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Resolution No. 12-18 CITY OF TIGARD, OREGON TIGARD CITY COUNCIL RESOLUTION NO. 12- /q A RESOLUTION ADOPTING PARK SYSTEM DEVELOPMENT CHARGE (SDC)METHODOLOGY WHEREAS, Tigard Municipal Code Chapter 3.24 establishes the authority and process for imposing park SDCs;and WHEREAS,this chapter of the code also specifies SDC methodology shall be adopted by resolution;and WHEREAS,park SDCs were last updated seven years ago,in 2005;and WHEREAS,since that time, the council adopted the Park System Master Plan in 2009 and accepted the Tigard Greenways Trail System Master Plan in 2011;and WHEREAS,the city recently prepared a Parks&Recreation System Development Charge Study;and WHEREAS,adopting the updated SDC methodology outlined in the study will allow the use of SDC revenues to fund council-approved park and trail capital projects identified in Park System Master Plan and the Tigard Greenways Trail System Master Plan;and WHEREAS, as required by state statute, a 90-dap notice of intent to update the park SDCs was sent to interested parties,and the methodology was available for public review at least 60 days prior to this meeting. NOW,THEREFORE,BE IT RESOLVED by the Tigard City Council that: SECTION 1: The City Council hereby adopts the parks SDC methodology as outlined in the Parks and Recreation System Development Charge Study attached hereto as Exhibit A. SECTION 2: All previous park SDC methodology,including the methodology approved in Resolution No. 04-97, is hereby replaced with the SDC methodology outlined in the attached Parks and Recreation System Development Charges Study dated March 23,2012. SECTION 3: This resolution is effective immediately upon passage. �--�PASSED: Thi41-0 day of 2012. �4� � May4i r-City of Tigard ATTEST: CDun GLL-P(eSzdenf_ ity Recorder-City of Tigard RESOLUTION NO. 12- 1g' Page 1 Eichi 6; A tD Tigard, Oregon ■ Report for PARKS & RECREATION SYSTEM DEVELOPMENT CHARGE STUDY March 23, 2012 FCS GROUP 4380 SW Macadam Ave. Suite 220 Portland, OR 97239 T: 503.841.6543 1 F: 503.841.6573 This entire report is made of readily recyclable materials, including the bronze wire binding and the front and back cover,which are made from post-consumer recycled plastic bottles. TIGARD, OREGON Parks & Recreation System Development Charge Study March 23, 2012 page i TABLE OF CONTENTS SECTION I: BACKGROUND.......................................................................................................... 1 A. Policy.......................................................................................................................................................1 B. Project.....................................................................................................................................................1 SECTION II: METHODOLOGY.......................................................................................................3 A. Reimbursement Fee .............................................................................................................................3 B. Improvement Fee.................................................................................................................................3 C. Compliance Costs................................................................................................................................3 D. Summary.................................................................................................................................................4 SECTION III: GROWTH CALCULATION ........................................................................................ 5 A. Relevant Types of Growth...................................................................................................................5 B. Population Growth ...............................................................................................................................5 B.l Expected Growth.........................................................................................................................5 13.2 Conversion to Dwelling Units......................................................................................................5 C. Employment Growth............................................................................................................................6 C.l Expected Growth.........................................................................................................................6 C.2 Conversion to Population Equivalents......................................................................................6 SECTION IV: COST CALCULATION..............................................................................................9 