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 t...
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