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HomeMy WebLinkAbout2006-27 Water/Wastewater SDCs - Repealed by 2016-36 & 2016-37 RESOLUTION NO. 2006- 27 A RESOLUTION ADOPTING MODIFICATIONS TO THE METHODOLOGY FOR CALCULATING WATER AND WASTEWATER SYSTEM DEVELOPMENT CHARGES, PURSUANT TO SECTION 4.20 OF THE ASHLAND MUNICIPAL CODE, AND REPEALING SECTION 1 OF RESOLUTION 2000-29. THE CITY OF ASHLAND RESOLVES AS FOllOWS: SECTION 1. The existing System Development Charges Schedule for Water and Wastewater Users adopted as Section 1 of Resolution 2000-29 is repealed, effective November 1, 2006. SECTION 2. The Water and Wastewater System Development Charges Fee Schedule Summary, marked as Exhibit A, is adopted. The new schedule for Residential users continues-to be based upon the gross habitable floor area of the residential uses. Commercial SDCs shall continue to be based upon the number of plumbing fixture units. SECTION 3. The revised methodology for Water and Wastewater System Development Charges, marked as Exhibit B, is adopted. The methodology adopts a reimbursement schedule and reduces the number of funds to 2; one for the Water SDC Fund and one for the Wastewater SDC Fund. SECTION 4. The new System Development Charge Schedules shall become effective November 1, 2006. This re lution was read by title only in accordance with AShla~de 92.0 90 duly PASSED and ADOPTED this 17 day of , 2006. Barbara Christensen, City Recorder SIGNED and APPROVED this /S day of 1- G:\pub-wrks\admin\PB Council\SDC\RESO Water_WW SDC Oct06.doc City of Ashland Water and Wastewater - System Development Charge Fee Schedule Summary Exhibit 'A' Prepared by Shaun Pigott Associates, LLC August 14, 2006 Based on the SDC Committee's review of the water and wastewater project lists and the allocation methods felt to be most consistent with the City's policy objectives, the following are the Committee's SDC recommendations: Wastewater SDC Current - SDC is $2,707 for a "typical" 2,000 habitable square foot home Proposed - SDC would be $1,613 for a "typical" 2,000 habitable square foot home This reduction of the SDC for wastewater is due to a significantly downsized allocation of capital facility costs to growth and the removal of the treatment plant funded through food and beverage tax receipts from the reimbursement element of the SDC. It should be highlighted that the food and beverage tax is due to sunset in 2010. If these tax revenues are no longer available to fund the wastewater treatment plant, the debt service for this facility would need to be paid through a combination of increased wastewater rates and increased SDCs. The SDC for commercial properties will be based on fixture counts (number of toilets, sinks, etc) at a rate of $124 per fixture. A commercial property having, as an example, 16 fixtures would pay a wastewater SDC of $1 ,984. Water SDC Current - SDC is $3,667 for a "typical" 2,000 habitable square foot home Proposed - SDC would be $5,208 for a "typical" 2,000 habitable square foot home This increase in the SDC results from evaluation of each project identified in City's water CIP and a more accurate allocation of these project costs between growth and current water utility customers. The SDC for commercial properties will be based on meter size and flow factor/meter equivalence as established by the American Water Works Association (A WW A) standard for cold water meters - displacement type. As an example a 0/,." meter will pay $4,940; 1" meter $8,250; 1.5" meter; 1.5" meter $16,450. City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 1 WATER SYSTEM DEVELOPMENT CHARGES REIMBURSEMENT FEE City of Ashland, Oregon Calculation of Water System Development Charges Reimbursement Fee Derivation Calculation of the Value of Capacity Available to Serve Growth: Original Cost less: Accumulated Depreciati'on less: Book Value of the Hosler Dam less: Grants less: Developer Contributions less: Principal Outstanding on Long Term Debt Series 1977 Water General Obligation Bonds Series 1997 Flood and Refunding Bonds Series 2003 Water Revenue Bonds Net Rate Payer Investment in Capacity Available to Serve Growth Commercial & Residential Institutional Total 7,114 1,960 9,074 78.40% 21.60% 100% 25,859,286.21 7,124,571.41 32,983,857.62 (7,398,192.23) (2,038,298.68) (9,436,490.91) (59,779.87) (16,470.13) (76,250.00) Basis for Allocation To Customer Classes: Current Equivalent %" Meters in