R-04-09-09-11D1 - 9/9/2004 RESOLUTION NO. R-04-09-09-11D1
WHEREAS, Sections 395 . 053 and 395 . 054, Texas Local Government
Code, require a municipality modifying impact fees to adopt a
resolution setting a public hearing date to consider updates to the
land use assumptions and capital improvements plan and amendments to
the impact fees for the designated service area, and
WHEREAS, the City has determined the land use assumptions,
capital improvements plan and/or the impact fees need to be updated,
and
WHEREAS, it is necessary for the City Council to set a date,
time, and place for the holding of the public hearing in order to
comply with said Texas Local Government Code requirements for same, Now
Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That a public hearing to consider updates to the land use
assumptions and capital improvements plan and amendments to the impact
fees for the designated service area be held on the 14th day of the
month of October, 2004, at 7 : 00 o' clock p.m. at 221 E. Main Street,
Round Rock, Williamson County, Texas .
The City Council hereby finds and declares that written notice of
the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to the
public as required by law at all times during which this Resolution and
the subject matter hereof were discussed, considered and formally acted
upon, all as required by the Open Meetings Act, Chapter 551, Texas
Government Code, as amended.
@PFDesktop\::ODMA/WORLDOX/O:/WDOX/RESOLUTI/R40909D1.WPD/sls
RESOLVED this 9th day of September, 2004 .
Mayor
City of Round Rock, Texas
(Xq�-t
'
CHRISTINE R. MARTINEZ, City Secre ry
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Capital Improvement Impact Fee Executive Summary
The City of Round Rock is in the process of updating its water and wastewater impact fees to
keep the fee current with newly-acquired service areas and updated CIP information. The
determined fee amount was calculated using the prospective land uses and capital improvements
plan, the cost of existing and new utility capacity, and consideration of a credit to new customers
for capital contributions made through rate payments. Maximum impact fees were developed in
component pieces comprised of separate amounts for water supply, treatment, pumping,
elevated storage, ground storage, and transmission which will facilitate the consideration of
credits from the applicable fee if a developer builds and dedicates eligible facilities to the City.
The rate credit calculation considered existing capital obligation to wholesale providers, existing
debt, future debt payments incurred in the year in which the facilities would be built and financed,
and the projected LUEs at the mid-point year of 2008 specific rate credit. This results in the
maximum impact fee calculation of$4,296 per LUE for water and $1,306 per LUE for wastewater,
totaling $5,602 per LUE.
Approximately 72% of total City area is currently in residential land uses with 18% in
commercial/industrial land uses and 9% in various open space or floodplain land uses. Projected
residential land uses are expected to decease slightly to 70% of total potential service land area
with non-residential and open space/floodplain shares of total land use growing slightly to 19%
and 10% of total land area, respectively.
The City's future ETJ was used as the primary basis for the impact fee service area. The current
2004 water service area population is estimated at about 96,093 persons. A projected water
service area population of 145,260 persons is anticipated by the end of 2013, reflecting an
anticipated 10-year growth of about 51%. Given the projected growth in water and wastewater
demands, existing capacity, and the modeling of additional infrastructure needs, various
additional facilities have been identified to help meet the needs for the next ten years. In year
2004 dollars, the City's 10-year capital need for new capacity totals approximately$100 million for
water and $50 for wastewater.
The projected rapid growth of City has necessitated the need for major water supply and
treatment projects and the need to update the fees. The City's near-term implementation of the
Lake Stillhouse Hollow water supply will only last the City until 2010. It is then forecast that a new
water supply from Lake Travis will be required at that time to meet the additional water demands
during the remainder of the 10-year planning period. Related water treatment plant, water
storage, and pumping improvements are also identified in the report associated with the new
Lake Travis supply.
Memorandum
To:Members, Impact Fee Technical Advisory Committee
From: Tony Bagwell
Date: August 5, 2004
Re:Changes Resulting from Comments from Advisory Committee Meeting of 8/4/04
As requested, I have made three changes to the impact fee model and report. The first change
was a matter of better clarity and presentation. The following two changes affected the
maximum fee calculation.
(1) The first change involved clearly delineating in Table 5 the existing delivery capacity of the
Lake Stillhouse Hollow supply from that of additional improvements still needed to make full use
of the contracted Stillhouse water. The existing Stillhouse delivery capacity shown in Table 5 is
now shown separately and matches the existing supply capacity shown in Table 3. Two
footnotes and some additional text were added to facilitate the comparison of the supply and
demand numbers between the two tables.
