Ordinance No. 15-09 CITY OF TIGARD, OREGON
TIGARD CITY COUNCIL
ORDINANCE NO. 15-09
AN ORDINANCE ADOPTING A METHODOLOGY RELATING TO THE IMPOSITION AND
COLLECTION OF SYSTEM DEVELOPMENT CHARGES FOR PARKS
WHEREAS, the City has commissioned and authorized the preparation of a methodology for calculation of
parks related system development charges (SDCs) for the City of Tigard, resulting in a new "Parks SDC
Methodology Report";and
WHEREAS, the City intends to use its parks SDCs as a way to balance the capital funding needed for
improved park facilities between existing residents and future residents of this community;and
WHEREAS, the City intends for development in the River Terrace development area pay for the
neighborhood parks in this area.
NOW,THEREFORE,THE CITY OF TIGARD ORDAINS AS FOLLOWS:
SECTION 1: The Parks SDC Methodology Report in Exhibit A is adopted.
SECTION 2: This ordinance shall be effective 30 days after its passage by the council, signature by the
mayor,and posting by the city recorder.
PASSED: By vote of all council members present after being read by number
and title only,this 19`h day of May,2015.
/.
Norma I.Alley,Deputy Recorder
APPROVED: By Tigard City Council this 19"'day of May,2015.
Jo .Cook,Mayor
Approved as to form:
City Attom
sligl �s
Date
ORDINANCE No. 15-09
Page 1
Tigard, Oregon
q
PARKS & RECREATION SYSTEM
DEVELOPMENT CHARGE
METHODOLOGY REPORT
May 19, 2015
*:;> FCS GROUP
Solutions-Oriented Consulting
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 Methodology Report
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TABLE OF CONTENTS
SECTION I: BACKGROUND.......................................................................................................... 1
A. Policy.......................................................................................................................................................1
B. Project.....................................................................................................................................................1
SECTIONII: APPROACH ...............................................................................................................3
A. Reimbursement Fee .............................................................................................................................3
B. Improvement Fee.................................................................................................................................3
C. Growth....................................................................................................................................................3
D. Compliance Costs................................................................................................................................4
E. Geographic Allocation .......................................................................................................................4
F. Summary.................................................................................................................................................4
SECTION III: GROWTH CALCULATION ........................................................................................5
A. Relevant Types of Growth...................................................................................................................5
B. Population Growth...............................................................................................................................5
B.1 Expected Growth.........................................................................................................................5
B.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..............................................................................................8
A. SDC Reimbursement Fee ....................................................................................................................8
B. Facility Needs ........................................................................................................................................9
C. Facility Costs ..........................................................................................................................................9
SECTION V: SDC CALCULATION............................................................................................... 12
A. Calculated SDCs by Use ...................................................................................................................12
B. Residential and Non-Residential SDC Calculations.....................................................................12
B.1 Residential SDC Calculation ....................................................................................................12
B.2 Non-Residential SDC Calculation............................................................................................12
C. Annual Adjustment.............................................................................................................................13
D. Credits, Exemptions and discounts .................................................................................................13
D.1 Credits...........................................................................................................................................13
D.2 Exemptions...................................................................................................................................14
D.3 Discounts......................................................................................................................................14
D.4 Tigard Parks SDCs After Discount.............................................................................................14
E. Existing and Proposed SDCs .............................................................................................................14
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APPENDIX..................................................................................................................................... 16
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SECTION 1 : 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 which 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 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
In August, 2014, the City of Tigard(City) contracted with FCS GROUP to update its SDCs for parks.
This report documents our findings and recommendations.
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.
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■ Draft Methodology Report Preparation. In this step, we documented the calculation of the
draft SDC rates included in this report.
This Tigard Parks and Recreation SDC Methodology Report is intended to be generally consistent
with the River Terrace Funding Strategy, adopted by Tigard City Council in December 2014. The
adopted funding strategy supports the creation of an SDC overlay district within the River Terrace
Plan District. Please refer to City of Tigard Community Development Code: Map 18.660 for tax lots
that are included in the River Terrace Plan District (Exhibit 1.1). Once this Parks SDC methodology
is adopted, future development in Tigard would be subject to a citywide SDC, and development
within River Terrace would also be subject to both the citywide SDC and the River Terrace SDC.
