Molalla staff and consultant propose raising parks system development charge; council schedules May 13 adoption vote

Molalla officials on Wednesday reviewed a consultant's proposal to reset the city's parks system development charge (SDC), including a recommended increase for single-family homes and a timetable for public notice and council consideration.

Consultant Steve Donovan told the Molalla City Council that the city's 2014 parks master plan was "aspirational" and that a leaner 2024–25 master plan reduced the total capital-improvement plan from $17.8 million (2014) to $13.9 million. Donovan said the city's parks book value is $4,480,000 and that $283,000 (about 6%) of that amount is SDC-eligible for reimbursement calculations; he reported $8,200,000 of the $13.9 million plan (about 59%) as SDC-eligible for improvement fees.

Donovan described a level-of-service methodology required by statute and said the consultant's cost-based calculations lead to a proposed parks SDC increase for a single-family home from the current $2,643 to about $6,861 — a net rise of roughly $4,218. The consultant said the improvement fee would make up the preponderance of the new SDC, while the reimbursement and a small compliance fee would be minor components.

"We're not asking for any action tonight," Donovan said, explaining the statutory notice schedule. He said the city started the 90-day notification process Jan. 30, that the draft report would be posted to the city's website the coming Friday, and that the council would consider adopting the SDC methodology by resolution on May 13. The consultant said any adopted SDCs would take effect with the July 1 fiscal year start to align with the budget.

Assistant City Manager Matt Cortell, who helped frame the policy context, said Molalla consciously lowered its parkland level of service from 10 acres per 1,000 people to 7 acres per 1,000 as a policy choice intended to prioritize higher-quality, maintainable parks rather than expanding total park acreage. "Less parkland means that we're able to do more with the parks we've got," Cortell said, adding that developer parkland dedications also help mitigate some acquisition costs.

Councilors asked practical questions about fairness and how the proposed increase compares with peer cities. Donovan showed a comparative chart that placed Molalla toward the lower end of the peer range even after the increase, but he cautioned that comparative charts do not replace the city's cost-based calculation. Councilors also noted that Molalla has added parks and upgraded facilities in recent years, a point Donovan and Cortell said factors into the SDC eligibility analysis.

Dan Huff, the city manager, and councilors acknowledged public pushback is likely. Councilor Besideas said she expected residents to question both the size of the increase and the fact that SDCs are paid by new development. Donovan reiterated that, under Oregon law, SDCs can be charged only to new development and are restricted to capacity-expanding capital projects, not operations.

The consultant reported no written public comments had been received so far. The draft report will be posted for public inspection; the city will accept comments through April, Donovan said, and staff will bring the resolution to the council on May 13 for public testimony and a vote.

No formal motion or vote occurred at the March 11 work session. The mayor adjourned the meeting at 5:34 p.m.

What happens next: city staff will post the full consultant report to the Molalla website, accept public comment through April, and return to the council on May 13 with a resolution to adopt the SDC methodology and updated fee schedule. If adopted on that schedule, the new parks SDC would become effective July 1 to match the fiscal year and budget cycle.