A. Facility Needs ........................................................................................................................................9 B. Facility Costs ........................................................................................................................................10 B.1 Neighborhood/Pocket Parks....................................................................................................10 B.2 Community Parks........................................................................................................................1 1 3.3 Linear Parks..................................................................................................................................12 B.4 Open Space................................................................................................................................13 13.5 Trails...............................................................................................................................................13 B.6 Allocation to Residents and Non-Residents..........................................................................14 C. Compliance Costs..............................................................................................................................14 D. Adjustments .........................................................................................................................................15 E. Summary...............................................................................................................................................15 SECTION V: SDC CALCULATION............................................................................................... 17 A. Residential Cost per Capita .............................................................................................................17 B. Residential SDC per Dwelling Unit ...................................................................................................17 C. Non-Residential SDC per Employee................................................................................................17 D. Summary and Comparison...............................................................................................................17 E. Annual Adjustment.............................................................................................................................18 •:> FCS GROUP TIGARD,OREGON Parks& Recreation System Development Charge Study March 23,2012 page ii •:;> FCS GROUP TIGARD, OREGON Parks & Recreation System Development Charge Study March 23,2012 page 1 SECTION I : BACKGROUND This section describes the policy context and project scope upon which the body of this report is based. A. POLICY Oregon Revised Statutes(ORS) 223.297 to 223.314 authorize local governments to establish system development charges (SDCs). These are one-time fees on new development, and they are paid at the time of development. SDCs are intended to recover a fair share of the cost of existing and planned facilities that provide capacity to serve future growth. ORS 223.299 defines two types of SDC: ■ A reimbursement fee that is designed to recover"costs associated with capital improvements already constructed, or under construction when the fee is established,for which the local government determines that capacity exists" ■ An improvement fee that is designed to recover"costs associated with capital improvements to be constructed" ORS 223.304(1) states, in part,that a reimbursement fee must be based on"the value of unused capacity available to future system users or the cost of existing facilities" and must account for prior contributions by existing users and any gifted or grant-funded facilities. The calculation must "promote the objective of future system users contributing no more than an equitable share to the cost of existing facilities." A reimbursement fee may be spent on any capital improvement related to the system for which it is being charged (whether cash-financed or debt-financed). ORS 223.304(2) states, in part, that an improvement fee must be calculated to include only the cost of projected capital improvements needed to increase system capacity for future users. In other words,the cost of planned projects that correct existing deficiencies or that do not otherwise increase capacity for future users,may not be included in the improvement fee calculation. An improvement fee may be spent only on capital improvements(or portions thereof)that increase the capacity of the system for which it is being charged(whether cash-financed or debt-financed). B. PROJECT On July 14,2009,the Tigard City Council adopted a new Park System Master Plan. On July 26, 