Item 3C: Approval of Parks SDC Cost Adjustment

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costs. Use of applicable adjustment factors from the published 2010 Certified Ratio Study reflects an average 10 percent decrease in costs of Eugene-area vacant residential and recreational land over a prior 12-month adjustment period. The published Certified Ratio Study reflects the previous calendar year’s sales data, in this case sales in calendar year 2009. The combined effect of applying these two indices to the parks SDC is that rates for residential development types decrease by approximately 4.5 percent while rates for nonresidential development types decrease approximately 7.2 percent. The difference in parks SDC rate adjustments between residential and nonresidential categories is related to the different effect of the inflationary adjustments on the park bond and property tax SDC credit calculation versus the gross (pre-credit) SDC calculation. The overall effect of the proposed rate adjustments, in conjunction with the inflationary cost adjustments (+3.5 percent) for the local wastewater, stormwater, and transportation systems adopted via Administrative Order 58-11-01-F (also effective June 1), is an approximate one percent decrease in total SDCs for a typical new single-family residence, from a current total of $8,961 to a proposed total of $8,873. Nonresidential development types would typically experience slight increases in total SDCs, typically ranging from approximately one percent to two percent over current totals. Council Goals/Action Priorities This agenda item relates to one of the council’s goals: Fair, Stable and Adequate Financial Resources. Timing Local SDC rates were last updated in April 2010, reflecting ENR CCI adjustments through December 2009 and LCA&T Sales Ratio data through December 2008. The proposed adjustments to rates based on the ENR CCI through December 2010, and LCA&T Sales Ratio data through December 2009, provides for timely updates 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 April 22, 2011, and posted, along with the draft resolution and exhibit, at Eugene City Hall and the Public Works Engineering lobby. This information has also been made available at the City’s website at www.eugene-or.gov/SDC. The adjusted rates are proposed to go into effect on June 1, 2011. RELATED CITY POLICIES The council has adopted by resolution Growth Management Policy #14 which provides that development shall be required to pay the full cost of extending infrastructure and services. The Eugene Code, Chapter 7, prescribes the process for development, adoption and administration of SDCs, providing for adoption of methodologies related to SDCs. 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. \\Cesrv500\cc support\CMO\2011 Council Agendas\M110509\S1105093C.doc