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System Development Charge Methodology Introduction This document serves as the system development charge (SDC) methodology for the Metropolitan Wastewater Management Commission (MWMC) Regional Wastewater System. The MWMC is the regional wastewater treatment agency for the Eugene- Springfield metropolitan area. System development charges may be collected from all development that connects to the Regional Wastewater System, including development that changes the use of existing development, when the change of use results in a greater impact on the system. The methodology contained in this document was developed in accordance with Oregon SDC legislation (ORS 223.297-223.314), and with the guidance of a Citizen Advisory Committee (CAC) appointed by MWMC. Table 1 provides a comparison of key methodological requirements from the Oregon Revised Statute (ORS) to elements of the MWMC methodology. TABLE 1 Summary of Key Methodological Requirements Oregon Law Requirement MWMC Methodology Reimbursement Fee Determine that existing capacity exists Explicitly calculates the portion of existing capacity available to new users based on rated design capacities. Methodology based on, when applicable: Methodology includes: (a) Rate-making principles employed to finance (a) Consideration of capital financing costs publicly-owned capital improvements (b) Adjustment for grant-funded facilities (b) Prior contributions by existing users (c) Valuation based on appreciated cost (i.e., adjusted for (c) Gift orgrants inflation) (d) Value of unused capacity or cost of existing (d) Determination of unused capacity facilities (e) Other relevant factors Promote objective of future system users (1) Includes a credit against SDCs for properties subject to contributing no more than an equitable share of past general obligation bond debt service charges through existing system costs property tax payments. (2) Provides guidance to calculate a credit against SDCs for future estimated user charge payments used to fund capital included on the SDC project list. Improvement Fee Methodology demonstrates consideration of Provides a structured process for allocation of capital project projected costs of capital improvements identified costs that is to be applied to an adopted project li§t in an adopted plan or list SEA31003271388(DG).DOC/041040034