2030 Plan - Grand Strand Water and Sewer Authority

C. Benchmarks for Future Rate Adjustments.
In developing the analysis, RFC worked with GSWSA staff to compile historical rate and
customer billing information for GSWSA and other local utilities in the Grand Strand and
Low Country region. Additionally, national utility rate information collected as part of a
biennial survey was used to develop the analysis. Major findings of our analysis include
the following:
Over the past 20 years GSWSA has managed to expand its facilities, service
area, and customer base while maintaining a benchmark level of annual rate
adjustments and customer impacts that is below the national inflation rate.
From 1998 through 2008, the annual increase of 0.59%, from $18.00 to $19.10,
for the typical GSWSA residential water bill was significantly below the annual
average increase of 3.85%, from $15.51 to $22.63, observed for the typical
water bill for residential customers of the national survey group.
During that same 10 year period, the annual increase of 3.04%, from $16.97 to
$22.90, for the typical GSWSA residential wastewater bill was significantly
below the annual average increase of 5.98%, from $18.70 to $33.41, for the
typical wastewater bill for residential customers of the national survey group.
The typical residential water and wastewater customer of GSWSA from 2000
through 2010 experienced monthly bill increases on an annualized basis that
were either below, or consistent with the 2.52% national rate of inflation.
Annual rate adjustments and customer impacts within, at, or below inflation fall
within RFC’s “exceptional” benchmark category.
The combined water and wastewater bill for a typical GSWSA residential
customer is below the average bills for typical residential customers of other
local utilities as it represents the second most affordable of any of the utilities
included in the local comparison group.
The current GSWSA impact fees are the second lowest among the local
comparison group for combined water and wastewater impact fees which
provides GSWSA with a competitive position within the Low County region in
terms of economic development and affordable housing.
Based on residential affordability guidelines, the annual water and wastewater
bill for the typical residential customer of GSWSA in 2010 indicates a low
financial burden when measured as a percentage of median household income.
RFC has provided separate water and wastewater benchmark rate adjustment
forecasts based on historical national inflation rates and utility rate adjustments
of the national survey groups. These benchmarks are tailored to provide a range
of exceptional, favorable, and unfavorable rate adjustments and impacts for the
typical water and wastewater residential customer of GSWSA.
GSWSA anticipates annualized water and wastewater utility bill increases
during the next 10 years of approximately 2.44% and approximately 2.22%
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