Oregon City considers scaling SDCs by unit size; consultant outlines tiered charges

Oregon City commissioners on April 7 reviewed a proposed approach to scale systems development charges so they better match the size and likely occupancy of new housing. John Giller of FCS Group told the commission the city is not recalculating charges but proposing to scale the city’s existing SDC schedule to create lower fees for smaller units and higher fees for larger ones.

“Nothing prevents you from going forward with scaling,” Giller said, explaining the methodology rests on the same reimbursement and improvement fee calculations already used to set the city’s SDCs. He said the intent of scaling is to make charges more proportional to the capacity demands each dwelling will place on city systems.

The consultant presented sample tier tables. For wastewater, the presentation showed a per‑unit equivalent (EDU) schedule: very small units (under roughly 800 sq ft) would be assigned about 0.7 EDU; a typical dwelling unit near the city’s average would be 1.0 EDU (the slide used $9,375 as the one‑EDU benchmark); and very large single‑family connections above about 3,800 sq ft would reach roughly 1.2 EDUs (the presentation cited an example charge of about $11,250 for that tier). Multifamily charges were shown on a per‑bedroom basis to provide more resolution than a flat multiplier per dwelling unit.

Commissioners pressed staff and the consultant about practical consequences. One commissioner asked whether many small units would “stress” infrastructure; Giller and staff replied that ongoing usage impacts are handled through monthly utility rates while SDCs are intended to collect the city’s upfront capacity share. For stormwater, staff described converting existing rates into a per‑impervious‑square‑foot SDC (the consultant showed an illustrative value of about $238 per 1,000 impervious square feet) and noted cities commonly exempt very small increases to avoid administrative burden.

Staff said the next procedural step is to issue the 90‑day notice required by state process and make the methodology available for public scrutiny during the required period; staff suggested an effective date at the start of 2027. No formal adoption vote occurred at the work session.

Why it matters: SDC tiering shifts more of the city’s upfront infrastructure charge onto larger or higher‑demand units while lowering the barrier for small or lower‑demand units. Proponents say the change promotes equity and aligns fees to the actual demand placed on sewer, water and transportation systems; opponents and some commissioners raised administrative and implementation questions, particularly around small additions and how ADUs should be treated.

Next steps: Staff will prepare the 90‑day notice and supporting memo for public review, and return to a future business meeting with the formal ordinance or code amendment needed to adopt the change.