* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:04] EVERYONE, IT'S FIVE 30. IT [1. CALL TO ORDER – 5:30 PM] IS, UH, TIME TO HOLD THE SEMI-ANNUAL IMPACT FEE ADVISORY COMMITTEE MEETING. [2. Approve minutes of May 5, 2025.] UH, THIS EVENING. WE'LL HAVE, UH, FIRST WE, I GUESS THE ORDER OF THE MINUTES, APPROVAL OF MINUTES FROM THE LAST MEETING. UM, SO IS THERE A MOTION TO APPROVE THOSE MINUTES OF MAY 5TH, 2025. SO MOVED BY COMMISSIONER HYLER. IS THERE A SECOND? SECOND ONE, SIR. NO, NO, BUT WE'RE NOT ON THIS LIST. MR. BIRD. I DON'T HAVE A SCREEN. YOU'VE GOT NO SCREENS? OH, I HAVE A SCREEN, BUT IT DOESN'T SAY ANYTHING. OKAY. OKAY. WELL, UM, I GUESS WE CAN FIX THAT. UM, CAN I GO? NO, NO, YOU CANNOT. YOU'RE NOT EXCUSED. NO, NO, NO, NO. IT MEANS YOU'RE STILL HERE. ALWAYS LOOKING FOR A CHANCE. WELL, LET'S JUST DO THIS THEN. WE'VE GOT A MOTION AND A SECOND FOR AND MINUTES. ALL IN FAVOR SAY AYE. AYE. AYE. ANY OPPOSED? MOTION [3. Receive a presentation on the status of the impact fees.] CARRIES. OKAY. ITEM THREE, PRESENTATION ON THE STATUS OF THE IMPACT FEES LED BY ANDREW. MR. WILKINSON, PLEASE COME FORWARD AND, ALRIGHT, THANK YOU. GIVE US YOUR BEST, BEST THOUGHTS. APPRECIATE THAT. THANK YOU FOR HAVING ME. SO WELCOME. THIS IS THE IMPACT FEE ADVISORY COMMITTEE MEETING. AS YOU MENTIONED, WE MEET SEMI-ANNUALLY, SO THIS IS OUR SECOND MEETING OF THE YEAR TO SATISFY THE REQUIREMENT BY STATE LAW TO MEET TWICE PER YEAR. SO TODAY IS TYPICAL FOR OUR STATUS REPORT. WE'LL GO OVER WHAT IMPACT FEES ARE, THE ASSESSMENT COLLECTIONS, THE ROLE OF THE ADVISORY COMMITTEE, UH, AS WELL AS REFRESHING OUR MEMORY ON THE LAST UPDATE BACK IN 2023. UH, WE'LL ALSO SPEND A LITTLE BIT OF TIME ON THE RECENT LEGISLATIVE UPDATES TO IMPACT FEES. THERE'S BEEN QUITE A FEW THAT HAVE COME OUT AS WELL AS UPDATES TO THE BALANCES AND THE, UH, CAPITAL IMPROVEMENT PLAN PROJECTS. SO WHAT ARE IMPACT FEES? AGAIN, THEY'RE CHARGED TO RECOVER INVESTMENT IN INFRASTRUCTURE THAT'S DIRECTLY RELATED TO NEW DEVELOPMENT. IT'S NOT CHARGED TO ANY EXISTING DEVELOPMENT, IT'S NEW DEVELOPMENT. SO IT'S INFRASTRUCTURE REQUIRED AS PART OF THAT NEW DEVELOPMENT. AND WE'RE ALLOWED TO DO THIS PER THE FRAMEWORK IN CHAPTER 3 95 OF THE LOCAL GOVERNMENT CODE. AND THAT MONEY, AGAIN, CAN ONLY BE SPENT ON PROJECTS WITHIN THE IMPACT FEE CAPITAL IMPROVEMENT PLAN. SO IT HAS TO BE IN THE CIP UH, PART AS PART OF THE IMPACT FEE ORDINANCE. IMPACT