts are in order and that subject property has been permitted to connect to City facilities and has thereby benefited, it shall approve the contracts by ordinance direct the billing for the charges upon the land benefited plus a financing fee. The financing fee shall be calculated as set forth in PCC 17.12 Assessments. All such assessments may be combined in one assessment roll and shall be entered upon the Docket of City Liens and collected in the same manner as other local improvement assessments.

17.14.060 Cancellation.

(Amended by Ordinance No. 183447, effective July 1, 2010.) 

A.    Upon written request of the responsible City bureau, the City Auditor is authorized to cancel assessments of system development charges, without further Council action, where the property is not physically connected to the public improvement of where the new development approved by the building permit is not constructed and the building permit is cancelled.  The City Auditor shall establish administrative guidelines and fees or charges relating to the cancellation of assessments.  The City Auditor shall maintain on file for public inspection a current copy administrative guidelines and fees or charges.

B.  For property which has been subject to a cancellation of assessment of system development charges, a new installment payment contract shall be subject to the code provisions applicable to system development charges and installment payment contracts on file on the date the new contract is received by the City.