(A) The methodology used to establish or modify a reimbursement fee shall consider the cost of the then-existing facilities, 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, rate-making principals employed to finance publicly owned capital improvements and other relevant factors identified by the Council. The methodology for establishing or modifying a reimbursement fee shall promote the objective that future system users shall contribute no more than an equitable share of the cost of then-existing facilities.
(B) The methodology used to establish or modify an improvement fee shall consider the cost of projected capital improvements needed to increase the capacity of the system, the need for increased capacity required to serve future users and 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 an improvement fee or a reimbursement fee, or both, shall be contained in a resolution adopted by the Council.
(D) The methodology used to establish or modify an improvement fee or a reimbursement fee shall not:
(1) Include or incorporate a method or system under which the payment of the fee or the amount of the fee is determined by the number of employees of an employer without regard to new construction, new development or new use of an existing structure by the employer;
(2) Include or incorporate any method or system under which the payment of the fee or the amount of the fee is based on the number of individuals hired by the employer after a specified date; or
(3) Assume that costs are necessarily incurred for capital improvements when an employer hires an additional employee.
(E) All methodology for establishing or modifying reimbursement or improvement fees shall be available for public inspection.
(F) A change in the amount of a reimbursement fee or an improvement fee is not a modification of the system development charge if the change in amount is based on a change in the cost of materials, labor or real property applied to the projects or project capacity as set forth in the plan adopted pursuant to § 50.008, or the periodic application of one or more specific cost indexes or other periodic data sources.
(G) A specific cost index or periodic data source must be:
(1) A relevant measurement of the average change in prices or costs over an identified time period for materials, labor, real property or a combination of the three;
(2) Published by a recognized organization or agency that produces the index or data source for reasons that are independent of the system development charge methodology; and
(3) Incorporated as part of the established methodology or identified and adopted in a separate city resolution or order.
(H) A combination of a reimbursement fee and an improvement fee may be imposed, if the methodology demonstrates that the charge is not based upon providing the same system capacity.
(Ord. 500, passed 4-10-2006)