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(1) The methodology used to establish or modify a reimbursement fee shall consider the cost of then-existing facilities, prior contributions by then-existing users, gifts or grants from federal or state governments or private persons, the value of unused capacity available to future system users, rate-making principles employed to finance publicly owned capital improvements, and other relevant factors identified by the council. The methodology shall promote the objective that future systems users shall contribute an equitable share of the cost of then-existing facilities.

(2) The methodology used to establish or modify the public improvement charge shall consider the cost of projected capital improvements needed to increase the capacity of the systems to which the fee is related and shall provide for a credit against the improvement fee for the construction of any qualified public improvement.

(3) The methodology may also provide for a credit, reduction, or adjustment as authorized in sections 7.730 to 7.732.

(4) Except when authorized in the methodology as provided in subsection 7.710(3), the fees required by this code which are assessed or collected as part of a local improvement district or a charge in lieu of a local improvement district assessment, or the cost of complying with requirements or conditions imposed by a land use decision are separate from and in addition to the systems development charge and shall not be used as a credit against such charge. Nothing in this subsection shall prevent the collection of a system development charge in connection with a local improvement assessment or charge in lieu of a local improvement district assessment.

(5) The methodologies for establishing the systems development charge shall be established by resolution of the council and may be adopted and amended concurrent with the establishment or revision of the systems development charge. An amendment to a methodology that changes the amount of a reimbursement fee or an improvement fee based on the periodic application of an adopted specific cost index or on a change in the costs of materials, labor or real property applied to projects or project capacity on a project list adopted pursuant to section 7.715(2) may be adopted by the city manager by administrative order pursuant to section 2.020 of this code.

(Section 7.710 added by Ordinance No. 19773, enacted May 13, 1991, effective July 1, 1991; amended by Ordinance No. 20248, enacted April 8, 2002, effective May 9, 2002; and Ordinance No. 20607, enacted November 26, 2018, effective January 1, 2019.)