(2) The second change that was made involved changing the per capita water use assumption
that was employed to forecast future water demand. As was explained at the prior meeting,
had previously used 2003 water use data from the City so that it correlated with the 2003 meter
count and LUE determination that was needed to calibrate how much an LUE uses. The year
2003 was not a hot, dry year. Alternatively, the City's Water Distribution Master Plan report
used a"dry-year" per capita water use value as the basis for its water demand forecast which
indicated a need for additional water supply (beyond the Stillhouse supply) by the year 2010.
As discussed, the "dry-year" per capita approach is more appropriate for forecasting water
supply and would provide consistency with the Master Plan report, so that change was also
made to the water demand forecasts. This change, however, had implications on the available
LUE capacity of water facilities and the maximum water impact fee calculation.
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Since each LUE is now using more water because of the higher dry-year per capita assumption,
this not only increases water demand, but it also reduces the LUE capacity of various facilities.
For example, a facility that previously had a capacity of serving 10,000 LUEs may only now
have a capacity to serve 9,000 LUEs, because each LUE is now using more water. The
physical capacity of the facility hasn't change, but how many LUEs it can serve has changed
due to this higher per-LUE use. With the facility still costing the same amount of money and the
LUE facility capacity being lowered, the unit capital cost per LUE went up thus putting upward
cost pressure on the water fee amount.
(3) The third change involved some reallocation of utility demand between the existing and new
water facilities so that the Stillhouse water supply was essentially"used-up"first with the Lake
Travis supply servicing the remainder of the 10-year water needs.
As reflected in the attached revised report, the net result of these changes was an increase in
the maximum water fee from $4,000 per LUE to $4,296 per LUE. The wastewater fee of
$1,306/LUE was unaffected. The requested revisions now result in a maximum combined w/ww
fee of $5,602/LUE.
` 2004 UPDATE
OF THE
- WATER AND WASTEWATER IMPACT FEES
OF THE CITY OF ROUND ROCK
t
Prepared by.
HDR Engineering, Inc.
2211 S. I1-1-35, Suite 300
5 ,
Austin, Texas 78746
August 2004
2004 UPDATE OF THE
WATER AND WASTEWATER IMPACT FEES
OF THE CITY OF ROUND ROCK
Table of Contents
r Section Page
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1.0 INTRODUCTION AND SUMMARY 1
2.0 UTILITY SERVICE AND FEE APPLICATION AREA 2
3.0 LAND USE ASSUMPTIONS 3
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4.0 CURRENT AND PROJECTED UTILITY DEMAND AND SUPPLY 4
5.0 IDENTIFIED MAJOR CAPITAL IMPROVEMENT NEEDS AND COSTS 8
6.0 CONSIDERATION OF OTHER METHODS OF CAPITAL PAYMENT 11
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7.0 ALTERNATIVE IMPACT FEE CALCULATIONS 12
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I ' Attachment A— Location of Proposed Improvements Identified in the Water CIP 14
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Upstate of Water Impact Fees
2004 UPDATE OF THE
WATER AND WASTEWATER IMPACT FEES
OF THE CITY OF ROUND ROCK
r . 1.0 INTRODUCTION AND SUMMARY
The City of Round Rock is in the process of updating its water and wastewater impact fees to
keep the fee current with newly-acquired service area and updated CIP information. This report
presents HDR Engineering, Inc.'s maximum impact fee determination for consideration by the
City's Impact Fee Advisory Committee and the Round Rock City Council.
Consistent with State law, the methodology that determines the maximum fee amount considers
for each fee component either: (1) consideration of a credit for other methods of payments for
utility capital by a new customer, such as through utility rates or taxes, or alternatively (2) a
reduction of maximum fee amount equal to 50 percent of the unit capital cost of providing new
service. By maximum amounts, this means that the determined fee amount was calculated as
the highest that can be lawfully levied by the City, given the prospective land uses and capital
improvements plan, the cost of existing and new utility capacity, and consideration of a credit to
new customers for capital contributions made through rate payments. The City Council can
decide to enact fees less than the maximum amounts shown in this report.
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As detailed later in this report, the maximum impact fees were developed in component pieces.
For instance, the overall water fee is comprised of separate amounts for water supply,
treatment, pumping, elevated storage, ground storage, and transmission. This will facilitate the
consideration of offsets or credits from the applicable fee if a developer builds and dedicates
eligible facilities to the City or the City provides wholesale service to a neighboring utility and
` wishes to charge only certain portions of the fee. The maximum fee amounts do not include
f . capital costs for any donated facilities provided by developers at their own expense.
