PRESENTER: Presenter
Dawn Schriewer, Chief Financial Officer, NBU
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SUBJECT: Title
Approval of a resolution setting a public hearing to amend the water and wastewater impact fees.
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DEPARTMENT: City Secretary
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COUNCIL DISTRICTS IMPACTED: All districts
BACKGROUND INFORMATION:
NBU’s last impact fee program update was approved by City Council on August 13, 2018, with an effective date of November 13, 2018. Chapter 395 of the Texas Local Government Code requires a governmental body that has previously adopted an impact fee to update its land use assumptions and capital improvements plan at least every five years. In order to comply with this requirement, NBU engaged Freese and Nichols, Inc. (“FNI”) in November 2021 to evaluate and update NBU’s land use assumptions, capital improvements plan, and impact fees for water and wastewater (the “2022 Impact Fee Study”).
As part of the 2022 Impact Fee Study, FNI used land use assumptions, growth projections, and water/wastewater loading criteria to develop ten-year load projections for both the NBU water and wastewater systems for the planning period of 2022 through 2032. FNI also developed an impact fee capital improvements plan (“CIP”) for both the water and wastewater systems to serve projected growth through 2032. The hydraulic models of the water and wastewater systems, along with pumping and storage planning criteria that FNI developed, were employed to calculate the percentage of each project’s capacity projected to be utilized in the ten-year planning period. A summation of each project’s estimated cost was used to calculate a total impact fee eligible CIP cost for both water and wastewater. These costs were then divided by the projected growth in living unit equivalents for water and wastewater, respectively, to determine the maximum allowable impact fees for water and wastewater. FNI worked with NBU staff throughout this process to ensure that the methodology used to conduct the 2022 Impact Fee Study complied with state statute.
On February 1, 2022, NBU staff and FNI provided a general overview of the impact fee process to the City of New Braunfels Impact Fee Advisory Committee (“IFAC”). FNI also presented the land use assumptions and CIP. On May 11, 2022, NBU staff and FNI met with the IFAC and presented the updated land use assumptions, CIP, and maximum allowable impact fee. The IFAC reviewed the updates and will file written comments with the City Council no later than July 15, 2022.
In accordance with Chapter 395 of the Texas Local Government Code, NBU requests that City Council hold a public hearing on the updates to the land use assumptions, CIP, and impact fees. The attached resolution calls for a public hearing to be held during the regular City Council session on July 25, 2022.
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FISCAL IMPACT:
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Recommendation
RECOMMENDATION:
The NBU Board of Trustees, at its May 24, 2022, Board Meeting, approved a resolution recommending an update to NBU’s water and wastewater impact fees.
NBU staff recommends approval of the resolution setting a public hearing to amend NBU’s water and wastewater impact fees.