(A) The methodology used to establish or modify the systemwide improvements or buy-in fee shall, where applicable, be based on the value of existing assets at a depreciated replacement cost, accomplished through the use of a construction cost index (as determined by the Engineering News Record) to bring the historical or original costs up to a current-day value. Using this method (replacement cost new less depreciation (RCNLD in AWWA M-1)), reasonably reflects the cost of providing new expansion capacity to customers as if the capacity was added at the time the new customers connected to the water system. The method fairly compensates existing customers for the carrying costs of the excess capacity built into the system in advance of when the new customers connect to the system.
(B) Unlike the City of Versailles sewer impact fee, there is currently no growth-related expansion fee as sufficient water treatment capacity exists for future customers identified for the five and ten-year planning horizon.
(C) The ERU, the ERU factors, and the impact fee for each factor shall be contained in a resolution adopted by the Council.
(D) The water impact fee is calculated by multiplying the ERU (in gallons per day) by the ERU factor, then by the impact fee (in dollars per gallon). The ERU and the impact fee are calculated specific to the Versailles water utility. Both should be recalculated every five years, at a minimum.
(Ord. 2017-30, passed 11-21-17; Am. Ord. 2023-15, passed 8-1-23)