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Planning, service demand, and design factors assumptions used in the water and wastewater
facility sizing and costing were developed by HDR and CDM engineers, respectively. Data on
current utility demand, existing utility assets, outstanding utility debt and prospective cash
versus debt financing were obtained from or coordinated with the City of Round Rock staff.
HDR combined these elements into the maximum impact fee calculations presented in this
report.
Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 1
Update of Water Impact Fees
2.0 UTILITY SERVICE AND FEE APPLICATION AREA
The City's future ETJ was used as the primary basis for the impact fee service area of the City
shown in Figure 1. This fee application area boundary will comprise the area in which Round
Rock may levy the impact fees, in-part or in-full, if City service is provided. This boundary does
not, however, imply a legal obligation of the City of Round Rock to serve beyond its
incorporated limits. If the City does not provide service, in full or in-part, then the impact fees
would not apply.
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1431 146
79
CIN OF ROUND ROCK
Water and Wastewater
Impact Fee Application Boundary
Figure 1
Water and Wastewater Impact Fees Application Area
Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 2
Update of Water Impact Fees
3.0 LAND USE ASSUMPTIONS
Table 1 provides an estimate of the current and future land use patterns of the potential service
area with information obtained from the City of Round Rock. As indicated, about 72% of total
City area is currently in residential land uses with 18% in commercial/industrial land uses and
9% in various open space or floodplain land uses.
TABLE 1
CURRENT AND PROJECTED LAND USE
CITY OF ROUND ROCK
Current Future(including ETJ)
ITEM Acres % Acres %
Residential 27,645 72% 31,854 70%
CommerciaVlndustrial 6,980 18% 8,490 191%
Public Facility 425 1% 945 2%
Subtotal Developed 35,050 91% 41,289 90%
Open Space 3,464 9% 4,522 101%
Total Land Use Acreage 38,514 100% 45,811 100%
Source:City of Round Rock,2004. Does not include acres for mining.
Over time as the City grows into its future ETJ and utility service area, developed land areas will
both increase and become a higher percentage of overall land uses. Projected residential land
uses are expected to decease slightly to 70% of total potential service land area with non-
residential and open space/floodplain shares of total land use growing slightly to 19%and 10%
of total land area, respectively.
The current 2004 water service area population is estimated at about 96,093 persons. A
projected water service area population of about 145,260 persons is anticipated by the end of
2013, reflecting an anticipated 10-year growth of about 51%.
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Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 3
Update of Water Impact Fees
4.0 CURRENT AND PROJECTED UTILITY DEMAND AND SUPPLY
Table 2 relates the number of water and wastewater utility connections by water meter size and
what is termed a Living Unit Equivalent (or LUE) conversion factor for meters of varying sizes.
A typical single family residential house in Round Rock uses a 5/8" water meter and is
considered to be one LUE. Based on American Water Works Association standards, the
equivalent number of 5/8" meters can be determined for water meters of larger size. In this
manner, meters of larger size (i.e. larger potential service demands) can be couched in terms
the equivalent demand of a number of typical single family homes. For this reason, the LUE
concept is a useful tool for being able to apply a base fee amount to service requests of varying
meter sizes.
TABLE 2
LUE EQUIVALENT CONVERSION FACTORS
CITY OF ROUND ROCK
Living Units Number of Number of
Equivalent(LUEs) Meters LUE's
Meter Size per Meter(a) in 2004(b) in 2004
WATER
5/8" 1.0 23,418 23,418
3/4" 1.5 86 129
V. 2.5 311 778
1.5" 5.0 218 1,090
2" 8.0 313 2,504
3" 16.0 71 1,136
4" 25.0 32 800
6" 50.0 15 750
8" 80.0 8 640
f 10" 115.0 - -
Total Water 24,472 31,245
WASTEWATER
F
5/8" 1.0 23,242 23,242
3/4" 1.5 71 107
1" 2.5 210 525
£ 1.5" 5.0 165 825
2" 8.0 214 1,712
3" 16.0 58 928
4" 25.0 24 600
6" 50.0 13 650
8" 80.0 7 560
10" 115.0 - -
Total Wastewater 24,004 29,149
(a) Derived from AWWA C700-C703 standards for continuous rated flow performance scaled to 5/8"meter.
(b) Source: City of Round Rock,meter count as of April 2004.
