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1.Introduction <br />1. INTRODUCTION <br />Stantec Consulting Services Inc. (Stantec) has completed a Water and Sewer Impact Fee Study (Study) <br />for the water and sewer' systems (IRCDUS) of Indian River County (County). This report presents the <br />results of the Study including background information, legal considerations for the establishment of impact <br />fees in the State of Florida, an explanation of the calculation methodology, and the results. <br />1.1 BACKGROUND <br />Within the water and wastewater industries, an impact feet is a one-time charge paid by a new customer <br />for infrastructure and facilities needed to provide capacity and is also often applied to existing customers <br />requiring increased system capacity. Such fees are the mechanism to provide capacity for new customers <br />and minimize the extent to which existing customers must bear the cost of facilities that will be used to <br />serve new customers. <br />In general, impact fees are based upon the costs of major backbone infrastructure necessary to provide <br />services to all customers. These services include water supply facilities, treatment facilities, effluent <br />disposal facilities (including reclaimed water), and transmission or collection mains. <br />IRCDUS' water and sewer impact fees were established by Ordinance 91-9 in 1999 and its last formal <br />review of the fees was performed in 2018 but no changes to the fees have been adopted. IRCDUS' current <br />water and sewer impact fees are summarized in Table 1. <br />Table 1 - Current Water & Sewer Impact Fees <br />System <br />$ per Equivalent <br />Residential Unit <br />Water <br />$1,300 <br />Sewer <br />$2,796 <br />It is prudent for a utility to review its impact fees periodically to ensure that the level of fees accurately <br />represents the utility's current unit costs to provide capacity in its facilities. Accordingly, IRCDUS retained <br />Stantec to analyze its current cost of capacity to serve new customers as reflected by its impact fees and <br />to determine any recommended updates to the fees. <br />' Including reclaimed water. <br />2 Often referred to throughout the industry as capital charges, system development charges, capacity charges, and <br />various other names. <br />110 <br />