Impact fee explanation

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Impact fee explanation

The City of Saco currently has two Impact Fees: the Combined Sewer Overflow (CSO) and Sewer Impact Fees. The impact fees cover the cost of capital improvements to the collection system and the Wastewater Treatment Plant respectively. The City is authorized to collect fees under Section ¤ 176-34 and Section ¤176-96 of the City Code. In short, any use that contributes wastewater to the wastewater system is subject to impact fees.

Who Pays the Impact Fee?
Impact Fees are paid by new construction or industrial / commercial expansions or changes in use that contribute additional flow.

What are the Fees?
As of June 2000, the Sewer Impact Fee is $900 per single family home. The CSO Impact Fee is $5.64 per gallon of discharge for existing lots of record and $8.46 per gallon for new lots of record. The CSO fees are adjusted annually for inflation in July. Industrial and commercial fee determinations are based on the number of single-family home equivalents or Equivalent Dwelling Units (EDUs). As of January 1, 2001, the existing lots of record will be charged the same rate as the new lots of record - $8.64.

When are the Fees Paid?
Impact fees are paid when the building permit is obtained and are due in full. In unusual circumstances, the City delay the payment of fees while the discharge quantity and quality are assessed by the WWTP Department. Certain types of use may be eligible for credits or extended payments on the CSO Impact Fee as provided in the Code.

How have the Impact Fees Been used?

The Sewer Impact Fees have paid for a third of the 3.0 Million dollar plant upgrade in 1989. The most recent use of fees was the construction of a new office building at the WWTP. CSO Fees will be used to contribute to the mitigation of CSOs in the City.

Why do we have Fees?
The fees allow the city to recover a fair portion of the infrastructure improvements made by the City to accommodate new uses. Without the impact fees, existing tax and sewer rate payers would be asked to pick up the cost of providing additional improvements for new development.