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reasonable 'ind'ication of growth potential. Based upon. these assumptions, it is projected that a- yearly averageof6751 residential dwelling units per year could be constructed over the next ten years.' ,A household _sizeof2.312perso_ns perhouseh,old and an occupancy rate of 953 percent were used to calculate the future populatiori. Using a future growth rate of approximately 2.7% (average annual.'for both service. areas) peryear, a population.'of approximately 60,600 personswa_sprojected, for the water service area's ten-year growth projectiOh_, and a ,population of approximately661~ 50 persons was projected for the wastewater service area'sten-year growth projection; This growth rate would generate, a, . population i_ncrease of about '1 ,480 persons per year. Th~ ~ollowingshows the formula for calculating the ten-year growth projections for eachservice-,area: 675 dwelling units x 0.95 occupancymte = 641 occupied dwelling L]nits/year 641 occupied dwelling. units/year x 2.31 household size = 1,480pelSons/year 1,480 persons/year x 10 years = 14,8,00, persons net10-yea~growth- Water Se",ice Area 45,800 existing pop'ulation+ 14,800 net g~owth =60,600 projected population- il:J' _10 years Wastewater Service Area 51,350 existing population +14,800 net-growth = 66,150 projected population in 10 years This growth rate, ,which represents an approximate 2.8% and 2.60k percent 'compounded average . , . , annual growth rates for the water and waste~aterservice areas, respectively, ,was" determ-ined t.o be a reasonable rate atW1ichSanMarcos ,could be expected to grow. The projected arinual growth rate for the City's water and wastewater service areas and the resulting pop-ulation projection for the year 2012 is considered reasonable for planni.ngpurposes. Itis recognized that some growth could occuroutside of San Marcos' corporate limits during the next ten years, but the above 9fowth rate assumes that most 'of the growth will be within the City's corporate limits (existing or future/ET J). It _is antici'pated that most growth will.-eventuallyoccurwithin the Citys limits fors:everal reasons: . More stringent environ_mental, lawspertain-ingto septic waste systems. . Increasing insurance . rates outside corporate Citylimits-. . The City's progressive philosophy regarding' water and sewer _line extensions. 1 2,500 units of the total projected dw.el1ingunitsare anticipated to be mult~-family., 2' Source: 2000 U.S. Census'. 3 Source: 2001 U.S. Census. :LandUse Assump,io_ns.. for Impact Fees -- AugustJ;2002 City of San Marcos, Texa.~' C:\DOCUME-1\THERIO-1 \LOCALS-1 \T ~mp\LandUseAssump-report OB212002.doc 10