HomeMy WebLinkAbout2791 System Development ChargesORDINANCE NO. ~7c~//
AN ORDINANCE AMENDING CHAPTER 4.20 OF THE ASHLAND
MUNICIPAL CODE RELATING TO SYSTEM DEVELOPMENT
CHARGES
THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:
SECTION 1.. Section 4.20.010.D is amended to read:
Qualified Public Improvements. A capital improvement that is required as a condition
of development approval; and is identified in the plan adopted pursuant to section
4.20.060.B. However, it does not include improvements sized or established to meet
only the demands created by a development.
SECTION 2. Section 4.20.040.B is amended to read:
Systems development charges for each type of capital improvement may be created
through application of the methodologies described in Section 4.20.050 of this code.
The amounts of each system development charge shall be adopted initially by Council
resolution following a public hearing. Changes in the amounts shall also be adopted
by resolution following a public hearing, except changes resulting solely from
inflationary cost impacts. Inflationary cost impacts shall be measured and calculated
annually by the City Administrator and charged accordingly. Such calculations will
be based upon changes in the Engineering News Record Construction Index (ENR
Index) for Seattle, Washington.
SECTION 3. Section 4.20.060 of the Ashland Municipal Code is amended to read:
4.20.060 Compliance with State Law.
A. The revenues received from the systems development charges shall be
budgeted and expended as provided by state law. Such revenues and expenditures
shall be accounted for as required by state law. Their reporting shall be included in
the City's Comprehensive Armual Financial Report required by ORS Chapter 294.
Reimbursement Fees shall be spent on capital improvements associated with the
systems for which the fees are assessed. Improvement fees shall be spent only on
capacity increasing improvements. The portion of such improvements funded by
improvement SDCs must be related to current or projected development.
B. The capital improvement plan required by state law as the basis for
expending the public improvement charge component of systems development charge
revenues shall be the Ashland Capital Improvements Plan (CIP) or public facility plan
and the CIP of any other governmental entity with which the City has a cooperative
agreement for the financing of commonly-used public improvements by the collection
of systems development charges, provided the plan is based on methodologies
conforming with State Law and is consistent with the City's CIP and the City's
Comprehensive Plan.
SECTION 4. Section 4.20.070.D of the Ashland Municipal Code is deleted.
SECTION 5. Section 4.20.070.E of the Ashland Municipal Code is amended to read:
D. An owner of property obligated to pay a system development charge may
apply to pay the charge in semi-annual installments over a period not exceeding five
years as provided in this section.
1. The minimum charge subject to payment by installments shall be
$1,200 and the minimum semi-annual installment shall be $600. Installments shall
include interest on the unpaid balance at a rate equal to three percent per annum
above the prime rate of interest quoted by the Wall Street Journal as of January 2 of
the year in which the charge is imposed.
2. The installment application shall state that the applicant waives all
irregularities or defects, jurisdictional or otherwise, in the proceedings to cause the
system development charge.
3. The application shall also contain a statement, by lots or blocks, or
other convenient description of the property meeting the requirements of ORS 93.600,
subject to the charge.
4. A systems development charge subject to installment payments shall
be chargeable as a lien upon the property subject to the charge. Pursuant to ORS
93.643(2)(c), the city recorder shall record notice of the installment payment contract
with the Jackson County Clerk. The applicant shall pay the recording charges.
SECTION 6. Section 4.20.070.F of the Ashland Municipal Code is deleted.
SECTION 7. Section 4.20.080 of the Ashland Municipal Code is amended to read:
4.20.080 Exemptions. The conditions under which all or part of the systems
development charges imposed in Section 4.20.040 may be waived are as follows:
A. If the development occurred prior to July 1, 1991 the transportation, parks,
and storm drainage portions shall be assessed in full, and a credit shall be given for
the amount of water and wastewater charges previously paid, which shall be applied
to the system development charges owed hereunder. After July 1, 2001 this credit will
expire in accordance with state law.