Exhibit 1.1: River Terrace Plan District
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SECTION II : APPROACH
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. The reimbursement fee is the original cost of available capacity
per unit of growth which will use that capacity. The unit of growth, whether number of new residents
or number of new employees, is the basis of the fee.
For parks facilities, available capacity is equal to that portion of the current inventory of parks
facilities that exceeds the adopted standard for level of service.
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.
C. GROWTH
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, employees (or new
jobs). 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 new 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.
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D. 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
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.
E. GEOGRAPHIC ALLOCATION
Parks SDCs are often calculated and applied uniformly throughout a municipality, but such
uniformity is not a legal requirement. Municipalities can calculate and impose area-specific SDCs.
Area-specific SDCs allow a municipality to identify and isolate differential costs to serve particular
areas within its jurisdiction. SDCs are calculated separately for each area, and improvement fees
must be spent on projects in the improvement fee cost basis for the area in which those improvement
fees were earned.
Area-specific SDCs can be implemented in two ways. The first way is to divide the municipality into
a set of non-overlapping areas. Under this method, the SDCs for a particular area are determined by
the assets, projects, and projected growth in that area. The second method is a layered approach. The
first layer consists of a citywide SDC based on assets and projects of citywide benefit. The second
layer consists of one or more overlays. Each overlay is a separate list of assets and projects that
benefit a particular area within the city. For each overlay, the cost bases are divided by projected
growth in that particular area. Development within an overlay pays both the citywide SDC and the
overlay SDC. Development outside of an overlay pays only the citywide SDC.
Given the City's desire to isolate the costs of serving River Terrace, we recommend(and have
calculated in this report) both a citywide SDC and an overlay SDC for River Terrace.
F. SUMMARY
In general, SDC rates are calculated by adding the reimbursement fee 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. Exhibit
2.1 shows this calculation in equation format:
Exhibit 2.1 — SDC Equation
Eligible costs of Eligible costs of Costs of SDC per unit of
available capacity in + capacity-increasing + complying with = growth in demand
existing facilities capital improvements Oregon SDC law
Units of growth in demand
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.
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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.1 Expected Growth
Based on the City's Transportation System Plan (as amended to include River Terrace), the City's
population is expected to grow from 50,851 in 2015 to 72,034 in 2035. In other words,the City is
expected to add 21,183 residents over 20 years at a compound average growth rate of 1.76 percent
per year.
Of the 21,183 new residents, 6,174 are expected to reside in River Terrace.
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 2010-2012 American Community Survey. Table 3.1 shows the resulting conversion factors:
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Table 3.1: Residents Per Dwelling Unit, City of Tigard
Dwelling Residents per
of Units Residents Dwelling Unit
Single-family residences 14,099 35,891 2.55
Multifamily/other residences 6,718 13,027 1.94
Total or Average 20,817 48,918 2.35
Source: U.S.Census Bureau,2010-2012 American Community Survey 3-Year Estimates,tables B25024 and
B25033.Compiled by FCS Group.
C. EMPLOYMENT GROWTH
Having established the relevance of employment in Section II, we now quantify expected growth in
employment and convert the result to population equivalents.
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.1 Expected Growth
Based on the City's Economic Opportunities Analysis adopted by City Council in May 2011, the
number of persons employed within the City is expected to grow from an estimated 40,135 in 2015 to
65,475 in 2035. In other words, the City is expected to add 25,340 employees over 20 years.
Of the 25,340 new employees, 75 are expected to work in River Terrace once a small commercial
center is added.
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 and it is therefore appropriate to allocate the cost of these facilities to residents only.
While most parks and recreation facilities benefit 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. Appendix A-1 identifies
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. In the final panel
of Appendix A-1 (Demand by Population Group), we multiply the weighted average hours by an
actual count for each population group based on data from the U. S. Census Bureau. We then
apportion this potential demand among residents (four population groups) and non-residents (one
population group).
This approach is used to estimate the allocation of parks usage among residents and non-residents,
which is summarized in Figure 3.2. The Endings indicate that residents comprise 81 percent of the
expected level of parks demand and non-residents that work within the city comprise 19 percent of
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TIGARD, OREGON Parks & Recreation SDC Methodology Report
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the demand. These estimates are subsequently used in the next Section of this report to allocate the
eligible SDC cost shares between these two user groups.
