(a) 
Purpose.
The purpose of the water and wastewater impact fees is to generate revenue for funding or recouping the cost of capital improvements or facility expansions necessitated by and attributable to new development.
(b) 
Applicability.
This division shall be applicable uniformly to new development which occurs within the water and wastewater service areas. For new development which occurs within the boundaries of the city's wholesale customers or other political subdivisions, the applicability and terms for the assessment and collection of the impact fees shall be defined by agreement.
(c) 
Authority.
This division is adopted pursuant to the authority of the Texas Local Government Code Annotated, chapter 395 (Vernon 1988), hereinafter to be known as the Texas Impact Fee Act. The provisions of this division shall not be construed to limit the power of the city to adopt impact fees or other appropriate development fees pursuant to any other source of local authority nor to limit the utilization of any other methods or powers otherwise available for accomplishing the purposes set forth herein.
(d) 
Development approval.
No application for new development shall be approved by the city without assessment of impact fees pursuant to this division, and no application for building permit shall be approved until the applicant has paid the impact fees imposed by and calculated hereunder.
(e) 
Exemption of public school districts.
The provisions of this division shall not be imposed on and applied to any public school district located within the corporate limits of the city.
(f) 
Definitions.
As utilized in this division, the following terms shall have the meanings ascribed to them hereinbelow:
Assessment.
A determination of the amount of the impact fees per service unit in effect on the date of occurrence established for same in this division, and is the maximum amount that can be charged per service unit of development.
Building permit.
The filing with the city of a written application for the building of an eligible structure and the acceptance of any applicable fees therefor by the city.
Capital improvement.
Water storage, pumping, and transmission facilities and wastewater pumping and interceptors owned and operated by or on behalf of the city having a life expectancy of three or more years.
Director.
The director of the city community-owned utilities or his designee.
Economic development project.
A new development project which has been designated an economic development project by the city council and which has received any one of the following:
(1) 
Federal funds in the form of loans or grants;
(2) 
City funds in the form of fee waivers, tax incentives, discounted costs or rates for city services; or
(3) 
Any discount or cost reduction not available without specific action of the city council.
Existing development.
The expansion of the capacity of an existing facility that serves the same function as an otherwise necessary new capital improvement in order that the existing facility may serve new development. The term does not include the repair, maintenance, modernization or expansion of an existing facility to better serve existing development.
Final plat.
The map, drawing or chart on which is provided a subdivider's plan of a subdivision which has received final approval by the planning commission or city council and which is recorded with the county map records department. This term also includes replats, minor plats, and amended plats when such plats result in a new or increased demand on the water system. The term does not include any approved preliminary plat, site plan, or concept plan.
Growth-related costs.
Capital construction cost of service related to providing additional water and wastewater capacity to new development, either from excess capacity in existing facilities, from facility expansions or from new capital facilities. Growth-related costs do not include:
(1) 
Construction, acquisition or expansion of public facilities or assets other than capital improvements or facilities expansions identified in the capital improvements plan;
(2) 
Repair, operation or maintenance of existing or new capital improvements or facilities expansions;
(3) 
Upgrading, updating, expanding or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards;
(4) 
Upgrading, updating, expanding, or replacing existing capital improvements to provide better service to existing development;
(5) 
Administrative and operating costs of the city; and
(6) 
Principal payments and interest or other finance charges on bonds or other indebtedness except for such payments made with respect to growth-related facilities identified in the impact fee capital improvements plans.
Impact fee.
The water and/or wastewater fees imposed upon new development in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions necessitated by or attributable to new development. The term does not include dedication of site-related water distribution or wastewater collection facilities required by other ordinances or the city code.
Impact fee capital improvements plan.
The plan that identifies the water and/or wastewater capital improvements or facilities expansions and the associated costs for which impact fees may be assessed.
Land use assumptions.
A description of the service area and projections of changes in land uses, densities, intensities and population in the service area over at least a ten-year period as adopted and amended from time to time by the city.
New development.
The subdivision of land; the construction, reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure; or any use or extension of the use of land, any of which increases the number of service units for water and wastewater service. "New development" also includes the sale of water or wastewater connections resulting from the conversion of an individual well or septic or other individual waste disposal system to the city's water or wastewater utility.
Service area.
An area(s) within the corporate limits and extraterritorial jurisdiction of the city to be served by the water and wastewater capital improvements or facilities expansions specified in the impact fee capital improvements plans adopted herein.
Service unit.
