A typical residential home constructed in Philomath will cost the homebuilder an average of $259 more come Jan. 1 with the City Council’s decision to increase system development charges.
The council set the 2025 rates based on the methodology outlined in city code. The rates are tied to the most-recent average construction cost index as published by Engineering News Review, which takes into account average labor and materials increases.
The increase comes out to an increase of 0.87% for the past year. For a typical residential home, the SDCs will be $30,802.
System development charges are one-time fees that local governments charge to developers, individuals and projects to help pay for infrastructure that serves new development. The fees allow the city to collect the funds needed for projects identified in master plans.
“In Philomath, we’ve put a lot of effort into making sure that any project that is on our 10-year construction list is a project that we actually foresee doing in the next 10 years — and it’s that list of projects and the total cost of those projects is what goes into establishing what our SDC rates are,” City Manager Chris Workman said.
Revenue through SDCs can be used for capital projects related to water supply, sewer, transportation, stormwater drainage and parks.
Additional revenue through the SDCs goes directly toward past or future infrastructure projects, such as paying off the city’s sewer lagoon bond and the upcoming water treatment plant.
The council approved a resolution to establish the 2025 rates on a 4-0 vote (two absent, one seat vacant).
