Manvel advisory committee forwards semiannual CIP report and hears plan to update water and wastewater impact fees

The Manvel Capital Improvement Advisory Committee voted to approve and forward its semiannual capital improvement plan report to the City Council with a favorable recommendation after receiving an update on water and wastewater impact fees.

The advisory committee’s presentation, delivered by consultant Ishita (name shown in meeting materials), reviewed how impact fees work and described the 2021 study that underlies Manvel’s current water and wastewater fees. “Impact fees are one‑time charges that is assessed for new developments so they can pay the portion of their share for new infrastructure and growth,” Ishita said during the presentation. She told the committee the city’s impact‑fee service area and the capital improvement projects used in the 2021 calculation remain central to any update.

Why it matters: impact fees shift some infrastructure cost from existing ratepayers to new growth; state law sets procedures and time frames for studies and adoption. The committee was told that Manvel’s 2021 study used a 10‑year impact‑fee period and applied a 50% credit method in the calculation, meaning the adopted schedule collects roughly half of the full calculated per‑connection cost and the remainder is planned to be recovered through utility rates or other local revenue.

Details from the presentation and committee discussion

• Timing and authority: Committee members were reminded that impact fees in Texas are governed by the Texas Local Government Code, Chapter 395, and that jurisdictions must revisit fees on a statutory schedule. Committee members had previously recommended updating Manvel’s fees earlier than the five‑year deadline; staff said the City Council included funding in this year’s budget to begin an update.

• Planned update and consultant work: Dan (city staff) and the consultant said the city will pursue an update to the water and wastewater impact fee study this year. Dan told the committee that “Freese and Nichols is working on a proposal for us” to perform the update. The committee was given an approximate planning estimate for the combined water/wastewater study (with roadway and stormwater added to scope) of about $150,000.

• Credit method and fee levels: The presentation and subsequent comments explained the 50% credit method used in 2021. Using figures discussed in the meeting, committee members and staff described a rough example in which the raw cost per connection before the credit would be about $20,000 and the adopted, credited figure collected from new connections was roughly $10,000 (the 50% credit reduces the fee collected at adoption). As Dan summarized: “So we’re collecting half of it from impact fees. The other half has to come from water and sewer rates, property tax, you know, wherever else it can come from.”

• What impact fees may cover: The consultant reviewed the standard categories that are impact‑fee eligible: capital improvements that serve growth within the fee period (construction, design, survey, engineering and financing costs) and noted that study costs themselves are typically eligible and were included in prior calculations.

• How fees are assessed and collected: Committee members and staff discussed that fees are assessed per connection (per meter) and vary by meter size (a three‑quarter‑inch meter is the basic service unit; larger commercial meters are multiplied by service‑unit equivalencies). Staff explained that fees are typically assessed when plats are recorded and collected at building permit, though some developers pay earlier for entire subdivisions.

Committee action and next steps

The committee voted to approve the semiannual capital improvement plan report and forward it with a favorable recommendation to City Council. A motion to approve was made and seconded; the committee chair called the question and the motion passed (vote tally not specified in the transcript). Committee members discussed scheduling a follow‑up meeting later this year (suggested months included June, July or August) after the consultant proposal and any City Council direction are available.

What was not decided

No fee increase or ordinance was adopted during the meeting. The committee’s role is advisory: it will review the consultant’s update, provide written comments to City Council during the adoption process, and continue semiannual reviews of impact‑fee fund activity and eligible projects.

Ending

Committee members asked staff for follow‑up information on the consultant scope, the final proposal from Freese and Nichols, and updated project cost estimates to be used in the recalculation. Staff said they will return with the proposal and more detailed cost and schedule information for the committee and City Council to consider.