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Letter to Susie L. Smith June 23, 2004 Page 3 8. The basis for determining the impact on capacity of a particular development which is to be subject to a System Development Charge. (Appendix D) B. Plan and List. A Facilities Plan and Capital Improvements List required by ORS 223.309(1) consisting of proposed additions to the system which describes each addition and its costs and which includes the following material specifically related to the determination of Systems Development Charges: 1. Calculation of the capacity added by the proposed addition. 2. Calculation of the portion of the added capacity that is available to meet the needs of growth. 3. Calculation of the portion of the costs of the proposed addition that are related to the added capacity which is available to meet the needs of growth. 4. A summation of the capacity added by the proposed additions to the system, calculated on the basis of the parameters set forth in the Methodology.. B. A System Development Charge ordinance required by ORS 223.299(4) for adoption by Eugene and Springfield, which applies the Methodology to calculate System Development Charges using the following steps: 1. Determination by type of development of the reimbursement charge to be imposed. 2. Determination by type of development of the gross improvement charge to be imposed. 3. Determination of the adjustments to the gross improvement charge to be made on account of the credits for prior payments or future debt service. These three components are being separately submitted to the City for approval. II. Legal Analysis. A. Specific Agreements. 1. Mr. Stamp's fundamental argument is that the City should not and legally cannot approve a System Development Charge Methodology unless it specifically includes the Facilities Plan and Capital Improvements List for the projects to be funded by the System Development Charge within the Methodology. We respectfully disagree. Oregon's System