ABSTRACT
The most common course of action is to form an Advisory Committee to review the need for and craft the structure of system development charge (SDC). The Committee should also work to assure that the established system is simple, provides adequate funding for necessary capital improvements, and is consistent with community growth management policies. SDC ordinances must include an appeals process to address administrative decisions. Rational nexus criteria are best satisfied when fees are spent for the category of system improvement for which they were collected and in the service area in which the project for which the fees were collected is located. Some ordinances allow for exemptions from the payment of SDCs for all or part of particular development projects that create extraordinary economic development and employment growth or affordable housing. This ordinance should include a provision that allows local governments "jointly affected" by large or intensive development to collect SDCs to maintain service levels threatened by "spill-over" effects.
