This division is intended to assure the provision of adequate public facilities to serve new development in the city by requiring each development to pay its pro rata share of the costs of improvements necessitated by and attributable to such new development. 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 certificates of occupancy. Such fee is intended to be consistent with and to further the policies of the city’s growth guidance plan, the capital improvement program plans, the unified development code ordinance and other city policies, resolutions and ordinances by which the city seeks to provide adequate public facilities in conjunction with the development of land.
(Ordinance O-2021-003 adopted 2/4/21)
This division shall be applicable uniformly to new development that occurs within the water and wastewater service area. For new development that 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 fee shall be defined by agreement.
(Ordinance O-2021-003 adopted 2/4/21)
This division is adopted pursuant to Texas Local Government Code, chapter 395, the constitution and laws of the state, and the city’s regulations and ordinances. The provisions of this division shall not be construed to limit the power of the city to adopt an impact fee 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.
(Ordinance O-2021-003 adopted 2/4/21)
No application for new development shall be approved by the city council without a written assessment of the development and impact fee by city departments pursuant to this division, and no water and wastewater tap shall be connected unless the impact fees assessed by this division have been paid.
(Ordinance O-2021-003 adopted 2/4/21)
In addition to the terms defined in the Texas Local Government Code, section 395.001, the following terms, as used in this division, shall have the meanings ascribed to them herein below:
Assessment.
Shall have the meaning set forth in subsection 395.016(f) of the Statute.
Director.
The director of engineering or his designee.
Living unit equivalent (LUE).
The standardized measure referred to in the definition of “service unit” in the act and in this division. An LUE consumes 438 gallons per day of water and produces 225 gallons per day of wastewater.
Service unit.
A standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards based on historical data and trends applicable to the political subdivision in which the individual unit of development is located during the previous 10 years.
Statute.
Texas Local Government Code, sections 395.001 et seq.
Wastewater facility.
A capital improvement or facility expansion for providing wastewater service, including but not limited to land or easements, treatment facilities, lift stations, and interceptor mains. The term does not include wastewater lines or mains which are constructed by developers, the costs of which are reimbursed from charges paid by subsequent users of facilities and which are maintained in dedicated trusts. The term “wastewater facilities” also does not include dedication of easement 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 does not include water lines or mains constructed by developers, the costs of which are reimbursed from charges paid by subsequent users of the facilities maintained in dedicated trusts. The term also 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.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
The land use assumptions previously adopted by the city are incorporated by reference and are kept on record in the office of the city secretary.
(b) 
Said land use assumptions for the city shall be updated at least every five (5) years utilizing the amendment procedure set forth in the Statute.
(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.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
Water and wastewater impact fee service area, the boundaries of which are depicted on the service area maps included in the impact fee report attached to Ordinance O-13-01-17-10B as amended by the impact fee report attached to Ordinance O-2021-003 as exhibit A, have been approved by the city council and a map showing such service areas shall be kept on record 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 Statute.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
The impact fee capital improvements program plan for water and wastewater facilities adopted by the city, and amendments, are incorporated in this division by reference and are kept on record in the office of the city secretary.
(b) 
The impact fee capital improvements program plan for water and wastewater facilities may be amended from time to time pursuant to the procedures set forth in the Statute.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
Calculation.
The number of service units for both water and wastewater service is determined by the size and type of the development in accordance with the established City of Hutto Land Use Density Tables and/or Engineering Department Living Unit Equivalent Table attached to Ordinance O-2021-003, as part of exhibit A.
(b) 
Type of development not applicable to the land use density table or living unit equivalent table. Upon application for a building permit for lots for which the type of development does not conform to the land use density table or living unit equivalent table, service units shall be determined by a professional engineer licensed in the state subject to the approval of the director.
(c) 
Revision of service units designation.
The city may revise the service units designation in accordance with the procedures set forth in the Statute.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
Maximum allowable fee.
