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Committee hears consultant on proposed SDC increases and staff on CIP backlog; members flag execution bottleneck
Summary
Staff and consultant Don Hardy outlined proposed phased increases to Canby’s system development charges and a long capital project list; councilors urged caution on timing and asked staff to address execution (project management) capacity before committing funds.
City staff and consultant Don Hardy presented proposed increases to system development charges (SDCs) for transportation, parks and other facilities and recommended phasing the change in over multiple years to reduce shocks to developers. Hardy said SDCs in Canby are among the lowest in the Metro region and that methodology changes will index fees by square footage so small homes and ADUs pay less proportionally than larger houses.
"These adjustments are proportionate to the need based on the 20-year forecast and transportation system plan projects," Hardy said, while acknowledging that higher SDCs could modestly affect construction velocity; staff told the committee they expect to present final rates to council on July 1.
Committee members focused on execution risk: the city has sizable SDC and CIP balances but limited staff capacity to deliver large projects. Members proposed adding a construction/project manager or procurement specialist to accelerate capital delivery and asked staff to return with options for funding those positions (possible use of capital/project budgets, SDC administrative components or a spread of costs across affected projects).
Staff also discussed the CIP backlog (roughly $30 million in projected FY26 capital projects, ~$7 million spent to date) and suggested a phased approach to major street and park projects. Councilors asked staff to return with clearer phasing, a prioritized list tied to available funding, and alternative staffing/funding models so the city can spend reserved capital without incurring extra escalation costs.
What’s next: staff will bring detailed SDC rate options to council on July 1 and will prepare a follow-up for the budget committee showing (1) prioritized CIP phasing, (2) proposed funding sources for a project manager or procurement administrator, and (3) how SDC indexing by square footage will be implemented.