2011, the Tigard City Council adopted a Trail System Master Plan. The City contracted with FCS Group to update its parks SDCs based on these recently adopted master plans. •:;>FCS GROUP TIGARD, OREGON Parks& Recreation System Development Charge Study March 23,2012 page 2 We approached this project as a series of three steps: ■ Framework for Charges. In this step, we worked with City staff to identify and agree on the approach to be used and the components to be included in the analysis. ■ Technical Analysis. In this step, we worked with City staff to isolate the recoverable portion of planned facility costs and calculate draft SDC rates. ■ Draft Methodology Report Preparation. In this step, we documented the calculation of the draft SDC rates included in this report. •:;> FCS GROUP TIGARD, OREGON Parks &Recreation System Development Charge Study March 23, 2012 page 3 SECTION II : METHODOLOGY This section provides a non-numeric overview of the calculations that result in SDC rates. A. REIMBURSEMENT FEE In order for a reimbursement fee to be calculated, excess(i.e.,not currently utilized) capacity must be available to serve future growth. Our analysis of the two recently adopted master plans indicates that the City currently has no excess capacity in its parks system. Therefore, no basis for a reimbursement fee exists. B. IMPROVEMENT FEE The improvement fee is the cost of capacity-increasing capital projects per unit of growth that those projects will serve. The unit of growth, whether number of new residents or number of new employees,is the basis of the fee. In reality, the capacity added by many projects serves a dual purpose of both meeting existing demand and serving future growth. To compute a compliant SDC rate,growth-related costs must be isolated, and costs related to current demand must be excluded. We have used the "capacity approach"to allocate costs to the improvement fee basis. Under this approach,the cost of a given project is allocated to growth in proportion to the growth-related capacity that projects of a similar type will create. For example, suppose that a city's master plan included the acquisition and development of 100 acres of new neighborhood parks. Suppose further that our analysis determined that 30 acres were required to meet existing demand, and 70 acres were required to serve future users. In that case, only 70 percent of the cost for any new neighborhood park would be eligible for recovery with an improvement fee. Growth should be measured in units that most directly reflect the source of demand. In the case of parks,the most applicable units of growth are population and, where appropriate, population equivalents. However, the units in which demand is expressed may not be the same as the units in which SDC rates are charged. Many SDCs, for example, are charged in the basis of dwelling units. Therefore,conversion is often necessary from units of demand to units of payment. For example, using an average number of residents per household, the number of new residents can be converted to the number of new dwelling units. C. COMPLIANCE COSTS ORS 223.307(5)authorizes the expenditure of SDCs on"the costs of complying with the provisions of ORS 223.297 to 223.314,including the costs of developing system development charge •:;> FCS G ROUP TIGARD,OREGON Parks & Recreation System Development Charge Study March 23,2012 page 4 methodologies and providing an annual accounting of system development charge expenditures." To avoid spending monies for compliance that might otherwise have been spent on growth-related projects, this report includes an estimate of compliance costs in its SDC rates. D. SUMMARY In general, SDC rates are calculated by adding the reimbursement fee (if applicable) component, improvement fee component, and compliance cost component. Each component is calculated by dividing the eligible cost by the growth of units of demand. The unit of demand becomes the basis of the charge. Figure II.1 shows this calculation in equation format: Figure 11.1 -SDC Equation Eligible costs Eligible costs of Costs of of excess capacity- complying SDC per capacity in + increasing + with unit of existing capital Oregon = growth facilities improvements SDC law in Units of growth in demand (e.g., new demand residents) Section III of this report provides detailed calculations related to growth in demand, which is the denominator in the SDC equation. Section IV of this report provides detailed calculations on eligible costs, which is the numerator in the SDC equation. •:; ROUP > FCS G i TIGARD,OREGON Parks & Recreation System Development Charge Study March 23, 2012 page 5 SECTION III : GROWTH CALCULATION This section provides detailed calculations related to growth in demand,which is the