System Development Charges

System Development Charges (SDCs) are one-time charges assessed on new development, additions and changes of use to pay for the costs of expanding public facilities. Growth creates additional infrastructure demands. SDCs provide a mechanism to fund new growth in a community along with the related demand placed on storm and sanitary sewer systems, parks and recreation facilities, water and street systems. 

SDCs may be charged when: 

• There is a change of use or occupancy.
• Increasing number of plumbing fixture units.
• Accessory Dwelling Units (ADU) are added.
• New or additional square footage of residential or commercial occupancy is built. 
• Adding commercial floor area.
• Creating new or redeveloped impervious area.
• New stormwater or sanitary connections are proposed.
• Increasing the size of a water meter.

​Not all SDCs collected are set by the city. For example, charges for parks are set and managed by North Clackamas Parks and Recreation District, and connection fees are set by Clackamas County Service District #1 (CCSD#1) and City of Portland. Most charges are broken down into three components; (1) reimbursement (to recover existing facility capacity available for growth), (2) improvement (to recover planned capacity improvements for growth), and (3) administration (to recover direct costs). Detailed breakdowns and additional fees are available in the Master Fee Schedule. Final SDCs are assessed at permit issuance.

Please see System Development Charges for current charges and fees. The engineering department is responsible for calculating SDCs. For more information, email engineering@milwaukieoregon.gov.