In the last ten years, the City of Georgetown and Scott County have seen several hundred square miles of land formally reserved for agriculture or livestock converted to housing subdivisions. This transformation of land usage is the result of the economic growth in this portion of Kentucky,
known as the “Golden Triangle,” or roughly the area located between Lexington, Louisville, and Cincinnati. This area has attracted new industry, due to extensive transportation networks and economic incentives provided by the Commonwealth of Kentucky. One result of this economic
growth was an increase in the population of Scott County of 38.5% between 1990 and 2000, causing the Georgetown Municipal Water & Sewer Service (GMWSS) to upgrade the existing water and sewer systems. Furthermore, GMWSS has had to construct an entirely new sanitary sewer infrastructure
as housing development extended beyond the GMWSS urban service area. In an effort to control sanitary sewer rates and avoid passing the burden of system expansion costs to existing customers, GMWSS has established a Privilege Fee Agreement that places the initial cost of improvements back
to property developers. This agreement meets our philosophy of having growth pay for growth. The general purpose of this paper is to explore the concept and implementation of the GMWSS privilege fee system. This will include the history, present day implementation, and future of the privilege
fee system in Georgetown/Scott County. Examination of this subject will include a general discussion of the engineering and land use criteria that defines the developable land to be served by the sanitary sewer expansion, the time limit involved in the privilege fee, the distinction between
participating and non-participating owners, the formula used to determine the GMWSS privilege fee structure, and the methodology used to calculate interest, payments, and reimbursements.
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