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Fair Oaks Ranch sets July 17 public hearing on proposed water and wastewater impact fee increases; Friese & Nichols recommend maximum allowable rates
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Summary
The Fair Oaks Ranch City Council set a July 17 public hearing to review proposed updates to water and wastewater impact fees that would raise the maximum allowable water fee to $21,013 per service unit and the wastewater fee to $9,943, as calculated by consultant Friese & Nichols.
The Fair Oaks Ranch City Council set a public hearing for 6:30 p.m. on July 17, 2025, to receive public comment on proposed amendments to the city’s land use assumptions, capital improvement plans and water and wastewater impact fees.
Friese & Nichols presented an update required under Texas Local Government Code Chapter 395. Jessica Vassar, the firm’s consultant on the project, said the study used 10-year land-use assumptions, a 2% annual growth assumption, and the American Water Works Association meter-equivalent approach to compute living unit equivalents (LUEs). Friese & Nichols calculated an eligible capital cost for water of roughly $22 million and, after required credits, a maximum allowable water impact fee of $21,013 per LUE. For wastewater, the maximum allowable impact fee with the 50% credit is $9,943 per LUE.
Key figures presented by staff and the consultant:
- Current water impact fee (per Friese & Nichols calculations): $8,670; proposed maximum allowable: $21,013. - Current wastewater impact fee: $6,069; proposed maximum allowable: $9,943. - Existing meter count (2025): 3,255 meters; projected meters in 2035: 3,968, yielding a projected increase of 758 water LUEs over 10 years (the denominator in the water fee calculation). - Wastewater growth denominator (10-year LUEs): 412 new LUEs.
Jessica Vassar explained that the statutory calculation divides eligible capital costs (numerator) by growth in service units (denominator) and that Chapter 395 requires either a detailed credit analysis or use of a 50% statutory credit; the study applied the 50% credit to yield the maximum allowable fees above. She also warned that Senate Bill 1883, then pending at the governor’s desk, would change several rules for impact fee updates beginning Sept. 1, 2025 — including audit requirements and committee composition — and that adopting a lower fee now could be harder to revise later.
Council action: Council adopted a resolution setting the July 17 public hearing; no fee changes were adopted at the meeting. Staff and Friese & Nichols will present the full study and take public comment at the July 17 hearing before council considers final adoption.
Process and next steps: if council moves forward after the hearing, any adopted fee ordinance would need to follow the public-notice and adoption steps required under Chapter 395. Friese & Nichols and staff noted impact fees apply to new development (not existing residents) and are collected at the time of building permit.