A standardized measure of consumption, use, generation or discharge attributable to an individual living unit equivalent (LUE) of development calculated in accordance with generally accepted engineering or planning standards for a particular category of capital improvements or facility expansions. For water and wastewater facilities, the service unit shall constitute the basis for establishing equivalency within various customer classes based upon the relationship of the continuous duty maximum flow rate in gallons per minute for a water meter of a given size and type compared to the continuous duty maximum flow rate in gallons per minute for a three-fourth-inch diameter, full-bore simple water meter using American Water Works Association C700-C703 standards.
Site-related facility.
An improvement or facility which is for the primary use or benefit of a new development and/or which is for the primary purpose of safe and adequate provision of water and wastewater facilities to serve the new development and which is not included in the impact fee capital improvements plans and for which the developer or property owner is solely responsible under subdivision and other applicable regulations.
Tap excavation permit.
The filing with the city of a written application for the excavation for a water or wastewater tap and the acceptance of any applicable fees therefor by the city.
Wastewater facility.
A capital improvement or facility expansion for providing wastewater service, including but not limited to land or easements, lift stations, and interceptor mains. The term "wastewater facilities" does not include dedication of easements or rights-of-way or easements or construction or dedication of on-site wastewater collection facilities required by valid ordinances of the city and necessitated by and attributable to new development.
Water facility.
Improvements for providing water service, including but not limited to land or easements, water supply facilities, treatment facilities, pumping facilities, storage facilities or transmission mains. The term "water facilities" does not include dedication of rights-of-way or easements or construction or dedication of on-site water distribution facilities required by valid ordinances of the city and necessitated by and attributable to new development.
Wholesale customers.
Water or wastewater customers of the city's water and/or wastewater utilities which purchase such utility service at wholesale for resale to their retail customers.
(2002 Code, sec. 10.1201; Ordinance 2006-07-23 adopted 7/10/06)
(a) 
The currently adopted land use assumptions shall be maintained on file in the office of the city secretary.
(b) 
The land use assumptions as adopted herein shall henceforth be updated at least every five years in accordance with applicable law.
(c) 
Amendments to the land use assumptions shall incorporate projections of changes in land uses, densities, intensities and population for the service area over at least a ten-year period.
(2002 Code, sec. 10.1202; Ordinance adopting Code)
(a) 
There are established water and wastewater impact fee service areas, the boundaries of which are depicted on the maps on file in the office of the city secretary.
(b) 
The boundaries of the water and wastewater impact fee service areas may be amended from time to time in accordance with the procedures set forth in the Texas Impact Fee Act.
(2002 Code, sec. 10.1203; Ordinance adopting Code)
(a) 
The currently adopted capital improvements plans shall be maintained on file in the office of the city secretary.
(b) 
The impact fee capital improvements plans for water and wastewater facilities may be amended from time to time pursuant to the procedures set forth in state law.
(2002 Code, sec. 10.1204; Ordinance adopting Code)
(a) 
The impact fees due for the new development shall be collected at the time of building permit.
(b) 
Following the filing and acceptance of a written application for building permit, the city shall compute the impact fees due in the following manner:
(1) 
The size of water meter shall be determined by the number of service units as per the meter conversion table on file in the office of the city secretary;
(2) 
Service units shall be summed for all meters required for the development;
(3) 
The meter size shall be assessed the corresponding fees as per the schedules on file in the office of the city secretary;
(4) 
All applicable offsets, credits or discounts per service unit allowable under this division for water or wastewater service shall be subtracted from the product derived under subsection (b)(3) of this section.
(c) 
The amount of impact fees due for new development shall not exceed the amount computed by multiplying the assessed fees for water or wastewater service by the total number of service units generated by the development.
(d) 
Whenever the property owner increases the number of service units for a development, the additional impact fees collected for such new service units shall be determined based on the assessed fees and applicable credits then in effect and such additional fees shall be collected at the time the building permit is issued.
(e) 
In the event the property owner decreases the number of service units for a development, the property owner shall be entitled to a refund of the impact fees for impact fees actually paid, but only for the amounts represented by the decrease in service units based on the assessed fees and offsets, credits or discounts applicable at the time the fees were paid.
(f) 
If the building permit for the property on which impact fees are paid has expired and a new application is thereafter filed for the identical property and the same number of service units, the impact fees previously paid satisfy the requirements of this division. In the event the building permit expires for a property and must be reissued for a revised number of service units, the previous payment of impact fees related to this property shall entitle the payer to receive a credit towards the impact fee amount now due or partial refund for overpayment of the revised impact fee amount now due. If the building permit is not reissued, impact fees are not refundable.
