R-2025-145 - 6/12/2025 RESOLUTION NO. R-2025-145
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 regarding Water and Wastewater Impact Fee Update; 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, is 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 12th day of June, 2025.
CRAI ftRG , Mayor
City nd k,Texas
ATTE T:
ANN FRANKLIN,City Clerk
0112.20252:49184)704.1351
EXHIBIT
«A»
Capital
Improvements Plan
Progress
Semi-Annual Report
May 2025
ROUND ROCK TEXAS
"' PUBLIC WORKS
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 , 2024, to March 31 , 2025. This report assesses the
actual growth rate compared 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 September 2023, and the new Impact Fees
went into effect on January 1 , 2024.
I
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,
overall water production has remained relatively steady. However, water demand
fluctuates significantly with weather conditions, particularly during summer. The
City's water conservation and reuse programs play a key role in managing and
reducing overall water usage.
Figure 1
Water Treatment Plant
3,000 — - - 40
39
2,500
38
37
2,000
36
m
c
O
1,500 35 r
c �
34 0
V_
J
it
0 1,000 N
a 33 >
c ti
s a
m 32
500
31
0 3rd QtrFY'23 4th Qtr FY'23 1st QtrFY'24 2nd Qtr FY'24 3rd Qtr FY'24 4th Qtr FY'24 1St Qtr FY'25 2nd Qtr FY'25 30
Active Services 37,437 37,556 37,844 37,979 38,151 38,356 38,544 38,640
Groundwater 182,608,000 290,551,000 125,692,000 57,041,000 69,872,000 177,S17,000 149,487,000 142,683,000
V Surface Water 1,865,962,000 2,691,567,000 1,655,524,000 1,392,921,000 1,736,168,000 2,284,669,000 1,879,505,000 1,350,832,000
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
35
30
25
C
0
20
0
15
10
5
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
■2021 2022 0 2023 2024 2025
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
20
0
15
10
5
0
Oct Nov Dec Jan Feb March April May June July Aug Sept
E Reuse ❑FY-21 0 FY-22 N FY-23 ❑FY-24 ❑FY-25
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 533 to 1,057
per year.
The City issued 259 single-family building permits in the first half of FY-25, but no
single-family permits were issued in the ETJ. Most of the current construction
activity is in the northeast part of Round Rock, in the Salerno, Sauls Ranch East,
Avery East, and University Heights Subdivisions.
As noted in Figure 4, all Municipal Utility Districts (MUDs) in Round Rock's ETJ
have potentially been built out for their single-family properties since FY-21.
Figure 4
Annual Single-Family Building Permits Issued
Residential & MUDs
1400
1200 1121
1057
1000
800
648
600 533
400
259
200
0
FY-2021 FY-2022 FY-2023 FY-2024 FY-2025
(Oct-Mar)
■Round Rock ■Paloma#1 ■Paloma#2 ■Teravista#11 Siena#1 ■Siena#2
5
Table 1 reflects the number of multi-family units permitted annually. One multi-
family apartment is currently under construction. The District development has
applied for a multi-family permit, which is in review at this time. In addition, one
townhome community is underway, with 57 permits issued for buildings with 3 to
5 units per building.
Table 1
In-City Retail
Fiscal Year Multi-Family Units
FY 2021 584 (391.5 LUEs)
FY 2022 1626 (896 LUEs)
FY 2023 841 (420.5 LUEs)
FY 2024 369 (184.5 LUEs)
FY 2025 (Oct- Mar) 574 (351.4 LUEs)
Out-of-City Wholesale
Fiscal Year Multi-Family Units
FY 2022 720 (404.4 LUEs)
For apartments, the LUEs are calculated based on 0.5 LUEs per unit. For
townhomes, the LUEs are calculated based on 0.7 LUEs per townhome. These
calculations are based on the impact to the water and wastewater systems as
compared to single-family residences.
