O-2023-353 - 11/2/2023 ORDINANCE NO. 0-2023-353
AN ORDINANCE OF THE CITY OF ROUND ROCK,TEXAS,APPROVING
THE LAND USE ASSUMPTIONS AND CAPITAL IMPROVEMENTS PLANS
AND THE AMENDMENT OF WATER AND WASTEWATER IMPACT FEES.
WHEREAS, Chapter 395, Texas Local Government Code, requires a municipality imposing
water and wastewater impact fees to approve the land use assumptions and capital improvements plan;
and
WHEREAS, Chapter 395, Texas Local Government Code requires a city imposing an impact
fee to update the land use assumptions and capital improvement plans at least every five (5) years; and
WHEREAS, the City Council has reviewed, evaluated, and now wishes to approve the updated
land use assumptions and capital improvements plans related to the amendment of water and
wastewater impact fees to comply with said Texas Local Government Code requirements for same;
Now Therefore
BE IT ORDAINED BY THE CITY COUNCIL OF ROUND ROCK,TEXAS, THAT:
L
Pursuant to Section 395.052, Texas Local Government Code, the City of Round Rock, Texas
Impact Fee Report dated September 6, 2023, prepared by Raftelis ("Report") and the imposition of the
recommended amended water and wastewater impact fees are hereby approved. A copy of said Report
is attached hereto as Exhibit"A," and incorporated herein by reference.
II.
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.
0112.20232;4871-3297-0888
READ and APPROVED on first reading this L*day of Cclobm ' 2023.
READ, APPROVED and ADOPTED on second reading this &4K day of
2023.
CRAIG ORG , Mayor
City of Round ck,Texas
ATTEST:
MEAGANINNKS, C y Clerk
2
EXHIBIT
„A►►
00
CITY OF ROUND ROCK
Impact Fee Report
September 6, 2023
RAFTELIS
ROUND ROCK TEXAS
UTILITIES AND ENVIRONMENTAL SERVICES
This page intentionally left blank to facilitate two-sided printing
Contents
1. Introduction and Summary 1
2. Chapter 395 Requirements 2
2.1. Capital Improvement Advisory Committee 2
2.2. Public Hearings 2
2.3. Impact Fee 2
2.3.1. Capital Improvement Plan 3
2.3.2. Impact Fee Calculation 3
3. Land Use Assumptions 4
4. Current and Projected Utility Demand and Supply 7
5. Major Capital Improvement Needs and Costs 12
6. Methods of Capital Payment 15
7. Impact Fee Calculations 18
8. Advisory Committee Actions and Recommendations 20
Tables
Table1 Land Use Assumptions ............................................................................................................... 6
Table 2 Water and Wastewater LUEs...................................................................................................... 8
Table 3 Estimated Water and Wastewater Growth................................................................................... 9
Table4 Water Capacities....................................................................................................................... 10
Table5 Wastewater Capacities.............................................................................................................. 11
Table 6 Water Supply, Water Treatment and Water Pumping................................................................ 12
Table 7 Ground Storage, Elevated Storage and Transmission Lines ..................................................... 13
Table 8 Wastewater Treatment, Pumping and Interceptors.................................................................... 14
Table9 Water Debt................................................................................................................................ 16
Table10 Wastewater Debt..................................................................................................................... 17
Table 11 Water and Wastewater Impact Fee Credit............................................................................... 18
Table12 Water Impact Fee.................................................................................................................... 18
Table13 Wastewater Impact Fee .......................................................................................................... 19
Figures
Figure 1 Water Service Area Map............................................................................................................ 4
Figure 2: Wastewater Service Area Map.................................................................................................. 5
THIS PAGE INTENTIONALLY LEFT BLANK
1
1 . Introduction and Summary
The City of Round Rock(City)is currently updating its impact fees to reflect the latest 10-year Capital
Improvements Program(CIP)from the City's latest master plan. The CIP reflects the latest information about
future projects. This report establishes the maximum impact fee applicable to the City of Round Rock.
Raftelis has completed the impact fee study in compliance with Chapter 395 of the Texas Local Government Code.
Chapter 395 dictates how impact fees are calculated in Texas.This report outlines the details of the impact fee
study.
