In April 2024, the City of Hillsboro Utilities Commission approved an updated System Development Charge (SDC) Study.

With the approval of the 2024 water SDC resolution and study, new water SDCs went into effect on July 1, 2024.

Current Water SDC Schedule

Water SDCs ensure new connections to the water system pay their equitable share to fund water system expansions. Revenue from Water SDCs is used only to fund capital projects that: 

• Expand Hillsboro’s current drinking water system to serve new customers.
• Construct new water infrastructure to meet future demand needs.
• Reimburse the City for already-built water systems facilities.

In general, SDCs that support water system expansions:

• Are a one-time fee paid for adding new water service or increasing existing service and help keep monthly water rates more affordable. Once a water meter is installed at a residence, then typically the SDC has already been paid.  
• Ensure that development growth – including residential, commercial, and industrial – pays for water system growth.
• Help avoid cross-subsidies between ratepayers and development which helps keep water rates lower.
• Are set by the City of Hillsboro Utilities Commission.
• Are updated on a regular basis following the requirements of Oregon law.

Throughout the year, community members are invited to ask questions and provide feedback on Water SDCs in several ways:

• By phone: 503-615-6702
• Email Hillsboro Water
• Mail: Hillsboro Water Department, 150 E. Main Street, Third Floor, Hillsboro, Oregon 97123  
• Monthly Utilities Commission Meetings (virtually or in-person on the second Tuesday of each month at 1:30 pm)
  
  

2024 SDC Study: Public Comment Period

The public comment on the proposed changes to the draft 2024 water SDC resolution and study was from March 1 to April 3, 2024, using the following tools:     

• Email Hillsboro Water
• Mail: Hillsboro Water Department, Attn: Tonya Bilderbeck, 150 E. Main Street, Third Floor, Hillsboro, Oregon 97123  
• In-person or virtually at the April 9, 2024 Public Hearing
  
  

April 9, 2024 Public Hearing

A hybrid public hearing was held in front of the City of Hillsboro Utilities Commission, which has the authority over the operation of the City water system and sets water rates and SDCs, to accept testimony regarding the proposed 2024 water SDC update:  

• Date: Tuesday, April 9, 2024  
• Time: 1:30 pm  
• Location:  
  • In-Person: Hillsboro Civic Center, 150 E. Main Street, Room 113, Hillsboro, Oregon 97123  
  • Virtually (Zoom)

The meeting agenda and supporting materials were available online.

Those who wished to comment but could not attend the public hearing were invited to email or mail written comments prior to the hearing using the tools listed above. 

The City of Hillsboro Utilities Commission sets Water SDC fees. Under the City of Hillsboro Charter, the Utilities Commission has been granted final authority to establish the Water SDC, water rates, and other water-related charges.

Following the requirements of Oregon law, the City updates the SDC on a regular basis through a process similar to updating water rates.

The Water SDC, also known as impact or “buy-in” to the water system fees, provides revenue to the Water Department from new user hook ups to recover costs of existing and future capacity enhancing capital improvements. A common objective of the SDC is to have “growth pay for growth.”

Water SDC revenue only funds capital projects that:

• Expand Hillsboro’s current drinking water system to serve new customers
• Construct new water infrastructure to meet future demand needs
• Reimburse the City for existing water systems facilities

For example, the SDC pays for about 60% of the new Willamette Water Supply System treatment plant and pipelines.

Methodology established in 2014 was used to calculate the Water SDC adopted between 2014 and 2019. That methodology was based on the adopted 2013 Water Master plan’s projected capital improvement expenditures for expansion of the Joint Water Commission Water Treatment Plant and for development of the Willamette Water Supply System.

The new methodology — approved by the Utilities Commission in December 2019 — set the maximum allowable Water SDC amount for 2020 to 2025 and reflects the new projected capital improvement expenditures adopted in the 2019 Water Master Plan.

In addition to the Water SDC, there are SDCs for the sanitary sewer, surface water management, transportation, parks, and supplemental South Hillsboro fees (if applicable). These charges are collected by the City to fund future expansion of the systems.