The Bend City Council next week will review proposed changes to its water, transportation, and sewer System Development Charges that include creating more consistency in how fees are structured and lowering costs for smaller housing units.

System Development Charges, also known as SDCs, are fees that are collected when new development occurs in the city. They are used to fund a portion of new transportation, sanitary sewer, and water infrastructure related to growth. The City is updating the calculations used to set its System Development Charge fees, also known as the SDC methodology.

Reports that outline the methodologies used to calculate proposed updates to water, transportation, and sewer SDCs are now available for review and can be found on the City’s website.

Some of the biggest changes being proposed through the SDC methodology update include tiering residential SDCs based on square footage for single-unit and middle housing, creating more consistency between how water, sewer, and transportation charges are assessed, and expanding SDC exemptions for childcare facilities.

“The goal of this update is to make System Development Charges more equitable overall,” said City Councilor Barb Campbell. “Our methodology updates aim to advance housing affordability while still providing sufficient revenue to fund needed infrastructure.”

“SDCs allow development to pay for growth,” Campbell said. “New infrastructure is needed to support new housing.”

The methodology reports and associated code changes will be discussed at the Bend City Council meeting on Dec. 6.

A public hearing will then be held at 7 p.m. on Jan. 17, 2024, at a Bend City Council meeting. This meeting will be held virtually through Zoom and in person at the Bend City Hall, Council Chambers, 710 NW Wall St. To observe this meeting, livestreaming will be available at bendoregon.gov/councilagenda.

Comments on the methodology will be taken at the public hearing. Comments can also be made in writing in advance of the public hearing to Senior Management Analyst Sarah Hutson at shutson@bendoregon.gov. Written comments must be received before the close of the public hearing to be considered.

A summary of updates to Bend Municipal Code Chapter 12.10 (System Development Charges) will be made available on the City’s SDC webpage prior to the Dec. 6, 2023, City Council work session on the proposed code changes.

Adopted fee changes to the water, transportation, and sewer SDC methodologies will go into effect for all applicable permits applied for on or after July 1, 2024.

See draft reports:

• Transportation System Development Charges Methodology Report (Table 3-7 corrected on Nov. 20, 2023.)
• Water System Development Charges Methodology Report (Appendix B corrected on Nov. 20, 2023.)
• Sewer System Development Charges Methodology Report (Appendix B corrected on Nov. 20, 2023. Limited update. Review the existing 2015 Sewer SDC Methodology.)