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Montgomery council delays $995,000 impact-fee payments for Superior Properties plat; fees to be paid at time of utility connection
Summary
Council approved an amendment to a Superior Properties development agreement allowing the $995,000 impact-fee assessment to be recorded now but paid later, when each lot requests water/wastewater service; council also approved the final plat contingent on the amendment.
The Montgomery City Council on May 12 approved an amendment to the development agreement for the Superior Properties subdivision that delays payment of water and sewer impact fees until the time each lot connects to the city’s utility system.
City staff explained the amendment would keep the assessment methodology in place — locking in the calculated assessment now — but allow individual lot owners or developers to pay impact fees when they request connection, rather than paying the entire fee at the time of plat recording. Staff reported the assessment calculated under today’s assumptions for the plat totaled about $995,000, which was derived from assumed meter sizes and projected uses for the multifamily, institutional and commercial pads.
Council members asked whether delaying payment would mean the city could lose needed funds for capital improvements and whether rates could change during long buildout periods. Staff told the council the recommended approach is to assess now and require payment at the time of connection, with each connection assessed at the current rate on the day it requests service; that way the city will not retroactively charge a lower rate after future increases.
Council approved the amendment with an addendum clarifying that impact fees will be assessed and paid at the time of connection at the prevailing rates on that date. Council then approved the final plat for Superior Properties (development number 2215) contingent on that agreement and on the usual bonds and security documents.
The council debate included questions about financing and precedent: some members expressed concern about setting a different collection schedule for one development while staff emphasized the amendment is written to require payment at connection and to record assessment parameters up front. Under the approved approach, amounts for those lot connections will be determined at permit/connection time and paid before service is provided.
