R-2023-157 - 5/25/2023 RESOLUTION NO. R-2023-157
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 Report, 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 25th day of May, 2023.
Z Al
CRAIG ORGA , Mayor
City of ound k, Texas
ATTEST:
MEAGAN SP KS, Cit Clerk
0112.20232:4861-6708-6947
EXHIBIT
Capital
Improvements Plan
Progress
Semi-Annual Report
May 2023
ROUND ROCK TEXAS
UTILITIES ANO 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 October 1, 2022, to March 31 , 2023. 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.
The City last updated these items 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
= —
O 35 m
v,
o
c
1,500 - — 34 ~
-� c
v N
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U
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a` 1,000 v
c v
O 32 ,�—
Mu
Q 500 Q
31
3rd Qtr FY'21 4th Qtr FY'21 1st Qtr FY'22 2nd Qtr FY'22 3rd Qtr FY'22 4th Qtr FV'22 15t Qtr FY'23 2nd Qtr FY'23 30
►.-"Active Services 36,328 36,439 36,679 36,914 37,136 37,249 37,555 37,539
mlfrGroundwater 304,168,000 329,234,000 122,548,000 86,114,000 178,345,000 266,843,000 148,340,000 105,131,000
Sur'ace Water 1,5071802,000 2,011,458,000 1,566,460,000 1,305,889,000 2,199,673,000 . 2,531,822,000 1,778,653,000 1,515,888,000
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
40
3S
30
25
C
0
20
0
2 15
10
5
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
r 2019 2020 ■2021 H 2022 12023
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
N
C
O
76
0 20
C
� 15
� 10
5
0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept
■FY-19 ■FY-20 ■FY-21 ■FY-22 ❑FY-23 ■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. However, during the first six months of FY-23, new permits are down
about 120 units from the previous six months.
Figure 4
Annual Single-Family Building Permits Issued
Residential & MUDs
1800
1600 1511
1400
1200 1121
1043 1057
1000
800
600
400 392
200
0
FY-19 FY-20 FY-21 FY-22 FY-23 (Oct-Mar)
■Round Rock ■Paloma z 1 Paloma #2 ■Teravista #11 Siena v1 Siena »2
5
Table 1 reflects the number of multi-family units permitted annually. Currently, we
have five multi-family projects that were permitted in FY-22 that are under
construction. This includes the Reserve on University, Crossing at Palm Valley,
Aura Avery II, Broadstone La Frontera, and Avery Center East.
We also have two new projects that are different from what we typically see in the
City. These are multi-family (rental units), but instead of going vertical like a typical
apartment complex, each unit is 900-1,000 square feet, similar to a single-family
development. Those projects are called Stillwell and Urbana, with a total of 470
units.
Table 1
In-City Retail
Fiscal Year Multi-Family Units
FY 2019 432 (218 LUEs)
FY 2020 430 (196.5 LUEs)
FY 2021 584 (391.5 LUEs)
FY 2022 1626 (896 LUEs)
FY 2023 (Oct-Mar) 841 (420.5 LUEs)
Out-of-City Wholesale
Fiscal Year Multi-Family Units
FY 2022 720 (404.4 LUEs)
6
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 have seen an increase in light industrial buildings. We have two
major hospital expansion projects at St. David's and Baylor Scott& White. Kalahari
is adding another outdoor swim feature with a wave river, slide pool, and swim-up
bar. Several small office projects, some retail, and a couple of restaurants. Most
of the commercial work is tenant finish-outs and remodels of existing structures.
Table 2
Fiscal Year Commercial
Building
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)
FY 2023 (Oct-Mar) 17 (103.5 LUEs)
7
Table 3 and Figure 5 summarize the Water and Wastewater Impact Fees collected
for In-City retail residential (single-family and multi-family), commercial, and Out-
of-City wholesale customers. For 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 showed a significant increase in impact fees collected, most significantly
from In-City Commercial water and wastewater connections. The first half of FY-
23 collections has slowed down significantly.
Table 3
Impact
•
In-City Retail
Residential
Water $ 2,770,650 $ 2,008,822 $ 2,649,580 $ 2,043,907 $ 1,068,630
Residential $ 1,381,154 $ 930,467 $ 1,296,554 $ 1,695,908 $ 528,165
Wastewater
Commercial $ 2,750,040 $ 1,752,110
Water $ 2,934,225 $4,085,751 $ 1,031,278
Commercial $ 1,701,974 $461,347 $ 1,457,580 $ 1,900,865 $449,393
Wastewater
Out-of-City Wholesale
Water $ 639,567 $406,253 $ 114,713 $ 52,534 0
Wastewater $ 1,650,108 $ 895,448 $ 20,711 $ 870,291 0
i Total Collected $ 10,893,493 $ 6,454,447 $ 8,473,363 $ 10,649,255 $3,077,466
8
Figure 5
Impact Fees Collected FY 2019 - FY 2023 (Oct- Mar)
S12000,000
$10,893,493 $10,649,255
S10000.000
$8,473,362
$8.000.000
$6,454,447
$6000000
S4.0oo.000
$3,077,466
S2 000 000
S-
FY-19 FY-20 FY-21 FY-22 FY-23(Oct-Mar)
■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 system during FY-21
and FY-22, the City experienced more connections than anticipated in the water
and wastewater model. The first half of FY-23 has experienced less connections
than predicted.
