The City of Bend adopted changes on how it calculates fees associated with new development. System development charges are one-time charges developers pay, intended to help pay for growth-related infrastructure. The changes will take effect on July 1.
The Bend City Council approved changes to water, sewer and transportation SDCs at a May 1 council meeting. The changes will lower fees for some while increasing fees for others, based on factors such as building size and type. The City proposed these updates to enhance transparency, recover growth costs and align with Council priorities, such as housing production, housing affordability and complete communities.
On the residential side, the changes would calculate fees based on the size of a home. The update would create a system, charging people with smaller homes lower rates and those with larger homes higher rates.
The current total for water, sewer and transportation SDCs on a single family dwelling is $21,760, regardless of the size of the dwelling. With the new code, a house between 600 and 1,200 square feet will incur $16,139 in SDCs. For a home larger than 3,000 square feet, the charges will increase to $31,080.
The current system calculates fees for commercial buildings based on where they fall in 60 different categories, determined by the usage. The revised methodology will lower the number of categories, simplifying how fees are calculated.
After a series of stakeholder group meetings and City work sessions, City Councilors held a public hearing on Jan. 17, which continued on May 1 to allow additional comment. Throughout this process, staff made several adjustments to SDC methodologies, project lists and fee schedules.
The City established a lower transportation SDC rate for medical uses within the Medical Overlay District. The City also decided to phase in transportation SDC rates for non-residential categories with rates increasing 20% or more under the updated methodology.
