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City describes $10.5 million sanitary sewer trunk line to serve Silverthorn/Dr Horton development; developer to fund project

2414204 · February 26, 2025
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Summary

Staff described a utility functions agreement with Montgomery County MUD No. 202A for a major sanitary sewer trunk-line improvement funded by the developer; the project was presented as a $10.5 million investment that also benefits roughly 450 industrial and technology park connections.

City staff presented a proposed utilities agreement to extend water and sanitary sewer service to Montgomery County Municipal Utility District Number 202A to serve a large residential development by D.R. Horton (Silverthorn project) near the Industrial/Technology Park.

Mr. McGuire (city staff) told council the developer has agreed to fund a major sanitary sewer trunk-line improvement estimated at $10.5 million. Mr. McGuire said the trunk line would serve the development and also provide capacity for roughly 450 connections in the Industrial and Technology Park. The agreement would allow the developer to fund the full improvement and — under terms described by staff — include a provision excluding the developer from certain impact fee credits; Mr. McGuire said the developer’s estimated impact (based on prior studies) was approximately $9,000,000 and the developer’s payment of $10.5 million therefore represented about a $1.5 million advantage to taxpayers in staff’s calculation.

Staff recommended the utility functions agreement as a fair business move because it avoids immediate taxpayer funding for the trunk line while securing capacity for both the private development and nearby industrial connections. Council did not take a formal vote at the workshop; the agreement was presented for council consideration on the action agenda.