9
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
Year7 ' - City's ETJ
. • . . - - Projections 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 (128,957) 2.2% (3.5%) 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
10
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" main to 2022 $1,150,000 $775,481
CR-110
GR-01: E Liberty Ave, N Shephard St& Fannin Ave 2022 $500,000 $938,983
$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 to SH45 2023 $1,570,000 $1,787,073
GR-03: Kenny Fort Blvd from Old Settlers to Chandler 2024 $2,450,000 $4,212,134
Creek
GR-04: Sam Bass Rd from FM-1431 to Wyoming Springs 2025 $7,000,000 $10,770,000
BCRUA Phase 1 D - WTP Expansion to 42MGD 2025 $4,000,500 $4,934,911
GR-06: Redbud Ln from south of Palm Valley Blvd to 2026 $4,560,000 $4,560,000
Gattis School Rd
BCRUA Phase 2 - Deep Water Intake 2027 $60,608,500 $77,437,930
$80,189,000 $103,702,048
Upcoming Water Projects Estimated Impact Fee Report
Completion Estimated Cost
GR-07: Hester's Crossing & CR-172 from west 971 zone to S-81 EST 2025 $3,270,000
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
11
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
$7,686,000 $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
Upcoming Wastewater Projects Estimated Impact Fee Report
Completion Estimated Cost
WWTP Expansion to 40MGD - PER 2024 $2,500,000
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
BC-1: Upsize 3,015LF to 12-in and 18-in 2025 $831,000
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
$12,684,000
12
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 Completed Completion Impact Fee Report Actual Cost
Estimated Cost
Reuse Phase VI 2016 $900,000 $900,000
Reuse Phase IV-B 2016 $3,719,000 $3,013,152
$4,619,000 $3,913,152
Reuse Projects in Progress Estimated Impact Fee Report Actual Cost
Completion Estimated Cost
Reuse Ground Storage Tank 2024 $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 2025 $614,328
$614,328
13
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
Assumes 10,000 gallons water&8,000 gallons wastewater usage
$200
$180
$162.40 $160.70 $159.83
$160 $155.02
$140
$120.15 $115.60
$120 $113.82
$100 $9822 $96.90 $96.45 $95.60
$91.38 $86.70
$80.90 $80.11
$80
$60
$40
$20
$0
San Pflugerville Hutto Austin Leander Paloma Walsh Vista Teravista 11 Cedar Brushy Teravista 10 Fern Georgetown Round
Marcos 1&2 Ranch Oaks Park Creek Bluff Rock
(Annual
Avg)
■Water ■Wastewater
* assumes 10,000 gallons of water and 8,000 gallons of wastewater used
14
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 water and wastewater systems
connections. However, several surrounding cities have since increased their fees
and surpassed Round Rock. Round Rock's philosophy is for new customers and
developments to pay for the required capital improvements due to growth.
Table 8
Area Impact Fee Comparison
City/Utility Last Water Wastewater Total
Updated
Brushy Creek MUD 2012 $2,095 $1,804 $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 $2,500 $7,200
Georgetown 2018 $6,921 $3,115* $10,036
Hutto 2021 $8,832 $2,788 $11,620
Pflugerville 2023 $14,713 $1,316* $16,029
*Indicates the City has two different Wastewater Impact Fees based on service area. The amount
shown above reflects the lowest fee charged by that City.
15
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 few years, population growth in Round Rock has proceeded as
projected in the Impact Fee Analysis. However, for the first half of FY-23, the
number of connections to the water and wastewater systems has slowed down,
which is indicative of the impact fee collections.
Due to the number of connections to the water and wastewater systems, and the
anticipated infrastructure projects needed to serve these new connections, the City
is updating the Master Plan for both the water and wastewater systems. Once
these Master Plan updates are complete in early Summer 2023, the City will
update the impact fees. This will ensure that the City collects the necessary fees
so that new growth is paying its fair share of the cost of constructing the required
water and wastewater infrastructure.
The next Capital Improvements Plan Progress Report with proposed new water
and wastewater impact fees will be presented to the CIAC and the City Council in
approximately six months.
16