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City hears legal overview of water and wastewater impact fees; council not yet committed
Summary
Attorney David Klein reviewed how Texas impact fees work under Chapter 395: a two-step process (land use assumptions and CIP, then fee calculation), required public hearings with 30-day notice, and an estimated study cost potentially under $25,000; council received the information but made no commitment.
The Mineral Wells City Council heard an informational presentation on Oct. 1 about water and wastewater impact fees from attorney David Klein of Lloyd Goslingk, Rochelle & Townsend in Austin. Klein described impact fees as a one-time charge on new development designed to pay for central facilities (for example, treatment plants and major mains) rather than charging existing customers through rates or taxes.
Klein explained the two-step statutory process under Texas Local Government Code Chapter 395: adopt land use assumptions and a capital improvements plan (CIP), then calculate a maximum allowable impact fee based on projected costs and growth. The council must hold public hearings with published notice; Klein said each public-hearing step effectively requires about three months of lead time when accounting for notice and scheduling.
Councilmembers asked whether impact fees could be used for older drainage problems (no), about the commonality of impact fees in rural areas, whether fees are one-time or ongoing (they are one-time), retroactivity for projects already under construction (typically not retroactive), and estimated cost to prepare the study. Klein said much of the required data may already exist in the city’s CIP and that preparing the documents could be “far less than” $25,000; those preparation costs can be factored into the impact-fee calculus.
The mayor emphasized that tonight’s presentation did not commit the council to pursuing impact fees; it was an educational step. Council will consider whether to proceed after staff and consultants examine the city’s CIP, demographics and cost estimates.
