Resolution No. 01-74 CITY OF TIGARD.OREGON
RESOLUTION NO.01- —14
A RESOLUTION AMENDING RESOLUTION 01-13 WHICH ESTABLISHED ANNUAL
ADJUSTMENTS TO PARKS SYSTEM DEVELOPMENT CHARGES
WHEREAS,the City adopted Resolution No. 96-11 on February 27, 1996,imposing a Parks
System Development Charge(Parks SDC),adopting a methodology for the imposition of Parks
SDC charges,and a capital improvements plan,consistent with state law;
WHEREAS,the City adopted Resolution.0N.i3 on 1I.i0-o► modifying the amount of
Parks SDCs consistent with the previously adopted methodology;
WHEREAS,components of the adopted methodology for Parks SDCs include the cost of
residential land and construction costs;
WHEREAS, published indices provide reliable information on changes in the cost of residential
land and construction costs;
WHEREAS, if Parks SDC charges are not adjusted with sufficient frequency,an increase in an
SDC charge to reflect changes in the cost of land or construction may become substantial;
WHEREAS,if Parks SDC charges are not adjusted with sufficient frequency,the City will collect
less money to fund parks than the adopted methodology calls for;
WHEREAS,annual increases in Parks SDC charges based on reliable indices will result in
incremental increases in SDC charges while remaining consistent with the adopted
methodology;
NOW,THEREFORE,the Tigard City Council resolves as follows:
Section 1: The Parks SDC shall be adjusted annually on January 15`of each year
beginning in 2002. The formula to be used in determining the adjustment is
attached as exhibit"A".
I
PASSED: This io ay of 2001.
ayor,Ci y of i d
y A T:
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City Recorder,City of Tigard
RESOLUTION NO.01--1 !}
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EXHIBIT"A"
FORMULA FOR PARKS SDC ANNUAL ADJUSTMENTS
Parks SDC fees shall be adjusted annually on January 1 st of each year beginning in 2002. The
new fee will be determined by multiplying the existing fees by the average of two indices,one
reflecting changes in development/construction costs and one reflecting changes in land
acquisition costs. The average of these two indices is a reasonable approach because the
Parks SDC fee is roughly split 50%between land acquisition and land development
components.
The index for the Land Acquisition component will be the base cost for residential tract land in
Tigard,as determined by the Washington Country Appraiser. The average cost for residential
tract land was selected because it is readily identified and is the lowest priced of the buildable
lands in Tigard. Changes in this base cost can be calculated in terms of a percentage increase,
to create the level of change to the original index,and projected to the overall acquisition cost.
'R aeserdanee With MeaSWFe 5,Mhe Washington County Appraiser's office will determine
appraised real market values on July 1 of each year.
The index for the Land Development component of the Parks SDC will be the Construction Cost
Index for the City of Seattle as published in the December issue of the Engineering News
Record (ENR).The Seattle cost index will be used because the city is the geographically closest
to Tigard of twenty metropolitan areas for which the ENR maintains cost data.This index is
adjusted monthly,quarterly,and annually. The annual index far eGh year will be Se!cctcd
begs...ing with,he iRde)(fOF o,,,.embez2002 The annual index will be used because it is
available in December and most closely coincides with the January 1s`implementation of park
SDC fee adjustments.
Definitions:
SDC(20oo) =current SDC fee
L(2000) =Average cost of residential tract land 2000
L(2oot) =Average cost of residential tract land 2001
L(2xxx) =Average cost of residential tract land 2xxx
C(2000) =Const. cost index of 2000
' C(2001) =Const.Cost index of 2001
C(2xxx) =Const. Cost index of 2xxx
LCI =Land Cost Index: change from the current year from previous year
RESOLUTION NO.01--714
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CCI =Const. Cost index:change from current year from previous year
ACI=Average cost index change of LCI +CCI
FORMULA:
L (2000
----------------- = LCI
L (2000)
and
C (2000
-------------- = CCI
C (2000)
therefore:
LCI + CCI
------------------ = ACI
2
then:
SDC(2001) X ACI = SDC(2002)
Each year subsequent to 2002 the costs shall be revised using the current year and previous
year's data. Notwithstanding the foregoing,all calculations shall be carried out to the
thousandth place. A final product ending in.49 or less shall be rounded down to the nearest
dollar, .50 or more up to the next dollar.
Ucitywide/res/parks sdc 2000 adj.doc
RESOLUTION NO.01--1%4
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