As a result of the study, the maximum allowable impact fee that may be adopted was calculated. Chapter 395
allows either a rate credit by other methods of payment for utility capital by a new customer or a reduction of the
unit capital costs by 50%to calculate the maximum allowable fee. The maximum fee amount is the maximum fee
the city may lawfully charge based on given capital improvements, existing capacity, and the selected rate credit.
City Council does not have to select the maximum rate and may select fees lower than the maximum allowable to
be assessed.
Per this report,Raftelis and the Capital Improvement Advisory Committee(CIRC)have reviewed the overall
water and wastewater maximum fees by classification.The water maximum fee is based on water supply,water
treatment,pumping, storage, and transmission classifications. The wastewater maximum fee is based on
wastewater treatment,pumping, and interceptor classifications. The City may add or subtract categories to reflect
the developer's contribution by utilizing these classifications.For example,if a developer is contributing the water
transmission lines,then the water transmission classification may be removed from the fee. In the future, if the City
chooses to provide wholesale service to utilities,then these classifications may be used to calculate impact fees for
relevant customers. Local distribution lines are not included in the impact fee calculations. Typically,distribution
lines are contributed by the developers.
The design assumptions, service demand assumptions,and planning costs were obtained in coordination with the
City and the City's engineers. The City provided the financial information. Raftelis utilized all this information to
calculate a maximum impact fee.
2
2. Chapter 395 Requirements
The impact fee process in Texas is governed by Chapter 395 of the Texas Local Government Code. Chapter
395 dictates how impact fees are calculated and the process that must be followed. The process starts with
creating a Capital Improvements Advisory Committee(CIRC)and the development of Land Use
Assumptions, a 10-year Capital Improvement Plan, and finally, the calculation of the impact Fee. The CIAC
must review and provide comments on the Land Use Assumptions, Capital Improvement Plan, and impact
fee calculation.
2.1. Capital Improvement Advisory Committee
The CIAC should be comprised of at least five members,with 40 percent of the membership being from the
real estate, development, or building industries.As stated in Section 395.058(c), the advisory committee
serves in an advisory capacity and is established to:
1) Advise and assist the political subdivision in adopting land use assumptions;
2) Review the capital improvements plan and file written comments
3) Monitor and evaluate the implementation of the capital improvements plan;
4) File semiannual reports concerning the progress of the capital improvements plan and report to the
political subdivision any perceived inequities in implementing the plan or imposing the impact fee; and
5) Advise the political subdivision of the need to update or revise the land use assumptions, capital
improvements plan, and impact fee.
The City shall make available to the CIAC any professional reports concerning developing and implementing
the capital improvements plan. For the ongoing requirements of the CIRC, the City should adopt procedural
rules for the CIAC to follow in carrying out its duties.
The CIAC must document its recommendations and considerations about the land use assumptions, capital
improvement plan, and impact fee calculation. This report serves as the documentation of the CIRC.
2.2. Public Hearings
The City must hold one public hearing to approve the impact fee. The public hearings are held after the
CIAC's input is provided about the land use assumptions, CIP, and the impact fee calculation. The public
hearing considers the land use assumptions, the capital improvement plan and the impact fee. The public
hearing is held at least 30 days after the notice is published in one or more local newspapers in each county
where the City is located.
2.3. Impact Fee
The adopted impact fee may be imposed within the city limits and within the city's extraterritorial
jurisdiction. Impact fees can be used to fund the projects identified in the 10-year CIP, specifically on
construction, surveying and engineering fees, land acquisition costs, and fees paid to a qualified engineer or
financial consultant. The established CIP should include projects needed to serve future growth. In addition,
impact fees can pay for interest and financing costs related to the issuance of bonds to fund projects identified
in the 10-year CIP. Impact fees can only be used for the cost of facilities included in the 10-year CIPS. Any
facility improvements that are not required to serve future growth are ineligible.
3
2.3.1. Capital Improvement Plan
The CIP should include a list of the projects and the costs of expanding existing facilities to serve future
growth. To establish the CIP, an analysis of the system's total capacity was completed to determine the
current level of usage and the future usage needed to serve the growth in the 10 years.The projected growth
was determined based on the land uses of the service area. The total number of service units for the 10 years
was established based on the system's future growth.
