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<br />TABLE 1 <br />Summary of Key Methodological Requirements <br /> <br />Oregon Law Requirement <br /> <br />Methodology demonstrates consideration of the <br />need for increased capacity in the system to meet <br />future users' demands <br /> <br />Combined Fee <br /> <br />Demonstrate that charge is not based on <br />providing the same capacity <br /> <br />MWMC Methodology <br /> <br />Allocates future improvement costs to growth in proportion to <br />capacity requirements <br /> <br />Determines total growth capacity requirements and the portion <br />of capacity to be met through existing system available <br />capacity and future capacity expansion. Calculates a weighted <br />average cost of capacity. <br /> <br />System Development Charge Methodology <br /> <br />Overview <br /> <br />The SDC methodology for MWMC is based on a combined reimbursement and <br />improvement structure, as shown in Figure 1. The methodology consists of the following <br />elements: <br /> <br />. Determine capacity needs <br />. Develop cost basis <br />. Develop SDC schedule <br />. Calculate revenue offsets and credits <br /> <br />FIGURE 1-OVERVIEW OF MWMC SDC METHODOLOGY <br /> <br />