(g) 
The impact fees shall attach to the property for which the impact fees were paid and shall not be transferable to other properties or service units.
(h) 
No request to connect to the water and wastewater system shall be granted and no building permit shall be issued if the applicant cannot verify payment of the appropriate impact fees and other applicable fees or if existing facilities do not have actual capacity to provide service to the new connection(s).
(2002 Code, sec. 10.1208; Ordinance adopting Code)
(a) 
For platted properties, the impact fees per service unit to be collected within the service area at the time of building permit shall be those assessed fees established by this division by the city council and calculated according to the schedules on file in the office of the city secretary, as adjusted by any applicable credits provided herein.
(b) 
For service established by contracts with political subdivisions or other wholesale customers, the impact fees per service unit to be collected at the time of building permit shall be those fees as established by city council and calculated according to the schedules on file in the office of the city secretary, as adjusted by any applicable credits provided herein.
(c) 
Impact fees for utility service to properties for which no building permit is required shall be collected at time of application for a tap excavation permit.
(d) 
Except as otherwise provided by contracts with wholesale customers or other political subdivisions, no building permit shall be issued until all impact fees have been paid to the city.
(e) 
For a development which is submitted for approval pursuant to the city's subdivision regulations subsequent to the effective date of this division (ordinance adopted September 27, 2004), impact fees shall be collected at the time of building permit application.
(f) 
For a development which has received final plat approval prior to the effective date of the ordinance codified in this division (ordinance adopted September 27, 2004) and for which no replatting is necessary, impact fees shall be collected at the time of the building permit application.
(g) 
The city is authorized, pursuant to state law, to enter into an agreement with the owner of a tract of land for which the plat has been recorded providing for the timing and method of payment of the impact fees.
(2002 Code, sec. 10.1209; Ordinance 2006-07-23, secs. (a)–(b), adopted 7/10/06; Ordinance 2007-11-54, secs. (a)–(b), adopted 11/12/07; Ordinance adopting Code)
In the event that the city requires as a condition of development approval, or otherwise enters into an agreement with a developer, to have the developer construct, fund or otherwise contribute toward the cost of a water or wastewater capital improvement or facility expansion, the city may provide for reimbursement in the form of credits against impact fees that would otherwise be due from the development.
(1) 
For the capacity share of the project related to the developer's own service need and property benefited therefrom, the city shall provide a credit against payment of the full impact fees due at time of collection. The credit amount shall be equal to the facility's pro-rata capacity cost per service unit, but in no case shall the unit credit exceed the assessed amount allowed for that facility type as established by city council. Such credits shall only be applicable against the impact fees for the type of facility (water or wastewater) for which the capital improvement is made.
(2) 
For any oversizing of the facility funded by the developer, the city shall reimburse the developer according to terms set forth in a separate development agreement.
(3) 
The city's impact fee credit and oversizing reimbursement policy in this section only applies to facilities that are included in the 10-year capital improvements plan underlying the maximum fee calculations. This section does not apply for reimbursement of other facilities, dedication of site-related water distribution or wastewater collection facilities required by other ordinances of the city code, or fees placed in trust funds that may be used for the purpose of reimbursing developers for oversizing or constructing water or sewer mains or lines.
(2002 Code, sec. 10.1210; Ordinance 2006-07-23 adopted 7/10/06; Ordinance adopting Code)
(a) 
Approval of modifications.
Except as provided in this division or by contract in existence on the effective date of the ordinance codified in this division (ordinance adopted September 27, 2004), any reduction, change or modification in the amount or time of payment of the impact fees must be approved by a duly enacted ordinance of the city council.
(b) 
Service from private system connected to city's system.
Impact fees shall not be assessed on any property that receives service from a central water supply system owned by a person or an entity other than the city or a wastewater treatment plant owned by a person or entity other than the city and which water transmission system or wastewater interceptor system is to be tied into the city's water and wastewater system.
(c) 
Water not entering wastewater system.
The owner of a meter used to monitor water that is utilized exclusively for consumptive purposes and/or that cannot enter the city wastewater system will not be charged the wastewater impact fee. A customer requesting this exemption to the wastewater impact fee must submit information to the city manager or his or her designee that verifies one of these conditions.
(d) 
Meters used for fire protection capacity.
No water or wastewater fees shall be collected for a meter that is utilized to provide only fire protection capacity.
(e) 
Economic development projects.
Pursuant to chapter 395, Texas Local Government Code (Vernon 1999), as amended, the city council reserves the right to waive impact fees for new development projects for the purpose of promoting economic development, providing that such exemption is stipulated in a separate development agreement.
