R-2022-388 - 12/1/2022 RESOLUTION NO. R-2022-388
WHEREAS, Section 395.058 of the Texas Local Government Code ("the Act") requires the
Capital Improvement Advisory Committee ("CIAC") to report to the City Council the progress of the
capital improvements plan and any perceived inequities in implementing the plan or imposing the
impact fee; and
WHEREAS, the CIAC is also required to advise the Council of the need to update the land use
assumptions, capital improvements plan and impact fees; and
WHEREAS, the CIAC has submitted Capital Improvements Plan Progress Semi-Annual
Report; and
WHEREAS, the City Council has reviewed the attached Capital Improvements Plan Progress
Semi-Annual Report and has determined same to be in compliance with the Act,Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,TEXAS,
That the Capital Improvements Plan Progress Semi-Annual Reports, attached hereto as Exhibit
"A" and incorporated herein, are hereby approved.
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.
RESOLVED this 1 st day of December, 2022.
CRAIG R , Mayor
City of ound ock, Texas
ATTEST:
MEAGAN S NKS, Ci Clerk
0112.20222;4860-0817-0559
EXHIBIT
„A„
Capital
Improvements Plan
Progress
Semi-Annual Report
November 2022
ROUND ROCK TEXAS
UTILITIES AND ENVIRONMENTAL SERVICES
SUMMARY
The Local Government Code Section 395.058 requires the Capital Improvement
Advisory Committee (CIAC)to report to the political subdivision the progress of the
capital improvements plan and any perceived inequities in implementing the plan
or imposing the Impact Fee. Included herein is the semi-annual report for the
reporting period of April 1, 2022, to September 30, 2022. This report consists of
assessing the actual growth rate in comparison to the projected growth rate, the
status update of capital improvement projects, and the Impact Fees collected
during the reporting period.
The local government code also requires the CIAC to advise the City Council on
updating the land use assumptions, capital improvements plan, and Impact Fees.
These items were last updated by the City in November 2020.
1
Figure 1 shows the groundwater and surface water produced and the number of
active water services over the past two years. Although the City continues to grow,
the total water production over the past several years has remained relatively
steady. However, because water usage is highly dependent on weather patterns,
this past summer we experienced a significant increase in water demand. The
City's conservation and reuse water programs are also important factors impacting
water usage.
Figure 1
Water Treatment Plant
3,000 38
37
2,500
36
2,000
0 35
0
0
s
1,500 34
0 33 u
>
0
a 1,000 a
c Q1
0 32
Q Q
500
31
0 1st Qtr FY'21 2nd Qtr FY'21 3rd Qtr FY'21 4th Qtr FY'21 1st Qtr FY'22 2nd Qtr FY'22 3rd Qtr FY'22 4th Qtr FY'22 30
Active Services 36123 36237 36328 36439 36679 36914 37136 37249
-*-Groundwater- 262,705,000 323,949,000 304,168,000 329,234,000 122,548,000 86,114,000 178,345,000 266,843,000
�P■Surface Water 1,588,619,000 1,124,305,000 1,507,802,000 2,011,458,000 1,566,460,000 1,305,889,000 2,199,673,000 2,531,822,000
2
Figure 2 reflects the daily average of potable water produced each month over the
last five years. Total water production is dependent on weather conditions;
therefore, discretionary water usage is higher during the summer months.
Figure 2
Average Potable Daily Demand Each Month
ao
35
30
c 25
0
20
0 '
15 1 i
I
10
5
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
u 2018 V 2019 12020 ■2021 W 2022
3
Figure 3 reflects the monthly potable treated water production and the Type I
Reuse treated water production. The City's reuse water system began production
in October 2012 with three customers- Old Settlers Park, Dell Diamond, and Forest
Creek Golf Course. The City has since expanded the system to Forest Creek HOA,
Legends Village Subdivision, Austin Community College, Texas A&M Health
Science Center, Forest Grove and Vizcaya Subdivisions, and Kalahari Resort. The
City continues to promote reuse water in the northeast part of Round Rock, and as
depicted in Figure 3, the demand continues to grow.