FEES ARE ASSESSED AT THE TIME OF PLATTING. SO THERE'S A NOTE IMPACT FEE ASSESSMENT NOTE YOU'LL FIND ON THE PLAT. AND IT REFERENCES AN IMPACT FEE ORDINANCE, UH, SPECIFICALLY OF WHEN THAT PLAT WAS RECORDED. SO IF, LET'S SAY A PLAT WAS RECORDED FIVE YEARS AGO, IT WAS THE IMPACT FEE ORDINANCE AT THAT TIME, THAT'S NOTED IN THAT IMPACT FEE NOTE. THAT'S WHAT THE DEVELOPMENT FOR EACH OF THOSE LOTS IN INCLUDED IN THAT PLAT WOULD BE SUBJECT TO. IS THAT IMPACT FEE ORDINANCE NUMBER THAT'S RECORDED ON THE PLAT? UM, TYPICALLY IMPACT FEES ARE PAID AT THE TIME OF BUILDING PERMIT OR UTILITY APPLICATION. WE USUALLY COLLECT IT AT THE TIME OF UTILITY APPLICATION AND THEY'RE TRACKED IN SEPARATE ACCOUNTS FOR BOTH WATER AND WASTEWATER THAT ARE INTEREST SPARING ACCOUNTS. SO THE ROLE OF THE ADVISORY COMMITTEE IS TO, FOR YOU, IS TO PROVIDE INPUT TO THE IMPACT FEE DEVELOPMENT PROCESS AS WELL AS REVIEWING THE LAND USE ASSUMPTIONS, THE CAPITAL IMPROVEMENT PLAN AND CALCULATIONS. WHEN WE GO THROUGH AN UPDATE WITH THE IMPACT FEES, AND THIS IS TYPICALLY DONE, UM, EVERY FIVE YEARS, IT'S THE MAXIMUM WE CAN GO WITHOUT DOING ANY CHANGES TO THE IMPACT FEE ORDINANCE. UM, I'LL GO OVER IN A MINUTE. THE NEW LAW CHANGE REGARDING A MINIMUM OR A MINIMUM OF THREE YEARS BEFORE HAS TO GO BY BEFORE AN INCREASED IMPACT. FEES CAN BE IMPLEMENTED AND YOU LOOK AT THE IMPACT FEE, UH, LAND USE ASSUMPTIONS, CAPITAL IMPROVEMENT PLAN AND CALCULATIONS, AND THEN PROVIDE, UH, A RECOMMENDATION TO COUNCIL BASED ON THE REVIEW OF THAT. OUR LAST UPDATE WAS IN 2023, WHICH WE CHA THE CITY COUNCIL APPROVED A MAXIMUM FEE OF $7,629, WHICH WAS A DECREASE FROM OUR PREVIOUS IMPACT FEE AT 9,557. SO THAT IS OUR, OUR CURRENT ORDINANCE IS NOW 2023 DASH 18. SO RECENT LEGISLATIVE CHANGES ARE NUMEROUS. I WANTED TO GO OVER A LITTLE BIT OF THEM TONIGHT SINCE THAT WAS THE BIGGEST CHANGE SINCE OUR LAST MEETING IN MAY OF THIS YEAR. UM, ONE OF WHICH INCLUDED, UM, APPROVAL OF THE IMPOSITION OF IMPACT FEE REQUIRES NOW A TWO THIRDS VOTE INSTEAD OF WHAT WAS ORIGINALLY A SIMPLE MAJORITY. SO NOW INSTEAD OF THREE OF THE FIVE COUNCIL MEMBERS WILL TAKE FOUR OF THE FIVE. IT HAS TO BE AN AFFIRMATIVE VOTE TO PASS ANY IMPACT FEE CHANGES. AND AS I SAID PREVIOUSLY, IMPACT FEES SHALL NOT BE INCREASED FOR THREE YEARS FROM THE DAY OF THE FEE THE FEE WAS ADOPTED OR THE MOST RECENTLY INCREASED. SO OUR LAST UPDATE WAS MAY OF 2023. SO TECHNICALLY WE