CC MEETING: February 4, 2025
DATE: January 14, 2025
TO: Erin Rinehart, City Manager
FROM: Jonathan Wheat, P.E., Director of Engineering
Shannon Hicks, P.E., Assistant City Manager
Title
Consider An Ordinance Amending Chapter 52 “Water And Sewer Services” Of The Code Of Ordinances Of The City Of Carrollton, Updating The Impact Fee On New Development For The Purpose Of Providing Water And Wastewater Facilities Necessitated By New Development; Adopting Capital Improvement Plans For Wastewater And Water Facilities.
Body
BACKGROUND:
The City of Carrollton established impact fees by Ordinance No. 1648 on August 7, 1990, in accordance with chapter 395 of the Texas Local Government Code. The latest change to the impact fee schedule was approved by Council on April 26, 2002, determined from a 2001 master plan. This master plan was created to model and identify deficiencies and areas of improvement for the City’s water distribution system. The plan had a community build-out time horizon of 2010. The elements and recommendations of the plan were implemented to ensure the City’s water infrastructure sufficiently kept up with the Community’s new development, redevelopment, and water demand over the last 22 years.
With the increasing potential for redevelopment and revitalization in certain areas of the City, the City contracted Birkhoff, Hendricks, and Carter, LLP, to complete Water and Wastewater Capital Improvement Plans (“CIPs”), an update to the Land Use Assumptions Map, and an update to the City’s Water and Wastewater Impact Fees. The two CIPs update the system through the next ten years. A copy of the fee impact study is available in the Engineering Department, Carrollton City Hall, 1945 Jackson Ave, Carrollton, TX 75006 and on the Engineering Department’s website at https://www.cityofcarrollton.com/departments/departments-a-f/engineering/2024-impact-fee-study.
As required by Chapter 395, the assigned Capital Improvement Plan Advisory Committee (CIPAC) finds that the Land Use Assumptions and Capital Improvement Plans are reasonable and reflect the Community needs. The Land Use Assumptions, Capital Improvement Plans, and Impact Fees were presented to the assigned CIPAC on November 7, 2024. The City of Carrollton’s assigned CIPAC for Water and Wastewater Impact Fees is the City’s Planning and Zoning Commission by the Impact Fee Ordinance.
As required by Chapter 395, the City held a Public Hearing on impact fees, updates to the land use assumptions, and updates to the water and wastewater capital improvement plans on January 7, 2025. No public comments were received during the public hearing.
FINANCIAL IMPLICATIONS:
Impact fees are collected on new development projects to help pay for all or a portion of the costs of providing water and wastewater services to the new development. Projects listed in the Impact Fee Study will utilize any fees collected to help provide funding.
IMPACT ON COMMUNITY SUSTAINABILITY:
These updates will support the City Council’s strategic objectives and vision of building a community that families and businesses want to call home by:
• Allocating resources for optimal results.
• Manage infrastructure with fiduciary care.
• Ensure City services are an optimal value.
STAFF RECOMMENDATION/ACTION DESIRED:
The recommendation presented to Council during the Public Hearing is to set the maximum allowable impact fee of $4,822.51 with a gradual increase over four years per living unit equivalent (3/4” meter). The gradual four-year increase will assess $1,993.13 per LUE in 2025, $2,936.25 per LUE in 2026, $3,879.38 per LUE in 2027, and $4,822.51 per LUE in 2028.