Figure 3.2: Allocation of Parks Demand by User Group
Non-
Residents
that Work in
Tigard
19%
Residents
81%
Source: derived from analysis provided in Appendix A-1.
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SECTION IV: COST CALCULATION
This section provides detailed calculations on eligible costs, which is the numerator in the SDC
equation.
A. SDC REIMBURSEMENT FEE
Table 4.1 summarizes the reimbursement fee cost basis, which represents the cost of available
capacity in existing parks facilities.
Table 4.1: SDC Reimbursement Fee Basis
Reimbursement Fee Citywide
Cost Ba
-
Cost by facility type
Communityparks $ 9,313,497
Open space 1,214,637
Total $ 10,528,134
Allocation to residential growth:
Communityparks $ 7,582,170
Open space 988,843
Total allocation to residential growth $ 8,571,012
Allocation to non-residential growth:
Communityparks $ 1,731,327
Open space 225,794
Total allocation to non-residential growth $ 1,957,121
stments and Allocation Summaries
Adjustments:
Compliance costs $ -
Donated or grant-funded assets (533,974)
Remaining debt service234,357
Fund balance -
Total adjustments $ (299,617)
Allocation to residential growth:
Facilities $ 8,571,012
Adjustments (243,920)
Total allocation to residential growth $ 8,327,092
Allocation to non-residential growth:
Facilities $ 1,731,327
Adjustments 55,697
Total allocation to non-residential growth $ 1,675,630
Residential reimbursement fee percapita $ 393
Non-residential reimbursementfee peremployee $ 66
Source: E-mails from Steve Martin(10/08/2014, 10/14/2014 and 10/27/2014);Park
System Master Plan,2009.
Based on Appendix A-2 calculatons for remaining debt service on exisitng parks bond.
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B. FACILITY NEEDS
For purposes of this SDC methodology, each of the City's park facilities falls into one of the
following five categories:
■ Neighborhood and pocket parks
■ Community parks
■ Linear parks
■ Open spaces
■ Trails (includes trails not identified in the Tigard Transportation System Development
Charge Methodology Report project list)
Appendix A-3 compares the current inventory of facilities in each category with that category's
adopted level of service. In the third panel, that comparison leads to a determination of surplus or
deficiency for each category.
Projects are eligible for improvement fee funding only to the extent that the projects will benefit
future users. Therefore, only the categories with no deficiency (community parks, open space, and
trails) are 100 percent eligible for improvement fee funding. As shown in the fifth panel
(Improvement Fee Eligibility), the eligibility percentages of the remaining two categories,
neighborhood/pocket parks and linear parks, are reduced to reflect the level of deficiency.
Because some facility types have undeveloped land in their current inventory, the deficiency of land
decreases within those types. Therefore, neighborhood/pocket parks have a higher improvement fee
eligibility percentage for land acquisition.
C. FACILITY COSTS
The City provided a list (Table 4.2) of parks projects by category and area of benefit using project
improvements identified in adopted parks and trails master plans for Tigard and River Terrace.
Eligibility percentages are derived from the estimates indicated in Figure 3.2. Applying those
percentages to the future Parks project capital costs results in a citywide improvement fee cost basis
of$63.4 million and a River Terrace improvement fee cost basis of approximately $4.7 million.
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Table 4.2: SDC Improvement Fee Basis
SDCi SDCi
City Cost Eligibility for City Cost for Eligibility for SDCi Cost
• -• • • Timingfor Land Land Development Development Basis
Neighborhoodlpocket parks: Cannot exceed 34.05 acres. Cannot exceed 57.05 acres.
Bonita Park 0-10 years $ 93.32% $ 75,000 55.70% $ 41,771
Metzger Elementary School 5-15 years 93.32% 437,000 55.70% 243,388
Northview Park 5-15 years - 93.32% 367,000 55.70% 204,401
Proposed Local Park(P12) 5-15 years 549,840 93.32% 927,000 55.70% 1,029,380
Proposed Local Park(P9) 5-15 years 1,202,775 93.32% 927,000 55.70% 1,638,670
Future Neighborhood Park 10+years 4,811,100 93.32% 2,947,800 55.70% 6,131,286
Total neighborhood/pocket parks 9,288,896
Community parks: Cannot exceed 42.10 acres. Cannot exceed 61.10 acres.
