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SYSTEM DEVELOPMENT CHARGE METHODOLOGY <br /> <br />TABLE 1 <br />Summary of Key Methodological Requirements <br /> <br /> Oregon Law Requirement MWMC Methodology <br /> <br />Methodology demonstrates consideration of the Allocates future improvement costs to growth in proportion to <br />need for increased capacity in the system to meet capacity requirements <br />future users' demands <br /> <br />Combined Fee <br />Demonstrate that charge is not based on Determines total growth capacity requirements and the portion <br />providing the same capacity of capacity to be met through existing system available <br /> capacity and future capacity expansion. Calculates a weighted <br /> average cost of capacity. <br /> <br /> System Development Charge Methodology <br /> <br /> Overview <br /> The SDC methodology for MWMC is based on a combined reimbursement and <br /> improvement structure, as shown in Figure 1. The methodology consists of the following <br /> elements: <br /> <br /> · Determine capacity needs <br /> · Develop cost basis <br /> · Develop SDC schedule <br /> · Calculate revenue offsets and credits <br /> <br /> FIGURE 1--OVERVIEW OF MWMC SDC METHODOLOGY <br /> <br /> :1 Determine capac,~ Needs <br /> · '1 Existing Demand I Growth Demand <br /> !o] Existing Facilities. I New facilities <br /> <br /> Existing <br /> ~ Capacity ($) New Capacity ($) <br /> ~ : Growth units (Avg. Flow, Peak Flow, BeD, TSS) <br /> <br /> Average Flow (gal.) Peak Flow (gal.) BeD (lbs) <br /> <br /> Calculate O~e~ Credi~ : <br /> Past payments I Future Payments <br /> <br /> SEA31003271388(DG).DOC/041040034 <br /> <br /> <br />