2.3.2. Impact Fee Calculation
Once the CIP is established, the cost per service unit is calculated by dividing the cost of capital projects by
the number of service units. This calculation is done by facility type to ease in providing future impact fee
credits to developers. Once the cost per service unit is determined, a rate credit must be applied. The rate
credit can be based on 50%of the cost per service unit or the credit application based on the portion of utility
service revenues generated by new service units during the 10 years. For the study, a rate credit was applied.
4
3. Land Use Assumptions
Figure 1 and Figure 2 show the service area for the study.This reflects the area where the impact fee will be
applied. The acres served represent the City's ETJ and certified water and wastewater service areas. The acreage is
then further broken down into classifications.
Figure 1 Water Service Area Map
y
.-
`1 ��'�'t '��� � _ � Mter•r-'3 1 - 3 "i
1
Legend v
1 wUD Sawa Area }
impad Fee Sawa Area .
EM Fubn lm pact Fee Se r.ce Are to CR.110 '
Land Use De"opment Area
Yost Develooed LLapey SUR Out,
Figure 2: Wastewater Service Area Map
Legend t
MUD Service Areas
Qlmpact Fee Service Area
Land Use Development Area
Most Developed(Largely Built Out)
Most Anticipated Growth
Table 1 shows the current and future land use assumptions in the model. The 2023 classifications are based on
current land uses. Currently,the ETJ is 37,643 acres with 30,227 water service area acres and 35,337 wastewater
service area acres. The projected 2033 numbers do not change in total acreage but change in use of acreage. The
change in acreage and the usage of acreage is based on extensive research by City staff and its engineering
consultants.
Table 1 Land Use Assumptions
Land Use Classification 2023 2033
ETJ Acres Water Acres WW Acres ETJ Acres Water Acres WW Acres
Agricultural 3,134 2,376 3,121 3,134 2,376 3,121
Undeveloped 3,922 2,807 3,890 732 839 783
Commercial 2,676 2,285 2,573 2,782 2,392 2,680
Educational Facility 1,302 1,066 1,141 1,302 1,066 1,141
Government/Institutional 1,012 957 967 1,012 957 967
Industrial 825 760 846 825 760 846
Mining 1,594 1,892 2,254 1,594 1,892 2,254
Mixed Use 111 90 111 395 373 395
Drainage 2,614 2,218 2,503 2,614 2,218 2,503
Multi-family 1,304 1,047 1,309 1,579 1,281 1,584
Office 636 623 629 788 676 782
Open Space 635 841 582 635 841 582
Recreational 3,431 3,038 3,267 3,431 3,038 3,267
Single Family 13,938 9,740 11,655 16,309 11,032 13,944
Two Family 277 271 261 277 271 261
Utilities 232 216 228 232 216 228
Total 37,643 30,227 35,337 37,643 30,227 35,337
4. Current and Projected Utility
Demand and Supply
Table 2 displays the current counts of water and wastewater meters in Round Rock.The meter counts were provided
by the City. The table displays the number of meters and the Living Unit Equivalent (LUE) conversion factor
used. The typical single-family household in Round Rock uses a 5/8"meter. The 5/8"meter represents one LUE.
The LUE conversion factors are primarily based on standard AWWA meter equivalent ratios,with the exception of
the 3"meter.Meters larger than 5/8"are defined in terms of a 5/8"meter.For example,a 2"meter has a conversion
factor of 8 LUEs/meter.The 3"has a conversion factor of 16 LUES instead of the 15 LUES that the AWWA standard
calls for.This factor is set according to Round Rock's internal conversion standards. The conversion factors and the
number of meters are then used to determine the service demand for water and wastewater. This allows for an
intuitive process when calculating correct impact fees for developments, especially for developments with meters
larger than 5/8".
