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The general approach used to calculate the development charge for various systems is based on <br />requirements set forth in ORS 223.297: <br />• Reimbursement fees "shall promote the objective that future system userscontribute no <br />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 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 />(1) Determine System Service Characteristics. <br />D System consists of several components (e.g., lines, pump stations, force mains, <br />manholes are components of the wastewater system). <br />a 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 the <br />stormwater system, etc.). <br />(2) 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 />~ Determine capacity-oriented cost of system, net of assessments and grants. <br />~ Determine ratio of Improvement and Reimbursement portions of charge, if any. <br />(3) Allocate the system value to the unit of impact (e.g., cost per unit of impervious area for <br />stormwater system). <br />(4) 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 dollar. <br />2.2.1 Administrative Costs <br />An administrative charge shall be included in each SDC imposed. This charge is to <br />recover direct and indirect costs incurred in complying with the requirements of state law <br />and the cost of administering the SDC. These costs include periodic and on-going annual <br />costs. Total SDC program administrative costs are estimated annually. These costs will <br />be recovered through a charge calculated as a percentage rate as listed in the SDC fee <br />schedule in Appendix F. The percentage is multiplied by the total of the system-specific <br />charges for each development before applying any exemption or credit to determine the <br />administrative charge. <br />City of Eugene SDC Methodology Page 5 <br />