Title
Conduct a public hearing on Water and Wastewater Impact Fee updates to land use assumptions, capital improvements and impact fee.
Summary
The purpose of the update every few years is to adopt and implement updated water and wastewater impact fees necessary to recover a portion of costs of providing utility capital improvements; provide an equitable structured approach to assessment of fees; and assessment of impact fees for new growth and development based on capacity consumed accordingly for how much water and wastewater a development will consume.
Authorized by the State of Texas, impact fees allow municipalities to assess developers and builders a one-time charge in order to finance additional infrastructure necessitated by new residential and commercial developments. In this way, the cost burden of future growth is shared by the new developments. Components consider to determine the proposed water and wastewater Impact Fees include recently constructed improvements with excess capacity to accommodate growth; proposed projects that will accommodate growth within the next ten years; financing costs; and cost of Impact Fee Study.
The last impact fee update was approved by City Council January 10, 2023. The City is allowed to update the impact fee plan and fees every three years. Due to the cost of several large capital improvement projects, it was recommended to review the plan and update the fees. The City engaged STV and Garver engineering firms to conduct the updates to the water and wastewater land use assumptions, capital improvements and impact fees. This udpate was started March 2025. The results of this update are attached to this agenda item.
Below is the proposed impact fee schedule:
Water current fee $14,713; new calculated fee $7,198; change ($7,515)
Wastewater Area 1 current fee $1,316; new calculated fee $1,800; change $484
Wastewater Area 2 current fee $15,136; new calculated fee $16,565; change $1,429
This update was provided to the CIAC board at their regular meeting on May 4, 2026.
Prior City Council Action
On March 10, 2020, City Council held a Public Hearing and approved update of the City’s Land Use Assumptions, Capital Improvement Plan, and Water and Wastewater Impact Fees.
April 14, 2020, City Council approved Ordinance No. 1438-20-04-14 amending the Impact Fees and Chapter 152, Implementation of Impact Fee, of the Code of Ordinances for the City of Pflugerville, Texas, to update the impact fees pursuant to Texas Local Government Code Chapter 395, Subchapter C; and providing an effective date.
January 10, 2023 City Council approved Ordinance No. 1577-23-01-10 amending the Impact Fees and Chapter 152, Implementation of Impact Fee, of the Code of Ordinances for the City of Pflugerville, Texas, to update the impact fees pursuant to Texas Local Government Code Chapter 395, Subchapter C; and providing an effective date.
June 9, 2026, City Council passed a resolution setting a public hearing to discuss and review an update of the City’s Land Use Assumptions, Capital Improvement Plan, and Water and Wastewater Impact Fees.
Deadline for City Council Action
Action required on July 28th to meet adoption timeline.
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Budget Source: ____________
Budgeted Amount: ____________
Amount: ________
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A _X_ Required __ Date Completed: ___________
Supporting documents attached:
Population and Demand Analysis Technical Memo
Water Capital Improvement Plan Projects
Wastewater Capital Improvement Projects
Wastewater Flow Projections
Impact Fee Schedules
Recommended Action
Conduct a public hearing.