Item 2E: Resolution Adopting Adjustments to Parks SDC

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and nonresidential categories is related to the effect of the inflationary adjustments on the park bond debt service SDC credit calculation. This is a result of how construction and land costs impact the various projects in the PROS Project Plan; the SDC rate is based on a different mix of construction and land acquisition project costs than the mix of these project costs anticipated to rely on property tax or bond funding which form the basis of the credit. Due to these differences, the gross SDC per unit increases more than the credit. Because the nonresidential SDC has a higher credit against the gross SDC per unit to begin with, it results in the net SDC increasing more for nonresidential than residential. Council Goals/Action Priorities This agenda item relates to two council goals: Sustainable Development; and Fair, Stable and Adequate Financial Resources. Timing The parks SDC rates were last updated in May 2007, reflecting costs and rate factors current as of October 2006. The proposed adjustment to rates based on construction cost inflation for the period of October 2006 through December 2007 provides for timely update of rates. While the Eugene Code and Oregon SDC statutes do not require notice of adoption by resolution of inflationary adjustments based on a cost index, a notice has been provided as a courtesy to interested persons. The notice was published in the Register-Guard on February 8, 2008, and posted, along with the draft resolution and exhibit, at Eugene City Hall and the Public Works Building lobby. This information has also been made available at the City’s web site at www.eugene-or.gov/SDC. The adjusted rates are proposed to go into effect on April 3, 2008. It is anticipated that inflationary adjustments to the local wastewater, stormwater, and transportation SDC rates will be less than five percent and thus will be adjusted by administrative order, also with a proposed effective date of April 3, 2008. RELATED CITY POLICIES The council adopted by resolution Growth Management Policy #14 which provides that development shall be required to pay the full cost of extending infrastructure and services. Chapter 223 of the Oregon Revised Statutes prescribes the rights and responsibilities of local governments in developing and imposing SDCs, providing for adoption of a cost index as an administrative means for adjustments to SDCs. The Eugene Code, Chapter 7, prescribes the process for development, adoption and administration of SDCs, providing for adoption of methodologies related to SDCs consistent with statutory requirements. The council has adopted by resolution the SDC Methodologies which provide for periodic adjustment of Eugene’s SDCs based on adopted cost indices. The methodologies provide that the City Manager may adopt fee changes based on an adopted index by administrative order so long as the fees are not revised by greater than five percent. Per the methodologies, revisions to fees by more than five percent shall be established by resolution of the council. COUNCIL OPTIONS 1. Adopt the resolution providing an inflationary adjustment of parks SDC rates. 2. Take no action on the resolution. 3. Direct the City Manager to prepare other adjustments to SDC rates. F:\CMO\2008 Council Agendas\M080225\S0802252E.doc