Council approves new utility reservation fee and feasibility process for wastewater capacity

The City Council on March 25 approved an ordinance that allows developers to reserve wastewater capacity (measured in LUEs — living unit equivalents) by submitting a feasibility study and paying a reservation fee. The reservations last up to two years and include a built-in credit if the project proceeds to construction.

Under the new framework staff described, a developer seeking to secure capacity must supply a feasibility analysis and an initial escrow (noted in the draft as a $5,000 pass-through escrow) to cover engineering review. If the city engineer determines the system can support the requested capacity, the city will allocate the reserved LUEs for up to two years to align with state vesting timelines.

The ordinance includes a credit schedule: if a reservation is converted to an active construction permit within year one the reservation fee is credited toward utility fees; if construction starts in year two the developer receives a 50% credit. If no construction begins after two years the reservation expires and no credit is given.

Why it matters: Bastrop staff said the policy responds to near-term wastewater capacity constraints and gives developers a way to secure capacity while protecting the city from speculative claims on limited treatment capacity. Staff said the policy is meant to improve planning accuracy and help the city coordinate financing and design for plant expansion when needed.