Service Percentages (78,399.82) (944,717.88) (4,139,510.69) 13,238,685.73 (21,600.18) (260,282.12) (1,140,489.31) 3,647,430.98 (100,000.00) (1,205,000.00) (5,280,000.00) 16,886,116.71 Calculation of Future Demand: 20 Year ForecasLResidential Habitable Area (Square Feet) 20 Year Forecast... Commercial Equivalent Meters 18,167,889 2640 Calculated Water Reimbursement Fee: City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 2 WATER SYSTEM DEVELOPMENT CHARGES IMPROVEMENT FEE City of Ashland, Oregon Calculation of Water System Development Charges Improvement Fee Derivation Commercial & Residential Institutional Total Basis for Allocation To Customer Classes: Current Equivalent %" Meters in Service Percentages 7,114 78.40% 1,960 21.60% 9,074 100% Calculation of the Value of Capacity Available to Serve Growth: Future Project Costs Attributable to Growth: TAP beyond Talent Transmission Line (Reeder to Plant) Hosler Dam Stability Analysis Lost Creek Water Rights (additional) Hosler Dam Security and Telemetry Sludge Lagoon Improvements Water Treatment Plant Filter Improvements Review Chlorine-Hypochloride Plant and Process Improvements Filters 7 and 8 New Waterline Replacement - Granite Fire Flow Distribution Reservoir Crowson-Airport-E. Main Loop Replace Steel Line Terrace; Irrigation Ditch to Lowe Upsize Lines at Maple, Scenic & Chestnut Replace Line Strawberry to Grandview Upsize Mains on Wimer-Sunnyview New Line Benson Loop Upsize Lines - Euclid, Prospect, Fern, Roca Upsize Mains on Tolman Creek Replace Steel Line on Siskiyou Intemal 4" Line Upsizing Other Line Upsizing Engineering Cost Construction Mgmt Contingency Total Growth Related Costs Calculation of Future Demand: 20 Year Forecasted Growth in Residential Habitable Area (Square Feet) 20 Year Forecasted Growth in Equivalent Meters $ 3,189,893 $ 878,857 $ 4,068,750 771,216 212,480 983,696 391,999 108,001 500,000 29,400 8,100 37,500 9,408 2,592 12,000 47,040 12,960 60,000 58,800 16,200 75,000 188,160 51,840 240,000 343,979 94,771 438,750 108,388 29,862 138,250 194,040 53,460 247,500 38,416 10,584 49,000 27,440 7,560 35,000 49,000 13,500 62,500 19,600 5,400 25,000 49,000 13,500 62,500 38,416 10,584 49,000 53,900 14,850 68,750 73,500 20,250 93,750 31,360 8,640 40,000 137,200 37,800 175,000 147,000 40,500 187,500 1,045,187 287,963 1 ,333,150 1 ,352,757 372,702 1,725,459 $ 8,395,096 I $ 2,312,9591 $ 10,708,055 4,476,432 650 Calculated Water ImprovementFee: City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 3 WASTEWATER SYSTEM DEVELOPMENT CHARGES REIMBURSEMENT FEE City of Ashland, Oregon Calculation of Wastewater System Dewlopment Charges Reimbursement Fee Derivation Commercial & Residential Institutional Total Basis for Allocation To Customer Classes: 20-Year Plan (Year 2023) Awrage Dry Weather Wastewater Flow (MGD)* Awrage Dry Weather Flow Percentages 1.90 74% 0.68 26% 2.58 100% Calculation of the Value of Capacity Available to Serve Growth: Original Cost $ 36,643,246 $ 13,114,425 $ 49,757,671 less: Accumulated Depreciation (4,050,653) (1,449,707) (5,500,360) less: Grants less: Contributed Capital (City food and bewrage tax receipts) (8,785,659) (3,144,341) (11,930,000) less: Principal Outstanding on Long Term Debt: EPAlDEQ State RellOhAng Loan Program (fed. CFDA No. 66.458) (16,632,189) (5,952,573) (22,584,762) Net Rate Payer Inwstment in Capacity Available to Serw Growth $ 7,174,745 $ 2,567,804 $ 9,742,549 Calculation of Future Demand: 20 Year Forecast... Residential Habitable Area (Square Feet) 18,167,889 20 Yeat Forecast...Commercial Fixture Counts 42,237 City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 4 WASTEWATER SYSTEM DEVELOPMENT CHARGES IMPROVEMENT FEE City of Ashland, Oregon Calculation of Wastewater System Development Charges Improvement Fee Derivation Basis for Allocation To Customer Classes: 20- Year Plan (Year 2023) Average Dry Weather Wastewater Flow (MGD)* Average Dry Weather Flow Percentages Calculation of the Value of Capacity Available to Serve Growth: Future Project Costs Attributable to Growth: New Membrane Sections Process Improvements Thermal Improvements North Mountain Park Wightman to Tolman Collection System Master Plan Update Granite Street North Main Pump Station Replacement Walnut: Grant - Wimer Street Line UpsizelReplacement Oak Street Lithia to A Mountain Ave. Upsize Willow Street Upsize and Replace Hersey Street Upsize and Replace In-House Line Replace and