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2.3 General Method for City of Eugene SDC Rates <br />~. ~% Table 1 provides an overview of the basis of the rate setting methodology; outlining the basic <br />rates, cost basis, service standards and means of implementation for each system charge. <br />The intent of the methodology is that nevv development should not be charged for a higher <br />level of service#han that currently provided to the community orto which the community has <br />committed future resources. Therefore, additional capacity needs are determined using the <br />City's existing level of service or the City's funded level of service. In a similar manner, new <br />development should be credited for past and future bond payments on infrastructure related <br />existing debt (Metropolitan Wastewater Management Commission [MWMC]) and past trunk <br />sewer levies. <br />The general approach used to calculate the development charge forvarious systems is based <br />on requirements set forth in ORS 223.297: <br />• Reimbursement fees "shall promote the objective that future system users contribute <br />no more than an equitable share to the cost of reserve capacity in the existing facilities." <br />• Improvement fees shall be established considering "the cost of projected capital <br />improvements needed to increase the capacity of the .systems to which the fee is <br />related." <br />• Credits are required for "qualified public improvements." <br />This general approach is illustrated in Figure 1 and can be outlined in the following steps: <br />• Determine System Service Characteristics. <br />~ System consists of several components (e.g., lines, pump stations, force mains, <br />manholes are components of the wastewater system). <br />~ Establish impact measure -that feature of development that best reflects use of <br />system capacity (e.g., trips for the transportation system, impervious. surface for <br />the stormwater system, etc.). <br />• Determine System Value, including associated costs such as design, construction, right <br />of way acquisition and project administration. <br />D Use replacement cost. (current construction costs). <br />D Determine capacity-oriented cost of system, net of assessments and grants. <br />a Determine ratio of Improvement and Reimbursement portions of charge., if any. <br />• Allocate the system value to the unit of impact (e.g., cost per unit of impervious area <br />for stormvvater system). <br />• Determine the service impact of specific development types (e.g., SFD, manufactured <br />home parks, commercial, industrial etc.). <br />Final calculations will be rounded to the nearest cent. <br />City of Eugene SDC Methodology Page 3 <br />