Figure 3
Potable vs. Reuse Water
Average Daily Demand Each Month
40
35
30
25
c
0
M 20
c i
� I
15
10
5
0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
0 FY-18 ■FY-19 ■FY-20 ■FY-21 ❑ FY-22 ■Reuse
4
Figure 4 shows the number of new single-family building permits issued in the City
of Round Rock and the City's extra-territorial jurisdiction (ETJ). Over the past five
years, new single-family housing starts in the City have ranged from 556 to 1,057
per year. In the first half of FY-22, single-family permits issued increased to an
average of about 90 permits per month. However, during the last six months of FY-
22, new permits declined to an average of 68 permits per month. In addition, the
first month of FY-23 has continued to decline in the number of new single-family
building permits (14) issued as well.
Most of the current construction activity is in the northeast part of Round Rock in
the Vizcaya, Salerno, Quick Ranch, Homestead, and University Heights
Subdivisions. There is also new single-family construction occurring in other parts
of the City in the Chisholm Trail Park, Preserve at Wyoming Springs, and Clear
Creek Subdivisions.
Townhomes under construction include Sonoma Townhomes, Schulz
Townhomes, Townhomes at Gattis School Road, The Depot, and Tiger Trail
Townhomes.
As noted in Figure 4, Siena MUD No. 2 had no new permits issued in FY-22, which
indicates that all of the Municipal Utility Districts (MUDs) in Round Rock's ETJ have
potentially been built out for their single-family properties.
5
Figure 4
Annual Single-Family Building Permits Issued
Residential & MUDs
1800
1600 1512 1511
1400
1200 1121
1043 1057
1000
800
600
400
200
0
FY-18 FY-19 FY-20 FY-21 FY-22
■Round Rock ■Paloma 1 Paloma -2 ■Teravista R 10 ■Teravista ::11 Siena k 1 Siena v 2
6
Table 1 reflects the number of multi-family units permitted annually.
Currently, there are nine multi-family complexes under construction. These include
two Legacy facilities on University Boulevard and Red Bud Lane, Warner Ranch,
Crossing at Palm Valley, Round Rock Phase 2 behind the outlet mall, Arrington
Ridge, Broadstone at La Fronterra (376 units), Aura Avery 2 (238 units), and
Larkspur (195 units).
One additional multi-family development, Stillwell with 225 units, will be issued a
permit within the next month. This project is a multi-family project, but single-story
with individual 900-1,000 square foot units, that are similar to a single-family
development.
Table 1
In-City Retail
Fiscal Year Multi-Family Units
FY 2018 652 (327.5 LUEs)
FY 2019 432 (218 LUEs)
FY 2020 430 (196.5 LUEs)
FY 2021 584 (391.5 LUEs)
FY 2022 1626 (896 LUEs)
Out-of-City Wholesale
Fiscal Year Multi-Family Units
FY 2022 720 (404.4 LUEs)
7
Table 2 reflects the number of new commercial building permits issued annually.
Over the past five years, this number has been steady, ranging from 39 to 50
annually, and commercial development in the City continues to trend upward.
Current permits are mostly office property and light industrial. There are also
permits in for hotels, small retail, and restaurants.
Table 2
Commercial
Fiscal Year
Building Permits
FY 2018 43 (220.5 LUEs)
FY 2019 50 (262 LUEs)
FY 2020 44 (150.5 LUEs)
FY 2021 39 (161 LUEs)
FY 2022 39 (234.5 LUEs)
8
Table 3 and Figure 5 summarize the Water and Wastewater Impact Fees collected
for In-City retail residential (single-family and multi-family) and commercial
customers and Out-of-City wholesale customers. For FY-18 and FY-19, there was
an increase in the total Impact Fees collected due to new developments; however,
FY-20 showed a significant decrease attributed to the virus pandemic. FY-21
indicates that the Impact Fee collections in the City trended upward to prior FY-20
amounts, and Out-of-City wholesale decreased in FY-21 mainly due to the buildout
of many of the MUDs. FY-22 has shown a significant increase in impact fees
collected, most significantly from In-City Commercial water and wastewater
connections.
