R-2026-146 - 5/28/2026 RESOLUTION NO. R-2026-146
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 CIRC 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 28th day of May, 2026.
CRAIGOR AN, Mayor
City of tun Rock,Texas
ATTEST:
. (am ���a�
ANN FRANKLIN,City Clerk
0112.20262
EXHIBIT
A
Capital
Improvements Plan
Progress
Semi-Annual Report
May 2026
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, 2025, to March 31, 2026.
This report assesses the actual growth rate compared to the projected growth rate, provides a
status update on 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.
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, 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
2,500 40
39
2,000 38
C 37 �p
o
= ut
1,500 — 36
c 0
a ~
Q, 35 c
U u
7
O 1,000 34
CL
ut N
c 33 v
O >
f0 u
500 32 Q
31
0 30
3rd Qtr FY'24 4th Qtr FY'24 1st Qtr FY'25 2nd Qtr FY'25 3rd Qtr FY'25 4th Qtr FY'25 1st Qtr FY'26 2nd Qtr FY'26
OActive Services 37,844 37,979 38,151 38,356 38,544 38,640 38,688 38,808
Groundwater 69,872,000 177,517,000 149,487,000 142,683,000 164,566,000 241,576,000 204,474,000 162,232,000
W Surface Water 1,736,168,000 2,284,669,000 1,879,505,000 1,350,832,000 2,008,237,000 2,197,732,000 1,891,418,000 1,509,860,000
2
r
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 use
is higher during the summer months.
FIGURE 2
Average Potable Daily Demand Each Month
40
35
30
25
0
20
c
0
15
10
5
0
Oct Nov Dec Jan Feb Mar Apr May 011 Jul Aug Sep
O FY 2022 O FY 2023 ❑FY 2024 ❑FY 2025 ❑FY 2026
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, demand continues to grow.
FIGURE 3
Potable vs. Reuse Water
Average Daily Demand Each Month
40
35
30
25
c
0
0 20
c
0
15
10
5
0
Oct N,D Dec lar Feb Mar Apr (•stay Jun Jill Aug tie
❑FY 2022 ■FY 2023 ❑FY 202-1 ❑FY 2025 ❑FY 2026 ■Reu-,E
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 503 to 1,057 per year.
The City issued 503 single-family building permits in FY 2025 and 137 so far in FY 2026. Growth
has remained consistent with most current construction activity in the northeast part of Round
Rock, in the Salerno and University Heights Subdivisions. University Heights has three sections
still to develop, and a new subdivision, the Briggs Tract, is currently being permitted.
All Municipal Utility Districts (MUDS) in Round Rock's ETJ have been built out for their single-
family properties since FY 2021.
FIGURE 4
Annual Single-Family Building Permits Issued
Residential & MUDs
1200
1057
1000
800
648
600 533 503
400
200 137
0
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
(Oct-Mar)
Table 1 reflects the number of multi-family units permitted annually. The number of new multi-
family developments has decreased over the last several years. The District development is
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currently under construction of a multi-family permit. Several other multi-family permits from
the last couple of years have stalled, including Jade at Chisholm,Slate at Old Settlers,and Fairfield
at AW Grimes.
TABLE 1
In-City Retail
Fiscal Year Multi-Family Units
FY 2022 1626(896 LUES)
FY 2023 841 (420.5 LUES)
FY 2024 369(184.5 LUES)
FY 2025 625 (387.1 LUEs)
FY 2026(Oct-Mar) 39 (27.3 LUES)
Out-of-City Wholesale
Fiscal Year Multi-Family Units
FY 2022 720(404.4 LUEs)
For apartments, LUES are calculated at 0.5 per unit, and townhomes are 0.7 LUES per townhome.
These calculations are based on the impact to the water and wastewater systems as compared
to single-family residences.
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 has remained consistent. During FY 2025, the City issued 36 commercial
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building permits, which were equivalent to 325 Living Unit Equivalents (LUES). At this point in FY
2026, the City has issued 12 commercial building permits, totaling 46 LUES. We are currently
seeing smaller commercial developments and several data center expansions.The larger permits
include the Amazon warehouse facility, Sabey data center expansion, and Switch data center
expansion. The number of LUES per permit is based on the development's water meter size.
TABLE 2
Fiscal Year Commercial Building Permits 2022 39 (234.5 LUES)
FY 2023 29 (89.5 LUES)
FY 2024 52 (262.5 LUES)
FY 2025 36 (325 LUES)
FY 2026 (Oct— Mar) 12 (46 LUEs)
The five years following the 2020 pandemic have seen fluctuations in new development. Out-of-
City MUD development has decreased due to full buildout.The number of In-City developments
for FY 2025 and the start of FY 2026 are below the 2023 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.
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TABLE 3
FY 2022 IFY 2023 FY 2024 FY 2025
•
In-City Residential
Water $ 2,043,907 $ 2,938,553 $ 2,758,997 $ 1,782,904 $365,826
Wastewater $ 1,695,908 $ 1,522,930 $1,632,281 $ 1,619,849 $326,684
In-City Commercial
Water $4,085,751 $ 1,338,332 $607,902 $ 1,120,051 $ 981,176
Wastewater $ 1,900,865 $ 1,153,932 $283,337 $ 345,380 $ 383,535
Out-of-City Wholesale
Water $ 52,534 $0 $0 $0 $0
Wastewater $870,290 $ 671,680 $0 $0 $0
Total Collected $ 10,649,255 $7,625,427 $5,282,517 $4,868,184 $2,057,221
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FIGURE 5
Impact Fees Collected
FY 2022-FY 2026
12
$10,649,255
10
8 $7,625,427
E2
0 6
❑ $4,868,184
c
o_
4
12,017,2212
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
(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, the City would collect
approximately $4.4 million in Wastewater Impact Fees per year, 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 2023; however, connections
since that time have been lower than anticipated.
