(a) Maximum.--A system development fee shall not exceed that calculated based on the
system development fee analysis.
(b) Revenue Credit.--In applying the incremental cost or marginal cost, or the combined
cost, method to calculate a system development fee with respect to water or sewer
capital improvements, the system development fee analysis must include as part of
that methodology a credit against the projected aggregate cost of water or sewer capital
improvements. That credit shall be determined based upon generally accepted calculations and shall
reflect a deduction of either the outstanding debt principal or the present value
of projected water and sewer revenues received by the local governmental unit for
the capital improvements necessitated by and attributable to such new development,
anticipated over the course of the planning horizon. In no case shall the credit be less than twenty-five percent (25%) of the aggregate
cost of capital improvements.
(c) Construction or Contributions Credit.--In calculating the system development fee
with respect to new development, the local governmental unit shall credit the value
of costs in excess of the development's proportionate share of connecting facilities
required to be oversized for use of others outside of the development. No credit shall be applied, however, for water or sewer capital improvements on-site
or to connect new development to water or sewer facilities.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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