Bastrop council approves first reading to update wastewater impact fees using 6 MGD growth scenario

The Bastrop City Council on Feb. 25 approved a first reading to update the city’s wastewater impact fees, using a 6‑million‑gallons‑per‑day (MGD) plant scenario in the fee calculation. The ordinance (first reading, item 11.a) advances the formal process required by state law and will return for a second reading as required by the Local Government Code.

Why it matters: Impact fees allocate a share of the capital cost of new infrastructure to new development rather than to existing ratepayers. The council’s decision to calculate fees based on a 6 MGD expansion increases the capital costs captured in the fee calculation now (compared with a smaller 4 MGD scenario) so a larger share of future plant expansion costs can be covered by new development. Staff and consultants said the 6 MGD assumption better anticipates projected growth, the city’s Certificate of Convenience and Necessity service area, and likely timing for additional capacity needs.

What staff told council: The consultant and staff presented a ten‑year growth look that projected roughly 3,582 new wastewater service units over the planning period. The study shows maximum allowable fees before credits; city policy applied a 50% revenue credit (reducing the maximum allowable fee roughly in half). Staff explained the fee is limited to capital‑eligible costs (construction, land, engineering, financing) and cannot include operations or existing system upgrades unrelated to new growth. City staff emphasized the need to keep pace with projected growth to avoid shortfalls and to plan financing strategies that may include debt, impact‑fee collections and other mechanisms.

Public comment and council debate: Council members asked about how the service‑unit projection maps to gallons per day and how quickly the city would need full additional capacity. Staff and the consultant said the model anticipates additional capacity needs and that the city should plan for expanded treatment capacity (council heard that the city could require the 6 MGD expansion by about 2030 under expected growth patterns). Councilmembers emphasized the tradeoff between placing more of the cost on new development versus on existing customers through rates.

Next steps: The ordinance was approved on first reading and will return for a second reading per the statutory schedule and staff’s public notice recommendations. The council also scheduled an informational visit to the wastewater treatment plant (staff indicated a site trip would be held) and asked staff to provide further financing scenarios and options for spreading costs over time.

Sources: Development Services presentation and the consultant’s impact fee study presented as exhibits in the Feb. 25 packet.