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Smithville staff recommends flow-based impact fees; board directs earlier fee schedule change
Summary
City staff proposed restructuring water and wastewater impact fees by meter flow and implementing annual increases; the Board directed staff to bring fee-schedule adjustments forward sooner to address development pressure and inequities.
City staff told the Smithville Board of Aldermen on April 29 that the current impact-fee structure—charging the same fee for multiple meter sizes—does not reflect actual system impacts and should be rewritten based on meter flow.
Public Works Director Chuck Soules said staff recommends revising the fee schedule to charge by flow capacity and to implement annual increases. He explained that the current single-rate structure lets some multifamily developments install a one-inch meter but pay the lower fee, undermining fairness and revenue for growth-related projects. "A three-quarter inch meter can deliver 23 gallons per minute, while a one-inch meter can provide 37 gallons per minute," Chuck said, illustrating the rationale for flow-based fees.
Staff displayed the current fee schedule (for example, the 5/8-, 3/4- or 1-inch meter fee is listed as $3,100 in the presentation) and proposed new rates tied to meter sizes. Staff also presented impact-fee revenue history and noted that current impact-fee revenues are small relative to project needs.
After the presentation the Board directed staff to bring forward adjustments to the impact-fee schedule sooner than planned so the changes can better align fees with development and project funding needs.