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Table 2 Water and Wastewater LUES
Living Unit Number of
Meter Size Equivalents Meters in 2023 Number of
(LUEs per Meter) (b) LUEs in 2023
(a)
WATER
5/8" 1.00 34,457 34,457
3/4" 1.50 724 1,086
1" 2.50 840 2,100
1.5" 5.00 606 3,030
2" 8.00 691 5,528
3" 16.00 182 2,912
4" 25.00 50 1,250
6" 50.00 21 1,050
8" 80.00 47 3,760
10" 115.00 4 460
Total Water 37,622 55,633
WASTEWATER
5/8" 1.00 33,661 33,661
3/4" 1.50 697 1,045
1" 2.50 808 2,021
1.5" 5.00 583 2,916
2" 8.00 665 5,319
3" 16.00 175 2,802
4" 25.00 48 1,203
6" 50.00 20 1,010
8" 80.00 45 3,618
10" 115.00 4 443
Total 36,707 54,039
Wastewater
(a)Derived from AWWA C700-C703 standards for continue rated flow
performance scaled to 5/8"meter.
(b)Source:City of Round Rock,meter count as of 2023
Table 3 presents the projected growth of LUEs for water and wastewater service. Water connections are
estimated to grow by 8,807 over the ten-year period(881 per year). For wastewater,the connections are
estimated to grow by 15,131 over the ten-year period(1,513 per year). These growth projections come from
the City's master plan document,which estimates annual water population growth of 16%and annual
wastewater population growth of 28%over the ten-year period. The projected LUE's then increase at the
same rate as the connections. In 2030,water LUEs are projected to be at 64,440 LUEs and wastewater LUEs
are projected to be at 69,169 LUEs.
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Table 3 Estimated Water and Wastewater Growth
Water Wastewater
Year Connections LUES Population Connections LUEs Population
2023 37,622 55,633 152,286 36,707 54,039 149,383
2033 43,578 64,440 176,393 46,985 69,169 191,210
Growth 5,956 8,807 24,107 10,278 15,131 41,827
and Table 5 display the existing capacities and estimated demands for water and wastewater, respectively.
Growth in demand is based on the growth in connections. The current and projected service demands are
compared to the existing capacities. It should be noted that although elevated storage appears to need
capacity investments over the ten-year study period, ground storage delivers the same benefit to Round Rock,
so the combined capacities are more then met. The estimated capacities for wastewater pumping are
calculated differently than the other capacities. Most of Round Rock's wastewater pumping capacity is served
by gravity pumping, so lift stations are only needed in certain areas of Round Rock. To accurately reflect
wastewater pumping capacity/demand, Raftelis and City staff calculated the capacity for the areas that utilize
pumping capacity in the system.
Table 4 Water Capacities
10-Yr 2023 LUE 2033 LUE
Demand Conversion Conversion
Facility Type 2023 2033 Increment Factor Factor
Supply
Existing 2023 Capacity(mgd) 42.85 42.85
Est.Service Demand 19.47 22.55 3.08 350 350
Excess(Deficiency) 23.38 20.30 gpd/LUE gpd/LUE
Existing 2023 Capacity(LUEs) 122,429 122,429
Est. Service Demand 55,633 64,440 8,807
Excess(Deficiency) 66,796 57,989
Treatment
Existing 2023 Capacity(mgd) 62.50 62.50
Est. Service Demand 38.94 45.11 6.16 700 700
Excess (Deficiency) 23.56 17.39 gpd/LUE gpd/LUE
Existing 2023 Capacity(LUEs) 89,286 89,286
Est. Service Demand 55,633 64,440 8,807
Excess(Deficiency) 33,653 24,846
Pumping