denominator in the SDC equation. A. RELEVANT TYPES OF GROWTH Parks and recreation facilities benefit City residents,businesses, non-resident employees, and visitors. The methodology used to update the City's Parks and Recreation SDCs establishes the required connection between the demands of growth and the SDC by identifying specific types of park and recreation facilities and analyzing the proportionate need of residents and employees for each type of facility. The SDCs to be paid by a development meet statutory requirements because they are based on the nature of the development and the extent of the impact of that development on the types of park and recreation facilities for which they are charged. The Parks and Recreation SDCs are calculated based on the specific impact a development is expected to have on the City's population and employment. For facilities that are not generally used by employees (e.g., neighborhood parks), only a residential SDC may be charged. For facilities that benefit both residents and employees (e.g., community parks), an SDC may be charged for both residential and non-residential development. B. POPULATION GROWTH Having established the relevance of population, we now quantify expected growth in population and convert the result to dwelling units. B.l Expected Growth Based on data from Metro and the Population Research Center at Portland State University, the City's population is expected to grow from 47,838 in 2009 (when the Park System Master Plan was adopted) to 63,042 in 2028 (the final year of the plan). In other words, the City is expected to add 15,204 residents over 19 years at a compound average growth rate of 1.46 percent per year. B.2 Conversion to Dwelling Units Residential SDCs are initially calculated based on costs per capita but are ultimately charged based on dwelling units. To convert population to dwelling units, we analyzed data gathered for Tigard from the 2005-2007 American Community Survey. Table III.1 shows the resulting conversion factors: •:;> FCS GROUP TIGARD, OREGON Parks& Recreation System Development Charge Study March 23,2012 page 6 Table 111.1 -Residents per Dwelling Unit Type of - : Unit Residents Single-Family 2.69 Multi-Family 2.15 Manufactured 1.63 C. EMPLOYMENT GROWTH Having established the relevance of employment,we now quantify expected growth in employment and convert the result to population equivalents. C.l Expected Growth Based on data from Metro and the Population Research Center at Portland State University,the number of persons employed within the City is expected to grow from 43,929 in 2009(when the Park System Master Plan was adopted)to 58,840 in 2028 (the final year of the plan). In other words,the City is expected to add 14,911 employees over 19 years at a compound average growth rate of 1.55 percent per year. As used here, "employee"means someone who works in the City regardless of place of residence. Employees may live inside or outside the City. Later in this report,we will be more concerned with non-resident employees in particular. C.2 Conversion to Population Equivalents The parks and recreation facilities described in the recently adopted master plans were mostly designed with the needs of both residents and non-resident employees in mind. It is therefore appropriate to allocate the cost of these facilities to both residents and non-resident employees. The only exceptions are neighborhood parks. These facilities were designed for the needs of residents only. It is therefore appropriate to allocate the cost of these facilities to residents only. While most parks and recreation facilities benefit both residents and non-resident employees,these two groups do not utilize parks and recreation facilities with the same intensity. To apportion the demand for facilities between non-resident employees and residents in an equitable manner, a non- resident-employee-to-resident demand ratio must be calculated based on differential intensity of use. First,we estimate the potential demand for parks and recreation facilities. Table III.2 presents potential use by different population groups in a manner that averages day-of-week and seasonal effects. These averages are based on the maximum number of hours per day that each population group would consider the use of parks and recreation facilities to be a viable option. > FCS GROUP TIGARD,OREGON Parks & Recreation System Development Charge Study March 23,2012 page 7 Table 111.2- Potential Daily Demand by Population Group ResidentsNon- Non- Work Work Work Employed, Ages inside outside inside Day, and Time Ages 18+ 5-17 City City City(June through September) Weekday Before work 1.00 1.00 Meals and breaks 1.00 1.00 After work 2.00 2.00 Other leisure 12.00 12.00 2.00 2.00 Total