05/18/2022 BOARD OF ASSESSORS Minutes

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(iii) The Commissioner's use of the AUS Index and the Handy-Whitman Index are subject to their continued commercial availability in a form materially similar to that used for the Commissioner's FY2022 central valuation. In the event that the updated AUS Index or Handy-Whitman Index is unavailable for any fiscal year Central Valuation the Commissioner shall use best efforts based on the most recently available index values for each asset category for the purpose of performing the calculations described in Section 2.A.(a)(i) and 2.A.(a)(ii)of this Appendix. In the event any index values from the AUS Index or Handy-Whitman Index to be used for FY2023-FY2027 vary in amounts materially different than historical deviations,then if requested by the Commissioner or the Taxpayer,the Parties agree to confer with regard to index values and RCN Factors appropriate for performing the calculations described in Section 2.A.(a)(i) and 2.A.(a)(ii) of this Appendix. If the Parties fail to agree to the appropriate index values and RCN Factors,then the Agreed-Upon Methodology shall determine the RCN Factors for any such category based upon a straight-line trend of such RCN Factors for the prior 10 years. (b) Calculation of Depreciation Factors (i) Except as provided in(ii)of this section the Depreciation Factors shall be determined by the following formula,utilizing the service lives shown in Appendices B through F and subject to the depreciation floors indicated therein: 1 -(Age/Service Life) The Age of property shall be determined by subtracting the year of installation from the calendar year preceding the January 1 valuation date for each fiscal year. For instance,for fiscal year 2018 (valuation date of January 1,2017)property installed in 1992 would have an Age of 24(i.e.,2016-1992). In the event that the above calculation results in a percentage that is less than the depreciation floors specified in Appendices B through F for any year of installation and asset category,then the Depreciation Factor for such asset category and vintage year shall be equal to the depreciation floor percentage. (ii) Each applicable property category contains a single depreciation floor percentage, except for Conduit Systems. The Depreciation Factor for Conduit Systems installed in or before 1981 shall be five percent(5%). The Depreciation Factors for Conduit Systems installed in or after 1982 shall be calculated using the method set forth in(i) of this section and subject to a 15% depreciation floor.