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i <br /> <br /> r +'L <br /> News Rele se Facilities Equalization Charge <br /> January 7 1991 <br /> Page 2 <br /> MWMC reco er a proportionate share of the costs of constructing the regional <br /> 3 <br /> sanitary ewer treatment plant from these new users. The sewage treatment <br /> facilitie were build with adequate capacity to handle sewage flows from the <br /> entire ar a within the urban growth boundary, including River Road and Santa <br /> Clara. T is capacity added to the cost of constructing the treatment <br /> facilitie and were an investment in the region's future. Taxpayers in the <br /> two citie provided the upfront funding for that investment through property <br /> taxes. Th new charge helps obtain equality between existing users who have <br /> already p id and newly connecting users. <br /> "In ffect," said Public Works Deputy Director Terry Smith, "new <br /> developme t will be buying into the existing local investment. Existing <br /> users hav developed an equity in the capital facility through their tax <br /> contribut ons and up-front charges. The new charge is designed to recover a <br /> portion o the cost for providing the extra capacity needed to serve <br /> additions users." <br /> Equa ization or reimbursement charges are commonly used by wastewater <br /> utilities because of the long life of such facilities and the large initial <br /> investmen s required, Smith said. <br /> Unde an 1978 intergovernmental agreement that established the MWMC, <br /> regional harges are set by the MWMC but must be adopted by the cities of <br /> Eugene an Springfield, said Glen Svendsen, Public Works financial manager. <br /> "When MWM was created, it was agreed that the cities of Eugene and <br /> Sprinfiel would continue to be responsible for levying and collecting sewer <br /> charges, ith all revenues going to the MWMC. Although the MWMC determines <br /> more <br /> i <br /> a <br /> <br />