Existing 2023 Capacity(mgd) 87.90 87.90
Est. Service Demand 62.31 72.17 9.86 1,120 1,120
Excess (Deficiency) 25.59 15.73 gpd/LUE gpd/LUE
Existing 2023 Capacity(LUEs) 78,485 78,482
Est. Service Demand 55,633 64,440 8,807
Excess (Deficiency) 22,852 14,042
Ground Storage
Existing 2023 Capacity(mg) 9.11 9.11
Est. Service Demand 4.17 4.83 0.66 75 75
Excess(Deficiency) 4.94 4.28 gallons/LUE gallons/LUE
Existing 2023 Capacity(LUEs) 121,467 121,467
Est. Service Demand 55,633 64,440 8,807
Excess(Deficiency) 65,834 57,027
Elevated Storage
Existing 2023 Capacity(mg) 10.57 10.57
Est. Service Demand 9.29 10.76 1.47 167 167
Excess (Deficiency) 1.28 (0.19) gallons/LUE gallons/LUE
Existing 2023 Capacity(LUEs) 63,293 63,293
Est. Service Demand 55,633 64,440 8,807
Excess (Deficiency) 7,660 (1,146)
Transmission (>6 inch)
Existing 2023 Capacity(mgd) 90.30 90.30
Est. Service Demand 62.31 72.17 9.86 1,120 1,120
Excess (Deficiency) 27.99 18.13 gpd/LUE gpd/LUE
Existing 2023 Capacity(LUEs) 80,625 80,625
Est. Service Demand 55,633 64,440 8,807
Excess(Deficiency) 24,992 16,185
Table 5 Wastewater Capacities
10-Yr 2023 LUE 2033 LUE
Demand Conversion Conversion
Facility Type 2023 2033 Increment Factor Factor
Treatment
Existing 2023 Capacity(mgd) 20.05 20.05
Est. Service Demand 15.13 19.37 4.24 280 280
Excess (Deficiency) 4.92 0.68 gpd/LUE gpd/LUE
Existing 2023 Capacity(LUES) 71,607 71,607 3.85
Est. Service Demand 54,039 69,169 15,131
Excess (Deficiency) 17,568 2,438
Pumping
Existing 2023 Capacity(mgd) 8.86 8.86
Est. Service Demand 2.17 2.78 0.61 1,077 1,077
Excess (Deficiency) 6.69 6.08 gpd/LUE gpd/LUE
Existing 2023 Capacity(LUEs) 8,227 8,227
Est. Service Demand 2,016 2,580 564
Excess (Deficiency) 6,211 5,647
Interceptors
Existing 2023 Capacity(mgd) 61.70 61.70
Est. Service Demand 58.20 74.50 16.30 1,077 1,077
Excess (Deficiency) 3.50 (12.80) gpd/LUE gpd/LUE
Existing 2023 Capacity(LUEs) 57,289 57,289
Est. Service Demand 54,039 69,169 15,131
Excess (Deficiency) 3,250 (11,881)
5. Major Capital Improvement Needs
and Costs
City staff and the City's engineering consultants identified impact fee eligible projects over the ten-year study
period. The CIP includes existing facilities with available capacity for future growth as well as future projects
that will be required to meet future capacity needs. The capital improvement projects included in this report
were developed through rigorous modeling of the existing water and wastewater systems based on existing
and future demands. Projects were also identified through extensive discussions with City staff regarding
existing infrastructure needs and associated costs to adequately serve future growth. The projects identified in
the CIP also include reuse projects that will result in additional water capacity for the system.
Table 6,Table 7, and Table 8 calculate the cost per LUE for each project identified in the 10-year CIP. The
tables show the project's estimated cost, start date, and addition to capacity. The weighted average unit
service cost is based on the share of the existing versus new capacity(based on the projected growth in
population). The capacity growth for water transmission and wastewater interceptors is based on the
estimated total capacity added by all the projects. The additional lines all work together to produce the added
capacity.
