HomeMy WebLinkAboutItem 01 Amendment of SDC Fees and Charges AGENDA ITEM SUMMARY Meeting Date: 2/6/2012
Meeting Type: Work Session/Reg. Mtg
Staff Contact/Dept.: Len Goodwin/PW
Jim Donovan/DSD
Staff Phone No: 541-726-3685
541-726-3660
Estimated Time: 30/15 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Community and
Economic Development
and Revitalization
ITEM TITLE: AMENDMENT OF SDC FEES AND CHARGES.
ACTION
REQUESTED:
Consider and adopt/not adopt the following resolution: A RESOLUTION OF THE
COUNCIL OF THE CITY OF SPRINGFIELD AMENDING THE RATE
STRUCTURE FOR SYSTEMS DEVELOPMENT CHARGES AS
ESTABLISHED IN THE SPRINGFIELD MUNICIPAL CODE, SECTION 3.406,
AND SPECIFYING AN EFFECTIVE DATE.
ISSUE
STATEMENT:
The Springfield City Council makes policy decisions on City fees and user rates
and has the discretion to temporarily modify or suspend the collection of such fees
and charges for economic development or other purposes deemed necessary by the
Council.
ATTACHMENTS: 1. Resolution
DISCUSSION/
FINANCIAL
IMPACT:
The attached Resolution authorizes an amended SDC collection structure for the
period beginning April 1, 2012 and ending December 31, 2012. The continued slow
pace of recovery has challenged the City’s ability to continue to provide adequate
service levels. The economy seems close to a point where positive news might
come, and at that marginal point, it is possible that providing some form of stimulus
might push Springfield across the tipping point. The last stimulative effort, which
was limited to one and two family residential construction, did provide a very
limited benefit. Since what would be the most beneficial to the local economy
would be job creation from large scale commercial and industrial development, a
temporary reduction focused on that segment might prove more productive,
particularly at this point.
The proposed change with respect to large scale development would not have any
near term adverse revenue impact, since current forecasting techniques do not
assume any such large scale development. Incentivizing large scale anchor
developments will result in marginally lower total revenues over the long-term as
surrounding developments occur and offset the incentives. These reduced revenues
may have the effect of delaying completion of capital projects funded by SDC
revenues. This could present challenges if the level of growth triggers needs for
capital construction before sufficient funds have accumulated.
The 50 percent reduction on other SDC revenues is likely to have an impact on
SDC revenues in the near term. For FY 2012 the City has currently projected total
local SDC revenues at $1.45 million, with $610,000 received through December.
This change could result in total revenues for FY 2012 coming in at about $1
million. For FY 2013, current projections call for total local SDC revenues of $1
million. This change could reduce those revenues by half, although to the extent
that the change stimulates development, that shortfall could be reduced, although
likely not eliminated.
Attachment 1-1
Attachment 1-2