System Development Charges (SDCs)

SDCs

What are System Development Charges?

System Development Charges (SDCs) in Oregon are fees imposed on new development to fund the expansion or upgrading of public infrastructure systems.  These systems include water, sewer, stormwater, transportation, and parks.  The purpose of SDCs is to ensure that new development contributes to the cost of providing infrastructure capacity needed to serve that development, rather than burdening existing residents or ratepayers with those costs.

Oregon law requires that SDCs be based on a methodology that is “reasonable and proportionate” to the impact of the new development on public facilities.  Each local government is responsible for establishing and collecting SDCs.  The amount charged varies depending on factors like the type of development (e.g., residential, commercial, industrial) and the specific infrastructure needs of the system.  Millersburg’s methodology reports can be found at the links below.

Developers can appeal SDCs or request adjustments if they believe the charges are not proportionate to the project’s actual impacts. 

SDC revenue is generally restricted for specific infrastructure improvements and cannot be used for maintenance or operational costs. 

What are Millersburg’s current SDC fees?

Millersburg has five different types of SDCs, which are listed below.  The fiscal year 2024-2025 SDCs for a new single-family home are:

  • Water:  $3,926
  • Sewer:  $5,551
  • Stormwater:  $787
  • Transportation:  $7,609
  • Parks:  $4,325

 

Total:  $22,198

SDC fees for multifamily, commercial, and industrial projects are based on factors like number of units, square feet of buildings, water meter size, etc.  The full SDC fee schedule can be found at the link below.

When are they due?

SDCs are due prior to the issuance of building permits.