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Redmond council adopts phased increase to transportation SDCs to close infrastructure funding gap
Summary
The Redmond City Council voted to phase in higher transportation System Development Charges, moving to $9,000 per PM peak‑hour vehicle trip in October and $11,000 next fiscal year, part of a plan to address a multi‑million‑dollar shortfall in the city’s transportation capital improvement program.
The Redmond City Council voted to adopt a phased increase to the city’s transportation System Development Charges (SDCs), directing staff to implement a two‑step phase in that sets the per‑trip charge at $9,000 beginning in October and $11,000 at the start of the next fiscal year.
The action follows a months‑long methodology update presented by Public Works Director Jessica McClanahan and consultants from FCS Group, who said the full package of transportation projects in the city’s five‑year capital improvement plan totals about $64 million and that a defensible maximum SDC calculation would be $12,872 per PM peak‑hour vehicle trip. McClanahan summarized the city’s funding context, saying the city identified a $27 million gap in its five‑year CIP that was narrowed to roughly $15 million after adopting a rental‑car tax earlier this year.
‘‘This public hearing is for adoption of the methodology and for your review of the fee schedule,’’ McClanahan said during the presentation. A consultant explained that SDCs have two components: a reimbursement fee for existing capacity and an improvement fee for planned capital projects, and that charges must reflect the growth‑related share of those costs.
Councilors and public speakers debated how broadly to include pedestrian and infill sidewalk projects in the SDC base and discussed phasing to avoid sudden shocks to housing projects. Residents and local builders endorsed a phased approach; Central Oregon Builders Association asked the council to adopt the gentlest phase so projects already in permitting could proceed.
After deliberation, council chose Alternative 1, the two‑step phase‑in, and adopted the resolution that frames the fee schedule and the methodology. The motion carried on the council floor.
The adopted phased increase is intended to provide additional revenue for high‑priority intersections and corridor projects identified in the city’s Transportation System Plan, with staff noting that full funding of the long list of projects would require rates near the consultant’s maximum defensible level.