WOULD NOT BE ALLOWED TO UPDATE OR INCREASE THE FEES UNTIL MAY OF 2026 OR LATER. UM, THE ADVISORY COMMITTEE MEMBERS MUST ALSO REPRESENT 50% [00:05:01] OF THE REAL ESTATE DEVELOPMENT OR BUILDING INDUSTRY TRADES, WHICH WE'VE DOUBLE CHECKED THAT AND WE FOUND THAT, UH, WE'RE IN COMPLIANCE ALREADY. SO NO CHANGES NECESSARY THERE AS FAR AS ALL OF YOU SITTING HERE TODAY. SO THAT'S GOOD. UM, ANOTHER UPDATE INCLUDED THAT AN INDEPENDENT FINANCIAL AUDIT MUST BE PERFORMED BY AN INDEPENDENT AUDITOR PRIOR TO INCREASING AN EXISTING IMPACT FEE OR ADOPTION OF A NEW IMPACT FEE. SO THIS INDEPENDENT AUDITOR MUST, UH, NOT HAVE DONE BUSINESS WITH THE CITY IN THE LAST 12 MONTHS. IT HAS TO BE, YOU KNOW, HAD THEY, WE CAN'T USE AN EXISTING AUDIT THAT WE'VE HAD DONE FOR THE CITY. IT HAS TO BE INDEPENDENT JUST FOR THAT IMPACT FEE CHANGE THAT THAT'S HAPPENING. AND IT HAS TO BE PUBLISHED, UH, 30 DAYS PRIOR TO THE PUBLICATION OR MADE AVAILABLE TO THE PUBLIC, I SHOULD SAY, 30 DAYS PRIOR TO THE PUBLICATION OF NOTICE OF HEARING FOR THAT IMPACT FEE CHANGE THAT'S BEING REVIEWED. ANOTHER CHANGE INCLUDES THAT THE INFORMATION ABOUT LAND USE ASSUMPTIONS IN CIP MUST BE MADE AVAILABLE TO THE PUBLIC AT LEAST 60 DAYS PRIOR TO THE DATE OF THE FIRST PUBLICATION OF NOTICE OF HEARING. THIS PREVIOUSLY WAS 30 DAYS. SO IT JUST INCREASES THAT AMOUNT OF TIME THAT THE PUBLIC HAS TO SEE THE CHANGES THAT ARE BEING PROPOSED. IT'S A LITTLE MORE TRANSPARENCY. THIS ONE I'VE USED THE WHOLE SLIDE FOR 'CAUSE IT'S PROBABLY THE BIGGEST UPDATE AS OF, UM, THIS LAST, UH, LEGISLATIVE SESSION. SO THIS ONE IS FOR, UH, IT'S CALLED SB 14. IT'S CONSERVATION AND REUSE CREDITS AGAINST WATER AND WASTEWATER IMPACT FEES. IT REQUIRES THAT A POLITICAL SUBDIVISION, UH, PROVIDE CREDIT AGAINST WATER AND WASTEWATER IMPACT FEES TO A BUILDER OR DEVELOPER FOR THE CONSTRUCTION CONTRIBUTION OR DEDICATION OF AN ELIGIBLE FACILITY SYSTEM OR PRODUCT THAT RESULTS IN WATER REUSE CONSERVATION OR SAVINGS. SO ALL THAT MEANS BASICALLY IS THAT THE, THE CITY WILL HAVE TO PROVIDE SOME FORM OR METHOD OF CREDIT FOR IMPACT FEES FOR DEVELOPERS TO, IF THEY INSTALL SOME ELIGIBLE FACILITY, WHICH I'LL GO INTO A SECOND INTO IN A SECOND HERE, UM, THAT THEY, WE HAVE TO SOME SYSTEM IN PLACE THAT THEY CAN APPLY FOR A CREDIT TO THEIR IMPACT FEE THAT THEY'RE DUE. AND THOSE FACILITIES THAT ARE ELIGIBLE, UM, IT DOESN'T NECESSARILY OUTLINE SPECIFICALLY IN THE NEW LAW