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Manvel advisory committee forwards impact‑fee review after minor findings
Summary
Consultants told the Capital Improvements Advisory Committee that an agreed‑upon procedures review of water and wastewater impact fees found two minor findings — a small undercharge in three permits and unallocated interest — and the committee voted unanimously to forward the report to city council for public display and hearing.
The Capital Improvements Advisory Committee of the City of Manvel voted unanimously to forward an agreed‑upon procedures review of the city’s water and wastewater impact fees to city council for public display and the required public hearing. The report was prepared by Baker Tilly and covered the three fiscal years ending Sept. 30, 2024.
Justin Holcomb, principal at Baker Tilly, summarized the engagement and its results. “We did have 2 findings as part of our testing,” Holcomb said during his presentation. He told the committee the first finding involved three permits that were charged a rate that did not match the ordinance adopted in 2021; the net effect was a $20 undercharge over the sample. The second finding was that interest earned on impact‑fee cash balances had not been recorded in the impact‑fee funds for a portion of the testing window. Holcomb said the city had begun allocating interest to the impact‑fee funds by 2024.
The consultant said the testing period (Oct. 1, 2021–Sept. 30, 2024) aligned with the latest closed financial statements available when the engagement began. He emphasized that the engagement performed agreed‑upon procedures required by the recent state law changes, not a financial audit, and that agreed‑upon procedures were the industry practice for the task the legislature described.
Committee members asked how soon the 2025 activity could be reflected in future reviews and whether the identified issues had been corrected. City staff confirmed the small undercharge and the commercial refunds tied to development agreements had been corrected internally, and Holcomb said the matters were not material to his procedures but must be reported.
Committee member [name redacted per transcript] moved that the advisory committee submit a favorable recommendation to council to place the Baker Tilly report on public display and proceed with the required hearing; another member seconded and the motion passed unanimously.
Next steps laid out by staff and consultants include finalizing the report, posting it for a 60‑day public display and scheduling the required public hearing at least 30 days after the advertisement. The advisory committee must file its written comments to council at least five business days before the hearing.
