A. The methodology used to establish or modify a reimbursement fee must be based on the cost of then-existing facilities, including design, financing and construction costs; the value of unused capacity available to future system users or the cost of the existing facilities; rate-making principles employed to finance publicly owned capital improvements; prior contributions by other users; gifts or grants from Federal or State government or private persons; and other relevant factors identified by the City Council, consistent with applicable law. The methodology must promote the objective of future systems users contributing an equitable share of the cost of then-existing facilities.

B. The methodology used to establish or modify an improvement fee must consider the estimated cost of projected capital improvements identified in an SDC project list that are needed to increase the capacity of the systems to which the fee is related and other relevant factors identified by the Council. The improvement fee must be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future users.

C. The methodology used to establish or modify improvement fees or reimbursement fees, or both, must be available for public inspection and be adopted and may be amended by Council resolution. [Ord. NS-2491, 2024; Ord. NS-2161, 2011]