Planning commission approves transfer of $20.5 million in water and wastewater impact fees; drainage fees also reported

The Houston Planning Commission, acting as the Capital Improvements Advisory Committee, voted Thursday to appropriate $20,504,244.88 in water and wastewater impact fee revenues and interest to debt retirement and heard a separate semiannual drainage report that recorded $591,848.36 in drainage impact fees for May 1–Oct. 31, 2024.

The recommendation to transfer the water and wastewater fees was presented by Deidra Van Leggen of Houston Public Works, who said the accounts generated a total of $20,504,146.88 from revenues and interest during the reporting period and that the water and wastewater impact fee then in effect — $3,837.35 per service unit — represented about 34.55% of the maximum fee allowed under current law. Van Leggen also reported 5,338 water service units and 5,060 wastewater service units were recorded in the period and that 699 single-family residents were granted exemptions for being below the median housing price.

Commissioner Dwight Victor, who moved approval of the transfer, told the commission the program has steadily increased revenue since its inception and has accumulated over $649 million toward debt service. The motion to appropriate the full amount for debt retirement was seconded by Commissioner Heich and carried on a voice vote with no recorded opposition.

Separately, Houston Public Works staff presented the semiannual drainage impact fee report, which documents $591,848.36 collected between May 1 and Oct. 31, 2024 and $6,870,376.43 collected since the drainage program's inception. Commissioner Victor also moved approval of that transfer, which carried by voice vote.

Why it matters: Impact fees fund infrastructure — including water, wastewater and drainage — tied to new development. The commission acts as the Capital Improvements Advisory Committee under Chapter 395 of the Texas Local Government Code and provides the formal recommendation for how collected fees are recorded and, in this case, routed to debt retirement.

What the commission decided: The commission approved staff recommendations to appropriate the full water/wastewater impact fee receipts for the reporting period to debt retirement and to accept the drainage impact fee report. Staff noted that current capacity in the water and wastewater systems can support anticipated demands through July 1, 2025, the end of the next reporting period.