Table 6 Water Supply, Water Treatment and Water Pumping
Facility Capacity Allocations LUES
Date of Cost Capacity Cost Existing Growth in Excess Total
Facility Name Need Original Installed' Total LUES per LUE Customers Next 10 Yrs Capacity Capacity
WATER SUPPLY
Existing Facilities
Total Exsting Water Supply facilities NIA $ 55,376,265 $ 55,376,265 42.85 122,429 $ 452 55,633 4,500 62,296 122,419
Future Facilities
Phase 2 Deep Water Intake at Lake Travis 2027 $ 77,437,930
East Groundwater Supply Joint Prqect with Geon 2030 $ 35,000,000
Subtotal Future Facilities $ $ 112,437,930 10.00 28,571 $ 3,935 4,307 24,265 28,571
Total Water Supply $ 55,376,265 $ 167,814,195 52.85 151,000 $ 1,111 55,633 8,807 86,560 151,000
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE= $ 2,156
WATER TREATMENT
Existing Facilities
Existing Water Treatment Facilities NIA $ 97,117,382 $ 97,117,382 62.50 89,286 $ 1,088 55,633 4,000 29,653 89,286
Future Facilities
Phase 1D Capacity Increase at BCRUA WTP 2027 $ 4,934,911
Phase 2A Capacity Increase at BCRUA WTP 2028 $ 35,000,000
Subtotal Future Facilities $ 39,934,911 12.67 18,100 $ 2,206 4,807 13,293 18,100
Total Water Treatment $ 97,117,382 $ 137,052,293 75.17 107,386 $ 1,276 55,633 8,807 42,946 107,386
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE= $ 1,698
WATER PUMPING
Existing Facilities
EAsting Pumping Facilities NIA $ 7,619,055 $ 7,619,055 87.90 78,485 $ 97 55,633 6,000 16,852 78,485
Future Facilities
Reuse High Service Pump Addition 2025 $ 750,000
Subtotal Future Facilities $ 750,000 3.33 2,973 $ 252 2,807 166 2,973
Total Water Pumping $ 7,619,055 $ 8,369,055 91.23 81,458 $ 103 55,633 8,807 17,019 81,458
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE= $ 147
13
Table 7 Ground Storage, Elevated Storage and Transmission Lines
GROUND STORAGE
Existing Facilities
Existing Ground Storage Facilities WA $ 1,783,937 $ 1,783,937 9.11 121,467 $ 15 55,633 4,000 61,834 121,467
Future Facilities
2.0 mg Reuse Ground Storage Tank 2025 $ 4,000,000
Groundwater GST and Pump Station Land Purcha 2024 $ 784,000
BCRUA 6mg Clearwell 2027 $ 4,760,000
Subtotal Future Facilities $ 9,544,000 4.86 64,800 $ 147 4,807 59,993 64,800
Total Ground Storage $ 1,783,937 $ 11,327,937 13.97 186,267 $ 61 55,633 8,807 121,827 186,267
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE_ $ 87
ELEVATED STORAGE
Existing Facilities
Existing Elevated Storage Facilities NIA 12,886,416 12,886,416 11 63,293 $ 204 55,633 8,807 (1,147) 63,293
Future Facilities-None
Subtotal Future Facilities - 0 0
Total Elevated Storage 12,886,416 12,886,416 11 63,293 $ 204 55,633 8,807 (1,146) 63,293
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE_ $ 204
TRANSMISSION
Existing Facilities
ExdstingTransmission Facilities NIA 98,939,553 98,939,553 90 80,625 $ 1,227 55,633 4,000 20,992 80,625
Future Facilities
Hester's Crossing and CR-172 from west 971 zor 2025 2,500,000
Kenny Fort Blvd from Old Settlers Blvd to 2024 4,212,134
Sam Bass Rd from FM-1431 to Wyoming 2025 10,770,000
Redbud Lane from south of Palm ValleyBlvd to G 2026 4,560,000
Kenny Fort 24-in Reuse Water Line 2025 6,000,000
Eagle's Nest in connection with Road Exdension 2027 2,300,000
Old Settler's from Red Bud to CRA 10 2024 1,500,000
Red Bud 8 Grattis School to High Country EST 2030 1,500,000
Reuse Line to Dell Way 2027 4,995,000
Kenny Fort from Forest Creek Blvd to SH 45 2023 1,787,073
Kenny Fort Blvd from Forest Creek to Gattis 2023 1,705,468
Kenny Fort 516-24"Waterline 2026 1,800,000