(f) 
School districts.
Impact fees shall not be assessed for new or expanded service established in support of elementary or secondary school sites operated by a public school district.
(g) 
Limitation.
Nothing hereinabove stated shall be construed to alter the terms of a contract with a wholesale customer of the city regarding the payment of impact fees and shall not be construed to authorize the payment of impact fees in installments in areas encompassed by such a contract for wholesale service.
(2002 Code, sec. 10.1211)
(a) 
The city's division of finance and administration shall establish separate interest-bearing accounts clearly identifying the category of capital improvement (i.e., water facilities and wastewater facilities) within the service area for which the impact fees are collected.
(b) 
Interest earned by each account shall be credited to the account on which it is earned and shall be used solely for the purposes specified for impact fees as authorized herein.
(c) 
The city's division of finance and administration shall establish adequate financial and accounting controls to ensure that impact fees disbursed from the account are utilized solely for the purposes authorized in this division. Disbursement of funds shall be authorized by the city at such times as are reasonably necessary to carry out the purposes and intent of this division; provided, however, that any fees paid shall be expended within a reasonable period of time, but not to exceed ten years from the date the fees are deposited into the account.
(d) 
The city's division of finance and administration shall maintain and keep adequate financial records for each such account, which shall show the source and disbursement of all revenues, which shall account for all moneys received, and the number of service units for which the moneys are received, and which shall ensure that the disbursement of funds from each account shall be used solely and exclusively for the provision of projects specified in the impact fee capital improvements plans as system-related capital projects. The city's division of finance and administration shall also maintain such records as are necessary to ensure that refunds are appropriately made in accordance with this division.
(2002 Code, sec. 10.1212)
(a) 
The impact fees collected pursuant to this division may be used to finance or to recoup capital construction costs for water and wastewater facilities identified in the impact fee capital improvements plans within the service area from which it is assessed. Impact fees may also be used to pay the principal sum and interest and other finance costs on bonds, notes or other obligations issued by or on behalf of the city to finance such capital improvements or facilities expansions.
(b) 
Impact fees collected pursuant to this division shall not be used to pay for any of the following expenses:
(1) 
Construction, acquisition or expansion of capital improvements or assets other than those identified for the water and wastewater utility in the impact fee capital improvements plans;
(2) 
Repair, operation or maintenance of existing or new capital improvements or facilities expansions;
(3) 
Upgrading, expanding or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards;
(4) 
Upgrading, expanding or replacing existing capital improvements to serve existing development; provided, however, that impact fees may be used to pay the costs of upgrading, expanding or replacing existing capital improvements in order to meet the need for new capital improvements generated by new development; or
(5) 
Administrative and operating costs of the city.
(2002 Code, sec. 10.1213)
(a) 
Any impact fees or portions thereof collected pursuant to this division which have not been expended within ten years from the date of payment shall be refunded, upon application, to the record owner of the property at the time the refund is paid, or, if the impact fees were paid by another governmental entity, to such governmental entity, together with interest calculated from the date of collection to the date of refund at the statutory rate as set forth in V.T.C.A., Finance Code, section 302.002, or any successor statute.
(b) 
If a refund is due pursuant to this section, the refund of unexpended fee payments, including interest from the date of payment, shall be made to the current record owner or governmental entity.
(c) 
Upon completion of all the capital improvements or facilities expansions identified in the capital improvements plan upon which the fees were based, the city shall recalculate the maximum impact fees per service unit using the actual costs for the improvements or expansions. If the maximum impact fees per service unit based on actual cost is less than the impact fees per service unit paid, the city shall refund the difference if such difference exceeds the impact fees paid by more than ten percent. The refund to the record owner or governmental entity shall be calculated by multiplying such difference by the number of service units for the development for which the fees were paid, and interest due shall be calculated upon that amount.
(d) 
Upon the request of an owner of the property on which impact fees have been paid, the city shall refund such fees if:
(1) 
Existing service is available and service is denied;
(2) 
Service was not available when the fees were collected and the city has failed to commence construction of facilities to provide service within two years of fee payments; or
(3) 
Service was not available when the fees were collected and has not subsequently been made available within a reasonable period of time considering the type of capital improvement or facility expansion to be constructed, but in any event no later than five years from the date of the payment.
(e) 
A refund pursuant to this section shall also result in cancellation of the tap excavation and building permit and the refund of all building and/or tap excavation permit fees previously collected.