weekday 12.00 12.00 6.00 2.00 4.00 Weekend 12.00 12.00 12.00 12.00 Total summer 12.00 12.00 7.71 4.86 2.86 Spring/fall (April, May, October, and November) Weekday Before work 0.50 0.50 Meals and breaks 1.00 1.00 After work 1.00 1.00 Other leisure 10.00 4.00 2.00 2.00 Total weekday 10.00 4.00 4.50 2.00 2.50 Weekend 10.00 10.00 10.00 10.00 Total spring/fall 10.00 5.71 6.07 4.29 1.79 Winter(December through March) Weekday Before work 0.50 0.50 Meals and breaks 1.00 1.00 After work 0.50 0.50 Other leisure 8.00 2.00 1.00 1.00 Total weekday 8.00 2.00 3.00 1.00 2.00 Weekend 8.00 8.00 8.00 8.00 Total winter 8.00 3.71 4.43 3.00 1.43 Weighting factors Summer 0.33 0.33 0.33 0.33 0.33 Spring/fall 0.33 0.33 0.33 0.33 0.33 Winter 0.33 0.33 0.33 0.33 0.33 Total weighting factors 1.00 1.00 1.00 1.00 1.00 Daily weighted average hours 10.00 7.14 6.07 4.05 2.02 We then multiply the weighted average hours derived in Table III.2 by an actual count for each population group. The counts in Table II1.3 are based on the 2000 Census. Although these data are now stale, the accuracy of the individual counts is less important than the proportion of each group. Table 111.3-Total Potential Daily Demand ResidentsNon- Residents Employed,Non- Work Work TotalAges 18+ 5-17 City City inside City Census counts 9,140 7,270 5,798 15,821 27,382 65,411 Daily weighted average hours 10.00 7.14 6.07 4.05 2.02 4.56 Total potential daily demand 91,400 51,929 35,202 64,037 55,416 297,984 4%0> FCS GROUP TIGARD,OREGON Parks & Recreation System Development Charge Study March 23,2012 page 8 We then apportion this potential demand among residents (four population groups) and non-residents (one population group), as shown in Table III.4. Table 111.4- Demand by Place of Residence Proportion TotalPopulation Group Hours Residents Non-Employed, Ages 18+ 91,400 30.677o 37.687o Ages 5-17 51,929 17.437o 21.41% Work inside City 35,202 11.81% 14.51% Work outside City 64,037 21.49% 26.4097o Total residents 242,568 81.4017o 100.00% Non-residents 55,416 18.60% 22.857o Grand total 297,984 100.00% 122.85% As shown in Table III.4, non-residential demand represents 22.85 percent of residential demand. This is the non-resident-employee-to-resident demand ratio. •:;>FCS GROUP TIGARD,OREGON Parks& Recreation System Development Charge Study March 23,2012 page 9 SECTION IV: COST CALCULATION This section provides detailed calculations on eligible costs, which is the numerator in the SDC equation. A. FACILITY NEEDS The recently adopted master plans specify both (1) a level of service for each type of facility and (2) the projects needed to meet that level of service by 2028, which is the end of the planning period. Table IVA summarizes the recently adopted level of service for each type of facility and quantifies the need for each type of facility: Table IV.1 - Needs per Master Plans 2028 Adopted Population Level of and Service Needed Facility Type Units Equivalents per 1,000 Inventory Neighborhood/pocket parks acres 63,042 1.50 94.56 Community parks acres 76,484 3.00 229.45 Linear parks acres 76,484 1.25 95.61 Open space acres 76,484 4.25 325.06 Trails miles 76,484 0.26 20.24 For neighborhood/pocket parks, the "Population and Equivalents"column reflects projected population only. For other facility types,because they benefit non-resident employees, this column also includes a population-equivalent number of employees (calculated by multiplying the projected number of non-resident employees by the non-resident-employee-to-resident demand ratio calculated in the previous section). The projects listed in the recently adopted master plans are eligible for SDC funding only to the extent that the projects will benefit future users. As of 2009, no facility type met the adopted level of service for the existing population. Therefore, not all project costs will benefit future users. Some project costs will simply remedy existing deficiencies. Table IV.2 quantifies this distinction for each facility type. v%4 FCS GROUP TIGARD, OREGON Parks & Recreation System Development Charge Study March 23,2012 page 10 Table IV.2-Components of Needed Inventory and SDC Eligibility Neighborhood/ • Open Component •rks Parks ParksSpace Current developed inventory 60.13 155.16 47.40 190.10 13.00 Development of acquired land 5.30 18.47 6.10 Level of service deficiency 6.33 18.84 55.87 2.32 Subtotal-meeting adopted LOS before growth 71.76 173.62 72.34 245.97 15.32 Growth-related need 22.81 55.83 23.26 79.09 4.93 Total-meeting adopted LOS after growth 94.56 229.45 95.61 325.06 20.24 Deficiency-related need 11.63 18.47 24.94 55.87 2.32 Growth-related need 22.81 55.83 23.26 79.09 4.93 Total need 34.43 74.30 48.21 134.96 7.24 SDC-eligible percentage 66.23% 75.14% 48.26% 58.61% 68.02% SDC-eligible percentage