Item 4 - PH on MWMC Reg. SDCs - Laserfiche WebLink

Home Browse Search

Determine SDC Credit At this point, the derivation of each element used to determine the SDCs for individual developments has been described, with the exception of the SDC credit (line 6 of Table 1). A credit is provided to ensure that future users don't double pay for system capacity - both through the SDC and through user fee rates which will be used to pay for a portion of 20-year project list costs. Table 9 presents the improvement fee credit calculation, in summary format (10 years instead of 20). The credit is based on a present-worth analysis, structured as follows: 1. Annual capital costs (adjusted for inflation) associated with 'existing customers' share of the project list costs (net of rehabilitation costs) are estimated based on the recommended phasing schedule. 2. The annual capital expenditures are reduced by revenues from reserves and reimbursement fees to estimate required debt funding 3. Debt services costs are estimated for repayment of borrowed funds (assuming 5 percent interest) 4. Future billing units (average flow and pounds of BOD and TSS) are estimated for the planning period based on system planning criteria 5. The annual user rate supported debt service per billing unit is determined for the life of the debt. 6. The present value of the future stream of rate payments is determined for each year of the planning period. The unit costs of BOD and TSS are consolidated into a single strength parameter for the credit, as noted above for the reimbursement and improvement fee components. The credit per unit for 2005 (used in Table 1) is indicated in bold in Table 9.