6
Table 2 shows the number of new commercial building permits issued annually.
Over the past five years, this number has been steady, ranging from 29 to 52
annually, and commercial development in the City continues to be consistent.
During the first half of FY-25, the City issued 15 commercial building permits. We
currently are seeing mostly a mix of hotels and restaurants for new commercial
developments. The number of LUEs per permit is based on the water meter size
for the development.
Table 2
Fiscal Year Commercial Building '-
FY 2021 39 (161 LUEs)
FY 2022 39 (234.5 LUEs)
FY 2023 29 (89.5 LUEs)
FY 2024 52 (262.5 LUEs)
FY 2025 (Oct- Mar) 15 (30.5 LUEs)
7
The five years following the 2020 pandemic have seen fluctuations in new
development. MUD development has decreased due to full buildout. The number
of In-City developments for the first half of FY-25 remains below projections.
Table 3 and Figure 5 summarize the Water and Wastewater Impact Fees collected
from In-City residential (single-family and multi-family) and commercial customers,
as well as Out-of-City wholesale customers over the past five years.
Table 3
FY-21 FY-22 FY-23 FY-24 (Oct-Mar)
In-City Residential
Water $2,649,58 $2,043,907 $ 2,938,553 $ 2,758,997 $ 1,336,056
Wastewater $ 1,296,554 $ 1,695,908 $ 1,522,930 $ 1,632,281 $ 1,113,202
In-City Commercial
Water $2,934,225 $4,085,751 $ 1,338,332 $607,902 $ 135,303
Wastewater $ 1,457,580 $ 1,900,865 $ 1,153,932 $ 283,337 $ 53,824
Out-of-City Wholesale
Water $ 114,713 $ 52,534 $0 $0 $0
Wastewater $ 20,711 $870,291 $ 671,680 $0 $0
Total Collected $8,473,363 $ 10,649,256 $7,625,427 $ 5,282,517 $2,638,385
8
Figure 5
Impact Fees Collected
FY 2021- FY 2025
$12
$10,649,255
$10 --
$8,473,362
$8 $7,625,427
`0
$6 $5,282,517
$2,638,385
$2
$
FY-2021 FY-2022 FY-2023 FY-2024 FY-2025
(Oct-Mar)
■ Residential Water ■ Commercial Water ■ Wholesale Water
■ Residential Wastewater ■ Commercial Wastewater ■ Wholesale Wastewater
During the 2023 water model update, the City projected that 880 Living Unit
Equivalents (LUEs) would be added to the water system annually. With an Impact
Fee of $4,912 per LUE, this suggests the City should collect approximately $4.3
million in Water Impact Fees each year, assuming growth follows projections.
Similarly, the wastewater model update estimated that 1,513 LUEs would be
added to the wastewater system annually. At an Impact Fee of $2,921 per LUE,
this would result in the City collecting approximately $4.4 million per year in
Wastewater Impact Fees, assuming growth meets expectations.
Comparing these projections with the actual Impact Fees collected shows that new
connections to the water and wastewater systems occurred as projected in FY-23;
however, connections in FY-24 were less than anticipated and this trend has
continued for the first half of FY-25.
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.
•- City's ETJ
Year [oil • - Projection 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 128,292 131,235 2.2% 5.3% 189,286 2.3%
2024 134,540 134,858 4.9% 2.8% 196,035 3.6%
2025 139,834 138,089 3.9% 2.4% 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%
Note: 2020 is the base year for all projections in this table.
10
Table 5 summarizes the status of the Water System (Impact Fee eligible) Capital
Improvement Projects included in the September 2023 Impact Fee Analysis.
