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2.2 Improvement Fee <br />The improvement fee is calculated to obtain the cost of capital improvements for the <br />projected transportation system needs of future users. Determination of the improvement <br />fee cost basis includes the following steps: <br />1. The portion of project costs related to increasing system capacity is determined. <br />2. New capacity costs are allocated between growth and existing development, <br />based on the portion of each project that relates to providing capacity for growth <br />vs. addressing an existing deficiency or future service level enhancement related <br />to existing development. <br />3. Capacity costs are reduced by any external funding sources (assessments, <br />grants, contributions by other agencies) that are projected to cover a portion of <br />growth's new capacity costs. <br />The improvement fee cost basis is shown in Table B-3. <br />CITY OF EUGENE SDC METHODOLOGIES, APPENDIX B PAGE B-6 <br />