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i <br /> i <br /> METHODOLOGY: <br /> j City of Eugene Systems Development Charges <br /> I ~ Appendix C <br /> Wastewater System Charge Detail <br /> I <br /> j 1.0 Local ( ity) Wastewater System <br /> 1 <br /> 1.1 ocal Wastewater SDC Formula <br /> it The ge eral methodology used to develop SDCs includes the following four steps: <br /> ii <br /> 1. Determine value of growth-related capacity <br /> j ~ 2. Define system capacity <br /> 3. Calculate unit cost of growth-related capacity <br /> 4. Develop SDC rate schedule <br /> Each tep is discussed below and related information is displayed in Table 4, page C-4. <br /> 1.1.1 Step 1 -Determine Value ofGrowth-Related Capacity <br /> i (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 <br /> 1 new 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 /> 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 <br /> the demands of growth. <br /> Reimbursement Fee <br /> i <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 <br /> involves assigning asset values on the basis of what it would cost in current <br /> dollars to construct an equivalent set of infrastructure assets subject to current <br /> market conditions, regulatory requirements, and technological advances. The <br /> f total value 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 <br /> grants. Like assessments, grant funds are deducted from the system value in <br /> the SDC analysis because general system users did not fund these assets. Net <br /> <br /> j of grants, 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 <br /> existing customers and new development based on the estimated proportionate <br /> use of capacity. The reimbursement cost basis is equal to the system equity <br /> associated with the capacity available to serve new customers. Approximately <br /> 52% of the existing system is available to meet the demands of new customers. <br /> Therefore, the value of available (orgrowth-related) capacity in the existing <br /> system is $45.3 million (net of grants). <br /> City of Eu ene SDC Methodology Wastewater, Page C-1 <br /> <br />