Sunrise Community Park 0-10 years - 100.00% 2,468,000 100.00% 2,468,000
New Com munity Park(PI 1) 5-15 years 100,000 100.00% 900,000 100.00% 1,000,000
New Community Park Complex 10+years 6,108,325 100.00% 10,084,000 100.00% 16,192,325
Fanno Creek Park: Urban Plaza 0-10 years 687,300 100.00% 4,100,000 100.00% 4,787,300
Communityparks in River Terrace 1-20 years 7,508,000 100.00% 8,386,000 100.00% 15,894,000
Total communityarks 40,341,625
Linear parks: Cannot exceed 37.04 acres. Cannot exceed 37.04 acres.
Tigard Triangle Area(P3) 0-10 years 71.48% 250,000 71.48% 178,707
Commercial Park 5-15 years 71.48% 545,000 71.48% 389,580
Englewood Park 5-15 years 71.48% 1,340,000 71.48% 957,867
Fanno Creek Park: Park Gateway 0-10 years 71.48% 850,000 71.48% 607,602
Fanno Creek Park: Upland Park 0-10 years 71.48% 1,100,000 71.48% 786,309
Undeveloped Linear Park(P7) 5-15 years 71.48% 275,000 71.48% 196,577
River Terrace Linear Parks 1-20 years $3,128,000 71.48% $228,000 71.48% 2,398,956
Total linear parks 5,515,598
Open space: Cannot exceed 66.14 acres. Cannot exceed 66.14 acres.
5-15 years 412,380 100.00% 100.00% 412,380
10+years 567,023 100.00% 100.00% 567,023
Total open space 979,403
Trails: Cannot exceed 6.75 miles. Cannot exceed 6.75 miles.
Fanno Creek(alreadyfunded)(trail project) 0-10 years 100.00% 670,000 100.00% 670,000
Westside Trail 0-10 years 100.00% - 100.00%
Tigard Street(trail project A) 0-10 years 100.00% 634,000 100.00% 634,000
Fanno Creek(trail project C) 0-10 years 100.00% 1,040,000 100.00% 1,040,000
Fanno Creek&Tualatin River(trail project D) 0-10 years 100.00% 1,609,500 100.00% 1,609,500
Summer Creek(trail project F) 0-10 years 100.00% 742,500 100.00% 742,500
Fanno Creek(trail project G) 5-15 years 100.00% - 100.00% -
Fanno Creek(trail project H) 5-15 years 100.00% 206,500 100.00% 206,500
Tigard Street(trail project 1) 5-15 years 100.00% - 100.00% -
Ascension(trail project N) 10+years 100.00% 461,000 100.00% 461,000
Krueger Creek&Summer Creek(trail project P) 10+years 100.00% 495,500 100.00% 495,500
River Terrace Trails 1-20 years $690,000 100.00% $764,000 100.00% 1,454,000
Total trails 7,313,000
Total ro'ects with ci ide benefit $ 63,438,521
Projects with River Terrace Benefit
Neighborhood/pocket parks $ 3,752,000 93.32% $2,216,375 55.70% $ 4,735,613
Total projects with River Terrace benefit $ 4,735,613
Source: E-mail(attachment)from Steve Martin,09/24/2014;updates on costs per city staff input on 5/12/2015. Abbreviation: SDQ=it provement fee. Note:
This list does not include projects w hose timing as designated as either"completed"or"in process."
SDCi:Improvement Fee
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After determining the total eligible costs, they must be allocated between residents and non-residents
using the percentages shown previously in Figure 3.2. We also adjust the costs to include costs of
compliance and exclude current SDC fund balance and future debt service on the unspent portion of
bond proceeds. Table 4.3 summarizes and allocates the improvement fee cost basis after all
adjustments.