The maximum impact fee per service unit shall be computed by dividing the cost of water and wastewater capital improvements and facilities expansions necessitated by and attributable to new development identified in the impact fee capital improvements program plan for water and wastewater facilities for each category of capital improvements by the total number of projected service units in the impact fee service area based upon the land use assumptions, and then may be adjusted to reflect a credit, as appropriate, for other non-fee methods of capital payments referenced in section 395.014(a)(7), Texas Local Government Code. Maximum impact fees per service unit shall be established for each category of capital improvements and are on record in the office of the city secretary, and incorporated in this division by reference.
(b) 
For lots platted between January 31, 2013 and February 4, 2021, the city shall assess and collect per service unit to be served by the city:
(1) 
A water impact fee of three thousand six hundred twenty-five dollars ($3,625.00) per LUE.
(2) 
A wastewater impact fee of two thousand one hundred twenty-eight dollars ($2,128.00) per LUE.
(c) 
For lots platted after February 4, 2021, the city shall assess and collect per service unit to be served by the city:
(1) 
A water impact fee of eight thousand eight hundred thirty-two dollars ($8,832.00) per LUE.
(2) 
A wastewater impact fee of two thousand seven hundred eighty-eight dollars ($2,788.00) per LUE.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
The city shall assess the impact fees per service unit in effect at the time of plat recordation of a subdivision plat or other plat in accordance with the city’s unified development code ordinance.
(b) 
Except as provided in section 395.019 of the Statute, the city shall collect the fees as follows:
(1) 
At the time the political subdivision issues a building permit; or
(2) 
For land platted outside the corporate boundaries of the city, the city shall collect the impact fees at the time an application for an individual meter connection to the city’s water or wastewater system is filed.
(c) 
For land on which new development occurs or is proposed to occur without platting, the city may assess the impact fees at any time during the development and building process and may collect the fees at either the time of recordation of the subdivision plat or connection to the city’s water or wastewater system or at the time the city issues either the building permit or the certificate of occupancy.
(d) 
Following assessment of the impact fee hereunder, the amount of the impact fee per service unit may not be increased above the assessed fee unless the owner obtains final approval for replatting, in which case a new assessment shall occur at the assessed water and wastewater impact fee per service unit in effect at the time of such replatting.
(e) 
An application for an amended plat made pursuant to Texas Local Government Code section 212.016 or the city’s unified development code ordinance is not subject to a reassessment of the impact fee.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
The water and wastewater impact fees shall be based on the size and type of the development and the number of service units associated with that size and type of development in accordance with the land use density table or living unit equivalent table.
(b) 
A property owner may submit, or the director may require the submission of a study, prepared by a professional engineer, licensed in the state, clearly indicating the number of water and/or wastewater service units which will be consumed or generated by the new development. The director will review the information for completeness and conformity with generally accepted engineering practices and may, when satisfied with the completeness and conformity of the study, modify the total number of service units required for the new development.
(c) 
Total service units shall be multiplied by the impact fee per service unit for water or wastewater service as depicted in section 16.04.040, pertaining to impact fee per service unit, or as determined in subsection (b) above.
(d) 
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 (c) of this section.
(e) 
The amount of impact fee due for new development shall not exceed the amount computed by multiplying the assessed fee for water or wastewater service by the total number of service units generated by the development.
(f) 
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 fee and applicable offsets, credits and discounts then in effect, and such additional fee shall be collected at the time the additional meters are purchased.
(g) 
For the purpose of determining water impact fees, no additional service units are attributable to the addition of a separate irrigation meter if the irrigation meter is the same size as or smaller than the existing meter. If a larger irrigation meter is installed, the water impact fee shall be the difference between that of the existing meter and that of the irrigation meter.
(h) 
In determining the number of service units for wastewater impact fees, no service units will be attributed to irrigation flows.
(i) 
Payment of an impact fee in accordance with the terms and conditions of this division shall entitle the payor to receive a credit for same to be used in the event the tap for the property for which the fee is paid expires and must be repurchased; provided, however, that the impact fee is not refundable upon expiration of the tap.
