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Council adopts six new SDC overlay districts to reimburse utility credits
Summary
After a public hearing with McKay Engineers, the council adopted a 2026 update adding six system development charge (SDC) overlay districts to quantify credits for oversized or off‑site utility extensions; councilors approved the motion in a roll call vote and staff said overlays apply only when properties develop or seek connection.
The council adopted the 2026 water and stormwater SDC overlay update, which quantifies six additional SDC overlay districts and lists the properties that would bear those cost allocations when they develop or connect to city utilities. Kurt McLeod of McKay Engineers described the change as a ‘‘housekeeping’’ measure that records credits the city previously granted when developers built oversized or off‑site utilities and ensures reimbursements to the SDC fund from later beneficiaries.
McLeod explained the overlays do not create a lien that forces property owners to pay if they never develop or connect; payment is triggered by development or a utility connection and will be proportionate to frontage or the developer’s share. He gave an example cost estimate for a waterline of roughly $56 per foot and said the amounts will be indexed annually to a construction cost index.
Council moved, seconded and voted by roll call to adopt the overlay update; the motion passed unanimously. Staff said notices were sent to potentially affected owners and that planning staff will apply the overlay when a development application identifies benefit properties.
Provenance: topicintro SEG 1406, topfinish SEG 1892
Speakers (attribution whitelist): [{"name":"Kurt McLeod","role_title":"Engineer","affiliation_type":"business","affiliation_name":"McKay Engineers","first_reference":{"block_id_start":"SEG 1416"}}]
Authorities: [{"type":"policy","name":"SDC methodology (2024) and overlay rules","citation":"referenced in staff report","referenced_by":["sdc_overlay_adopted"]}],
Actions: [{"kind":"other","identifiers":{"project_slug":"sdc_overlay_update_2026"},"motion":"Adopt the 2026 water and stormwater SDC overlay update, which includes 6 overlay districts as presented by staff.","mover":"Councilor (motion recorded)","second":"Councilor (second recorded)","vote_record":[],"tally":{"yes":7,"no":0,"abstain":0},"legal_threshold":{"met":true,"notes":"Adoption by majority recorded in roll call; no contested legal threshold cited"},"outcome":"approved","notes":"Staff to apply overlays when properties develop or connect to utilities."}],
Discussion_decision:{"discussion_points":["SDC overlays quantify credits for oversized/off‑site utility extensions","Overlays apply only if/when properties develop or connect; no lien unless connection occurs","Estimated costs will be indexed to construction cost index"],"directions":["Planning to apply overlays at development review"],"decisions":["Overlay update adopted by council vote"]},
Clarifying_details:[{"category":"example_cost","detail":"Example waterline cost used to illustrate overlay (approx.)","value":56,"units":"USD per foot","approximate":true,"source_speaker":"Kurt McLeod"}],
Proper_names:[{"name":"McKay Engineers","type":"organization"}],
Topics:[{"name":"infrastructure_finance","justification":"SDC overlay modifies how developer utility credits are allocated and reimbursed.","scoring":{"topic_relevance":0.95,"depth_score":0.80,"opinionatedness":0.05,"controversy":0.20,"civic_salience":0.75,"impactfulness":0.70,"geo_relevance":1.00}}]
