Astoria council adopts phase 2 SDC resolution and conducts first reading of updated ordinance

The Astoria City Council voted to adopt a resolution implementing phase 2 of system development charges, including higher wastewater fees, and then conducted the first reading of a revised SDC ordinance.

City manager Spence told the council that SDCs are intended "to pay for the impacts to our current utility systems, which is typically related to growth." He said the ordinance also provides a mechanism to give credit for preexisting uses in a building so new tenants are not charged full new impacts. The resolution was moved by Councilor Lum and seconded by Councilor Davis and passed on a roll-call vote.

Council discussion centered on the effect of higher SDCs on affordable housing. Councilor Lum said the increases "will effectively make ... housing more expensive, therefore also more difficult" and urged a companion deferral or exemption program. Councilor Davis endorsed the phased approach and emphasized predictability, saying the city should keep to the planned three-phase schedule and revisit phase 3 as proposed this year.

Finance director Hillary Norton read the ordinance language for the first reading; staff indicated the ordinance will be returned for later readings and that the changes are intended to be phased in. Council members asked staff to prioritize development of an offset/assistance program to mitigate impacts on housing, and some asked that council set a timeline for that work.

What happens next: the first reading of the ordinance occurred April 21; council signaled intent to continue work on the ordinance and on a housing-offset program with a timeline to be set during upcoming retreats and work sessions.