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Council materials forecast large SDC receipts tied to many proposed annexations
Summary
Staff told the budget committee the SDC (system development charge) forecasts assume numerous pending annexations and pre‑applications that could produce hundreds of housing units and several million dollars in SDC revenue over the next biennium, but staff cautioned that the timing of building permits and SDC collection is uncertain.
City staff told Stayton's budget committee that recent pre-applications and annexation activity could generate substantial system development charge receipts if building permits are pulled, but they warned that collections occur at permit issuance and are therefore timing-sensitive.
Forecast detail: Jennifer, planning staff, told the committee she used current pre-applications to estimate approximately 840 potential housing units across the city's applications pipeline, about half single-family and half multifamily. Based on those assumptions the proposed SDC forecasts in the budget included figures such as roughly $3,200,000 for water SDCs and $2,800,000 for wastewater SDCs over the planning horizon; staff stressed these are conditional on permits being submitted and approved.
Use of SDCs in the budget: Staff proposed transferring forecast SDC proceeds to capital funds for projects tied to growth: $900,000 from parks SDCs to Mill Creek Park amenities and a parks master plan update; $1,300,000 in street SDC transfers for Kendall Way design and other transportation planning; $2,800,000 in water SDCs for the ASR project; and $737,000 of wastewater SDC transfers for Ida Street upsizing and SBR projects.
Why timing matters: Staff cautioned that many annexations and development approvals still require infrastructure (for example, upgrades identified in the master plan 2.4 project) and that building permits — the moment SDCs are collected — may not be pulled until needed upstream capacity is constructed. Committee members asked staff to show conservative- and optimistic-receipt scenarios.
Ending: Staff said they will present sensitivity scenarios that show SDC receipts at several timelines and will use conservative assumptions for budgeting unless permits materialize. Committee members asked staff to tie any SDC-dependent projects to firm receipts or grant matches before spending authority is committed.
