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(1) The methodology used to establish or modify a reimbursement fee shall promote the objective of future system users contributing no more than an equitable share to the cost of existing facilities and be available for public inspection. The methodology used to establish or modify a reimbursement fee shall, where applicable, be based on:

(a) Ratemaking principles employed to finance publicly owned capital improvements;

(b) Prior contributions by existing users;

(c) Gifts or grants from Federal or State government or private persons;

(d) The value of unused capacity available to future system users or the cost of the existing facilities; and

(e) Other relevant factors identified by the City Council.

(2) The methodology used to establish or modify an improvement fee shall, where applicable, demonstrate consideration of the estimated cost of projected capital improvements identified in an improvement plan (see MMC 15.16.090) that are needed to increase the capacity of the systems to which the fee is related. The methodology shall be calculated to obtain the cost of capital improvements for the projected need for available system capacity for future system users.

(3) The methodology used to establish or modify a reimbursement fee or improvement fee shall be contained in a resolution adopted by the City Council.

(4) A change in the amount of a reimbursement fee or an improvement fee is not a modification of the methodology if the change in amount is based on either:

(a) A change in the cost of materials, labor, or real property applied to projects as set forth on the list adopted pursuant to MMC 15.16.090; or

(b) The periodic application of one or more specific cost indexes as set forth in MMC 15.16.050, consistent with State law. (Ord. 172, passed 6-9-2020; Ord. 164, passed 10-8-2019)