Update of WaterlWastewater Impact Fees
of the City of Round Rock, Texas 4
Update of Water Impact Fees
Tables 3 and 4 summarize the City's current and projected water and wastewater service
demands and existing supply (service) capabilities by facility. Current and future service
demands are also compared with the existing service capacity of the utility systems.
Water demand was forecast using population forecasts from the City Planning Department,
meter count/LUE estimates from the City Utility Billing Section, and a dry-year per capita water
use statistic used the Texas Water Development Board and the Regional Water Planning Group
in their water supply planning efforts. Wastewater demand was forecast using historical data
and technical studies of the City system.
With the anticipated rapid growth of the City and surrounding area, potable water utility demand
in certain service areas is expected to exceed the available capacity of raw and treated water
supply, pumping, elevated and ground storage, and transmission during the planning period.
Additional facilities need was also identified for wastewater treatment, pumping, and
interceptors within the futurel0-year period.
a
Update of Water/Wastewater impact Fees
of the City of Round Rock, Texas 5
Update of-Water Impact Fees
TABLE 3
EST.WATER SERVICE DEMAND&AVAILABLE CAPACITY
CITY OF ROUND ROCK
Faciity Type 2004 2013
Supply
Existing 2004 Capacity(mgd) 20.188 20.188
Est.Service Demand 19.507 29.488
Excess(Deficiency) 0.681 (9.300)
Existing 2004 Capacity(LUES)' 32,335 32,335
Est.Service Demand 31,245 47,231
Excess(Deficiency) 1,090 (14,896)
Treatment
Existing 2004 Capacity(mgd) 52.500 52.500
Est.Service Demand 39.014 58.976
Excess(Deficiency) 13.486 (6.476)
Existing 2004 Capacity(LUEs)' 42,045 42,045
Est.Service Demand 31,245 47,231
Excess(Deficiency) 10,801 (5,186)
Pumping
Existing 2004 Capacity(mgd) 106.000 106.000
Est.Service Demand 48.429 73.208
Excess(Deficiency) 57.571 32.792
Existing 2004 Capacity(LUEs)' 68,387 68,387
Est.Service Demand 31,245 47,231
Excess(Deficiency) 37,143 21,156
Ground Storage
( Existing 2004 Capacity(mg) 4.330 4.330
f
a Est Service Demand 2.343 3.542
Excess(Deficiency) 1.987 0.788
€ Existing 2004 Capacity(LUEs)' 57,733 57,733
Est.Service Demand 31,245 47,231
Excess(Deficiency) 26,489 10,502
Elevated Storage
Existing 2004 Capacity(m9) 9.870 9.870
Est.Service Demand 3.906 5.904
Excess(Deficiency) 5.964 3.966
Existing 2004 Capacity(LUEs)' 78,960 78,960
Est.Service Demand 31,245 47,231
Excess(Deficiency) 47,716 31,729
Transmission
Existing 2004 Capacity(mgd) 45.000 45.000
Est.Service Demand 48.429 73.208
Excess(Deficiency) (3.429) (28.208)
Existing 2004 Capacity(LUEs)' 29,032 29,032
Est.Service Demand 31,245 47,231
Excess(Deficiency) (2,212) (18,199)
Assume LUE conversion factor of: 624 gpd/LUE for water supply
1,249 gpd/LUE for treatment
1,550 gpd/LUE for pumping
75 gals/LUE for ground storage
125 gals/LUE for elevated storage
1,550 gpd/LUE for transmission .,�
Update of Water/Wastewater Impact Fees LL
of the City of Round Rock, Texas 6 ,-
Update of Nater Impact Fees
TABLE 4
EST.WASTEWATER SERVICE DEMAND&AVAILABLE CAPACITY
CITY OF ROUND ROCK
FaciRy Type 2004 2013
Treatment
Existing 2000 Capacity(mgd) 9.600 9.600
f Est.Service Demand 10.872 16.786
Excess(Deficiency) (1.272) (7.186)
Existing 2000 Capacity(LUEs)' 25,737 25,737
Est.Service Demand 29,149 45,001
Excess(Deficiency) (3,411) (18,264)
Pumping
Existing 2000 Capacity(mgd) 19.900 19.900
Est.Service Demand" 22.603 15.509
Excess(Deficiency) (2.703) 4.391
Existing 2000 Capacity(LUEs)' 18,477 18,477
Est.Service Demand 20,987 14,400
Excess(Deficiency) (2,510) 4,077
Interceptors
Existing 2000 Capacity(mgd) 84.000 94.000
Est.Service Demand 31.393 48.467
Excess(Deficiency) 52.607 35.533
Existing 2000 Capacity(LUEs)' 77,994 77,994
f .