Table 3
Impact
Fees
In-City Retail
Residential j
Water $3,830,017 $2,770,650 $2,008,822 $2,649,580 $2,043,907
Residential $1,905,615 $1,381,154 $930,467 $1,296,554 $1,695,908
Wastewater
Commercial
Water $2,399,541 $2,750,040 $1,752,110 $2,934,225 $4,085,751
Commercial $1,102,400 $1,701,974 $461,347 $1,457,580 $1,900,865
Wastewater
Out-of-City Wholesale
Water $692,763 $639,567 $406,253 $114,713 $52,534
Wastewater $639,776 $1,650,108 $895,448 $20,711 $870,291
Total d $10,570,111 $10,893,493 $6,454,447 $8,473,363 $10,649,255
Collecte
9
Figure 5
Impact Fees Collected FY 2018 - FY 2022
$12,000,000
$10,570,111 $10,893,493 $10,649,255
$10,000,000 - - -
$8,473,362
$8.000,000 - --
$6,454,447
$6.000,000 - - -
$4,000,000
$2,000,000 -
$0 --
FY-18 FY-19 FY-20 FY-21 FY-22
■Residential Water ■Commercial Water Wholesale Water
■Residential Wastewater ■Commercial Wastewater Wholesale Wastewater
During the latest water model update in 2020, the City assumed that 1,433 LUEs
per year would be added to the water system. At an Impact Fee of$4,234 per LUE,
this would indicate that the City should be collecting approximately $6.07 million
per year in Water Impact Fees if the City's growth rate is as projected.
In addition, the wastewater model update assumed that 1,027 LUEs would be
added to the wastewater system per year. At an Impact Fee of $1,799 per LUE,
this would indicate that the City should be collecting approximately $1.85 million
per year in Wastewater Impact Fees if the City's growth rate is as projected.
Comparing these assumptions to the actual Impact Fees collected indicates that
the number of new connections to our water and wastewater systems for FY-20
occurred as expected; however, during FY-21 and FY-22 the City experienced
more connections than anticipated in the water and wastewater model.
10
Table 4 provides population projections for Round Rock and Round Rock's ETJ.
These projections, anticipating a steady growth rate, indicate that capital
improvements to the City's water and wastewater utility systems will be necessary
to keep up with growth in Round Rock.
Table 4
Year
•INKOR City's ETJ
• - OWProjections Growth Rate
2020 (Census) 119,468 - 178,704 -
2021 122,455(122,827) 2.5% (2.8%) 182,336 2.0%
2022 125,516(124,614) 2.5% (1.5%) 184,993 1.5%
2023 128,292 2.5% 189,286 2.3%
2024 134,540 4.9% 196,035 3.6%
2025 139,834 3.9% 202,208 3.1%
2026 145,208 3.8% 208,843 3.3%
2027 149,621 3.0% 214,486 2.7%
2028 153,530 2.6% 219,624 2.4%
2029 157,298 2.5% 224,320 2.1%
2030 161,136 2.4% 228,933 2.1%
2031 164,982 2.4% 233,479 2.0%
2032 168,791 2.3% 237,885 1.9%
2033 172,520 2.2% 242,143 1.8%
2034 176,163 2.1% 246,273 1.7%
2035 179,507 1.9% 250,040 1.5%
2036 182,560 1.7% 253,433 1.4%
2037 185,513 1.6% 256,700 1.3%
2038 188,427 1.6% 259,901 1.2%
2039 191,306 1.5% 263,017 1.2%
2040 194,151 1.5% 266,051 1.2%
Notes: 2020 is the base year for all projections in this table
( )Annual Estimates by Planning & Development Services Department
11
Table 5 summarizes the status of the Water System (Impact Fee eligible) Capital
Improvement Projects included in the November 2020 Impact Fee Analysis.
