Admin Order 58-11-01-F - Laserfiche WebLink

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increases in the number of users of the system infrastructure. Those few increases of users probably would not offset the decreases in the system usage from other properties that are vacant and that are underutilized. The increase in SDCs isn't warranted or advisable in this economic climate. Response: Per the most recent (2009) Annual Population Report published by Portland State University's Population Research Center, the average population growth rate in Oregon between 2000 and 2009 is 1.2 %. Eugene's growth rate over that time period is 13.9 %. while the Report acknowledges that Oregon's growth rates have tended to be lower during a recessive economy, migratory inflows have continued to be positive over the previous decade in spite of high Oregon unemployment rates. Oregon's (and Eugene's) public infrastructure is certainly being used by an increasing population. SDCs are an important funding component of planned public infrastructure projects that fully, or in part, will provide capacity for new growth anticipated in this community over a' multi -year planning period to "build -out" of the current Eugene Urban Growth Boundary. Staff and contracted expert consultants strive, to every extent possible, to develop system methodologies with cost bases founded upon technical merit that includes consideration of population growth and future infrastructure needs over a planning horizon much longer than one of, say, five years. This develops a rate based upon a growth trend over a long period of time as opposed to one that reflects spikes up and down over shorter time periods and which reflect more acutely the effects of global recession upon the local economy. while there have been instances recently of final construction costs coming in lower than initial project estimates, this again simply reflects a relatively small cause /effect within a much larger window of consideration. The effective date of this administrative order has been delayed to June 1, 2011. This June 1, 2011, effective date will correspond with the effective date of the reduction to parks SDC rates that City staff will be proposing to the City Council. If Council adopts the proposed park SDC rates reduction, that rate adjustment together with this administrative order's 3.5% rate increase will result in an overall reduction in the amount of SDCs currently collected for the average single - family home._ Specifically, if the Council approves City staff s recommendation to reduce the parks SDC with the June 1, 2011 effective date, the total SDCs collected for an average single - family home will be approximately -0.98% or - $88.15 less than is currently collected in SDCs. No changes are being made to the SDC rates as a result of this comment. Comment 7 : Mark Lawrence is opposed to the proposed increases and feels that now is not the right time for such increases because it will only help further suppress the home building and construction industry by making housing even less affordable than it already is in the City of Eugene. He states that the developers, builders and contractors can no longer afford to absorb these costs without passing them along to their clients. Such an increase at this time is only counterproductive and will only help in drying up what little construction activity there is in Eugene. Administrative order - Page 6 of 8