for land only 78.28% 100.00% 55.25% 58.61% 68.02% Because some facility types have undeveloped land in their current inventory, there is less deficiency of land within those types. Therefore,neighborhood/pocket parks, community parks, and linear parks all have a higher SDC-eligibility percentage for land acquisition. B. FACILITY COSTS The recently adopted master plans identify new facilities to serve the parks and recreation needs of the City through the year 2028. B.1 Neighborhood/Pocket Parks Projects for neighborhood/pocket parks have an estimated cost of$13,772,213, as shown in Table IV.3. Of that, $9,601,430 is eligible for funding by SDCs. 4%4FCS GROUP TIGARD,OREGON Parks & Recreation System Development Charge Study March 23,2012 page 11 Table IV.3- Projects for Neighborhood/Pocket Parks SDC- Estimated SDC Eligibile Project Phase Timing Cost Eligibility Cost Bonita Park Improve Crossing 0-10 years $ 75,000 0.00% $ - Jack Park Extension Design 0-10 years 15,000 66.23% 9,935 Jack Park Extension Bridge 0-10 years 100,000 66.237o 66,231 Jack Park Extension Park amenities 0-10 years 100,000 66.2317o 66,231 Jack Park Extension Trail amenities 5-15 years 212,000 66.237o 140,410 Metzger Elementary School Develop School 5-15 years 437,000 66.2317o 289,431 Park Northview Park Improve park 5-15 years 295,000 0.00% - amenity Northview Park Design 10+years 15,000 0.0070 - Northview Park Develop 10+ years 57,000 0.00% - Proposed East Butte Design 0-10 years 60,000 66.2317o 39,739 Heritage Park (P10) Proposed East Butte Develop 0-10 years 350,000 66.237o 231,809 Heritage Park (P10) Proposed Local Park (P12) Acquire land 0-10 years 549,840 78.287o 430,417 Proposed Local Park (P12) Design 5-15 years 60,000 66.2376 39,739 Proposed Local Park (P12) Develop 10+ years 867,000 66.2376 574,225 Proposed Local Park (P9) Acquire land 5-15 years 1,202,775 78.287o 941,537 Proposed Local Park (P9) Design 5-15 years 60,000 66.2317o 39,739 Proposed Local Park (P9) Develop 10+ years 867,000 66.237o 574,225 Woodard Park Develop 5-15 years 60,000 0.00% - Future Neighborhood Acquire land 10+years 4,811,100 78.287o 3,766,146 Parkland (20 acres) Future Neighborhood Park Develop 10+ years 2,947,800 66.23% 1,952,366 Development (17 acres) Undeveloped Linear Park Identify/Acquire 5-15 years 178,698 78.287o 139,885 (P6) Site Undeveloped Linear Park Design 10+ years 15,000 66.23% 9,935 (P6) Undeveloped Linear Park Develop 10+ years 437,000 66.237o 289,431 (P6) $13,772,213 $ 9,601,430 This list satisfies the requirem encs of ORS 223.309()). B.2 Community Parks Projects for community parks have an estimated cost of$41,061,625, as shown in Table IVA Of that, $34,859,120 is eligible for funding by SDCs. -*%> FCS GROUP TIGARD,OREGON Parks& Recreation System Development Charge Study March 23,2012 page 12 Table IV.4-Projects for Community Parks SDC- Eligibile Pr oj ect Phase Timing Cost Eligibility Cost Cach Community Park Design 0-10 years $ 150,000 75.1457. $ 112,717 (Approx. 22 acres) Cach Community Park Planning 0-10 years 5,000 75.14% 3,757 (Approx. 22 acres) Cach Community Park Develop 5-15 years 2,313,000 75.1417o 1,738,095 (Approx. 22 acres) Cook Park Improve park 5-15 years 20,000 0.00% - amenity Fowler Property(20 acres Acquire land 0-10 years 6,755,000 100.00% 6,755,000 purchased, 28 acres donated) Fowler Property(48 acres) Design 0-10 years 200,000 75.147o 150,289 Fowler Property(48 acres) Planning 0-10 years 10,000 75.147o 7,514 Fowler Property(48 acres) Develop 5-15 years 2,459,000 75.147o 1,847,806 New Community Park (P11 Planning 5-15 years 60,000 75.14% 45,087 -Approx. 10 acres) New Community Park (P11 Identify/Acquire 5-15 years 2,500,000 100.00% 2,500,000 - 10 acres purchased) Site New Community Park (P11 Design 10+ years 200,000 75.147o 150,289 - 10 acres) New Community Park (P11 Develop 10+ years 4,307,000 75.147o 3,236,479 - 10 acres) New Community Park Identify/Acquire 10+ years 6,108,325 100.007o 6,108,325 Sports Complex(P13- 10 Site acres purchased, 10-15 acres remaining) New Community Park Design 10+years 200,000 75.14% 150,289 Sports Complex(P13- Approx. 20-25 acres) New Community Park Develop 10+ years 9,884,000 75.147o 7,427,294 Sports Complex(P13- Approx. 