System Development Charges (SDCs) are known as impact fees and provide revenue to utilities from development to recover costs of system capacity needed to serve the development. These are one-time fees imposed at the time of development, ensuring that "growth pays for growth."
The City periodically modifies its system development charge (SDC) methodology to reflect the cost of projected capital improvements needed to increase the capacity of the system, to which the fee is related, in order to accommodate new development. While the City has implemented annual increases to reflect inflation, it completed a modification of the methodology in 2004 and most recently in 2021 (see supporting documents).
Oregon City is one of the fastest-growing cities in the Portland Metro area. Major infrastructure improvements are needed over the next 20 years to accommodate projected growth. The modified methodology from 2004 to 2021 reflects financing of those major improvements by development to support the growth.
March 4, 2021 Update
City Commission adopted an updated Water System Development Charge as identified in Resolution No. 21-14 (see supporting documents). Based on the water connection size, a weighting factor was applied per equivalent residential unit (ERU). The amount charged per ERU is an established rate whether the use is residential or non-residential.