Table 4.3: SDC Improvement Fee by Area
ImprovementArea-S ecific SDC
River Terrace
Citywide SDC Cit Outside RT Overla Total Single SDC
Project Costs Elf- IM III
Eligible project costs by facility type:
Neighborhood/pocket parks $ 9,288,896 $ 4,735,613 $ 14,024,508 $ 14,024,508
Community parks 40,341,625 $ 40,341,625 40,341,625
Linear parks 5,515,598 $ 5,515,598 7,914,554
Open space 979,403 $ 979,403 979,403
Trails 7,313,000 $ 7,313,000 8,767,000
Total eligible project costs byfacility type $ 54,149,625 $ 9,288,896 $ 4,735,613 $ 68,174,134 $ 72,027,090
Allocation to residential growth:
Neighborhood/pocket parks $ 9,288,896 $ 4,735,613 $ 14,024,508 $ 14,024,508
Community parks 32,842,342 $ 32,842,342 32,842,342
Linear parks 4,490,279 $ 4,490,279 6,443,282
Open space 797,337 $ 797,337 797,337
Trails 5,953,554 - $ 5,953,554 7,137,264
Total allocation to residential growth $ 44,083,512 $ 9,288,896 $ 4,735,613 $ 58,108,020 $ 61,244,733
Allocation to non-residential growth:
Neighborhood/pocket parks $ - $ - $ - $ - $
Community parks 7,499,283 7,499,283 7,499,283
Linear parks 1,025,319 1,025,319 1,471,271
Open space 182,065 182,065 182,065
Trails 1,359,446 1,359,446 1,629,736
Total allocation to non-residential growth $ 10,066,113 $ $ $ 10,066,113 $ 10,782,357
Adjustments:
Compliance costs $ 660,000 $ $ 660,000 $ 660,000
Debt service for parks bond (2,736,625) (2,736,625) (2,736,625)
Fund balance 1,124,011 1,124,011 1,124,011
Total adjustments $ (3,200,636) $ $ (3,200,636) $ (3,200,636)
Allocation to residential growth:
Facilities $ 44,083,512 $ 9,288,896 $ 4,735,613 $ 58,108,020 $ 61,244,733
Adjustments 2,605,656 2,605,656 2,605,656
Total allocation to residential growth $ 41,477,856 $ 9,288,896 $ 4,735,613 $ 55,502,364 $ 58,639,078
Allocation to non-residential growth:
Facilities $ 10,782,357
Adjustments (479,131)
Total allocation to non-residential growth $ - $ $ $ $ 10,303,226
Residential improvement fee per capita S2,768
Non-residential improvement fee per employee $407
Note: Non-residential SDC is calculated on a citywide basis,
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SECTION V: SDC CALCULATION
This section provides a detailed calculation of the residential and non-residential SDCs.
A. CALCULATED SDCS BY USE
Dividing the reimbursement and improvement fee cost bases by projected growth in population and
employees results in a calculated SDC per unit of growth. The results of this calculation are
summarized in Table 5.1:
Table 5.1: SDC Improvement Fee by Use
Area-Specific SDC
• ' • Area of City River Terrace
Citywide SDC Outside RT Area
Residential SDCs
Total cost basis $41,477,856 $9,288,896 $4,735,613
Growth in population 21,183 15,009 6,174
SDC per capita $1,958 $619 $767
SDC per single family dwelling $4,985 $1,575 $1,953
SDC per multifamily/other dwelling $3,753 $1,186 $1,470
Non-Residential SDCs
Total cost basis $10,303,226
Growth in employment 25,340
SDC per employee** $407
Note: Non-residential SDC is calculated on a cityw ide basis.
*includes compliance costs.**SDC per employee to be assessed based on square feet of floor area.
Because only 75 new employees are expected in River Terrace over the next 20 years, the non-
residential overlay SDC for River Terrace would have been prohibitively expensive. Therefore, we
have calculated the non-residential SDC on a citywide basis only.
B. RESIDENTIAL AND NON-RESIDENTIAL SDC CALCULATIONS
B.l Residential SDC Calculation
When we convert population to the dwelling units, we can determine the total maximum allowable
SDC fee per dwelling unit as shown in Table 5.1. SDCs for residential development are calculated
by multiplying the number of dwellings (by housing category) by the corresponding SDC rate.
