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Consultant outlines process, bounds and tradeoffs of potential water/wastewater impact fees
Summary
HDR senior project manager Grady Reid presented impact-fee basics, Chapter 395 requirements, and a potential study process; he estimated a typical combined water/wastewater fee in the region could range roughly $3,000–$7,000 per living-unit equivalent but emphasized a study is required to set a local number.
Grady Reid, senior project manager for HDR Engineering, gave a 45-minute "Impact Fee 101" presentation to the Planning Commission and City Council on Jan. 27 outlining how Beaumont could study and adopt water and wastewater impact fees and what those fees would and would not fund.
Reid said impact fees are "a one-time payment... levied on new typically or expanded development" to pay for capital infrastructure needed to serve growth rather than operations and maintenance. He cited Chapter 395 of state law as the statutory framework that governs impact-fee development, credits and reporting requirements. "Impact fees are not a perfect panacea for this," Reid told the meeting, cautioning that timing differences can leave cities advancing capital costs before fees are collected.
Reid described the standard process: define the impact-fee service area, estimate 10-year demand (typically…
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