Table 5
Completed Water Projects Completion Impact Fee ReportActual Cost
Estimated Cost
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
University Blvd extension from end of 36" main to CR-110 2022 $1,150,000 $775,481
E Liberty Ave, N Shephard St& Fannin Ave 2022 $500,000 $938,983
Kenny Fort Blvd from Old Settlers to Chandler Creek(24") 2024 $4,212,134 $4,212,134
Kenny Fort Blvd from Forest Creek Blvd to SH45(12") 2024 $1,787,073 $1,787,073
Total $13,807,707 7$14,015,726
Impact Fee Report Current
Water Projects In Progress Completion Estimated Cost Estimate
Old Settlers from Red Bud to CR-110(16") 2025 $1,500,000 $1,584,000
Sam Bass Rd from FM-1431 to Wyoming Springs Dr(42") 2025 $10,770,000 $11,277,660
BCRUA Phase 1D-WTP Expansion to 42MGD 2025 $4,934,911 $4,934,911
Kenny Fort Blvd 5&6(24")* 2026 $1,800,000 $3,220,800
Redbud from south of Palm Valley to Gattis School (24")* 2026 $4,560,000 $4,560,000
Hester's Crossing &CR-172 from west 971 zone to 5-81 2027 $2,500,000 $2,500,000
EST*
BCRUA Phase 2 - Deep Water Intake 2027 $77,437,930 $77,437,930
BCRUA 6MG Clearwell* 2027 $4,760,000 $4,760,000
BCRUA Phase 2A-WTP Expansion to 64MGD* 2028 $35,000,000 $51,965,966
Total $143,262,841 $162,241,267
*Current estimates based on updated industry rates for projects in the design phase.
11
Upcoming Water Projects Estimated Impact Fee Report
Completion Estimated Cost
Groundwater GST and Pump Station Land Purchase 2025 $784,000
Eagle's Nest in Connection w/Road Extension 2027 $2,300,000
Red Bud &Gattis School to High County EST(24" WL) 2030 $1,500,000
East Groundwater Supply (Joint Project w/Georgetown) 2030 $35,000,000
Total $39,584,000
12
Table 6 summarizes the status of the Wastewater System (Impact Fee eligible)
Capital Improvement Projects included in the September 2023 Impact Fee Analysis.
Table 6
Completed Wastewater Projects Completion Impact Fee Report Actual Cost
Estimated Cost
Brushy Creek 2 2019 $685,000 $349,000
Brushy Creek 4 2019 $173,000 $173,000
MC-1: New 6,760LF of 18" 2022 $1,973,000 $0
Lake Creek 1 2024 $3,786,150 $3,951,150
Kenny Fort (2/3)from Forest Creek to Gattis School (18") 2024 $844,872 $844,872
Total $7,462,022 $5,318,022
Wastewater Projects in Progress Completion Impact Fee Report Current
Estimated Cost Estimate
MC-2-West side of SH130(15" WW)* 2026 $3,961,000 $4,750,000
CC-4- Near Old Settlers Park(18" WW)* 2027 $2,092,000 $1,132,012
WWTP Expansion to 40MGD* 2030 $99,000,000 $120,025,484
Total $105,053,000 $125,907,496
*Current estimates based on updated industry rates for projects in the design phase.
Estimated Impact Fee Report
Upcoming Wastewater Projects Completion Estimated Cost
Cottonwood Creek Interceptor- Phase 1 Gravity Wastewater at SH130 (18") 2027 1,442,925
CC-2-West of AW Grimes (12" WW) 2027 $516,000
CC-1-Sunrise Rd South of University(15" WW) 2027 $2,560,000
BC-1- Downtown Round Rock(12"-18"WW) 2027 $2,294,000
MC-3- North of Paloma Lake (24" WW) 2028 $4,978,000
LC-3- Near Round Rock West (15"WW) 2028 $2,748,000
MC-4-South of University between AW Grimes and CR110(10"-15") 2029 $7,433,000
Cottonwood Creek Lift Station and Forcemain 2029 $5,535,000
Cottonwood Creek Interceptor—Interceptors to Lift Station 2030 $2,920,075
LC-4-South of McNeil Rd along 135 (24" WW) 2030 $3,694,000
Tota 1 $34,121,000
13
Table 7 summarizes the status of the Reuse Water System (Impact Fee eligible)
Capital Improvement Projects included in the September 2023 Impact Fee Analysis.