Est.Service Demand 29,149 45,001
Excess(Deficiency) 48,846 32,993
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2004 2013
Assume LUE conversion factor of: 373 373 gpd/LUE for ww treatment
1,077 1,077 gpd/LUE for ww pumping
1.077 1,077 gpd/LUE for interceptors
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72% 32% of ww demand pumped
is
Update of Water/Wastewater Impact Fees
Of the City of Round Rock, Texas 7
Update of Water Impact Fees
5.0 INDENTIFIED MAJOR CAPITAL IMPROVEMENT NEEDS AND COSTS
Given the projected growth in water and wastewater demands, existing capacity, and the
modeling of additional infrastructure needs, various additional facilities have been identified to
help meet the needs for the next ten years. In year 2004 dollars, the City's 10-year capital need
for new capacity totals about$100 million for water and $50 for wastewater. Maps of the
proposed water and wastewater capital improvements to the City-owned utility systems can be
found in Attachment A.
The projected rapid growth of City has necessitated the need for major water supply and
treatment projects. The City's near-term implementation of the Lake Stillhouse Hollow water
supply will only last the City for a limited period of time. As shown in Table 5, some additional
near-term improvements are still needed to make full use of the Stillhouse supply by 2010. It is
then forecast that a new water supply from Lake Travis will be required at that time to meet the
additional water demands during the remainder of the 10-year planning period. Related water
treatment plant, water storage, and pumping improvements are also identified associated with
the new Lake Travis supply. The ultimate cost of the Lake Travis supply system will depend on
several factors, including more advanced design estimates, whether the City assumes an equity
role in the project and which facilities are built at ultimate capacity and which are phased and at
what size. The costs shown in Table 5 for the Lake Travis supply assume maximum economies
of scale with full development of the City contracted water supply from this source.
As indicated in Tables 4 and 6, the City has exceeded its existing contracted share of the
Brushy Creek Regional Wastewater Treatment Plant capacity and is currently being allowed to
use un-used capacity reserved for other participants. The current need for additional capacity,
as well as the project additional capacity needs of the next ten years, is necessitating a major
expansion of the plant and a major wastewater conveyance tunnel.
Tables 5 and 6 show the details related to the existing capacity of the water and wastewater
systems and proposed new facilities along with their cost, capacity, unit cost, and allocation of
existing and projected demand to these facilities. A weighted unit cost of service ($ per LUE) is
then calculated by facility type based on the proportionate share of use of existing and new
facility capacity by the growth anticipated over the next ten years.
Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 8 lul
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Update of abater Impact Fees
TABLE 6
WASTEWATER CIP INVENTORY AND COSTING
CITY OF ROUND ROCK
Fac118y Gpac j Allocrtions(LUEs)
Date d Cost Capacity Cost Existing Growth Usa in Exes» Total
Facility Nems Need Original S Installed E' Total LUE* per LUE Customers Next 10 Veare Capacity Capacity
TREATMENT
EXISTWG FACILITIES mod
Existiro W WTPs n.a. S 36,530.333 S 36.530 333 9.600 25 737 S 1 419 25 737 25 737
Suotdal Existig FacYrties E 36,530,333 S 36,530,333 9.600 25,737 E 1,419 25,737 - - 25,737
FUTURE FACttITIES
E.Regional W WTP Expansion 2006 E 32.651 020 S 32 651,020 7.500 20,107 f 1,624 3,411 15,853 643 20.107
Subtotal Future Facilities E 32.651020 S 3651,020 7.500 20,107 E 1,624 3,411 15,853 843 20,107
TOTAL WASTEWATER TREATMENT E 69,181,353 S 69.181,353 17.100 45,845 29,149 15,853 843 45,845
AVERAGE CAPITAL COST PER NEW LUE>: S 1,624
PUMPING
EXISTING FACILITIES mod
f Exsstno LS n.a. E 1213.5% $ 1.213,596 19.900 78 477 S 66 18 477 18 477