Upsize Collection System Improvements Engineering Cost Construction Mgmnt & Contingency Total Growth Related Costs Calculation of Future Demand: 20 Year Forecasted Growth in Residential Habitable Area (Square Feet) 20 Year Forecasted Growth in Commercial Fixture Counts Commercial & Residential Institutional Total 1.90 73.64% 0.68 26.36% 2.58 100% $ 32,219 $ 11,531 $ 43,750 36,822 13,178 50,000 92,054 32,946 125,000 231,977 83,023 315,000 187,791 67,209 255,000 84,690 30,310 115,000 12,151 4,349 16,500 24,855 8,895 33,750 17,453 6,247 23,700 100,523 35,977 136,500 30,930 11,070 42,000 42,345 15,155 57,500 19,147 6,853 26,000 16,938 6,062 23,000 88,372 31,628 120,000 110,465 39,535 150,000 317,403 113,597 431 ,000 397,251 142,174 539,425 1,843,387 I $ 659,7381 $ 2,503,125 4,476,432 10,407 $ Source: City of Ashland, Sanitary Sewer Collection System Master Plan, Final Report, January, 2005, Table 2.5 - Summary of Population and Flow Projections City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 5 City of Ashland Wastewater and Water - System Development Charge Update Methodology Summary August 14, 2006 Exhibit IS' Prepared by Shaun Pigott Associates, LLC CITY OF ASHLAND WASTEWATER AND WATER SYSTEM DEVELOPMENT CHARGE UPDATE Process This update of Ashland's system development charges (SDC) for wastewater and water was done in order to revise the SDCs based on recently completed facility plans for both utility systems. Also, as part of this update process; issues related to the current SDC structure were addressed through Ashland's SDC Committee. The Committee includes Darrel Boldt, Jac Nickels, Greg Williams, Larry Medinger, Russ Silbiger, Kerry KenCaim, and Connie Saldana. The SDC Committee has worked directly with staff and the City's consultant over the course of 6 meetings held between April 2005 through July 2006. The proposed revisions to the wastewater and water SDCs reflect the Committee's unanimous recommendations to the Ashland City Council. For this update, the City and Committee had a number of objectives: · Review the basis for the SDCs to ensure a consistent methodology; · Develop a rationale and documentation for the reimbursement element of the SDC; · Consider possible revisions to the structure or basis of the charge that might improve equity or proportionality to demand; and · Provide clear, orderly documentation of the assumptions, methodology, and results, so that City staff can, by reference, respond to questions or concerns from the public Background The City's SDC Ordinance No. 4.20 was originally adopted in 1992 and amended in 1996. The ordinance was designed for compliance with ORS 223.297-.314 (Oregon SDC statute) which mandates that all jurisdictions having SDCs adopt ordinances consistent with this Oregon law. Actual SDC calculations have been adopted through a series of resolutions including Resolution No. 2000-29 "A Resolution Adopting New Water, Wastewater and Parks System Development Charge Schedules." This also served to repeal the SDCs set in 1996. For water and wastewater, the 1996 SDCs were based on fixture counts with a single-family home (17 fixtures) paying $2,716 for water and $2,255 for wastewater. City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 1 In 2000, this methodology was reviewed by the City through the SDC Committee for purposes of simplifying the calculation and eliminating the perceived or real inequity of a 1200 sq ft home paying the same SDC as a 3000 sq ft home. The objective was to simplify and make the calculation more predictable, easier to administer and to ensure that larger homes paid a proportionately larger SDC over smaller homes. The staff recommendation was to replace, for single family and multi family properties, the use of fixture counts with "habitable square footage" which equals the heated square footage of a house. This figure would be submitted as part of the plan review process and would be clear, easy to administer and charge larger houses proportionately more for their SDC. In order to achieve this last objective, the City developed a series of SDC brackets based on ranges of habitable square footage and assigned to these brackets a specific cost per square foot, with the cost per square foot within each bracket going up as the overall square footage increased. This calculation and the resulting brackets were designed to be "revenue neutral" in terms of the overall SDC