Park District Updates System Development Charges for 2026

New rates take effect July 1, 2026

What Is a System Development Charge?

If you’ve applied for a building permit in our area, you’ve probably seen a line item called a System Development Charge — or SDC. But what exactly is it, and why does it exist?

An SDC is a one-time fee charged to new development to help pay for the parks, trails, and open spaces that growing communities need. The idea is simple: when new homes and businesses are built, they increase demand on public infrastructure. SDCs make sure the people and projects creating that demand help pay for it — rather than passing those costs on to existing residents through higher taxes or utility rates.

That’s the “growth pays for growth” principle, and it’s the foundation of how SDCs work. Oregon law specifically allows SDCs for parks and recreation infrastructure, and they’re only used to pay for capital improvements — not day-to-day operations or maintenance.

SDCs are not taxes. They’re a fair-share contribution from new development toward the facilities it will use. Existing properties are not charged an SDC unless they change use or significantly increase in size.

How Are SDC Rates Determined?

SDC rates are reviewed and adjusted every year to keep pace with real-world construction costs. The Park District indexes our rates to the Engineering News Record (ENR) Construction Cost Index 20-City Average — an industry-standard measure of how much it costs to build things. For January 2026, that index reflects an increase of 2.8%, which is what drives this year’s rate update.

Where Does the Money Go?

SDC funds go directly toward capital improvement projects — things like new parks, trail expansions, and recreational facilities that the community will rely on for decades. These investments are outlined in the Park District’s Capital Improvement Plan (CIP). SDC dollars cannot be used for operating expenses or routine maintenance.

The bottom line: SDCs are how we make sure our parks and open spaces can keep up with our growing community — without putting that burden on people who are already here.

Questions? We’re happy to help.

Reach out to Scott Baker, Executive Director, at 541-296-9533 or scottb@nwprd.org.

Find a copy of our audit for the 2023-2024 fiscal year HERE

Find a Copy of our audit for the 2024-2025 Fiscal Year HERE