20-25 acres) Potso Dog Park Land acquisition 5-15 years 625,000 100.00% 625,000 Potso Dog Park Design 5-15 years 15,000 75.14% 11,272 Potso Dog Park Develop 10+years 295,000 75.14% 221,677 Jim Griffith Memorial Skate Improve park 0-10 years 150,000 0.001/0 - Park amenity Jim Griffith Memorial Skate Improve park 5-15 years 18,000 0.00% - Park amenity Fanno Creek Park-Urban Acquire 0-10 years 687,300 100.00176 687,300 Plaza Fanno Creek Park-Urban Develop 0-10 years 4,100,000 75.147o 3,080,929 Plaza $41,061,625 $34,859,120 This list satisfies the requirem encs of ORS 223.309(1). B.3 Linear Parks Projects for linear parks have an estimated cost of$6,860,000, as shown in Table IV.5. Of that, $3,131,408 is eligible for funding by SDCs. •:;> FCS GROUP TIGARD,OREGON Parks& Recreation System Development Charge Study March 23,2012 page 13 Table IV.5- Projects for Linear Parks , • SDC Eligibile Pr oj ect Phase Timing Cost Eligibility Cost Tigard Triangle Area (P3) Planning 0-10 years $ - $ - Tigard Triangle Area (P3) Develop 5-15 years 250,000 48.267o 120,643 Commercial Park Expand 5-15 years 545,000 48.2617o 263,002 Englewood Park Develop 5-15 years 1,104,000 48.26% 532,759 Englewood Park Add local 5-15 years 236,000 0.00,7 - amenities Fanno Creek Park-Lower Develop 0-10 years 2,115,000 48.2617o 1,020,639 Park Fanno Creek Park-Fanno Improvements to 0-10 years 135,000 0.00% - Creek House indoor space Fanno Creek Park-Park Develop 0-10 years 850,000 48.2617o 410,186 Gateway Fanno Creek Park-Upland Develop 0-10 years 1,100,000 48.26% 530,829 Park Proposed Senn Park Develop 0-10 years 250,000 48.267o 120,643 Undeveloped Linear Park Design 5-15 years 15,000 48.2607o 7,239 (P7) Undeveloped Linear Park Develop 5-15 years 260,000 48.26% 125,469 (P7) $ 6,860,000 $3,131,408 This list satisfies the requirem encs of ORS 223.309(1). B.4 Open Space Projects for open space have an estimated cost of$1,391,783, as shown in Table IVA Of that, $815,658 is eligible for funding by SDCs. Table IV.6- Projects for Open Space SDC- • • SDC Eligibile Pfoject Phase Timing Cost Eligibility Cost Open Space Acquire 0-10 years $ 206,190 58.61% $ 120,838 Open Space Acquire 0-10 years 206,190 58.61% 120,838 Open Space Acquire 5-15 years 206,190 58.61% 120,838 Open Space Acquire 5-15 years 206,190 58.61% 120,838 Open Space Acquire 10+ years 206,190 58.61% 120,838 Open Space Acquire 10+years 206,190 58.61% 120,838 Open Space Acquire 10+ years 154,643 58.61% 90,629 $1,391,783 $ 815,658 This list satisfies the requirem encs of ORS 223.309(l). B.5 Trails Projects for trails have an estimated cost of$11,700,000, as shown in Table IV.7. Of that, $7,957,821 is eligible for funding by SDCs. •:;> FCS GROUP TIGARD,OREGON Parks & Recreation System Development Charge Study March 23,2012 page 14 Table IV.7- Projects for Trails SDC- • Estimated SDC Eligibile Project ID Timing Cost Eligibility Cost Fanno Creek (already funded) 0-10 years $ 670,000 68.027. $ 455,704 Fanno Creek (already funded) 0-10 years 300,000 68.0217o 204,047 Westside Trail (to be ODOT-funded) 0-10 years - 0.00% - Tigard Street A 0-10 years 634,000 68.02% 431,219 Krueger Creek B 0-10 years 160,000 68.027o 108,825 Fanno Creek C 0-10 years 1,040,000 68.0217o 707,362 Fanno Creek &Tualatin River D 0-10 years 1,609,500 68.02% 1,094,711 Pathfinder-Genesis E 0-10 years 715,000 68.0217o 486,311 Summer Creek F 0-10 years 742,500 68.02176 505,016 Fanno Creek G 5-15 years - 68.02% - Fanno Creek H 5-15 years 206,500 68.027o 140,452 Tigard Street 1 5-15 years - 68.027o - Tualatin River J 5-15 years 140,000 68.0217o 95,222 Tualatin River K 5-15 years 2,045,500 68.027o 1,391,258 Washington Square Loop L 5-15 years 183,000 68.027o 124,468 Fanno Creek M 10+years 1,631,500 68.02% 1,109,674 Ascension N 10+ years 461,000 68.0217o 313,552 Washington Square Loop O 10+ years 666,000 68.027o 452,984 Krueger Creek&Summer Creek P 10+ years 495,500 68.0217o 337,017 $11,700,000 $7,957,821 This list satisfies the requirem ents of ORS 223.309(l). B.6 Allocation to Residents and Non-Residents After determining the total SDC-eligible costs, these costs must be allocated between residents and non-residents. As mentioned previously, neighborhood/pocket parks do not benefit non-residents, so they do not receive an allocation of that facility type. Other facility types are allocated using the percentages computed in Table III.4. This allocation is shown in Table IV.8. Table IV.8-Allocation of SDC-Eligible Costs EligibleSDC- Residential Non-Residential Facility Type Costs Neighborhood/pocket parks $ 9,601,430 100.00% $ 9,601,430 0.00% $ - Community parks 34,859,120 81.4017o 28,376,386 18.607o 6,482,734 Linear parks 3,131,408 81.40% 2,549,062 18.607o 582,346 Open space 815,658 81.40% 663,970 18.607c 151,688 Trails 7,957,821 81.4017o 6,477,909 18.607o 1,479,912 $56,365,437 $47,668,757 $ 8,696,680 84.57% 15.437. After this allocation, the residential share of SDC-eligible costs is 84.57 percent, and the non- residential share is 15.43 percent. C. COMPLIANCE COSTS The City incurs costs in the development and administration of SDCs and may recover those costs as provided in ORS 223.307(5). We estimate recoverable costs during the planning period of$660,000, as shown in Table IV.9. -%4 FCS GROUP TIGARD,OREGON Parks & Recreation System Development Charge Study March 23,2012 