A. Preparation of a schedule of capital improvements that are to be constructed over the 20-year period based on the capital improvements requirements of the water system shall be made. A determination shall be made as to what portions of the capital improvements plan are eligible for systems development charges and which should be paid by existing customers.

B. From these determinations, an adjusted 20-year CIP in which the costs are inflated in accordance with anticipated changes in construction costs shall be prepared indicating the percentage of costs allocated to new customers.

C. The new user costs for the water system should be allocated into the following components: source of supply, pump stations, distribution, storage (reservoir), transmission and distribution, mains, compliance costs, and debt service credits. The overall additional systems design capacity should be determined in maximum daily flow for each of the component parts of the water system.

D. The basis and method of calculations for the water system development charge can be found in Appendix A* to the ordinance codified in this chapter, “Methodology and Procedures to Implement Water System Development Charges.” This methodology was prepared in conjunction with the development of the city of Talent, Oregon, Water Master Plan Final Report, March 2019, by RH2 Engineering, Inc. [Ord. 956 Art. 3, 2019.]