Meeting Date:
October 13, 2026
Staff Contact:
Matt Leppla, Director of Public Works
Hold a PUBLIC HEARING and consider recommendations to the 2026 Impact Fee Study Update, and consider adoption of Ordinance O2026-39, amending water, wastewater, and roadway impact fees.
BACKGROUND/DISCUSSION
In 2003, the City approved water and wastewater impact fees to help finance infrastructure related to new development. Chapter 395 of the Local Government Code requires cities to review and update their Impact Fee Program at least every five years. The water and wastewater impact fees were previously updated in 2008, 2013, 2016, and 2021, with the most recent ordinance being adopted by City Council on November 16, 2021. Roadway impact fees were first adopted in 2022, with the most recent ordinance amending the rates adopted by City Council on November 18th, 2025. For 2026, the decision was made to combine water, wastewater, and roadway impact fees into a single update providing transparency for all and streamlining future update processes required by Chapter 395.
There are several steps required to update the Impact Fee Program.
- On February 10, 2026, City Council appointed a Capital Improvements Advisory Committee (CIAC) in accordance with Chapter 395 of the Local Government Code.
- City staff, and our consultant, met with the CIAC on May 20th and August 19th to present and discuss the proposed amendments to the Impact Fee Program. The CIAC recommended amendments to the 2021 Water and Wastewater Impact Fee Program and 2025 Roadway Impact Fee Program.
- On September 22, 2026, City Council adopted Resolution R2026-19 setting a public hearing date for October 13, 2026.
- On September 24, 2026, Municipal Utility Board accepted the recommendation of the advisory committee and recommended adoption of the proposed amendments and rates.
- October 13, 2026, public hearing regarding proposed amendments to the land use assumptions, capital improvements plans, and impact fees.
Local Government Code requires an ordinance, order, or resolution adoption for amendments to the land use plan, capital improvements plans, and/or impact fees. A copy of the proposed ordinance updating the water, wastewater, and roadway impact fees has been included in your packet. A summary of the updates is below:
Current Impact Fee Rates
Water: $2,332 per standard unit
Wastewater: $2,227 per standard unit
Roadway A: $691 (residential), $461 (nonresidential); per service unit
Roadway B: $394 (residential), $262 (nonresidential); per service unit
Roadway C: $386 (residential), $258 (nonresidential); per service unit
Roadway D: Not a current Service Area
Proposed Impact Fee Rates
Water: $2,800 per standard unit
Wastewater: $2,800 per standard unit
Roadway A: $460.53 (residential), $420 (nonresidential); per service unit
Roadway B: $159.65 (residential), $240 (nonresidential); per service unit
Roadway C: $152.41 (residential), $240 (nonresidential); per service unit
Roadway D: $280.92 (residential), $300 (nonresidential); per service unit
While the proposed water and wastewater impact fees increase by a combined $1,041 per single-family home, the proposed reductions in roadway impact fees (calculated for single-family home) offset that increase, resulting in a combined net reduction of $45 per single-family home across the board.
FINANCIAL IMPACT
Approval of the proposed water, wastewater, and roadway impact fees will amend the current rates as identified in Ordinance O2026-39 and be effective upon adoption by City Council.
SUGGESTED ACTION
Staff recommends that the City Council accept the Capital Improvement Advisory Committee's and Municipal Utility Board's recommendations for approval of the 2026 Impact Fee Study Update, including updates to the proposed Land Use Plan, Service Areas, Capital Improvement Plans, recommended impact fee rates, and adopt Ordinance O2026-39 updating the water, wastewater, and roadway impact fees.
ATTACHMENTS