page 15 Table IV.9- Estimated Compliance Costs Estimated Activity Services Required Cost Master plan update Consulting, staff $300,000 CIP management (parks and Audit, consulting, financial 300,000 recreation portion) reporting, legal, staff SDC methodology review and update Consulting, staff 60,000 $660,000 D. ADJUSTMENTS On January 25, 2011, the City issued Series 2011A General Obligation Bonds with a par amount of $17 million. The purpose of the bonds was to fund capital projects related to parks and recreation. According to the issue's Official Statement, a bond levy will fund debt service of nearly$22 million during the planning period (through June 30, 2028). Since the project list for the bonds largely coincides with those projects listed earlier in this report, it is appropriate to reduce the total SDC to be charged by the amount of taxpayer-funded debt service. Table IV.10 shows how this adjustment reduces SDC-eligible costs by $16.5 million. Table IV.10-Adjustment for Bond Levy Fiscal Year Ending PrincipalJune 30 . . 2012 $ 395,000 $899,5367-T 1-294,536 2013 625,000 665,625 1,290,625 2014 645,000 646,875 1,291,875 2015 665,000 627,525 1,292,525 2016 685,000 607,575 1,292,575 2017 705,000 587,025 1,292,025 2018 725,000 565,875 1,290,875 2019 750,000 544,125 1,294,125 2020 780,000 514,125 1,294,125 2021 810,000 482,925 1,292,925 2022 845,000 450,525 1,295,525 2023 875,000 416,725 1,291,725 2024 910,000 381,725 1,291,725 2025 950,000 304,950 1,254,950 2026 990,000 304,950 1,294,950 2027 1,030,000 262,875 1,292,875 2028 1,075,000 216,525 1,291,525 $21,939,486 Overall SDC eligibility 75.377o Adjustment for bond levy $16,535,648 Finally,because the City's SDC fund has a balance of$2,426,083, the costs to be recovered by SDCs can also be reduced by that amount. E. SUMMARY Table IV.11 summarizes and allocates SDC-eligible costs after all adjustments. •:;> FCS GROUP i TIGARD,OREGON Parks 8, Recreation System Development Charge Study March 23,2012 page 16 Table IV.11 -Adjusted Allocation of SDC-Eligible Costs SDC- Residential Non-Residential • •- Eligible Facilities $56,365,437 84.57% $47,668,757 15.43% $8,696,680 Compliance 660,000 84.57% 558,168 15.43% 101,832 Bond levy (16,535,648) 84.57% (13,984,346) 15.43% (2,551,302) Fund balance (2,426,083) 84.57% (2,051,760) 15.43% (374,323) $38,063,706 $32,190,818 $5,872,888 •:;> FCS GROUP TIGARD, OREGON Parks & Recreation System Development Charge Study March 23,2012 page 17 SECTION V : SDC CALCULATION This section provides a detailed calculation of the residential and non-residential SDCs. A. RESIDENTIAL COST PER CAPITA As shown in Table IV.11, total residential costs are $32,190,818. As shown in Section III, we expect the City's population to grow by 15,204 residents during the planning period. Dividing these numbers results in a cost per capita of$2,117. B. RESIDENTIAL SDC PER DWELLING UNIT When we convert population to the dwelling units described in Table III.1, we can determine the total SDC per dwelling unit as shown in Table V.I. Table V.1 -SDC per Dwelling Unit Residents CapitaCost per SDC per Type of per Dwelling Dwelling Dwelling Unit Single-Family $2,117 2.69 $ 5,696 Multi-Family $2,117 2.15 $ 4,552 Manufactured $2,117 1.63 $ 3,451 C. NON-RESIDENTIAL SDC PER EMPLOYEE As shown in Table IV.11, total non-residential costs are $5,872,888. As shown in Section III, we expect the City's employment to grow by 14,911 employees during the planning period. Dividing these numbers results in a non-residential SDC of$394. D. SUMMARY AND COMPARISON Table V.2 summarizes the calculated SDCs and compares them with SDCs currently in effect. To be consistent with the City's"Master Fees & Charges Schedule,"all SDCs are calculated to the nearest cent. •:;> FCS GROUP TIGARD,OREGON Parks & Recreation System Development Charge Study March 23,2012 page 18 Table V.2-Comparison of SDCs Fee Change Type of SDC Current Proposed Residential, Single-Family $4,048.34 $5,695.57 $1,647.23 40.69% Residential, Multi-Family $3,254.20 $4,552.23 $1,298.03 39.89% Residential, Manufactured $3,209.17 $3,451.22 $ 242.05 7.5476 Non-Residential, Per Employee $ 274.81 $ 393.87 $ 119.06 43.32% E. ANNUAL ADJUSTMENT We have reviewed the City's method for annual adjustment of parks SDCs as summarized in the City's "Master Fees & Charges Schedule"and described more fully in Exhibit"A" of Resolution 01- 74,which the City Council adopted on December 18, 2001. Because the index constructed under this method includes both land costs (based on data from the Washington County Assessor) and construction costs (based on data from the Engineering News Record), it is an especially appropriate index for adjusting parks SDCs. We therefore recommend continuation of the current practice. •:;>FCS GROUP