Item 2C: Adoption of Resolution Amending MWMC Regional Wastewater SDC Methodology

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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. Methodology Element Five: Periodic modification of existing sytem and future project values The value of existing available capacity and future available capacity may be adjusted from time to time as stated in Methodology Element Two: Step One and Step Three. Methodology Element Six: Compliance Charge A charge is included for the costs of complying with the provisions of ORS 223.297 to 223.314, including: ? Legal costs (both litigation costs and annual routine legal fees) ? Annual Accounting/auditing costs ? Annual reporting costs ? SDC methodology development costs In developing the compliance charge, the total costs associated with SDC compliance activities are projected for the planning period. The costs are then attributed to the capacity parameters in proportion to the combined reimbursement and improvement costs. As with the improvement and reimbursement fees, the costs by parameter are then divided by the number of growth units projected for the planning period in order to determine a compliance cost per unit of capacity. Page 19 OF 39