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Molalla council adopts reduced daycare system development charges, citing updated trip rates
Summary
Council adopted Resolution 2026-04 to update daycare system development charges by shifting trip rates from the ITE 9th to 10th edition; staff said the change reduces trip assumptions by about 7.68 trips and lowers costs to daycare providers by roughly 60%.
Molalla's City Council unanimously adopted Resolution 2026-04 on Jan. 28, updating the city's daycare system development charges (SDCs).
Assistant City Manager Matt Cortheil told the council the resolution moves daycare SDC calculations from the 9th to the 10th edition of the Institute of Transportation Engineers (ITE) manual. "This resolution moves daycare SDCs from the 9th edition...to the 10th edition and thus reducing them by about 7.68 trips," Cortheil said, and staff estimated the change yields approximately a 60% cost reduction for local providers starting under the updated rate structure.
Staff said the change aligns with the city's comprehensive plan priorities that identify child care as a workforce-readiness issue and that a reduced SDC could make it financially easier for local entrepreneurs to open daycares. The council moved, seconded and adopted the resolution by a 6-0 roll-call vote.
The resolution was presented by staff as a title-only adoption; council did not discuss additional ordinance language or an implementation schedule at length during the meeting. Staff indicated further discussion of SDCs will continue at a Feb. 25 work session that will include more detailed presentations and consultant input.