B.2 Non-Residential SDC Calculation
To calculate SDCs for proposed redevelopment of existing buildings, the SDC for non-residential
uses will take into account the amount of floor area (square feet)proposed as a change in use.
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TIGARD, OREGON Parks & Recreation SDC Methodology Report
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The SDC calculation for new non-residential development takes into account the amount of proposed
floor area (square feet). The Parks SDC for non-residential development will vary by the
classification of development as shown in Table 5.2.
Table 5.2: Parks SDC Conversion Factors for Non-Residential Uses
arks SDC Per Employees Per parks SDC
iCategor Employee ' 1,000 SFZ Per 1,000 SF
General Industrial $473 1.25 $590.90
Warehousing/Distribution $473 0.80 $378.18
Flex $473 1.60 $756.35
Office $473 3.33 $1,574.16
Retail $473 2.22 $1,049.44
Institutional $473 2.00 $945.44
Source: Compiled by FCS Group
SDC reflects proposed reimbursement, improvement and compliance fees.
2 Derived from Metro factors used for 2014 Urban Growth Report.
C. 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 first 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 continuing the current practice.
D. CREDITS, EXEMPTIONS AND DISCOUNTS
The Tigard SDC Procedures Guide will establish local policies for issuing credits and exemptions,annual
adjustments, and other administrative procedures.
D.l Credits
A credit is a reduction in the amount of the SDC for a specific development. The Oregon SDC Act
requires that credit be allowed for the construction of a"qualified public improvement" which(1) is
required as a condition of development approval, (2)is identified in the City's capital improvements
program, and(3)either is not located on or contiguous to property that is the subject of development
approval,or is located on or contiguous to such property and is required to be built larger or with greater
capacity than is necessary for the particular development project.
The credit for a qualified public improvement may only be applied against an SDC for the same type of
improvement(e.g.,parks land or improvements provided by a developer can only be used for a credit for
towards parks SDC improvement fee payments), and must be granted only for the cost of that portion of
an improvement which exceeds the minimum standard facility size or capacity needed to serve the
particular project up to the amount of the improvement fee. For multi-phase projects, any excess credit
may be applied against SDCs that accrue in subsequent phases of the original development project.
In addition to these required credits,the City may, if it so chooses,provide a greater credit,establish a
system providing for the transferability of credits,provide a credit for a capital improvement not
identified in the City's SDC Capital Improvements Plan, or provide a share of the cost of an improvement
by other means(i.e.,partnerships, other City revenues, etc.).
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D.2 Exemptions
The City may exempt specific classes of development(i.e.,minor additions, etc.)from the requirement to
pay SDCs.
D.3 Discounts
Section IV of this Tigard Parks SDC Methodology Report documented the maximum defensible
SDC that can be established in Tigard (see Table 5.1). In accordance with the River Terrace Funding
Strategy, the City of Tigard desires to establish its Parks SDC at a level that is below the maximum
amount that it can charge.
The City may discount the amount of the SDC by reducing the portion of growth-required
improvements to be funded with SDCs. Alternatively, the City may decide to charge only a
percentage (i.e., 50%, 75%, etc.) of the SDC rates required to fund identified growth-related facility
costs. Because discounts reduce SDC revenues, they increase the amounts that must come from other
sources, such as general fund contributions in order for the City to maintain levels of service.
D.4 Tigard Parks SDCs After Discount
Table 5.3 summarizes the discounted parks SDC improvement/compliance fees that the City of
Tigard would initially charge for residential development after the new SDCs are established. The
Tigard City Council has the discretion to remove SDC discounts in the future.
Table 5.3: Park SDC Improvement Fee, After Discount
Area-Specific SDC
Citywide I Area of City Outside RT I River Terrace Area
Average SDC Per Capita $1,669 $619 $767
Single-family residences $4,248 $1,575 $1,953
Multifamily/other residences $3,198 $1,186 $1,470
Non-Residential (per employee) $367
Source: discounted SDCs are required to comply with Council direction per the River Terrace Funding Strategy,
December 2014.
includes compliance costs.
The citywide SDCs (after discounts) would be lower than the maximum SDC the City can charge to
meet the policy objectives established by the River Terrace funding strategy. Hence, additional
funding sources (such as parks utility fees, bonds, grants, etc.) would need to be identified to ensure
that all projects contained in the long term capital project list can be funded by year 2035.
