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Principles of System Development Charges <br />• Based on a reasonable relationship (rational <br />nexus) between amount of SDC and costs <br />associated with serving connector <br />• Most common methods of calculating SDCs: <br />• Buy -In — achieves capital equity between existing and <br />new customers. Typically used for systems capable of <br />meeting long -term capacity needs. <br />• Incremental — assigns incremental cost of future system <br />expansion needed to serve new development. Typically <br />used for systems that need to expand facilities to serve <br />new development. <br />• Combined — uses weighted average of the buy -in and <br />incremental methods. <br />