revenue generated with this calculation vs. the 1996 fixture count approach. Under this 2000 revised approach, a "typical" average sized home would be charged a water SDC of $3,362 ($2,716 under old SDC) and a wastewater SDC of $2,482 ($2,255 under old SDC). The City's revenue status for its water and wastewater SDC accounts, of which there are 5, is as follows: · Overall SDC revenues for water in 2005 are budgeted at $525,000; wastewater SDC revenues are budgeted in 2005 at $438,000. · Water SDCs are collected and tracked under distribution, treatment and supply. '05 fund balances are ($1,442,000) for supply, $776,000 for treatment and $2,643,000 for distribution. · Wastewater SDCs are collected and tracked under two categories; collection and treatment. The adopted 2005 budget shows a fund balance of $1,439,000 for collection and ($77,000) for treatment. Specific SDC Committee Recommendations · The City's use of "habitable square footage" for wastewater and water SDC calculation differs from the generally accepted approach used in Oregon which is either meter size and/or fixture counts. However, ORS 223 does not mandate any specific calculation approach so long as the allocation methodology selected "promotes that future system users contribute no more than an equitable share to the cost of existing facilities" AND "the cost of projected capital improvements needed to increase the capacity of the systems" is the basis for the charge. The SDC Committee did feel the use of habitable square footage was consistent with the City's objectives for promoting smaller home construction in the City and recommended that it be continued. However, the use of numerous brackets in applying habitable square footage was considered counterproductive and the Committee recommended a uniform cost per habitable square foot. City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 2 · The City has funded the construction of its new wastewater treatment plant through food and beverage tax receipts. This source of funding is not affected by existing wastewater customers nor can an SDC designed to reimburse the utility (and its customers) for its costs in providing capacity be applied when the treatment facilities are paid through a food and beverage tax. Accordingly, the reimbursement portion of the wastewater SDC does not include the treatment costs paid through the food and beverage tax. · The City currently maintains 5 distinct SDC funds for wastewater and water. Under wastewater there are SDC funds for treatment and collection. Under water, there are separate SDC funds for distribution, treatment and supply. The Committee recommends that these 5 funds be reduced to 2, one for wastewater and one for water. Any concerns about loss of accountability by reducing the number of funds can be offset by annually reconvening the SDC Committee to review the City's year-end report on SDC receipts, expenditures and capital project list. The SDC Committee did volunteer their time for these annual meetings. · Ashland's 2000 water and wastewater SDCs are based on projects that were updated from the 1996 SDC study. The City now has updated facility plans and CIPs for both utilities. For this SDC update, each of these projects has been reviewed in terms of purpose, cost, and allocation between existing ratepayers and SDC eligibility. The SDC Committee spent the majority of its time reviewing the capital project lists and capacity allocations for each of the wastewater and water projects. These individual projects and their allocation to growth are now part of the City's SDC methodology. SDC Methodology and Calculation The City's uses distinct allocators for future commercial water and wastewater connections to the systems. These allocators are meter equivalents and fixture counts respectively. The capital costs determined to be SDC eligible were divided between the commercial and single family residential users based on the total current meter equivalents in service for water; 78.4% are single family residential (SFR) and 21.6% are commercial. For wastewater, the basis for allocation was the average dry weather flow from these two customer groups; 73.64% is SFR and 26.36% is commercial. Under ORS 223, there are two elements to an SDC: The reimbursement fee considers the cost of existing facilities, prior contributions by existing users of those facilities, the value of the unused/available