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The general approach used to calculate the development charge for various systems is based on <br />requirements set forth in ORS 223.304: <br />• Reimbursement fees must be established or modified by ordinance or resolution setting forth <br />a methodology that is, when applicable, based on: <br />(A) Ratemaking principles employed to finance publicly owned capital improvements; <br />(B) Prior contributions by existing users; <br />(C) Gifts or grants from federal or state government or private persons; <br />(D) The value of unused capacity available to future users or the cost of the existing <br />facilities; and <br />(E) Other relevant factors identified by the local government imposing the fee. <br />The methodology for establishing or modifying a reimbursement fee must promote the <br />objective of future system users contributing no more than an equitable share to the cost of <br />existing facilities and it must be available for public inspection. <br />• Improvement fees must be established or modified by ordinance or resolution setting forth a <br />methodology that is available for public inspection and demonstrates consideration of: <br />(A) The projected cost of the capital improvements identified in the plan and list adopted <br />pursuant to ORS 223.309 that are needed to increase the capacity of the systems to <br />which the fee is related; and <br />(B) The need for increased capacity in the system to which the fee is related that will be <br />required to serve the demands placed on the system by future users. <br />• Credits are required for "qualified public improvements." <br />This general approach is illustrated in Figure G-1 and can be outlined in the following steps: <br />• Determine System Service Characteristics. <br />➢ System consists of several components (e.g., lines, pump stations, force mains, and <br />manholes are components of the wastewater system). <br />➢ Establish impact measure - that feature of development that best reflects use of system <br />capacity (e.g., trips for the transportation system, impervious surface for the stormwater <br />system, etc.). <br />• Determine System Value, including associated costs such as design, construction, right-of- <br />way acquisition and project administration. <br />➢ Use replacement cost (current construction costs). <br />➢ Determine capacity -oriented cost of system, net of assessments and grants. <br />➢ Determine portion of system value attributable to servicing the needs of future <br />development. <br />• Allocate the system value to the unit of impact (e.g., cost per unit of impervious area for <br />stormwater system). <br />City of Eugene SDC Methodologies - General Methodology <br />Page 9 <br />