(f) 
If the holder of a building permit for property for which a building permit has been obtained relinquishes the building permit for a refund, a canceled building permit must be presented before the refund can be made.
(g) 
The city shall refund an appropriate proportion of impact fee payments in the event that a previously purchased but uninstalled water meter for which the impact fees have been paid is replaced with a smaller meter, based on the per service unit differential of the two meter sizes and the fees per service unit at the time of the original fee payments.
(h) 
A petition for refund under this section shall be submitted to the city manager or his or her designee on a form provided by the city for such purpose. Within one month of the date of receipt of a petition for refund, the city manager or his or her designee must provide the petitioner, in writing, with a decision on the refund request, including the reasons for the decision. If a refund is due to the petitioner, the city manager or his or her designee shall notify the city division of finance and administration and request that a refund payment be made to the petitioner.
(2002 Code, sec. 10.1214)
The city shall review the land use assumptions and impact fee capital improvements plans for water and wastewater facilities at least every five years, with the five-year period to commence from the date of adoption of the impact fee capital improvements plans referenced in this section. The city council shall accordingly make a determination of whether changes to the land use assumptions, impact fee capital improvements plans or impact fees are needed and shall, in accordance with the procedures set forth, either update the fees or make a determination that no update is necessary.
(2002 Code, sec. 10.1215)
(a) 
In addition to the use of impact fees, the city may finance water and wastewater capital improvements or facilities expansions designated in the impact fee capital improvements plans through the issuance of bonds, through the formation of public improvements districts or other assessment districts, or through any other authorized mechanism, in such manner and subject to such limitations as may be provided by law.
(b) 
Except as otherwise provided herein, the assessment and collection of impact fees shall be additional and supplemental to, and not in substitution of, any other tax, fee, charge or assessment which is lawfully imposed on and due against the property.
(2002 Code, sec. 10.1216)
(a) 
Impact fees established by this division are additional and supplemental to, and not in substitution of, any other requirements imposed by the city on the development of land or the issuance of building permits or the sale of water or wastewater connections or the issuance of certificates of occupancy. Such fees are intended to be consistent with and to further the policies of the city's land use plan, impact fee capital improvements plans, development code and other city policies, ordinances and resolutions by which the city seeks to ensure the provision of adequate public facilities in conjunction with the development of land.
(b) 
This division shall not affect, in any manner, the permissible use of property, density of development, design and improvement standards and requirements, or any other aspect of the development of land or provision of public improvements subject to the zoning and subdivision regulations or other regulations of the city, which shall be operative and remain in full force and effect without limitation with respect to all such development.
(2002 Code, sec. 10.1217)
(a) 
Any person who has paid impact fees or an owner of land upon which impact fees have been paid may make petition the council through the city manager or his or her designee to determine whether any duty required by this division has not been performed within the time so prescribed. The petition shall be in writing and shall state the nature of the unperformed duty and the request that the act be performed within 60 days of the request. If the council determines that the duty is required pursuant to this division and is late in being performed, it shall cause the duty to commence within 60 days of the date of the request and to continue until completion.
(b) 
Any person who has been assessed impact fees under this division may appeal that assessment by written application to the city manager or his or her designee. The city council may then enforce, reduce or modify the assessment, after providing a public hearing with due notice and opportunity to be heard, if it determines that the assessment is unwarranted or in error.
(c) 
For existing developments that are extended municipal water and wastewater service, new customers will be assessed the applicable impact fees at the time of meter purchase. Though a written appeal submitted to the city manager or his or her designee, the council may consider whether the new customer shall have the option of either immediate full payment of the assessed fees or an extended payment plan of 1/12 of the assessed fee amounts each month for 12 months, starting with the meter purchase. If such partial payments by the customer are more than 30 days overdue, this shall serve as grounds for termination of water and/or wastewater service.
(d) 
The council may grant a variance or waiver from any requirement of this division, upon written request made to the city manager or his or her designee by a developer or owner of property subject to this division, following a public hearing, and only upon finding that a strict application of such requirement would, when regarded as a whole, result in extreme hardship to the applicant and that the grant of the waiver or variance is in the best interest of the city.
(e) 
If the council grants a variance or waiver to the amount of the impact fees due for new development under this section, it shall cause to be appropriated from other city funds the amount of the reduction in the impact fees to the amount in which the fees would have been deposited.
(2002 Code, sec. 10.1218)
Not later than September 30 of each year, the city secretary shall submit a written certification signed by the mayor, verifying compliance with chapter 395 of the Local Government Code, to the attorney general.
(Ordinance 2006-07-23 adopted 7/10/06)