Agenda Packet 1-21-20 Public Hearing

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City of Eugene SDC Methodologies - General Methodology Page 4 The intent of the methodology is that new development should be charged an equitable share of system facility costs. Additional capacity needs are determined using the City's planned levels of service. If the planned level of service is higher than the existing level of service, new development will not be charged to remedy the deficiency associated with providing service for existing system users. The general approach used to calculate the development charge for various systems is based on requirements set forth in ORS 223.304: Reimbursement fees must be established or modified by ordinance or resolution setting forth a methodology that is, when applicable, based on: (A) Ratemaking principles employed to finance publicly owned capital improvements; (B) Prior contributions by existing users; (C) Gifts or grants from federal or state government or private persons; (D) The value of unused capacity available to future users or the cost of the existing facilities; and (E) Other relevant factors identified by the local government imposing the fee. The methodology for establishing or modifying a reimbursement fee must promote the objective of future system users contributing no more than an equitable share to the cost of existing facilities and it must be available for public inspection. Improvement fees must be established or modified by ordinance or resolution setting forth a methodology that is available for pubic inspection and demonstrates consideration of: (A) The projected cost of the capital improvements identified in the plan and list adopted pursuant to ORS 223.309 that are needed to increase the capacity of the systems to which the fee is related; and (B) The need for increased capacity in the system to which the fee is related that will be required to serve the demands placed on the system by future users. Credits are required for "qualified public improvements." This general approach is illustrated in Figure G-1 and can be outlined in the following steps: Determine System Service Characteristics. System consists of several components (e.g., lines, pump stations, force mains, and manholes are components of the wastewater system). Establish impact measure - that feature of development that best reflects use of system capacity (e.g., trips for the transportation system, impervious surface for the stormwater system, etc.). Determine System Value, including associated costs such as design, construction, right- of-way acquisition and project administration. Use replacement cost (current construction costs). Determine capacity-oriented cost of system, net of assessments and grants. January 21, 2020, Public Hearing – Item 1Page 46