Subtotal Future Facilities 43,629,675 43 38,536 $ 1,132 4,807 33,729 38,536
Total Transmission 98,939,553 142,569,228 133 119,161 $ 1,196 55,633 8,807 54,721 119,161
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE_ $ 1,175
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Table 8 Wastewater Treatment, Pumping and Interceptors
Facility Capacity Allocations(LUES
Date of Cost Capacity Cost Existing Growth In Excess Total
Facility Name Need Original Installed Total LUES per LUE Customers Next 10 Yrs Capacity Capacity
WASTEWATER TREATMENT
Existing Facilities
Existing Wastewater Treatment Facilities NIA $ 54,356,622 $ 54,356,622 20.05 71,607 $ 759 54,039 14,000 3,568 71,607
Future Facilities
W W TP Expansion to 40 m d 2025 $ 99,000,000 9.00
Subtotal Future Facilities $ 99,000,000 9.00 32,143 $ 3,080 1,131 31,012 32,143
Total Wastewater Treatment $ 54,356,622 $ 153,356,622 29.05 103,750 $ 1,478 54,039 15,131 34,581 103,750
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE= $ 933
WASTEWATER PUMPING
Existing Facilities
Exisiting Pumping Facilites N/A $ 2,176,130 $ 2,176,130 8.86 8,227 $ 265 2,016 564 5,647 8,227
Future Facilities
Cottonwood Creek Lift Station 2025 $ 5,53 000
Subtotal Future Facilities $ 5,535,000 4.38 4,062 $ 1,363 873 3,189 4,062
Total Wastewater Pumping $ 2,176,130 $ 7,711,130 13.24 12,289 $ 627 2,016 1,437 8,836 12,289
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE= $ 932
INTERCEPTORS
Existing Facilites
Existing Interceptor Facilities N/A $ 83,120,305 $ 83,120,305 61.70 57,289 $ 1,451 54,039 15,131 69,170
Future Facilites
MG-2 2024 $ 3,961,000
CC-1 2024 $ 2,560,000
CC-2 2025 $ 516,000
MC-3 2026 $ 4,978,000
BC-1 2026 $ 2,294,000
CC-4 2027 $ 2,092,000
MC-4 2028 $ 7,433,000
LC-3 2028 $ 2,748,000
LC-4 2029 $ 3,694,000
LCA 2023 $ 3,786,150
Cottonwood Creek Interceptor 2025 $ 4,363,000
Kenny Fort BNd(2/3)from Forest Creek Bhd
to Gattis School 2023 $ 844,872
Subtotal Future Facilities $ 39,270,022 - - $ 0 0 -
Total Interceptors $ 83,120,305 $ 122,390,327 61.70 57,289 $ 2,136 54,039 15,131 (11,881) 57,289
WEIGHTED AVERAGE CAPITAL COST PER NEW LUE= $ 1,451
6. Methods of Capital Payment
Chapter 395 allows for two ways to pay for capital improvements:
• An up-front impact fee that allows the new customer to buy into the system.
• Monthly utility fees that go towards the debt service of the system.
To calculate the impact fee,the law allows the utility to either use a 50%credit of the total projected cost of
capital for all projects or to apply a credit for rate payments. The utility may select the maximum fee amount
after these credits have been assessed.
Table 9 and Table 10 summarize the present value of the existing and projected debt. This represents the
amount of debt that will be paid through rates. The midpoint, in 2028, of LUEs are used to determine the rate
credit. The total credit from existing and projected growth are then summed to arrive at a total rate credit
number.
Table 9 Water Debt
Est. Debt Mid-Point Est. Debt in
Facility Type in Rates LUEs Rates per L
WATER UTILITY
Supply
Existing Debt $ 2,613,074 60,036 $ 44
Series 2020 - 2030 New Growth $ 13,604,801 60,036 $ 227
Subtotal Water Supply $ 16,217,874 $ 270
Treatment
Existing Debt $ 3,021,367 60,036 $ 50
Series 2020 - 2030 New Growth $ 4,836,464 60,036 $ 81
Subtotal Treatment $ 7,857,831 $ 131
Pumping
Existing Debt $ - 60,036 $ -
Series 2020 - 2030 New Growth $ 98,887 60,036 $ 2
Subtotal Water Pumping $ 98,887 $ 2
Ground Storage