CHANGE WHAT THOSE FACILITIES LOOK LIKE, BUT THEY CAN BE DEDUCED AS FACILITIES THAT WOULD, UM, REDUCE WATER CONSUMPTION OR SUPPLY REQUIREMENTS, UM, DECREASE THE NEED FOR WASTEWATER COLLECTION, DIMINISH THE DEMAND OF STORM WATER OR DRAINAGE FACILITIES OR INTEGRATE PRACTICES OR TECHNOLOGIES THAT ACHIEVE WATER EFFICIENCY. SO ESSENTIALLY LOOKING AT WAYS THAT WOULD PUT LESS, UH, DEMAND ON THE PUBLIC INFRASTRUCTURE, UM, AND PROVIDE EFFICIENCY ALL AROUND SO THAT THOSE ARE FACILITIES THAT WILL HAVE TO VET AND LOOK AT WHAT THEY MAY LOOK LIKE AND, UH, AS WELL AS THE, UH, PROCEDURES AND CALCULATIONS THAT WOULD NEED TO BE PUT INTO PLACE FOR APPLYING THOSE CREDITS IN A FAIR AND CONSISTENT MANNER. AGAIN, THE LAW IS PRETTY VAGUE ON WHAT THE, UH, CALCULATION OF THE CREDITS WOULD LOOK LIKE. UM, SO IT WOULD TAKE SOME COORDINATION ON OUR END AND WE'RE LOOKING AT, AT IT ALREADY WITH M**K, UM, OUR LEGAL COUNSEL AS WELL AS OUR CONSULTANT AT, UH, WHAT LANGUAGE UPDATES NEED TO BE MADE TO THE IMPACT FEE ORDINANCE TO COMPLY WITH THIS NEW LAW. SO THAT'LL BE SOMETHING THAT WE'RE GONNA BRING BEFORE COUNSEL, LIKELY BY DECEMBER, JUST SO THAT WE CAN BE IN COMPLIANCE BY THE JANUARY 1ST, 2026 EFFECTIVE DATE. SO JUMPING BACK TO OUR CURRENT IMPACT FEES, THIS IS JUST A TABLE FROM OUR CURRENT IMPACT FEE ORDINANCE TODAY. UM, ONE LUE OR A FIVE EIGHT INCH METER SIZE IS EQUAL TO THAT $7,629 COMBINED FEE. AND HERE'S HOW WE COMPARE TODAY TO OTHER MUNICIPALITIES IN THE AREA. WE'RE NOT THE, THE LOWEST, BUT WE'RE ALSO NOT THE HIGHEST UPDATE ON IMPACT FEE PAYMENTS. THIS SHOWS YOU, SINCE WE LAST MET IN MAY, OUR PAYMENTS HAVE INCREASED ALMOST TWO TIMES. I BELIEVE IT WAS ONE 15 AND 1 45, 145 ON THE WATER AND ONE 15 ON THIS WASTEWATER. SO IMPACT FEE PAYMENTS ARE, UM, ALSO INCREASING STEADILY FROM THE LAST TWO YEARS. IT'S GOOD NEWS. SO IN IN RELATION TO THAT, YOU WOULD NOTE THAT THE COLLECTIONS HAVE ALSO INCREASED TO 4 MILLION 145, 950. THAT'S AN INCREASE OF 2 MILLION SINCE OUR LAST MEETING. EXPENDITURES, UH, NOTHING REALLY TO NOTE. THEY'RE JUST THE SAME, UH, DEBT SERVICE PAYMENTS THAT ARE BEING EXPENDED AS WELL AS, UH, CAPITAL IMPROVEMENT PLAN PROJECTS THAT ARE UNDERWAY. AND YOU CAN SEE OUR BALANCE HAS ALSO SLIGHTLY INCREASED. AND AGAIN, IT HASN'T INCREASED MAYBE AS MUCH AS WE HAD THOUGHT BECAUSE WE'RE, UM, ONGOING IN, IN OUR CURRENT CAPITAL IMPROVEMENT PLAN PROJECTS, UM, AND DESIGN AND SOME IN CONSTRUCTION