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Utility Impact Fees: Practices and Challenges (PDF)

  • Author(s): Mantz, Bryan A.; Thomas, Henry L.
  • Publications: Journal - American Water Works Association
  • Issue Date: April 2012
  • Volume / Number: 104, Number 4
  • Page(s): E218-E230
  • DOI: http://dx.doi.org/10.5942/jawwa.2012.104.0053
  • Product Number: JAW_0075652
Full Text: pdf
Expanded Summary: pdf

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Abstract

Impact fees and other growth-related fees have become an important part of the comprehensive financing plans of many utilities. This article explores required and recommended impact fee practices in terms of current laws and accepted standards in the areas of water, wastewater and reclaimed water impact fee design, accounting, implementation, and use, including techniques for improving the accuracy of impact fee calculations. Strategies are presented that demonstrate the reasonableness of these fees, as is a recommendation that all utilities should establish a formal procedure for applicants to submit alternative impact fee calculations. Utility managers should consider the topics discussed in this article to develop, and to have regulators approve, a comprehensive impact fee policy that shows a commitment and intent by a utility to fully comply with all impact fee laws, rules, regulations and accepted practices.

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