(j) 
If the tap or building permit for the property on which an impact fee is paid has expired and a new application is thereafter filed for the same property with the same number of service units on the property, the impact fee previously paid satisfies the requirements of this division.
(k) 
The impact fee shall attach to the property for which the impact fee was paid and shall not be transferable to other properties or service units.
(l) 
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 fee and other applicable fees or if existing facilities do not have actual capacity to provide service to the new connection(s).
(Ordinance O-2021-003 adopted 2/4/21)
If 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 capital improvement or facility expansion included in the adopted impact fee capital improvements program plan for water and wastewater facilities, the city shall provide for reimbursement in the form of credits against impact fees that would otherwise be due from the development by entering into an agreement as allowed by section 395.018 of the Statute. Such credits shall run with the land and shall be used to reduce the amount of the impact fee that would otherwise be owed at the time of collection of impact fees. If the amount of such credits would be insufficient to reimburse the developer for the cost of required improvements, the city shall provide for reimbursement to the developer up to the balance of the cost of the required improvements from water or wastewater impact fees collected from other new development within the same service area. In determining the amount of such credits, the developer shall submit evidence of the actual, fair-market cost of the required improvement. 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.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
Limitation on modification.
Except as provided in this division or by contract in existence on the effective date of the ordinance codified in this division, any reduction, change or modification in the amount or time of payment of the impact fee must be approved by a duly enacted ordinance of the city council.
(b) 
Fire protection capacity.
No fee shall be collected for the purchase of a tap that is utilized to provide only fire protection capacity.
(c) 
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.
(d) 
Waivers.
In accordance with the Statute, after evaluation of the staff recommendation as per section 16.04.034, by majority vote of the city council, a resolution or ordinance may be adopted waiving or reducing the impact fees for a certain class of development, or for a specific development if there is a finding that the proposed waiver or reduction would result in substantial economic benefit to the city.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
All water and wastewater impact fees collected by the city shall be deposited in interest-bearing accounts clearly identifying the category of capital improvements for which the fees were collected as required by the Statute.
(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 below.
(c) 
The city 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 fee paid shall be expended within a reasonable period of time, but not to exceed ten years from the date the fee is deposited into the account.
(d) 
The city 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, 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 program plan for water and wastewater facilities as system-related capital projects. The city shall also maintain such records as are necessary to ensure that refunds are appropriately made in accordance with this division.
(Ordinance O-2021-003 adopted 2/4/21)
(a) 
Water and wastewater impact fees shall only be used to pay the costs of constructing water and wastewater capital improvements or facility expansions, including and limited to the following:
(1) 
Construction contract price;
(2) 
Subject to the provisions of subsection 395.012(b) of the Statute, interest charges, including projected interest charges, or other finance costs;
(3) 
Surveying and engineering fees;
(4) 
Land acquisition costs, including land purchases, court awards and costs, attorney’s fees and expert witness fees; and
(5) 
Fees actually paid or contracted to be paid to an independent qualified engineer or financial consultant preparing or updating the impact fee capital improvements program plan for water and wastewater facilities who is not an employee of the city.
(b) 
Impact fees collected pursuant to this division shall not be used to pay for any of the items set forth in section 395.013 of the Statute.
(Ordinance O-2021-003 adopted 2/4/21)
All or any portion of a water or wastewater impact fee payment that has been collected by the city and has not been spent as authorized by this division within ten (10) years from the date such impact fee was collected shall be refunded pursuant to the provisions set forth in section 395.025 of the Statute.
(Ordinance O-2021-003 adopted 2/4/21)
The city shall review the land use assumptions and impact fee capital improvements plan for water and wastewater facilities at least every five (5) years, with the five-year period to commence from the date of adoption of the impact fee capital improvements plan for water and wastewater facilities referenced in this division. The city council shall accordingly make a determination of whether changes to the land use assumptions, impact fee capital improvements program plan for water and wastewater facilities or impact fees are needed and shall, in accordance with the procedures set forth in the act, or any successor statute, either update the fees or make a determination that no update is necessary.
(Ordinance O-2021-003 adopted 2/4/21)