E. EXISTING AND PROPOSED SDCS
Table 5.4 summarizes the existing and proposed total Parks SDCs for the City of Tigard for
reimbursement, improvement, and compliance charges after discounts.
Once this Methodology Report is adopted, Parks SDCs would vary by location. Parks SDCs within
the city(outside River Terrace) would initially be charged $6,824 per single family dwelling, $5,138
per multifamily dwelling, and $403 per new employee. Parks SDCs within River Terrace would
initially be charged $7,201 per single family dwelling, $5,421 per multifamily dwelling, and $403
per new employee.
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TIGARD, OREGON Parks & Recreation SDC Methodology Report
May 2015 page 15
Table 5.4: Current and Proposed Parks SDCs
SDC
Current
Residential SDC per capita $ 2,753
SDC per single family dwelling $ 6,451
SDC per multifamily dwelling $ 5,156
Non-residential SDC per employee $ 446
SDC-i(revised)* Total SDC(revised)
Citywide
(corn m unity
parks, Area Outside River Terrace
trails,linear RT Overlay Overlay
SDC-r parks,open (neighborhood (neighborhood Area River
•
Citywide space) parks) parks) Outside RT Terrace
Residential SDC per capita $ 393 $ 1,669 $ 619 $ 767 $ 2,681 $ 2,829
SDC per single family dwelling $ 1,001 $ 4,248 $ 1,575 $ 1,953 $ 6,824 $ 7,201
SDC per multifamily dwelling $ 753 $ 3,198 $ 1,186 $ 1,470 $ 5,137 $ 5,421
Non-residential SDC per employee** $ 66 $ 367 $ - $ - $ 433 $ 433
Source:derived from prior tables.'SDC-r reimbursement fee;SDC-i=improvement fee.*Includes comFl�lance fee.**Non-
residential SDCs calculations for new development are to be based on square feet of floor area(see Table 5.2).
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TIGARD, OREGON Parks & Recreation SDC Methodology Report
May 2015 page 16
APPENDIX
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Appendix A-1, Estimated Tigard Parks Demand for Residents and Non-Residents
. . . Non-
, - Residents Residents
Non-
Employed, Work inside Work Work inside
Ages 18+ Ages 5-17 City outside City City Total
JOL
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
• Lu FTTI ,I .-
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 Mar h)
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
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
Demand by Population Group
Daily weighted average hours 10.00 7.14 6.07 4.05 2.02
Census counts in Tigard 12,850 8,286 6,507 18,843 34,239
Potential daily demand in Tigard 128,500 59,186 39,507 76,269 69,293 372,755
Proportion 34.5% 15.9% 10.6% 20.5% 18.6% 100.0%
Proportion by place of residence 81.4% 18.6% 100.0%
Source: FCS GROUP,U.S.Census Bureau,2010-2012 American Community Survey 3-Year Estimates,tables DP03,DP05,and B08008;U.S.
Census Bureau,On the Map application.
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TIGARD, OREGON Parks & Recreation SDC Methodology Report
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Appendix A-2, Estimated Tigard Parks Bond Payments
PrincipalExisting Parks Bond Payments - Total
Fiscal year ending June 30,2016 $ 665,000 $ 627,525 $ 1,292,525
Fiscal year ending June 30,2017 685,000 607,575 1,292,575
Fiscal year ending June 30,2018 705,000 587,025 1,292,025
Fiscal year ending June 30,2019 725,000 565,875 1,290,875
Fiscal year ending June 30,2020 750,000 544,125 1,294,125
Fiscal year ending June 30,2021 780,000 514,125 1,294,125
Fiscal year ending June 30,2022 810,000 482,925 1,292,925
Fiscal year ending June 30,2023 845,000 450,525 1,295,525
Fiscal year ending June 30,2024 875,000 416,725 1,291,725
Fiscal year ending June 30,2025 910,000 381,725 1,291,725
Fiscal year ending June 30,2026 950,000 304,950 1,254,950
Fiscal year ending June 30,2027 990,000 304,950 1,294,950
Fiscal year ending June 30,2028 1,030,000 262,875 1,292,875
Remainder of planning period 4,615,000 558,050 5,173,050
$ 15,335,000 $ 6,608,975 $ 21,943,975
Principal spent $ 12,535,000 81.74%
Principal remaining 2,800,000 18.26%
$ 15,335,000 100.00%
Adjustmentto reimbursementfee $ 12,535,000 -1.87% $ 234,357
Adjustmentto improvementfee $ 2,800,000 91.07% $ (2,550,009)
Source:CityofTigard;compiled by FCS Group.