Existing Debt $ - 60,036 $
Series 2020 - 2030 New Growth $ 1,225,450 60,036 $ 20
Subtotal Ground Storage $ 1,225,450 $ 20
Elevated Storage
Existing Debt $ - 60,036 $ -
Series 2020 - 2030 New Growth $ - 60,036 $ -
Subtotal Elevated Storage $ - $ -
Transmission
Existing Debt $ 2,531,415 60,036 $ 42
Series 2020 - 2030 New Growth $ 5,485,009 60,036 $ 91
Subtotal Transmission $ 8,016,425 $ 134
TOTAL WATER $ 33,416,467 $ 557
Table 10 Wastewater Debt
Est. Debt Mid-Point Est. Debt in
Facility Type in Rates LUES Rates per LUE
WASTEWATER UTILITY
Treatment
Existing Debt $ 9,729,948 61,604 $ 158
Series 2020 - 2030 New Growth $ 1,158,310 61,604 $ 19
Subtotal Wastewater Treatment $ 10,888,258 $ 177
,Pumping
Existing Debt $ - 61,604 $ -
Series 2020 - 2030 New Growth $ 1,158,310 61,604 $ 19
Subtotal Wastewater Pumping $ 1,158,310 $ 19
Interceptors
Existing Debt $ 4,604,136 61,604 $ 75
Series 2020 - 2030 New Growth $ 7,793,972 61,604 $ 127
Subtotal Interceptors $ 12,398,108 $ 201
TOTAL WASTEWATER $ 24,444,677 $ 397
'TOTAL WATER AND WASTEWATER $ 57,861,144 $ 953
18
7. Impact Fee Calculations
Table 11 summarizes the maximum possible impact fees. The maximum fee for each classification is selected
to establish the recommended maximum impact fee. The impact fee and CIP study cost of$30,242 is
distributed based on the midpoint of total projected water and wastewater 20330 LUEs. This equals
approximately$3 for water and wastewater. The maximum fee for water is$4,912. The maximum fee for
wastewater is$2,921.
Table 11 Water and Wastewater Impact Fee Credit
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 $ 2,156 $ 270 $ 1,078 $ 1,885 $ 1,078 $ 1,885
Treatment $ 1,698 $ 131 $ 849 $ 1,567 $ 849 $ 1,567
Pumping $ 147 $ 2 $ 73 $ 145 $ 73 $ 145
Ground Storage $ 87 $ 20 $ 44 $ 67 $ 44 $ 67
Elevated Storage $ 204 $ - $ 102 $ 204 $ 102 $ 204
Transmission $ 1,175 $ 134 $ 588 $ 1,042 $ 588 $ 1,042
Allocated Impact Fee Study Costs $ 3 $ 3 $ 3 $ 3
Total Water $ 5,469 $ 557 $ 2,733 $ 4,912 $ 2,736 $ 4,912
WASTEWATER
Treatment $ 933 $ 177 $ 466 $ 756 $ 466 $ 756
Pumping $ 932 $ 19 $ 466 $ 913 $ 466 $ 913
Interceptors $ 1,451 $ 201 $ 725 $ 1,250 $ 725 $ 1,250
Allocated Im act Fee Study Costs $ 3 $ 3 $ 3 $ 3
Total Wastewater $ 3,318 $ 397 $ 1,658 $ 2,921 $ 1,660 $ 2,921
TOTAL WATERMASTEWATER
Table 12 shows the water impact fee by meter size. Table 13 shows the wastewater impact fee by meter size.
Table 12 Water Impact Fee
Living Unit
Meter Size Equivalents Fee
5/8" 1.00 $ 4,912
3/4" 1.50 $ 7,368
1" 2.50 $ 12,281
1.5" 5.00 $ 24,562
2" 8.00 $ 39,299
3" 16.00 $ 78,597
4" 25.00 $122,808
6" 50.00 $245,616
8" 80.00 $392,985
10" 115.00 $564,916
Table 13 Wastewater Impact Fee
Living Unit
Meter Size E uivalents Fee
5/8" 1.00 $ 2,921
3/4" 1.50 $ 4,381
1" 2.50 $ 7,302
1.5" 5.00 $ 14,604
2" 8.00 $ 23,366
3" 16.00 $ 46,733
4" 25.00 $ 73,020
6" 50.00 $146,039
8" 80.00 $233,663
10" 115.00 $335,890
8. Advisory Committee Actions and
Recommendations
The Capital Improvement Advisory Committee (CIRC) met on September 6, 2023. Raftelis presented the
Land Use Assumption,Capital Improvement Plan and Impact Fee.As required by Chapter 395 of the Texas
Local Government Code,the CIAC verified the following:
• The land use basis for the CIP,
• That the CIP has been reasonably defined,
• That the maximum impact fee has been reasonably calculated,and
• The resultant impact fees.
The CIRC recommends that the Council adopt the maximum allowable impact fee and assess the same
amount.