B. Housing for low-income or elderly persons which is exempt from real
property taxes under state law.
SECTION 8. Section 4.20.085 of the Ashland Municipal Code is amended to read:
4.20.085 Deferrals for Affordable Housing.
A. The systems development charge for the development of qualified
affordable housing under the City's affordable housing laws, shall be deferred until
the transfer of ownership to an ineligible buyer occurs. Deferred systems development
charges shall be secured by a second mortgage acceptable to the City, bearing interest
at not less than five percent per annum. Accrued interest and principal shall be due on
sale to an ineligible buyer.
B. The systems development charge and second mortgage for the development
of qualified affordable housing shall terminate 20 years after the issuance of a
certificate of occupancy if the housing unit(s) have continued to meet the affordable
housing requirements during the 20 year period. (Ord. 2670, 1992)
SECTION 9. Sections 4.20.090.B and C of the Ashland Municipal Code are amended to
read as set forth below. Section 4.20.090.E is deleted.
B. The limitations on the use of credits contained in this Subsection shall not
apply when credits are otherwise given under Section 4.20.090. A credit shall be
given for the cost of a qualified public improvement associated with a development. If
a qualified public improvement is located partially on and partially off the parcel of
land that is the subject of the approval, the credit shall be given only for the cost of
the portion of the improvement not attributable wholly to the development. The credit
provided for by this Subsection shall be only for the public improvement charge
charged for the type of improvement being constructed and shall not exceed the public
improvement charge even if the cost of the capital improvement exceeds the
applicable public improvement charge. Credits paid as a permit for development will
expire five years after paid. The credit shall be apportioned equally among all single
family residential lots (where such credit was granted for subdivisions). Credits for
other types of developments shall be allocated to building permits on a first-come,
first served basis until the credit is depleted.
C. Applying the methodology adopted by resolution, the City Administrator or
designee shall grant a credit against the public improvement charge, for a capital
improvement constructed as part of the development that reduces the development's
demand upon existing capital improvements or the need for future capital
improvements or that would otherwise have to be provided at City expense under
then-existing Council policies.
SECTION 10. Sections 4.20.100.B, D and F of the Ashland Municipal Code are amended
to read:
B. A person aggrieved by a decision required or permitted to be made by the
City Administrator or designee under Sections 4.20.010 through 4.20.090 or a person
challenging the propriety of an expenditure of systems development charge revenues
may appeal the decision or expenditure by filing a written request with the City
Recorder for consideration by the City Council. Such appeal shall describe with
particularity the decision or the expenditure from which the person appeals and shall
comply with subsection D of this section.
D. The appeal shall state: 1. The name and address of the appellant;
2. The nature of the determination being appealed;
3. The reason the determination is incorrect; and
4. What the correct determination should be.
An appellant who fails to file such a statement within the time
permitted waives any objections, and the appeal shall be dismissed.
F. The City Council shall hear and determine the appeal on the basis of the
appellant's written statement and any additional evidence the appellant deems
appropriate. At the hearing, the appellant may present testimony and oral argument
personally or by counsel. The City may present written or oral testimony at this same
hearing. The roles of evidence as used by courts of law do not apply.
SECTION 11. Classification of the Fee. System development charges as set forth in Chapter
4.20 of the Ashland Municipal Code are classified as not subject to the limits of Section 1 lb
of Article XI of the Oregon Constitution (Ballot Measure No. 5)
The foregoing ordinance was first read by title only in accordance with Article X, Section
2(C) of the City Charter on the /] day of t~A;~OT/.,~3e~ , 19 , and duly
PAS,ASED and ADOPTED this r'7 day of /~-6'z.m't./~-'k"" , 19
Barbara Christensen, City Recorder
SIGNED and APPROVED this/~day of Z 1996.
Apl~ved aj
Paul Nolte, City Attorney
Catherine M. Golden, Mayor
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