The Philomath City Council unanimously approved updated system development charges for 2026 at its Dec. 8 meeting, raising fees on new construction by 3.56% to keep pace with rising infrastructure costs.
The council voted 7-0 to adopt a resolution that adjusts SDC rates across the city’s water, sewer, transportation and park systems. The rates are tied to the Engineering News Review construction cost index.
For a typical residential home, total SDCs will increase from $30,802 to $31,897 in 2026.
SDCs are one-time fees collected from developers to offset costs of public improvements associated with new development. The charges operate on the principle that new development should pay for infrastructure improvements that service new properties.
The revenue generated from SDCs goes directly toward past and future infrastructure projects, including paying off the city’s sewer lagoon bond and funding the upcoming water treatment plant.