Table 7
Completed Reuse Projects Completion Impact Fee ReportActual Cost
Estimated Cost
Kenny Fort Blvd 16-inch Reuse Line 2024 $1,705,468 $1,705,468
Total $1,705,468 $1,705,468
Reuse Projects in Progress Completion Impact Fee Report Current
Estimated Cost Estimate
Reuse Transfer and High Service Pump Addition* 2026 $1,250,000 $2,392,000
Kenny Fort Blvd 24-inch Reuse Line* 2026 $6,000,000 $6,942,900
Reuse 2MG Ground Storage Tank* 2026 $3,500,000 $4,000,000
Total $10,750,000 $13,334,900
Upcoming Reuse Projects Estimated Impact Fee Report
Completion Estimated Cost
Reuse Line to Dell Way 2027 $4,995,000
Total $4,995,000
*Current estimates based on updated industry rates for projects in the design phase.
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&Wastewater Rates Monthly Comparison
$240
$220 $215.65
$200
$180
$161.31 $161.17
$160 $149.90 $149.28
$140 -
$120.49
$120 $114.47
$108.75$107.20 $105.24
$101.41 $96.42
$100 -- -_ .. __ .. _$89.64 $88.30 $87.20
$85.65 $93.16
$80 _.
_ E75.92
$60
$40
$20
Pflugerville San Hutto Manville Austin Jonah LeanderGeorgetovvnPaloma Walsh Cedar Cedar Vista Teravista Brushy Fern Teravista Round
Marcos 1&2 Ranch Park Park Oaks 11 Creek Bluff 10 Rods
Stage 3
■Water Wastewater
*assumes 10,000 gallons water and 6,000 gallons wastewater used
15
Table 8 provides a comparison of Round Rock's Water and Wastewater Impact
Fees with those of neighboring cities and Municipal Utility Districts. Historically,
Round Rock had one of the highest total Impact Fees for new water and
wastewater connections. However, in recent years, several nearby cities have
raised their fees, surpassing Round Rock. Round Rock's philosophy is for new
customers and developments to pay for the required capital improvements driven
by growth.
Table 8
Area Impact Fee Comparison
City/Utility Last Updated Water Wastewater Total
Brushy Creek MUD 2012 $2,095 $1,804 $3,899
Cedar Park 2020 $3,160 $3,170 $6,330
San Marcos 2018 $3,801 $2,684 $6,485
Austin 2023 $4,800 $2,900 $7,700
Round Rock 2023 $4,912 $2,921 $7,833
Leander 2023 $8,762 $2,301 $11,063
Hutto 2021 $8,832 $2,788 $11,620
Pflugerville 2023 $14,713 $1,316* $16,029
Georgetown 2023 $11,000 $6,129* $17,129
*Indicates the City has two different Wastewater Impact Fees, based on service area. The table
above reflects the lowest fee charged by that City.
16
CONCLUSION AND RECOMMENDATIONS
Due to the volatility in growth rates and infrastructure demands, the City
recommends reviewing Impact Fees approximately every three years. The most
recent Impact Fee update report was completed in September 2023, adopted by
the City Council in November 2023, and became effective on January 1 , 2024.
In recent years, Round Rock's population growth has aligned with projections from
the Impact Fee Analysis. However, connections to the water and wastewater
systems have been less than expected over the past year and a ha►f, most likely
due to vacant inventory built in previous years for new residents moving to Round
Rock.
Given the upcoming infrastructure projects required to support this population
growth, the City updates its Water and Wastewater Master Plans and Impact Fee
Report approximately every three years. This approach ensures that the City
collects appropriate fees, ensuring that new development contributes its fair share
toward the cost of necessary 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