Item 5: Resolution Adopting Amended SDC Methodologies and Rates

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Methodology' Element Three: Develop SDC Schedule Unit costs for each capacity parameter are determined by dividing the adjusted cost basis by the projected growth capacity requirements. The unit costs are then multiplied by the estimated capacity requirements of different types of users, as determined from industry reference data. Figure 4 illustrates this. process. . FIGURE 4-SDC SCHEDULE DEVELOPMENT . ysing industry reference data f()rch~ging SDCs is consistent with the approach MWMC : has previously used to charge SDCs. This type of approach.uses flow and strength assumptions that are consistent with the system capacity parameters described previously. Unit Costs x x x x Capacity Requirement / SDC/Unit For e'.'ample, average flow is defined as dry season maximum month flow. This capacity measure is used in estimating user capacity requirements. The peak-to-average flow ratio reflects the system planning assumptions. The flow and strength assumptions for various land uses (development types) are presented in Appendix D..H information for a particular development is not found in AppencUx D, the SDC will be formulated using average data of' like or similar development as determined by the City Engineer. . Methodology Element Four: Calculate Revenue Offsets and Credits To comply with Oregon SDC law, the SDC methodology must ensure that future system users contribute no more than an II equitable share" of the capital costs of existing' facilities. Before real property.is developed, it may have been subject to taxes that supported capital funding of some of the Regional Wastewater System. Mer a development connects to the system, it will pay rates and, possibly taxes as. well, that may also support some level of capital funding. The SDC methodology. therefore considers past and future payments to be made' by new developments, which'may partially fund the same facilities for which the:SDCs were paid.