capacity, and generally accepted ratemaking principles. The objective is that "future system users contribute no more than an equitable share to the cost of existing facilities." The reimbursement fee can be spent on capital costs or debt service related to the systems for which the SDC is applied. City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 3 City of Ashland, Oregon Calculation of Water System Dewlopment Charges Reimbursement Fee Derivation Basis for Allocation To Customer Classes: Current Equivalent %" Meters in Senlice Percentages Calculation of tire Value of Capacity Available to Serve Growth: Original Cost less: Accumulated Depreciation less: Book Value of the Hosler Dam less: Grants less: Dewloper Contributions less: Principal Outstanding on Long Term Debt Series 1977 Water General Obligation Bonds Series 1997 Flood and Refunding Bonds Series 2003 Water Rewnue Bonds Net Rate Payer Inwstment in Capacity Available to Serw Growth Calculation of Future Demand: 20 Year ForecasLResidential Habitable Area (Square Feet) 20 Year Forecast... Commercial Equivalent Meters Calculated Water Reimbursement Fee: Commercial & Residential Institutional Total 7,114 78.40% 1,960 21.60% 9,074 100% 25,859,286.21 (7,398,192.23) (59,779.87) 7,124,571.41 (2,038,298.68) (16,470.13) 32,983,857.62 (9,436,490.91) (76,250.00) (78,399.82) (944,717.88) (4,139,510.69) 13,238,685.73 (21,600.18) (260,282.12) (1,140,489.31) 3,647,430.98 (100,000.00) (1,205,000.00) (5,280,000.00) 16,886,116.71 18,167,889 2640 City of Ashland, Oregon Calculation of Wastewater System Dewlopment Charges Reimbursement Fee Derivation Basis for Allocation To Customer Classes: 20-Year Plan (Year 2023) Awrage Dry Weather Wastewater Flow (MGD)* Awrage Dry Weather Flow Percentages Calculation of tire Value of Capacity Available to Serve Growth: Original Cost less: Accumulated Depreciation less: Grants less: Contributed Capital (City food and bewrage tax receipts) less: Principal Outstanding on Long Term Debt: EPAlDEQ State Rewlving Loan Program (fed. CFDA No. 66.458) Net Rate Payer Inwstment in Capacity Available to Serw Growth Calculation of Future Demand: 20 Year Forecast...Residential Habitable Area (Square Feet) 20 Yeat Forecast...Commercial Fixture Counts Commercial & Residential Institutional Total 1.90 74% 0.68 26% 2.58 100% $ 36,643,246 $ 13,114,425 $ 49,757,671 (4,050,653) (1,449,707) (5,500,360) (8,785,659) (3,144,341) (11,930,000) (16,632,189) (5,952,573) (22,584,762) $ 7,174,745 $ 2,567,804 $ 9,742,549 18,167,889 42,237 City of Ashland - SDC Update MethOdology Summary Wastewater and Water Page 4 The improvement fee portion of the SDC is based on the cost of planned future facilities that expand the system's capacity to accommodate growth or increase its level of performance. In developing an analysis of the improvement portion of the fee, each project in the City's capital improvement plan was reviewed to exclude costs related to correcting existing system deficiencies or upgrading for historical lack of capacity. The improvement SDC is calculated as a function of the estimated number of additional units to be served by the City's facilities over the planning period. City of Ashland, Oregon Calculation of Water System Development Charges Improvement Fee Derivation Commercial & Residential Institutional Total Basis for Allocation To Customer Classes: Current Equivalent %" Meters in Service Percentages 7,114 78.40% 1,960 21.60% 9,074 100% Calculation of the Value of Capacity Available to Serve Growth: Future Project Costs Attributable to Growth: TAP beyond Talent Transmission Line (Reeder to Plant) Hosler Dam Stability Analysis Lost Creek Water Rights (additional) Hosler Dam Security and Telemetry Sludge Lagoon Improvements Water Treatment Plant Filter Improvements Review Chlorine-Hypochloride Plant and Process Improvements Filters 7 and 8 New Waterline Replacement - Granite Fire Flow Distribution Reservoir Crowson-Airport-E. Main Loop Replace Steel Line Terrace; Irrigation Ditch to Lowe Upsize Lines at Maple, Scenic & Chestnut Replace Line Strawberry to Grandview Upsize Mains on Wimer-Sunnyview New Line Benson Loop Upsize Lines - Euclid, Prospect, Fem, Roca Upsize Mains on Tolman Creek Replace Steel Line on Siskiyou Internal 4" Line Upsizing Other Line Upsizing Engineering Cost Construction Mgmt Contingency Total Growth Related Costs Calculation of Future Demand: 20 Year Forecasted Growth