Table 5
Completed Water Projects Completion Impact Fee Report Actual Cost
Estimated Cost
Arterial H Waterline 2017 $856,400 $162,460
BCRUA Water Treatment Plant- Ph 1 B 2018 $34,000 $31,000
South 81 Elevated Storage Tank Pump Station 2019 $157,000 $1,070,900
Arterial H Phase II 2020 $1,470,500 $1,375,045
BCRUA Phase 1C - WTP Expansion to 32MGD 2020 $4,465,000 $3,635,540
Water Dist. Master Plan & Impact Fee 2020 $66,000 $220,570
GR-05: University Blvd extension from end of 36- 2022 $1,150,000 $775,481
inch main to CR-110
GR-01: E Liberty Avenue, N Shephard St& 2022 $500,000 $938,983
Fannin Ave
$8,698,900 $8,209,979
Water Projects In Progress Completion Impact Fee Report Actual Cost
Estimated Cost
GR-02: Kenny Fort Blvd from Forest Creek Blvd 2022 $1,570,000 $1,787,073
to SH45
GR-03: Kenny Fort Blvd from Old Settlers to 2024 $2,450,000 $4,212,134
Chandler Creek
GR-04: Sam Bass Rd from FM-1431 to Wyoming 2025 $7,000,000 $9,980,300
-Springs Dr
GR-06: Redbud Ln from south of Palm Valley 2026 $4,560,000 $4,560,000
Blvd to Gattis School Rd
BCRUA Phase 1 D - WTP Expansion to 42MGD 2025 $4,000,500 $4,978,607
BCRUA Phase 2 - Deep Water Intake 2027 $60,608,500 $77,437,930
$80,189,000 $102,956,044
12
Upcoming Water Projects Estimated Impact Fee Report
Completion Estimated Cost
GR-07: Hester's Crossing & CR-172 from west 971 zone to S-81 2025 $3,270,000
EST
GR-08: FM-1460 toward Westinghouse Rd, east to future road 2027 $2,350,000
GR-09: Palm Valley Blvd (north side)extension to CR-110 2029 $600,000
GR-10: Loop from GR-09 to Westinghouse to University 2030 $2,440,000
$8,660,000
Table 6 summarizes the status of the Wastewater System (Impact Fee eligible)
Capital Improvement Projects included in the November 2020 Impact Fee
Analysis.
Table 6
Completed Wastewater Projects Completion Impact Fee Report Actual Cost
Estimated Cost
Lake Creek 2 2017 $2,652,000 $1,916,000
Lake Creek 3 2017 $591,000 $563,000
McNutt Creek C2 (referred to as C5) 2018 $1,324,000 $1,762,000
Brushy Creek 5 2018 $288,000 $282,618
Brushy Creek 2 2019 $685,000 $349,000
Brushy Creek 4 2019 $173,000 $173,000
MC-1: New 6,760LF of 18-in 2022 $1,973,000 $0
$77686,000 $5,045,618
Wastewater Projects in Progress Completion Impact Fee Report Actual Cost
Estimated Cost
Lake Creek 1 2023 $1,856,000 $3,786,150
$1,856,000 $3,786,150
13
Upcoming Wastewater Projects Estimated Impact Fee Report
Completion Estimated Cost
BC-1: Upsize 3,015LF to 12-in and 18-in 2023 $831,000
CC-1: Upsize 3,975LF to 12-in and 15-in 2024 $1,026,000
Forest Creek LS and FM - Increase Capacity 2024 $3,168,000
MC-2: New 9,120LF of 12-in 2025 $1,576,000
MC-3: New 5,155LF of 24-in 2026 $1,602,000
Hilton Head LS and FM - Increase Capacity 2027 $1,751,000
CC-2: Upsize 955LF to 12-in and 15-in 2027 $230,000
WWTP Expansion to 40MGD - PER 2030 $2,500,000
$12,684,000
Table 7 summarizes the status of the Reuse Water System (Impact Fee eligible)
Capital Improvement Projects included in the November 2020 Impact Fee
Analysis.
Table 7
Reuse Projects in Progress Completion Impact Fee Report Actual Cost
Estimated Cost
1.0 MG Reuse Ground Storage Tank 2023 $1,628,400 $3,200,000
$1,628,400 $3,200,000
Upcoming Reuse Projects Estimated Impact Fee Report
Completion Estimated Cost
Reuse Phase V—Stony Point High School 2024 $614,328
$614,328
14
Figure 6 compares Single-Family Residential Utility Rates for Round Rock to
surrounding Central Texas Municipalities and Municipal Utility Districts. As
depicted, Round Rock utility rates remain among the lowest in the region.
