223.309, or from providing a share of the cost of such improvement by other means, if a local government so chooses. ����� (d) Credits must be used in the time specified in the ordinance but not late

223.309, or from providing a share of the cost of such improvement by other means, if a local government so chooses.

����� (d) Credits must be used in the time specified in the ordinance but not later than 10 years from the date the credit is given.

����� (6) Any local government that proposes to establish or modify a system development charge shall maintain a list of persons who have made a written request for notification prior to adoption or amendment of a methodology for any system development charge.

����� (7)(a) Written notice must be mailed to persons on the list at least 90 days prior to the first hearing to establish or modify a system development charge, and the methodology supporting the system development charge must be available at least 60 days prior to the first hearing. The failure of a person on the list to receive a notice that was mailed does not invalidate the action of the local government. The local government may periodically delete names from the list, but at least 30 days prior to removing a name from the list shall notify the person whose name is to be deleted that a new written request for notification is required if the person wishes to remain on the notification list.

����� (b) Legal action intended to contest the methodology used for calculating a system development charge may not be filed after 60 days following adoption or modification of the system development charge ordinance or resolution by the local government. A person shall request judicial review of the methodology used for calculating a system development charge only as provided in ORS 34.010 to 34.100.

����� (8) A change in the amount of a reimbursement fee or an improvement fee is not a modification of the system development charge methodology if the change in amount is based on:

����� (a) A change in the cost of materials, labor or real property applied to projects or project capacity as set forth on the list adopted pursuant to ORS 223.309; or

����� (b) The periodic application of one or more specific cost indexes or other periodic data sources. A specific cost index or periodic data source must be:

����� (A) A relevant measurement of the average change in prices or costs over an identified time period for materials, labor, real property or a combination of the three;

����� (B) Published by a recognized organization or agency that produces the index or data source for reasons that are independent of the system development charge methodology; and

����� (C) Incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution or order. [1989 c.449 �4; 1991 c.902 �28; 1993 c.804 �20; 2001 c.662 �3; 2003 c.765 ��4a,5a; 2003 c.802 �21]

����� Note: See note under 223.297.

����� 223.305 [Repealed by 1971 c.325 �1]

����� 223.307 Authorized expenditure of system development charges. (1) Reimbursement fees may be spent only on capital improvements associated with the systems for which the fees are assessed including expenditures relating to repayment of indebtedness.

����� (2) Improvement fees may be spent only on capacity increasing capital improvements, including expenditures relating to repayment of debt for such improvements. An increase in system capacity may be established if a capital improvement increases the level of performance or service provided by existing facilities or provides new facilities. The portion of the improvements funded by improvement fees must be related to the need for increased capacity to provide service for future users.

����� (3) System development charges may not be expended for costs associated with the construction of administrative office facilities that are more than an incidental part of other capital improvements or for the expenses of the operation or maintenance of the facilities constructed with system development charge revenues.

����� (4) Any capital improvement being funded wholly or in part with system development charge revenues must be included in the plan and list adopted by a local government pursuant to ORS 223.309.

����� (5) Notwithstanding subsections (1) and (2) of this section, system development charge revenues may be expended on the costs of complying with the provisions of ORS 223.297 to 223.316, including the costs of developing system development charge methodologies and providing an annual accounting of system development charge expenditures. [1989 c.449 �5; 1991 c.902 �29; 2003 c.765 �6; 2003 c.802 �22]

����� Note: See note under 223.297.

����� 223.309 Preparation of plan for capital improvements financed by system development charges; modification. (1) Prior to the establishment of a system development charge by ordinance or resolution, a local government shall prepare a capital improvement plan, public facilities plan, master plan or comparable plan that includes a list of the capital improvements that the local government intends to fund, in whole or in part, with revenues from an improvement fee and the estimated cost, timing and percentage of costs eligible to be funded with revenues from the improvement fee for each improvement.

����� (2) A local government that has prepared a plan and the list described in subsection (1) of this section may modify the plan and list at any time. If a system development charge will be increased by a proposed modification of the list to include a capacity increasing capital improvement, as described in ORS 223.307 (2):

����� (a) The local government shall provide, at least 30 days prior to the adoption of the modification, notice of the proposed modification to the persons who have requested written notice under ORS 223.304 (6).

����� (b) The local government shall hold a public hearing if the local government receives a written request for a hearing on the proposed modification within seven days of the date the proposed modification is scheduled for adoption.

����� (c) Notwithstanding ORS 294.160, a public hearing is not required if the local government does not receive a written request for a hearing.

����� (d) The decision of a local government to increase the system development charge by modifying the list may be judicially reviewed only as provided in ORS 34.010 to 34.100. [1989 c.449 �6; 1991 c.902 �30; 2001 c.662 �4; 2003 c.765 �7a; 2003 c.802 �23]

����� Note: See note under 223.297.

����� 223.310 [Amended by 1957 c.397 �3; repealed by 1971 c.325 �1]

����� 223.311 Deposit of system development charge revenues; annual accounting. (1) System development charge revenues must be deposited in accounts designated for such moneys. The local government shall provide an annual accounting, to be completed by January 1 of each year, for system development charges showing the total amount of system development charge revenues collected for each system and the projects that were funded in the previous fiscal year.

����� (2) The local government shall include in the annual accounting:

����� (a) A list of the amount spent on each project funded, in whole or in part, with system development charge revenues; and

����� (b) The amount of revenue collected by the local government from system development charges and attributed to the costs of complying with the provisions of ORS 223.297 to