AS WELL. SO JUST TO GO OVER THAT A LITTLE BIT, GIVE YOU AN UPDATE ON THOSE PROJECTS. UH, THE WATER TREATMENT [00:10:01] PLANT EXPANSION, WE JUST WRAPPED UP A PILOT STUDY FOR THE TREATMENT, UH, PROCESSES THAT WILL BE INCLUDED IN THAT NEW WATER TREATMENT PLANT. AND WE ANTICIPATE GOING INTO DESIGN OR SELECTING A FIRM AND GOING INTO DESIGN THIS FISCAL YEAR FOR THAT TREATMENT PLANT EXPANSION. THE, UH, AMON ROAD TANK AND PUMP STATION PROJECT IS UNDERWAY IN CONSTRUCTION THAT STARTED IN JULY. UM, GOOD PROGRESS IS BEING MADE THERE. AND FOR THE RECLAIM WATER, WE JUST, THE BIG NOTE IS THE W-W-T-R-C STORAGE TANK AND PUMP STATION. WE ARE WRAPPING UP FINAL DESIGN ON THOSE PLANS AND, UM, ANTICIPATE GOING OUT TO BID AND CONSTRUCTION THIS NEXT NEXT YEAR. AND, UM, ON THAT NOTE, WE'VE, AS WE'VE REFINED THE SCOPE AND WHAT'S NEEDED FOR THAT EXPANSION FOR THE RECLAIM STORAGE TANK AND PUMP STATION, AS WELL AS, UM, I'LL SKIP OVER TO THE WASTEWATER CIP AS WELL AS THE, UH, WASTEWATER TREATMENT EXPANSION. WE'VE NOTICED THAT THERE'S A LOT OF, UM, DIFFERENCE IN COSTS SINCE THE CIP WAS FORMULATED LAST TIME. THE, THE IMPACT FEES WERE LOOKED AT, UM, INCLUDING THIS, THE FIRST EXPANSION, WHICH INCLUDES A RE-RATE OF THE PLANT FROM WHAT IT IS TODAY, 1.4 IN GD TO 2.1 IN GD. AND THEN THE SECOND TREATMENT PLANT EXPANSION WAS THAT, IS THAT, UH, FIRM EXPANSION TO 3.9 IN GD. LOOKING AT ALL THE COMPONENTS AND EVERYTHING THAT'S GOING INTO THAT NOW THAT WE'RE GETTING INTO DESIGN, WE'RE SEEING A COST, A SIGNIFICANT COST INCREASE. UM, AND SO BECAUSE OF THAT, WE'RE RECOMMENDING THAT WE START A STUDY NOW ON LOOKING AT THE LAND USE PROJECTIONS AND UH, CAPITAL IMPROVEMENT PLAN TO SEE IF A CHANGE IS NECESSARY TO THE IMPACT FEES. UM, JUST BECAUSE OF THESE INCREASED COSTS WE'RE SEEING ON THE PROJECTS. KIND OF JUMPED AHEAD THERE, BUT THAT'S ON THIS SLIDE HERE. SO TWO THINGS TO KIND OF THINK ABOUT OR TO FOR US TO MULL OVER IS, ONE IS WE RECOMMEND UPDATES TO THE IMPACT FEE ORDINANCE, UH, TO COMPLY WITH THAT NEW STATE LAW THAT I JUST WENT OVER S SP 14 AND WE'RE ALREADY JUST STARTING THE COORDINATION WITH, UM, OUR LEGAL AND AS WELL AS OUR CONSULTANT TO DO THAT. AND, UM, WE ALSO ARE RECOMMENDING THAT INSTEAD OF WAITING TILL 2028, WHICH WAS WHEN WE ARE DUE TO DO THE NEXT LAND USE ASSUMPTION, POPULATION PROJECTION UPDATE, START THAT STUDY NOW DUE TO THE INCREASED COSTS IN PROJECTS THAT WE'RE SEEING IN OUR