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<br />FIGURE 1 <br /> <br />Rate Setting Methodology <br /> <br /> System Value <br /> Replacement costs for <br /> existing reserve capacity <br />level of Service (plus) <br /> Projected future <br />Impact Measurement expenditures <br /> (minus) <br /> Assessable costs & Grants <br /> (equals) <br /> SDC eligible costs <br /> Formula: <br />Cost of Service <br />SDC eligible costs SDC <br /> = ( PER UNIT <br />Impact measurement OF SERVICE) <br /> Apply SDC to <br /> specific types <br /> of development <br /> <br />City of Eugene sDC Methodology <br /> <br />Page 6 <br />