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f <br /> METHODOLOGY: <br /> City of Eugene Systems Development Charges <br /> Appendix C <br /> Wastewater System Charge Detail <br /> 1.0 Loca (City) Wastewater System <br /> 1.1 Local Wastewater SDC Formula <br /> The eneral methodology used to develop SDCs includes the following four steps: <br /> • Determine value of growth-related capacity <br /> • Define system capacity <br /> • Calculate unit cost ofgrowth-related capacity <br /> Develop SDC rate schedule <br /> Each step is discussed below and related information is displayed in Table 4, page C-4. <br /> 1.1.1 Step 1 -Determine Value of Growth-Related Capacity <br /> (in 1998 dollars see current values in Table 4, page C-4) <br /> In Eugene, as in most communities, a portion of the capacity needed to serve new <br /> development will be met through a combination of existing available system <br /> capacity, and additional capacity added by planned system improvements. The <br /> reimbursement fee is intended to recover the costs associated with the growth- <br /> <br /> r! related (or available) capacity in the existing system, and the improvement fee is <br /> based on the costs of capacity-increasing future improvements needed to meet the <br /> demands of growth. <br /> Reimbursement Fee <br /> Calculation of the reimbursement fee begins with a review of utility fixed asset <br /> records to determine the value of the existing local wastewater system. The <br /> system value is based on Replacement Cost New which is a method that involves <br /> assigning asset values on the basis of what it would cost in current dollars to <br /> construct an equivalent set of infrastructure assets subject to current market <br /> conditions, regulatory requirements, and technological advances. The total value <br /> of the existing local wastewater system, including gravity lines (net of <br /> assessments), force mains (or pressure lines), and pump stations was estimated <br /> to be $96.1 million. Approximately $8.9 million of assets were funded from grants. <br /> Like assessments, grant funds are deducted from the system value in the SDC <br /> analysis because general system users did not fund these assets. Net of grants, <br /> the total value of the existing system is approximately $87.2 million. <br /> Because reimbursement fees are intended to recover the value of the system's <br /> unused or available capacity, the total equity in the system is split between existing <br /> customers and new development based on the estimated proportionate use of <br /> capacity. The reimbursement cost basis is equal to the system equity associated <br /> with the capacity available to serve new customers. Approximately 52% of the <br /> existing system is available to meet the demands of new customers. Therefore, <br /> the value of available (orgrowth-related) capacity in the existing system is $45.3 <br /> million (net of grants). <br /> City of Eug ne SDC Methodology Wastewater, Page C- 1 <br /> <br />