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Council approves updated water and sewer connection (impact) fees; staff to draft ordinance
Summary
After a consultant study, council approved updated water and sewer connection fees (roughly a 9.4% combined increase phased over two years as proposed) and authorized staff to move the ordinance forward with legal review.
The Titusville City Council on March 11 approved a consultant's water and sewer impact-fee study and directed staff to proceed with ordinance updates and legal review. The study recommended a combined increase of about 9.4% over current fees, to be phased in two steps (a partial increase in year one followed by full implementation in year two) unless council chooses different timing.
Lede facts: Staff and consultant Kimley-Horn/retained rate expert presented the methodology used to calculate connection/impact fees, which includes existing plant capacity, allowable capital projects tied to growth (excluding renewal-and-replacement items), per-ERC (equivalent residential connection) demand factors and meter-size scaling. Staff recommended council adopt the study and authorize ordinance drafting and outside counsel review as needed.
Why it matters: Impact/connection fees recover the capital cost of growth-related water and sewer infrastructure. The study calculated fees by meter size and ERC, producing higher fees for larger meters and industrial connections while using the single-family ERC as the baseline unit.
Council discussion and direction: Members discussed city policy priorities and incentives. Several council members voiced concern about raising fees for single-family home connections because the council wants to encourage housing construction; others urged that growth pay its fair share. The consultant and staff explained legal constraints on fee methodology: the ERC baseline and the statutory methodology limit arbitrary deviations without supporting cost allocations. The consultant also noted the next wave of impact-fee studies (fire, city hall, and other public facilities) will follow.
Motion and outcome: A motion to approve the study, implement the consultant's recommendations and proceed with drafting the ordinance, including authorization for city attorney to use outside counsel (Thomas Cloud) for review, carried unanimously.
Implementation: Staff will prepare the ordinance language and return to council with first reading at the next published meeting cycle; council discussed phasing and timing (the consultant proposed an October 2026 full implementation after an initial step) and authorized legal review and follow-up reports to council.
