City staff propose sharp rise in utility SDCs; adoption scheduled for June

City staff and consultants told the St. Helens City Council at its March 18 work session that the cost of planned water, wastewater and stormwater projects has grown substantially and will require higher system development charges (SDCs) for new development.

Consultant Steve Donovan summarized the updated capital-improvement plans and the methodology the city used to split replacement costs from growth-related capacity needs. "Right now, water's a 103,800,000.0," Donovan said, adding that the city no longer can rely on a 2 million‑gallon reservoir assumed repairable earlier and must plan a new 5 million‑gallon tank. He said those changes push the proposed SDC for a single‑family home from the current about $18,800 to roughly $30,544, with most of the increase tied to water capacity costs.

The presentation noted SDC statutory limits: SDC revenue may be used only for capacity‑expanding capital projects, not system replacement. Donovan said the update follows an "improvements method" that divides project costs between existing customers' replacement needs and growth-driven capacity. He described the proposed notification and adoption timeline required by Oregon law: the SDC methodology will be posted on the city's website on April 18 and a resolution for adoption is scheduled for the June 17 council meeting after a 90‑day public notice period beginning March 19.

Councilors pressed staff on the practical effects of the change. One councilor warned that higher SDCs could "kill projects," particularly private development that depends on lower upfront infrastructure fees, while Donovan and other staff said lowering SDCs would shift costs to existing ratepayers through higher utility rates. The consultant also said federal and state grant availability is currently limited, increasing pressure on local funding sources.

The presentation included a regional comparison showing St. Helens would remain near the middle of the sample range with the proposed fee, and staff emphasized the policy trade‑off council must weigh: subsidize growth with ratepayer dollars or require private developers to cover a larger share of infrastructure costs.

Next steps: staff will post the SDC methodology on the city website April 18, comply with the statutory notice period, and return to council with a resolution on June 17 for possible adoption. No formal adoption vote was taken at the work session; the March 19 notification step was noted as administrative and required by ORS.