in Residential Habitable Area (Square Feet) 20 Year Forecasted Growth in Equivalent Meters $ 3,189,893 $ 878,857 $ 4,068,750 771,216 212,480 983,696 391,999 108,001 500,000 29,400 8,100 37,500 9,408 2,592 12,000 47,040 12,960 60,000 58,800 16,200 75,000 188,160 51,840 240,000 343,979 94,771 438,750 108,388 29,862 138,250 194,040 53,460 247,500 38,416 10,584 49,000 27,440 7,560 35,000 49,000 13,500 62,500 19,600 5,400 25,000 49,000 13,500 62,500 38,416 10,584 49,000 53,900 14,850 68,750 73,500 20,250 93,750 31 ,360 8,640 40,000 137,200 37,800 175,000 147,000 40,500 187,500 1,045,187 287,963 1 ,333,150 1,352,757 372,702 1 ,725,459 $ 8,395,096 1 $ 2,312,9591 $ 10,708,055 4,476,432 650 City of Ashland - SDC Update Methodology Summary Wastewater and Water Page" 5 City of Ashland, Oregon Calculation of Wastewater System Development Charges Improvement Fee Derivation Basis for Allocation To Customer Classes: 20- Year Plan (Year 2023) Average Dry Weather Wastewater Flow (MGD)* Average Dry Weather Flow Percentages Calculation of the Value of Capacity Available to Serve Growth: Future Project Costs Attributable to Growth: New Membrane Sections Process Improvements Thermal Improvements North Mountain Park Wightman to Tolman Collection System Master Plan Update Granite Street North Main Pump Station Replacement Walnut: Grant - Wimer Street Line UpsizelReplacement Oak Street Lithia to A Mountain Ave. Upsize Willow Street Upsize and Replace Hersey Street Upsize and Replace In-House Line Replace and Upsize Collection System Improvements Engineering Cost Construction Mgmnt & Contingency Total Growth Related Costs Calculation of Future Demand: 20 Year Forecasted Growth in Residential Habitable Area (Square Feet) 20 Year Forecasted Growth in Commercial Fixture Counts Commercial & Residential Institutional Total 1.90 73.64% 0.68 26.36% 2.58 100% $ 32,219 $ 11,531 $ 43,750 36,822 13,178 50,000 92,054 32,946 125,000 231,977 83,023 315,000 187,791 67,209 255,000 84,690 30,310 115,000 12,151 4,349 16,500 24,855 8,895 33,750 17,453 6,247 23,700 100,523 35,977 136,500 30,930 11,070 42,000 42,345 15,155 57,500 19,147 6,853 26,000 16,938 6,062 23,000 88,372 31,628 120,000 110,465 39,535 150,000 317,403 113,597 431,000 397,251 142,174 539,425 1,843,387 I $ 659,7381 $ 2,503,125 4,476,432 10,407 $ Source: City of Ashland, Sanitary Sewer Collection System Master Plan, Final Report, January, 2005, Table 2.5 - Summary of Population and Flow Projections City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 6 Based on the SDC Committee's review of the water and wastewater project lists and the allocation methods felt to be most consistent with the City's policy objectives, the following are the Committee's SDC recommendations: Wastewater SDC Current - SDC is $2,707 for a ''typical'' 2,000 habitable square foot home Proposed - SDC would be $1,613 for a "typical" 2,000 habitable square foot home This reduction of the SDC for wastewater is due to a significantly downsized allocation of capital facility costs to growth and the removal of the treatment plant funded through food and beverage tax receipts from the reimbursement element of the SDC. It should be highlighted that the food and beverage tax is due to sunset in 2010. If these tax revenues are no longer available to fund the wastewater treatment plant, the debt service for this facility would need to be paid through a combination of increased wastewater rates and increased SDCs. The SDC for commercial properties will be based on fixture counts (number of toilets, sinks, etc) at a rate of $124 per fixture. A commercial property having, as an example, 16 fixtures would pay a wastewater SDC of$I,984. Water SDC Current - SDC is $3,667 for a ''typical'' 2,000 habitable square foot home Proposed - SDC would be $5,208 for a "typical" 2,000 habitable square foot home This increase in the SDC results from evaluation of each project identified in City's water CIP and a more accurate allocation of these project costs between growth and current water utility customers. The SDC for commercial properties will be based on meter size and flow factor/meter equivalence as established by the American Water Works Association (A WW A) standard for cold water meters - displacement type. As an example a %" meter will pay $4,940; 1" meter $8,250; 1.5" meter; 1.5" meter $16,450. City of Ashland - SDC Update Methodology Summary Wastewater and Water Page 7