Subtohl Existing Facilities S 1,213,5% $ 1,213,5% 19.900 18,477 S 66 18,477 - - 16.477
FUTURE FACILITIES
Oak Bluffs LS Rehab(growth portion) 2006 E 6,780 f 7,193 0017 16 E 448 11 5 16
The Shops LS Rehab(growth portion) 2006 E 5,666 $ 6,013 0.014 13 f 450 9 4 13
` Forest Creek LS Rehab(growth porUm) 2006 f 91,584 S 97,161 0229 213 f 457 142 71 213
Trevino Court LS Rehab(growth poRion) 2008 S 21,984 E 23 323 0.055 51 E 459 34 17 51
Subtotal Future Facilities S 126 016 S 133 690 0.315 293 E 457 195 98 293
TOTAL PUMPING $ 1,339,612 S 1,347286 20.215 18,770 18,477 195 98 18,770
AVERAGE CAPITAL COST PER NEW LUE= f 8
r INTERCEPTORS
EXISTING FACILITIES rood
Existi o Interceptors n.a. E 10A98.161 E 10 498161 84.000 77.994 E 135 29,149 6.341 42.505 77.994
Subtotal Existing Facilities E 10,498,161 S 10,498,161 84.000 77,9% E 135 29,149 6,341 42,505 T7,994
FUTURE FACILITIES
Avery Farms 2004 S2,104,973 $ 2,104,973
Brushy Creek Tunes S 11,100,414 E 11,100,414
ChanxBer Creek 2009 E 1,932,500 $ 2240297
McNutt Basin 2009 $ 8,079,750 S 9,366,645 15.300 142% E 659
Misc.IMen:eotors 2007 S 3 000 000 $ 3,278,181
Sutldal Future Factities S 26217,637 S 28.090,510 33.900 31.476 E 892 9,512 21 965 31476
/ - TOTAL INTERCEPTORS f 36,715,798 $ 38,588,670 117.900 109,471 29,149 15,853 64,469 109,471
Y AVERAGE COST PER NEW LVE AVERAGE CAPITAL COST PER NEW LUE= S 589
WASTEWATER TOTAL E 107,236,763 E 109,117,310
AVERAGE CAPITAL COST PER NEW LUE= S 2,221
t 'Assunes an.annual illation rate of 3.0%
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Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 10
Update of Water Impact Fees
6.0 CONSIDERATION OF OTHER METHODS OF CAPITAL PAYMENT
For utilities that charge an impact TABLE 7
fee, the new customer generally EXISTING OR ANTICIPATED DEBT TO BE PAID THROUGH UTILITY RATES
CITY OF ROUND ROCK
pays for capital in two ways: (1) Est.Debt 2008 Est Debt in
initially through the up-front impact Facility Type in Rates LUES Rates per LUE
' WATER UTILITY
fee, and (2) over the longer-term Supply
through utility rate payments,
Existing Debt $ 411,339 38,350 $ 11
Series 2004-2013 New Growth $ 79,532 38,350 $ 2
where typically some portion of Subtotal Water Supply $ 490,871 $ 13
customer rate payments also Treatment
j Existing Debt $ 1,109,565 38,350 $ 29
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funds capital projects. Series 2004-2013 $ 572,058 38,350 $ 15
Subtotal Water Treatment $ 1,681,623 $ 44
Pumping
r The recent 77th Texas Legislature Existing Debt
Series 2004.2013 $ ,03,604 38,350 $ 3
amended Chapter 395 of the Local
Subtotal Pumping $ 103,604 $ 3
Government to require either: (1) a Subtotal Water Pumping
calculated credit for rate payments Ground Storage
Existing Debt
be reflected in the fee amount, or Series 2004-2013 $ 21,121 38,350 $ 1
(2) a credit equal to 50 percent of Subtotal Water Storage $ 21,121 $ 1
the total projected cost of the Elevated Storage
p Existing Debt
capital improvements plan be Series 2004-2013 $ 47,937 38,350 $ 1
Subtotal Water Storage $ 47,937 $ 1
given in calculating the maximum Transmission
fee amount. Series 2004-2013 $ 593,766 38,350 $ 15
Subtotal Transmission Lines $ 593,766 $ 15
f
Total Water $ 77
Table 7 indicates the estimated WASTEWATER UTILITY
cost per LUE that is projected to Treatment
Existing Debt $ 25,536,844 38,350 $ 666
be borne in the utility rates by the Series 2004.2013 $ 3,465,118 38350 $ 90
average new customer. The rate Subtotal WWTP $ 29,001,962 $ 756
Pumping
r , credit calculation considered: (a) Existing Debt
existing capital obligation to Series 20042013 $ 11,162 38,350 $ 0.29
Subtotal WWTP $ 11,182 $ 0.29
wholesale providers, (b) existing Interceptors
debt (c) future debt payments Existing Debt $ 3,174,544 38,350 $ 83
Series 2004-2013 $ 3,075,342 38,350 $ 80
incurred in the year in which the Subtotal Interceptors $ 6,249,886 $ 163
facilities would be built and Total Wastewater $ 920
financed, and (d) the projected Total Water and Wastewater $ 9%
LUEs at the mid-point year of 2008.
Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 11 FM
Update of'Water Impact Fees
7.0 ALTERNATIVE IMPACT FEE CALCULATIONS
Table 9 summarizes the unit capital cost of providing new service and the two alternative credit
calculations for new customers. The alternative approach that calculates a specific rate credit
(Option A) results in the maximum impact fee calculation of $4,296 per LUE for water and
$1,306 per LUE for wastewater, totaling $5,602 per LUE.
As can be seen, the alternative 50% of capital cost method for calculating a rate credit (Option
B) results in a lesser water impact fee of$2,184 per LUE and wastewater fee of $1,115 per
LUE, yielding an overall $3,303 per LUE.
TABLE 8
DERIVATION OF ALTERNATIVE MAXIMUM WATER AND WASTEWATER IMPACT FEE AMOUNTS
CITY OF ROUND ROCK
Weighted Optional Adjustments
Capital Cost of -Option A- -Option B-
New Service Rate 50%Cost Highest of
ITEM per LUE Credit Adjustment -Option A- -Option B- Option A or B
WATER
Supply $ 616 $ 13 $ 308 $ 603 $ 308 $ 603
Treatment $ 1,691 $ 44 $ 845 $ 1,647 $ 845 $ 1,647
Pumping $ 255 $ 3 $ 127 $ 252 $ 127 $ 252
Ground Storage $ 34 $ 1 $ 17 $ 33 $ 17 $ 33
Elevated Storage $ 75 $ 1 $ 37 $ 74 $ 37 $ 74
Transmission $ 1,698 $ 15 $ 849 $ 1,682 $ 849 $ 1,682
Allocated Impact Fee Study Cost $ 4 $ 4 $ 4 $ 4
Total Water $ 4,372 $ 77 $ 2,184 $ 4,296 $ 2,188 $ 4,296
WASTEWATER
Treatment $ 1,624 $ 756 $ 812 $ 868 $ 812 $ 868
Pumping $ 8 $ 0 $ 4 $ 8 $ 4 $ 8
Interceptors $ 589 $ 163 $ 295 $ 426 $ 295 $ 426
Allocated Impact Fee Study Cost $ 4 $ 4 $ 4 $ 4
Total Wastewater $ 2,225 $ 920 $ 1,111 $ 1,306 $ 1,115 $ 1,306
TOTAL WATEWWASTEWATER $ 6,598 $ 996 $ 3,295 $ 5,602 $ 3,303 $ 5,602
The fee methodology was replicated for each major facility type in the utility system (ex. Supply,
treatment, pumping, elevated storage, ground storage and transmission) so that the total fee
amount is the sum of the component facility fees. This provides a basis for extending the fee to
wholesale customers of the City or granting fee offsets if a developer cost-participates with the
City on CIP projects.
Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 12 Im
Update of Water Impact Fees
For comparison purposes, the current impact fees of other near-by cities are listed below:
9ts Water Wastewater Total
Austin
N.E. Preferred Development Zone $ 700 $ 400 $1,100
Western city $1,500 $1,200 $2,700
Pflugerville $2,491 $1,362 $3,853
Round Rock(current) $2,910 $1,059 $3,969
Georgetown $2,295 $1,869 $4,164
Buda $2,721 $1,514 $4,234
Cedar Park $2,250 $2,000 $4,250
Leander $2,850 $1,550 $4,400
San Marcos $2,466 $2,185 $4,651
Jonah SUD (water only) $4,125 n.a. --
Round Rock(maximum potential) $4,296 $1,306 $5,602
Chisholm Trail SUD (water only) $4,600 n.a. --
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Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 13
Update of Water Impact Fees
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Attachment A
Location of Proposed Improvements
Identified in the
10-Year Water and Wastewater CIPs
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Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 14
Update of Water Impact Fees
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Update of Water/Wastewater Impact Fees
of the City of Round Rock, Texas 15
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Update of WaterlWastewater Impact Fees
of the City of Round Rock, Texas 16
'ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY
August 11, 2004
Mayor&Council
Round Rock City Hall
221 E.Main Street
Round Rock,Texas 78664
RE: Written comments of the Round Rock Capital Improvements Advisory
Committee concerning Land Use Assumptions and Capital Improvements Plan
used to determine water and wastewater impact fees.
