Fee Schedule

Contact

Development Services Division
555 Liberty St. SE
Room 320
Salem, OR 97301

503-584-4646
developmentservices@cityofsalem.net

Resources

SDC Methodology Committee

2019 SDC Methodology Report

Development Fees

Site Development Fees

Plan review and permit fees for most building site work and subdivision projects are collected through an area-based site development fee. The fee is calculated based on each 0.1 acre of developed area and is collected separately at the time of plan review application and permit issuance.

Plan review phase fees

During the plan review phase of the permitting process a site development plan review fee is charged to cover all expenses related to infrastructure and site work plan review during the land use application and construction plan review phases of the project.

Construction phase fees

Site development permit fee—includes most Public Works expenses during construction, including but not limited to inspection, traffic control, water meter installation, wastewater taps, and other construction-related costs. In unusual situations, other individual Public Works fees may apply to a project that are not covered by the site development fee.

A detailed listing of site development fees is available in the current Fee Schedule.

Systems Development Charges (SDC)

Systems Development Charges (SDC) are a financing mechanism for funding of Parks, Transportation, Water, Wastewater, and Stormwater systems that are needed to serve new developments. SDCs are collected from developers at the time of building permit issuance based on the relative impacts of each project and are used to pay for construction of new public infrastructure.

The City Council adopts the systems development charge fee structure and policies each fiscal year. For a detailed listing of system development charges, you can review the systems development charges worksheet

SDC Applications and Exemptions

System Development Charges are typically due before the issuance of a building permit, site development permit, or any permit related to connecting or increasing usage of public water, sewer, or storm systems. However, certain development activities may be exempt from SDCs. Common exemptions include replacing damaged structures, redeveloping sites with existing uses, constructing accessory dwelling units (ADUs), and developing affordable housing projects.

Affordable housing projects are either fully or partially exempted from paying SDCs. In comparison, market-rate projects pay SDCs, generally in the range of $8,000 per unit.

The following steps are needed for an affordable housing project to meet the exemption from SDCs:

Confirm the project meets the affordable housing definition in Salem Revised Code 41.150(a)(5).
Provide a draft deed restriction for review by the City Attorney’s office. SDC exemptions are based on a rate of 1/30th per year of affordability for a time period not less than 5 years and not more than 30 years, as elected by the applicant.
Submit development plans for building permit review.
Provide a recorded deed restriction prior to development permit plan approval.

For additional information or questions about SDC exemptions, please contact Development Services.

SDC Methodology Overview

An SDC methodology determines the relative impacts of each development project to the infrastructure systems serving the project so that SDCs are collected equitably. The methodology is summarized by the equation below:

Growth graphic for SDC methodology report

SDCs are collected from developers and then used to pay for infrastructure facilities City-wide. The methodology establishes fee amounts to be collected from each individual development project to ensure that adequate funds are available to provide the public infrastructure needed in developing areas.

Eligible Projects List (309 List)

Under Oregon Revised Statutes (ORS) 223.309, the City is required to prepare a list of projects that are to be funded with SDCs. The list of projects is commonly referred to as the “309 List.” Only projects on the 309 Lists can be funded with SDCs. However, the 309 Lists can be amended at any time by City Council to add or remove projects or make other modifications. As development patterns change, the 309 Lists are customarily modified to ensure that infrastructure needed to serve new developments is eligible for SDC expenditures. The current list of approved 309 List projects is available below.

System Development Charge Eligible Projects (309 Lists)

Document	Date
309 List - Parks	3/5/2024
309 List - Stormwater	3/5/2024
309 List - Transportation	4/7/2022
309 List - Wastewater	4/7/2022
309 List - Water	4/7/2022

SDC Methodology Report

The City's current SDC methodology was generated through a nearly two-year process involving a seven-member SDC Methodology Committee of interested stakeholders. The committee included two City councilors, a member of the Planning Commission, a member of the Salem Parks and Recreation Advisory Board, and three other citizen stakeholders. A team of City staff and consultants performed the analysis needed to complete the methodology.

Key Features of the 2019 SDC Methodology

Parks SDC Methodology

Parks SDCs for residential developments are collected based on the number and type of dwelling units. Parks SDCs for non-residential developments are collected based on building square footage and zoning. The current Parks SDC methodology has two main differences than the prior methodology:

This methodology collects Parks SDCs from both residential and non-residential development, where the prior methodology collected SDCs from residential developments only. This approach accounts for park use of employees in non-residential areas, not just Salem residents.
This methodology authorizes new parks to be funded entirely with SDCs, where the prior methodology generally required that other funds be used over and above SDCs when developing park land. This approach will follow in more parks being developed because grants or other funding are not needed to augment SDC funds.

Transportation SDC Methodology

The current Transportation SDC methodology has two main differences than the prior methodology:

The basis for calculating SDCs has changed to ensure that developers are funding transportation projects at levels commensurate with current users. The methodology establishes SDC amounts based on the level of funding being expended for major transportation projects by current users, which is approximately double the rate of the prior SDCs. This approach provides a more equitable basis to ensure consistency among all sources of transportation revenues.
This methodology authorizes most new transportation projects to be funded entirely with SDCs, where the prior methodology generally required that other funds be used over and above SDCs when constructing street improvements. This approach will allow for greater flexibility in how transportation projects are funded.

Water/Wastewater SDC Methodology

This methodology collects an additional SDC for existing capacity in 8-inch pipes that was previously collected through a connection fee pursuant to Salem Revised Code (SRC) Chapter 21. This approach eliminates a disincentive to infill development that had occurred under SRC Chapter 21, by distributing costs to all development rather than a limited number of infill projects.

Two common types of area-based fees are used in conjunction with development projects: (1) temporary access fees are authorized pursuant to SRC 200.080; and (2) reimbursement district fees are authorized pursuant to SRC 200.350. These area-based fees are generally collected over and above SDCs. As a result, not all growth costs are attributed to SDCs in order to prevent duplication of funds from area-based fees.

In general, water/wastewater SDCs do not directly affect water/wastewater utility rates. However, a number of infrastructure projects are dual-funded by both utility rates and SDCs because the projects benefit both existing and future users. These dual-funded projects can provide a substantial cost savings for each fund in comparison to the cost of projects with only one fund source.

Stormwater SDC Methodology

Fairview Development District

On June 13, 2005, the City Council adopted an order approving the establishment of the Fairview Development District encompassing approximately 275 acres of property between Pringle Road SE, Battle Creek Road SE, Reed Road SE, and Strong Road SE. Development projects within the Fairview Development District are required to pay Development District Fees (DDFs) in lieu of SDCs. The District process includes publication of a Project List to determine which improvements are eligible for funding by DDFs.

Current Fairview Development District Eligible Projects List