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Table 4 provides population projections for Round Rock and Round Rock's ETJ.These projections,
which anticipate steady growth, 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
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 134,540 136,585 4.9% 4.1% 196,035 3.6%
2025 139,834 142,053 3.9% 4.0% 202,208 3.1%
2026 145,208 142,356 3.8% 0.2% 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.
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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 Report Actual 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
Kenney Fort Blvd from Old Settlers to Chandler Creek(24") 2024 $4,212,134 $4,212,134
Kenney Fort Blvd from Forest Creek Blvd to SH-45 (12") 2024 $1,787,073 $1,787,073
Sam Bass Rd from FM-1431 to Wyoming Springs Dr(42") 2025 $10,770,000 1 $11,277,660
Total $24,577,707 $25,293,386
WATER PROJECTS IN PROGRESS Completion Impact Fee Report Current
Estimated Cost Estimate
Old Settlers from Red Bud to CR-110 (16'') 2026 $1,500,000 $1,584,000
BCRUA Phase 1D-WTP Expansion to 42MGD 2026 $4,934,911 $4,934,911
Groundwater GST and Pump Station Land Purchase 2026 $784,000 $0
Nesters Crossing and CR-172 from west 971 zone to S-81 EST* 2027 $2,500,000 $3,430,237
BCRUA Phase 2 -Deep Water Intake 2027 $77,437,930 $77,437,930
BCRUA Phase 2A-WTP Expansion to 64MGD &6MG Clearwell 2028 $39,760,000 $51,981,825
Kenney Fort Blvd 5 &6(24")* 2030 $1,800,000 $3,258,000
Redbud Ln from south of Palm Valley to Gattis School (24")* 2030 $4,560,000 $7,296,000
Total $133,276,841 $149,922,903
UPCOMING WATER PROJECTS Estimated Impact Fee Report
Completion Estimated Cost
Eagles Nest in Connection w/ Road Extension 2030 $2,300,000
Red Bud &Gattis School to High County EST(24") 2030 $1,500,000
East Groundwater Supply (Joint Project w/Georgetown) 2030 $35,000,000
Total $38,800,000
*Current estimates based on updated industry rates for projects in the design phase.
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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 6,7601-F of 18" 2022 $1,973,000 $0
Lake Creek 1 2024 $3,786,150 $3,951,150
Kenney 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)* 2027 $3,961,000 $3,907,250
CC-4-Near Old Settlers Park(15" WW)* 2027 $2,092,000 $1,510,969
Cottonwood Creek Interceptor- Phase 1 Gravity at SH-130
(1811) 2027 $1,442,925 $2,800,000
WWTP Expansion to 40MGD* 2030 $99,000,000 $124,402,460
Cottonwood Creek Lift Station and Forcemain (Phase 2) 2030 $5,535,000 $8,750,000
Total $112,030,925 $141,370,679
UPCOMING WASTEWATER PROJECTS Estimated Impact Fee Report
Completion Estimated Cost
CC-1-Sunrise Rd South of University(15") 2027 $2,560,000
BC-1- Downtown Round Rock(12"-18") 2027 $2,294,000
CC-2-West of AW Grimes (12") 2028 $516,000
MC-3- North of Paloma Lake (24") 2028 $4,978,000
LC-3- Near Round Rock West(15") 2028 $2,748,000
MC-4-South of University between AW Grimes and CR 110 (10"-15") 2029 $7,433,000
Cottonwood Creek Interceptors to Lift Station (Phase 3) 2030 $2,920,075
LC-4-South of McNeil Rd along 1-35 (24") 2030 $3,694,000
Total $27,143,075
*Current estimates based on updated industry rates for projects in the design phase.
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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 Report Actual Cost
Estimated Cost
Kenney 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* 2027 $1,250,000 $2,392,000
Kenney Fort Blvd 24-inch Reuse Line* 2027 $6,000,000 $4,631,063
Reuse 2MG Ground Storage Tank* 2027 $3,500,000 $3,643,508
Total $10,750,000 $10,666,571
UPCOMING REUSE PROJECTS Estimated Impact Fee Report
Completion Estimated Cost
Reuse Line to Dell Way 2030 $4,995,000
Total $4,995,000
*Current estimates based on updated industry rates for projects in the design phase.
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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
$250
5235.75
$225
$200
5180.84 $178.19 5378.03
$175 _ _. 31"42-
$150
$125 $126.30 $323.56
$314.47
$107.20 $105.24
$100 386'42 .
�.589.64 $88.30 $87.20 585.15 583.18
$78.88
$75 -
S50
S25
5-
P`lugerville Hud- Manville San Austin Georgetown Jonah Leander Paloma Walsh Cedar Vista Teravista Brushy Fern Teravista Round
Marcos 1&2 Ranch Park Oaks 11 Creek Bluff 10 Rods
■Water Wastewater
*assumes 10,000 gallons of water and 6,000 gallons of wastewater used
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Table 8 compares 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 that new customers
and developments should pay for the 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 2025 $6,808 $7,600 $14,408
Pflugerville 2023 $14,713 $1,316* $16,029
Georgetown 2025 $11,000 $7,000 $18,000
*Indicates the City has multiple Wastewater Impact Fees, based on service area. The table above
reflects the lowest fee charged by that City.
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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 two years, 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 approximately every three years. After the
Master Plans are updated, the City updates the Impact Fee Report. 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 City is in the process of starting its next Water and Wastewater Master Plan update. After
the Master Plans are complete, a new impact fee analysis and report will be developed, with a
goal of implementing any recommendations by the end of 2027.
The next Capital Improvements Plan Progress Report will be presented to the CIAC and the City
Council in approximately six months.
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