HomeMy WebLinkAboutAdmin Order 58-25-05-F -- SDC Infl. Adj. (FY26)ADMINISTRATIVE ORDER NO. 58-25-05-F
of the
City Manager of the City of Eugene
INFLATIONARY ADJUSTMENTS TO SYSTEMS DEVELOPMENT
CHARGES FOR TRANSPORTATION SYSTEM, LOCAL WAS TEW ATER
SYSTEM, REGIONAL WASTEWATER SYSTEM, STORMWATER
SYSTEM, AND PARKS AND RECREATION SYSTEM.
The City Manager of the City of Eugene finds as follows:
A.Section 2.020 of the Eugene Code, 1971 (EC), authorizes the City Manager of the
City of Eugene to determine and set fees and charges to be imposed by the City for services, goods,
use of municipal property, and licenses and permits. EC 7.710(5) and Section 2.4 of the Systems
Development Charge (SDC) Methodologies authorize the City Manager to adopt, by administrative
order pursuant to EC 2.020, a change in the amount of a reimbursement fee or an improvement fee
if the change in amount is based on: ( 1) the periodic application of an adopted specific cost index
(inflationary adjustment); or (2) a modification to any of the factors related to rate that are
incorporated in the established methodologies, so long as the fees are not increased by more than
five percent within any 12-month period.
B.Transportation, Local Wastewater, Regional Wastewater, Stormwater, and Parks
and Recreation System SDCs have been established most recently by Administrative Order No.
58-24-09-F, effective July 1, 2024.
C.Section 2.4 of the City of Eugene SDC Methodology provides for periodic
inflationary adjustments to the SDC rates for the Transportation, Local Wastewater, Regional
Wastewater, Stormwater, and Parks and Recreation systems by applying the Engineering News
Record 20-City National Average Construction Cost Index (CCI) values from March 2024 to
March 2025. For the purposes of land acquisition costs in the calculation of the Parks and
Recreation SDC rate adjustment, the City uses the Lane County Assessor's Office Certified Ratio
Study.
D.The inflationary adjustments of SDC rates are based on the CCI change from March
2024 to March 2025, resulting in a proposed increase of 1.85%. The Lane County Assessor's
Office Certified Ratio Study reported 20.37% median movement of real market land values in the
City of Eugene's taxing districts between calendar years 2023 (January 1, 2023, to January 1,
2024) and 2024 (January 1, 2024, to January 1, 2025). Standard practice to determine the
inflationary adjustment to the Parks and Recreation SDC rates combines these adjustment values
in a weighted average methodology, which would result in a Parks and Recreation SDC rate
increase of 9.34%. However, the SDC rate increase for the Parks and Recreation system
implemented by this Administrative Order is only 5.00%, in alignment with City policies and goals
to minimize financial burdens on development.
E.Pursuant to Sections 2.020 and 7.710(5) of the Eugene Code, 1971, to Section 2.4
of the SDC Methodology, and to the recommendation of the Metropolitan Wastewater
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