Figure 6
Single-Family Residential
Water and Wastewater Rates Monthly Comparison
$200 Assumes 10,000 gallons water& 8,000 gallons wastewater usage
$180
S16_'40 3159.83
$160 $155 02
$140 $131.30
$120 15
$120 S115.60 S113 82
$100 $98 22 $96.90 596.45 �J
591.33 $S6 70
S80 11
$80
572.55 $67 43
$60
$40
10
cp
San Hutto Austin Pflugervile Leander Palcma Walsh Vista Teravista 11 Cedar Teravista 10 Fern Round Georgetavn Brushy
Marcos 1 3 2 Ranch Oaks Park Bluff Rock Creek
(Annual
■;"pater ■;�astev;ater Avg:
* assumes 10,000 gallons water and 8,000 gallons wastewater used
15
Table 8 compares Round Rock's Water and Wastewater Impact Fees to
surrounding cities and Municipal Utility Districts. Historically, Round Rock had one
of the highest total Impact Fees charged for new connections to the water and
wastewater systems. However, several surrounding cities have increased their
fees over the past few years and surpassed Round Rock. Round Rock's
philosophy is for new customers and developments to pay for the required capital
improvements due to the growth.
Table 8
Area Impact Fee Comparison
Last
City/Utility Updated Water Wastewater Total
Brushy Creek MUD 2012 $2,095 $1,804 i $3,899
Round Rock 2020 $4,234 $1,799 $6,033
Cedar Park 2020 $3,160 $3,170 $6,330
San Marcos 2018 $3,801 $2,684 $6,485
Leander 2017 $4,309 $2,820 $7,129
Austin 2018 $4,700 1 $2,500 $7,200
Pflugerville 2020 $7,897 L $1,898* $9,795
Georgetown 2018 $6,921 $3,115* $10,036
LHutto 2021_- I-- $8,832 j $2,788 � $11,620
*Indicates the City has two different Wastewater Impact Fees, based on service area. The
number in the table above reflects the lowest fee charged by that City.
16
CONCLUSION AND RECOMMENDATIONS
Due to the volatility in growth rates and infrastructure requirements, the City
recommends a review of the Impact Fees approximately every three years. The
latest Impact Fee update report was completed in November 2020, adopted by
City Council on January 14, 2021, and went into effect on February 1, 2021.
Over the past couple of years, the population growth in Round Rock has
proceeded slower than projected in the Impact Fee Analysis. However, the number
of connections to the water and wastewater systems has increased as anticipated,
and in some areas more than was expected.
Due to the number of connections to the water and wastewater systems, and the
anticipated infrastructure projects that will be needed to serve these new
connections, the City will be commencing with updates to the Master Plan for both
the water and wastewater systems. Once these Master Plan updates are complete
in the Spring/Summer 2023, the City will proceed with updating the impact fees.
This will ensure that the City is collecting the necessary fees so that new growth is
paying its fair share for the cost of constructing the required water and wastewater
infrastructure.
The next Capital Improvements Plan Progress Report will be presented to the
CIAC and the City Council in approximately six months.
17
Mayor Councilmembers City Manager
Craig Morgan Michelle Ly Laurie Hadley
Matthew Baker
Frank Ortega
aPLANHN�GTND ROCK TEXAS Mayor Pro-Tem Kristin Stevens City Attorney
DEVELOPMENT SERVICES Rene Flores Hilda Montgomery Stephanie Sandre
November 3, 2022
Mayor Morgan
Mayor Pro-Tem Flores
Councilmember Ly
Councilmember Baker
Councilmember Ortega
Councilmember Montgomery
Councilmember Stevens
RE: Capital Improvements Advisory Committee— Impact Fee Report
Dear Mayor Morgan and Councilmembers:
The Capital Improvements Advisory Committee (CIAC) met on November 2, 2022, to consider
and recommend the Land Use Assumptions, Capital Improvement Plan, and maximum Capital
Recovery Fees report to the City Council. The CIAC finds that the land use assumptions, capital
improvement plan and impact fee calculation are reasonable in accordance to Chapter 385.058
(c) of the Texas Local Government Code.
The CIAC voted to approve and forward the Impact Fee Report from the Utilities and
Environmental Services Department to the City Council for consideration.
Sincerely,
Je nqrenderson, Chairman
Capital Improvements Advisory Committee
CITY OF ROUND ROCK PLANNING AND DEVELOPMENT SERVICES•301 W. Bagdad, Round Rock,Texas 78664
Planning 512.218.5428.Code Enforcement 512.218.3329•Community Development 512.341.3148 .roundrocktexas.gov