A. The methodology used to establish and calculate a reimbursement fee shall be based on ratemaking principles employed to finance publicly owned capital improvements, prior contributions by then-existing users, gifts or grants from federal or state government or private persons, the value of unused capacity available to future system users or the cost of the existing facilities, and other relevant factors identified by the City Council. The methodology shall promote the objective that future system users shall contribute no more than an equitable share of the cost of then-existing facilities and shall be available for public inspection.

B. The methodology used to establish an improvement fee shall demonstrate consideration of the projected cost of capital improvements identified in the Plan and list adopted pursuant to Section 12.07.070 that are needed to increase the capacity of the systems to which the fee is related and for which the need for increased system capacity will be required to serve the demands placed on the system by future users. Improvement fees shall be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future users.

C. The methodology shall also provide for SDC credit for Qualified Public Improvements as authorized in Section 12.07.100.

D. Except when authorized in a methodology adopted pursuant to this section, any fees imposed or required to be paid, assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment shall not be used as a credit against any SDC. The cost of complying with requirements or Conditions of Development Approval imposed by a land use decision shall not be creditable against any SDC unless eligible for SDC credit under Section 12.07.100 of this Chapter.

E. The methodology used to establish the Improvement Fee or the Reimbursement Fee, or both, shall be adopted by resolution by the Council and may be amended from time to time. All New Development shall be subject to an SDC and any methodology in place at the time the Applicant applies for a Permit. Neither this Chapter nor an SDC methodology shall be considered land use standards or criteria for purposes of ORS 227.178(3).

F. The City shall maintain a list of people and organizations that have made a written request for notification prior to adoption or amendment of a methodology for any SDC. Written notice shall be mailed to people and organizations on the list at least 90 days prior to the first hearing to establish or modify a SDC, and the methodology supporting the adoption or amendment shall be available at least 60 days prior to the first hearing to adopt or amend. The failure of a person or organization on the list to receive a notice that was mailed shall not invalidate the City’s subsequent action. The City may periodically delete names from the list, but at least 30 days prior to removing a name from the list the City must notify the person whose name is to be deleted that a new written request for notification is required if the person wishes to remain on the notification list. A change in the amount of a reimbursement fee or an improvement fee is not a modification of the SDC methodology if the change in amount is based on a change in cost of materials, labor or real property applied to projects or project capacity as set forth on the list adopted pursuant to Section 12.07.070 or the periodic application of one or more specific cost indices published by a recognized organization or agency and is incorporated as part of the established methodology or identified and adopted in a separate ordinance, resolution, or order.