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2030 Plan - Grand Strand Water and Sewer Authority

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way to recover part or all of the costs of additional system capacity constructed for their<br />

use.<br />

Impact fees can also affect the competitiveness of a community’s economic development<br />

efforts, as the magnitude of impact fees can influence where development occurs in<br />

certain regions. Therefore, a comparison of GSWSA’s water <strong>and</strong> wastewater impact fees<br />

to similar fees assessed to new customers of other local utilities provides a benchmark<br />

when considering the impact of these capital charges on economic development <strong>and</strong><br />

affordable housing in the region.<br />

Table 4 provides a comparison of the residential water <strong>and</strong> wastewater impact fees<br />

assessed by GSWSA with nine other utilities in the Low Country region.<br />

Table 4<br />

Impact Fee Comparison with Other Local Utilities<br />

(a) Local communities are sorted from highest to lowest based on the<br />

combined total for water <strong>and</strong> wastewater impact fees.<br />

As demonstrated in Table 4, the current GSWSA impact fees are significantly below the<br />

local comparison group average for combined water <strong>and</strong> wastewater impact fees.<br />

Additionally, based on historical impact fee information, the annualized adjustments to<br />

GSWSA’s impact fees over the past 10 to 25 years have been similar to the adjustments<br />

to the user rates <strong>and</strong> charges, typically falling below the national inflation rate. As a<br />

result, the past <strong>and</strong> current impact fees provide GSWSA with a competitive position<br />

within the Low Country region in terms of economic development <strong>and</strong> affordable<br />

housing.<br />

36

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