Fate staff reviews roadway, water and sewer impact-fee balances and projects

Ryan Wells, director of planning and development services, presented the City of Fate’s February 2025 semiannual report on impact fees to the joint Planning and Zoning Commission and Capital Impact Advisory Committee. The presentation reviewed three funds — roadway, water and sewer — described active projects funded by those fees and summarized current fund balances and anticipated expenses.

Wells said the roadway fund is supporting two major projects: North Bend (a $3,300,000 intersection and roadway project between C.D. Boren and State Highway 66 that he said is essentially complete except for streetlights and landscaping) and an extension of Miss May Drive, which he described as an approximately $6.5 million project to extend Miss May Drive from Prince Lane to FM 552 to serve the new Worthy Fate High School. Wells said the Miss May Drive work is at about 90% design, that the city has acquired necessary right-of-way for the city portion, and that the city is partnering with Royce City ISD and the county on cost-sharing and implementation.

On water, Wells identified Pump Station 3 (design and associated costs roughly $1.5 million; about 75% complete) and a Rochelle Road water-line upsizing (from 4-inch in a portion south of I-30) followed by repaving of Rochelle Road. Wells said easements have been acquired and the project is being initiated. He said, after those anticipated expenses, the water impact-fee fund will still show about $1,850,000 in future fund balance for the fiscal year.

For sewer, Wells said Fate is paying its proportionate share for capacity expansion at the Sabine Creek wastewater-treatment facility in Royce City, which he said serves all of Fate. He said Royce City expanded Sabine Creek to 7 million gallons per day and that Fate’s FY 2025 share is $1,320,000; that share is recalculated annually based on growth. Wells said the city also has a reimbursement agreement with the Monterra developer for sewer-main upgrades and showed photos of upgrade work in progress.

Wells explained that some future collections will be reduced through developer credits because developers previously constructed public infrastructure (he cited Avondale on Highway 66 and a phased construction of Wood Creek Boulevard as examples). He said credits are recorded as deferred or offset future revenues rather than current cash outflows.

Commission member Karen (identified in the transcript only by first name) asked whether Fate’s impact fees are low compared with neighboring municipalities and requested context about how Fate’s fees compare to nearby cities. Wells responded that the city calculates fees from a capital improvement project list tied to future growth projections and that Fate’s fees are often higher than many similarly sized East-side Metroplex cities: “We routinely tell developers our impact fees are higher than a lot of other cities. ... We’re on the higher side.” He added that the city shows council comparisons when it adopts fee structures and that the fees are intended to ensure development pays for future infrastructure needs.

Wells closed by saying the report in the packet provides the detailed fund tables and that the presentation is intended to provide transparency and meet statutory reporting obligations.

The commission did not take any formal action on the presentation; it was an informational item followed by questions.