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TIGARD, OREGON Parks & Recreation SDC Methodology Report
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Appendix A-3, Estimated Parks Inventory and Needs by Category
Inventory and Needs by Category Neighborhood
and Pocket Community
Parks Parks Linear Parks Open Space
Current lnver,Z-�
Fully developed facilities
River Terrace acres(miles for trails) 0 0 0 0 0
Rest of city acres(miles for trails) 51 155 53 240 16
Total fully developed facilities 51 155 53 240 16
Undeveloped land
River Terrace acres(miles for trails) 0 0 0 0 0
Rest of city acres(miles for trails) 23 19 0 0 0
Total undeveloped land 23 19 0 0 0
Current Level of Service 11
Fully developed facilities
Rest of city acres per 1,000 residents(miles for tra 1.00 3.05 1.04 4.73 0.32
Entire city acres per 1,000 residents(miles for trail 1.00 3.05 1.04 4.72 0.32
Land
Rest of city acres per 1,000 residents(miles for tra 1.46 3.43 1.04 4.73 0.32
Entire city acres per 1,000 residents miles for trail 1.46 3.42 1.04 4.72 0.32
Standards,Surpluses,and Deficiencies
Standard acres per 1,000 residents(miles for trails) 1.50 3.00 1.25 4.25 0.32
Fully developed facilities surplus(deficiency)
River Terrace acres(miles for trails) (0.15) (0.31) (0.13) (0.43) (0.03)
Rest of city acres(miles for trails) 25.12 2.75 (10.44) 24.32 0.03
Total fully developed facilities surplus(deficiency (25.28) 2.45 (10.56) 23.88 0.00
Land surplus(deficiency)
River Terrace acres(miles for trails) (0.15) (0.31) (0.13) (0.43) (0.03)
Rest of city acres(miles for trails) (2.12) 21.75 10.44 24.32 0.03
Total land surplus(deficiency) (2.28) 21.45 (10.56) 23.88 0.00
River Terrace
Current developed acres 0.00 0.00 0.00 0.00 0.00
Development of undeveloped acres 0.00 0.00 0.00 0.00 0.00
Additional acres to acquire and develop 9.41 18.83 7.84 26.67 2.00
Total developed acres needed by 2035 9.41 18.83 7.84 26.67 2.00
Rest of city
Current developed acres 51.00 155.00 53.00 240.00 16.20
Development of undeveloped acres 23.00 19.00 0.00 0.00 0.00
Additional acres to acquire and develop 24.64 23.27 29.20 39.47 4.75
Total developed acres needed by 2035 98.64 197.27 82.20 279.47 20.95
Entire city
Current developed acres 51.00 155.00 53.00 240.00 16.20
Development of undeveloped acres 23.00 19.00 0.00 0.00 0.00
Additional acres to acquire and develop 34.05 42.10 37.04 66.14 6.75
Total developed acres needed by 2035 108.05 216.10 90.04 306.14 22.95
®7`i`ia1yL-liiC�f i 4"ar!-+ r- 11
-
Development and other costs 55.70% 100.00% 71.48% 100.00% 100.00%
Land acquisition only 93.32% 100.00% 71.48% 100.00% 100.00%
Maximum acres of development 57.05 61.10 37.04 66.14 6.75
Maximum acres of land acquisition 34.05 42.10 37.04 66.14 6.75
Eligible Costs for Reimbursement Fee
Unit cost per acre of land(mile for trails) $ 400,000 $ 50,855
Unit cost per acre of development(mile for trails) $ 300,000
Reimbursable cost 1 $ - $ 9,313,497 $ - $ 1,214,637 $
Source: E-mails from Steve Martin(10/08/2014,10/14/2014 and 10/27/2014);Park System Master Plan,2009.
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