Item 2: Resolution Amending MWMC Regional Wastewater SDC Methodology

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Past Payments A portion of MWMC’s existing facility costs were funded through general obligation (GO) bonds. The debt service on the bonds was retired through property taxes. Undeveloped land in the cities of Eugene and Springfield was subject to property taxes, and therefore a GO bond credit is included in the methodology. The credit is equal to the present value of past payments on bond principal, expressed in dollars per $1,000 of assessed valuation. The credit shall accrue from the year of annexation, and be based upon the assessed value of the real property at the time of application for connection to the system. Appendix E shows the calculation of the GO bond credit. Future Payments At the time of adoption of the project list upon which SDCs are to be based, or any periodic modification to such list, a credit against the SDCs will be calculated. The credit will reflect the present value of future contributions (through user fees) by new development to the repayment of debt service for the cost of capital improvements that benefit existing customers.. The credit analysis is structured as follows: 1.Debt services costs attributable to projects on the SDC project list are allocated between growth and existing users, based on the projects funded with the debt proceeds. 2.Future user fee billing units (average flow and pounds of BOD and TSS) are estimated for each year of the planning period based on system planning criteria 3.The annual user rate supported debt service per billing unit is determined by dividing the existing users’ share of debt service payable each year from user fees (from Step 1) by the annual billing units estimated for each year (from Step 2), over the life of the debt. 4.The present value of the future stream of rate payments is determined for each year of the planning period to determine the credit amount per unit of capacity. Page 18 OF 39