Council adopts temporary deferral program for system development charges

The Veneta City Council adopted Ordinance No. 600 on Jan. 12 to authorize temporary deferrals of system development charges (SDCs) for residential and commercial building permits. Staff said the ordinance follows a prior 2022 program and is intended to stimulate development by allowing applicants to defer SDCs until issuance of a certificate of occupancy, subject to application, limits, and security requirements.

City staff read the ordinance text and exhibits in detail. The ordinance sets eligibility rules and caps (limits on number of concurrent deferrals), requires a city application form and a deferral agreement that may be recorded as a lien on the property, and allows the city to withhold water service or remove meters for nonpayment. The ordinance imposes a 25% surcharge on unpaid deferred SDCs and interest at prime plus 2.5% from occupancy to payment. An exhibit in the packet illustrated an SDC calculation with a total of $29,406.04 composed of transportation ($4,523.37), water ($8,941.00), water base ($7,818.15), parks ($6,737.59), stormwater ($254.42) and administrative fees ($130.96).

Council moved to read the ordinance twice and adopt in a single meeting; the motion passed and the ordinance was adopted according to the clerk’s roll call. Staff said further administrative steps (forms and recorded agreements) will follow to implement the program.