CIP. UM, WITH THAT, OUR NEXT MEETING IS SCHEDULED FOR MAY 4TH OF NEXT YEAR, BUT WE MAY END UP HAVING A MEETING SOONER IF WE DO END UP MOVING FORWARD WITH THE STUDY TO PROVIDE YOU AN UPDATE ON THAT. SO LOOKING UP TO ANY QUESTIONS THAT YOU MAY HAVE. THANK YOU MR. WILKINSON. UM, I KNEW THAT DEVELOPMENT LOBBY WAS STRONG IN AUSTIN, BUT I HAD NO IDEA HOW STRONG THESE ARE REALLY ONEROUS PROVISIONS PLACED UPON MUNICIPALITIES TO TRY TO RECAPTURE COSTS ASSOCIATED WITH DEVELOPMENT. MM-HMM . SO FOR EXAMPLE, THE THREE YEAR RESTRICTION ON WHEN YOU CAN RAISE IMPACT FEES FOR US THAT THREE YEARS STARTED, WAS IT MAY OF 2023? YES. SO THE EARLIEST WE COULD DO IT, IT WOULD BE MAY OF NEXT YEAR TO IMPLEMENT THE CHANGES OR TO IMPLEMENT INCREASING THE IMPACT FEES, BUT THEN YOU'VE GOT THESE LAND USE ASSUMPTIONS, ET CETERA, THAT MUST BE PUBLISHED 60 DAYS BEFORE THE FIRST PUBLIC HEARING AND AN AUDIT, UH, NEEDS TO BE PERFORMED. DOES THAT AUDIT, DO YOU KNOW, WILL IT TAKE INTO CONSIDERATION SINCE YOU CAN'T RAISE IMPACT FEES FOR THREE YEARS, DOES IT TAKE INTO CONSIDERATION INFLATIONARY PROJECTIONS OF THE COSTS OF, OF THESE CONNECTIONS OVER THAT THREE YEAR PERIOD? I MEAN, THIS IS A BRAND NEW LAW, SO MAYBE MR. MCKINNEY, WHAT ARE YOUR THOUGHTS? I MEAN, HOW, HOW LOGISTICALLY WILL ALL THIS HAPPEN SO THAT CITIES DON'T FIND THEMSELVES AFTER YEAR TWO OR THREE IN A BIND? WELL, I'M GLAD YOU ASKED THAT QUESTION 'CAUSE WE JUST HAD THAT CONVERSATION ON THE CITY ATTORNEY LIST SERVER AND WE DON'T HAVE AN ANSWER RIGHT NOW. OKAY. SO IT IS A PROBLEM. IT WILL BE, YEAH, YOU'RE GONNA HAVE TO GUESS REALLY. AND THEN THE AUDIT'S GONNA HAVE TO, I SUPPOSE, BLESS AN EDUCATED GUESS AS TO WHAT THESE COSTS ARE GONNA BE A COUPLE YEARS DOWN THE ROAD. WOW. YEAH. AND PREVIOUSLY THERE WAS NO REQUIREMENT FOR AN AUDIT. NO. SO ALL THESE REQUIREMENTS, THIS THIS NEW TO EVERYBODY. WOW. OKAY. GOOD LUCK, , YOU'RE GONNA EARN YOUR MONEY THE NEXT FEW YEARS, AREN'T YOU? UM, ANY OTHER QUESTIONS, COMMENTS FROM THE IMPACT FEE ADVISORY COMMITTEE? ALRIGHT THEN, MR. WILKINS, THANK YOU FOR YOUR PRESENTATION. THANK YOU. APPRECIATE IT. ANYTHING ELSE, MS. STARK OR MR. MCCAMEY? IF NOT, WE'LL ADJOURN THE ADVISORY COMMITTEE AND WE'VE GOT 15 MINUTE RECESS BEFORE, UH, PNC STARTS AT SIX. SO THE V UH, IMPACT ADVISORY COMMITTEE IS NOW ADJOURNED. THANK YOU. THANK YOU ANDREW FOR YOUR PRESENTATION. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.