HomeMy WebLinkAboutOrdinance 5969 12/04/2000
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ORDINANCE NO.
5969
(General)
AN ORDINANCE AMENDING SECTION 3.400,3.406-,3.412, and 3.418 of THE
SPRINGFIELD MUNICIPAL CODE REGARDING THE COLLECTION AND
ADMINISTRATION OF SYSTEM DEVELOPMENT CHARGES, SECTION 3.400 et. seq.
AND DECLARING AN EMERGENCY.
WHEREAS, the City of Springfield adopted, on June 3rd 1991, an ordinance regarding
system development charges which complied with ORS 223.297 et. seq. and which took effect on
July 1, 1991; and
WHEREAS, the City Council also at that time passed resolutions which adopted the
methodology, rate structure and project list as a guide for the City Manager or designee to use in
administration of the SDC program; and
WHEREAS, City staff have recently completed a citizen advisory process and a study
which resulted in recommended updates to the methodology, rate structure and project list; and
WHEREAS, changes are also needed in the Springfield Municipal Code to effect part of
the desired update of the SDC program, specifically to reflect the date of the updated methodology
in the definitions section, to clarify the intent regarding the imposition of SDC's for properties
outside the City limits, but within the Springfield Urban Growth Boundary, to lengthen the time
frame for the SDC charge appeal procedure to allow more time for an informal appeal period, and
o to provide Bancroft financing for SDC charges.
NOW THEREFORE, THE CITY OF SPRINGFIELD ORDAINS AS FOLLOWS:
1. Section 3.400 Definitions. "Improvement Fee" definition is amended to read as follows:
"A fee for public costs associated with capital improvements to be constructed after
the date of December 4, 2000. Not withstanding anything in this code to the
contrary, it is an incurred charge or cost based upon the use of or the availability for
use of the systems and capital improvements required to provide services and
facilities necessary to meet the routine obligations of the use and ownership of
property, and to provide for the public health and safety upon development."
2. Section 3.400 Definitions. "Reimbursement Fee" definition is amended to read as follows:
"A fee for costs associated with capital improvements constructed or under
construction on December 4,2000. Not withstanding anything in this code to the
contrary, it is an incurred charge or cost based upon the use of or the availability for
use of the systems and capital improvements required to provide services and
facilities necessary to meet the routine obligations of the use and ownership of
property, and to provide for the public health and safety upon development."
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plus 1.5%
( e) There will be a one-time fee of $50 added to the system development charges to
cover administrative expenses of financing the charges;
(f) If any system development charge installment has not been paid when due and
remains unpaid at the time the next installment becomes due, then a late charge penalty
of 10 percent of the delinquent installment shall be added to the assessment;
(g) The city may proceed to foreclose as delinquent any such lien after the same shall
have been entered in the lien docket, as provided for foreclosures of liens in ORS
223.505 to ORS 223.650;
(h) The property owner shall waive any and all irregularities or defects, jurisdictional
or otherwise, regarding the calculation, imposition, lien, and collection of the systems
development charges;
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3. Section 3.406 System Development Charge, Established, Subsection (1) is amended to read as
follows:
"Unless otherwise exempted by the provisions of this code or other local or state
law, effective July 1, 1991, a system development charge is hereby imposed upon
all new development activity within the city, and all new development activity
outside the city but within the city's urban growth boundary, with the exception that
the sanitary sewer system development charge shall not be imposed outside the city
limits until such time as the property is to be connected to the sanitary sewer
system. The SDC is imposed on the activity of developing property which
increases the demand for capital improvements. It is not a tax on the land or the
ownership of land. The developer has the discretion of setting the level of
development and therefore the extent of the SDC to be paid."
4. Section 3.412 Collection of Charge, Subsection (4) is amended to read as follows:
"(4) The purchaser of a home or multi-family dwelling may elect to finance system
development charges over a period of ten years, billed in equal semiannual installments,
plus interest and fees, with the following conditions:
(a) The property owner shall sign a promissory note prior to being issued a permit;
(b) The obligation to pay the unpaid systems development charges, and any interest
or fee thereon, shall be secured by a lien on the property upon which development is
to occur. Such liens shall arise upon issuance of the permit requiring the system
development charges and shall be entered on the city's lien docket and the debt secured
thereby may be collected in the same manner as allowed by law for street improvement
assessment liens. Such liens shall be superior to all other liens, and encumbrances
whatsoever except as may be otherwise provided by law;
(c) The interest rate, at the time of signing the promissory note, shall be calculated at
the rate of the previous month's average interest earned on the City of Springfield's
investments, plus 2.0%;
( d) If, at some future time, the system development charge account balances are
cashed out to a bond, then the interest rate will change to the rate paid on that bond,
plus 1.5%
(e) There will be a one-time fee of$50 added to the system development charges to
cover administrative expenses of financing the charges;
(f) If any system development charge installment has not been paid when due and
remains unpaid at the time the next installment becomes due, then a late charge penalty
of 10 percent of the delinquent installment shall be added to the assessment;
(g) The city may proceed to foreclose as delinquent any such lien after the same shall
have been entered in the lien docket, as provided for foreclosures of liens in ORS
223.505 to ORS 223.650;
(h) The property owner shall waive any and all irregularities or defects, jurisdictional
or otherwise, regarding the calculation, imposition, lien, and collection of the systems
development charges;
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(i) At the discretion of the city manager, financing may be secured by bond, deposits,
or letter of credit in lieu of full payment or promissory note."
5. Section 3.418 Appeal Procedures, Subsection (5) is amended to read as follows:
"Unless the appellant and the city agree to a longer period, an appeal shall be heard by
the city manager or council within 20 working days of the receipt of the notice of intent
to appeal. At least 10 working days prior to the hearing, the city shall mail notice of
the time and location thereof to the appellant."
6. Emergency Clause. This Ordinance being enacted by the Council in the exercise of its police power and
the Council having specifically found that matters regarding the collection and administration of systems
development charges and the amendment of the Springfield Municipal Code with respect to such matters is
necessary for the immediate preservation of the public peace, health and safety, an emergency is hereby
declared to exist and this Ordinance shall become effective immediately upon its adoption by the Council
and approval by the Mayor.
Adopted by the Common Council of the City of Springfield this ~ day of December, 2000 by a vote of
~ in favor and 1L- against.
Approved by the Mayor of the City of Springfield this A.t.L day of December, 2000.
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REVIEWED & APPROVED
AS TO FORM
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DATE:~:2acO
OFFICE OF CITY ATTORNEY
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