Dear Mayor Maxwell and Council members:
The Capital Improvements Advisory Committee (Committee) met four times to review
the 2004 Update of the Water and Wastewater Impact Fees of the City of Round Rock,
Texas"("Report")prepared by HDR Engineering, Inc. These comments are being
provided to you pursuant to §§ 395.050, 395.056, and 395.058(c)of the Local
Government Code.
Our review has resulted in the following comments:
1. The Committee reviewed the Land Use Assumptions used in the Report and
agrees that these are reasonable and correct assumptions to utilize to develop a
ten(10)year demand for new water and wastewater service requirements.
2. The Committee has reviewed the Capital Improvement Plan contained in the
Report and requested clarification of demand calculations and the difference
Mayor between the 2003 demand per Living Unit Equivalent("LUE"),using wet year
Nyle Maxwell figures and the more commonly used demand per LUE used by the Texas Water
Development Board("TWDB").We requested that calculations be based on the
Mayor Pro-tem same TWDB dry year per capita use used in the Water and Wastewater Master
Alan McGraw Plan.
Council Members 3. The Committee requested assurance that the Lake Travis water supply would be
Tom Nielson
Carrie Pitt required within the ten(10)year period. The usage of the common TWDB per
Scot Knight capita use figures clearly showed the need for that additional supply within the
Scott Rhode ten-year period.
Gary Coe
4. The Committee reviewed the amended Capital Improvements Plan and agrees
City Manager that the capital improvements included therein are reasonably required to serve
James R.Nuse,P.E. new development.
City Attorney
Stephan L.Sheets
CITY OF ROUND ROCK Planning and Community Development Department 301 West Bagdad•Round Rock,Texas 78664
Phone:512.2185428 -Fax: 512.218.3286•www.ci.round-rock.tx.us
5. The Committee reviewed the calculations used to determine the maximum
allowable impact fee and agrees that the calculations reasonably reflect the
maximum permitted fee in accordance with the requirements of Chapter 395 of
the Texas Local Government Code.
6. Considering the above the Committee recommends the adoption of the following
water and wastewater impact fees.
A. Water Impact Fee $4296.00 per LUE
B. Wastewater Impact Fee $1306.00 per LUE
We respectfully submit these comments and include a copy of the Report on which
they are based.
Sincerely,/
Al Kosik
Chairman, Capital Improvements Advisory Committee
DATE: September 3, 2004
SUB]ECT: City Council Meeting - September 9, 2004
ITEM: 11.D.1. Consider a resolution setting a Public Hearing on October 14, 2004
to consider updates to the land use assumptions and capital
improvements plan, and amendments to the current impact fees.
Department: Water and Wastewater Utilities
Staff Person: Tom Clark, Director
]ustification:
Water and wastewater impact fees are charged to offset the cost of constructing infrastructure
to keep up with development and allow for growth to pay for itself rather than being paid for
by ratepayers.
Funding:
Cost: N/A
Source of funds: N/A
Outside Resources: Tony Bagwell, HDR Engineering
Background Information:
At least every five years, the City's land use assumptions, capital improvement plan and water
and wastewater impact fees are reviewed for possible amendment to reflect the cost of
constructing infrastructure within the City. Impact fees assist the City in paying for the
infrastructure needed by development rather than being subsidized by ratepayers. Current fees
are $2,910 for water and $1,059 for wastewater per LUE. Over the last 18 months, the land
use projections and the Water and Wastewater Master Plans have been reviewed and updated,
and maximum potential impact fees have been calculated. A report detailing such updates and
advising the City of such maximum potential fees is presented for consideration by the City
Council and an Advisory Committee comprised of the Planning and Zoning Commission, a
member from Williamson County and a non-voting member of the Home Builders Association
of Austin. The Advisory Committee met on July 7, July 27, August 4, and August 11, 2004 to
review the impact fees and make written comments to the Council. A Public Hearing is
recommended for October 14, 2004 to allow the Council to receive input from the public.
Thereafter, the Council may agree to update the land use assumptions and the Master Plans,
as well as set the actual impact fees.
Public Comment:
The Public will be asked to comment at the October 14, 2004 Public Hearing.