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Council approves first reading to raise water and wastewater impact fees after extensive debate
Summary
On first reading, council approved ordinance 2026‑29 to update water and wastewater impact fees, presenting staff estimates of a $14,519 water fee and $11,001.61 wastewater fee per service‑unit equivalent; debate focused on affordability, exemptions, service‑area options and potential credits.
San Marcos City Council moved forward on the first reading of an ordinance (2026‑29) to update water and wastewater impact fees, adopting the proposed maximums after a lengthy staff presentation and public comment.
Richard Reynosa and Ethan Shires of Friesen Nichols summarized the technical work: updated land‑use assumptions, service areas, capital improvement plans and per‑unit calculations based on projected growth over a 10‑year study period. Staff presented the proposed maximum allowable fees as approximately $14,519 for water and $11,001.61 for wastewater per service‑unit equivalent; together those numbers illustrated a combined maximum near $25,680 for a typical single‑family unit in the study's examples. Reynosa cautioned councils that the maximum is not mandatory and that council can adopt a lower figure if desired; staff also presented an Oct. 1 proposed effective date and scheduled a second reading for Sept. 1.
Public commenters and developers urged caution. Gabrielle Moore, a local realtor, said the ordinance as written charges the same fee for infill units and edge‑of‑town subdivisions and asked the council to study geographically differentiated fees. Taylor Jackson (Home Builders Association) warned of potential pricing pressures on tens of thousands of households, and Jeff Howard (representing Brookfield Residential) said the jump could harm predictability for master‑planned projects such as Kissing Tree and suggested options including service‑area splits, credits for reclaimed water and phased implementation. Council debate focused on when the new rates take effect, whether platted properties are grandfathered (staff said recorded plats retain the rate in effect at recording), and whether the city should adopt later policy on credits or rebates to mitigate affordability concerns. A motion to approve the ordinance on first reading (mover: Miss Garza; second: Miss Rodriguez) passed; the recorded tally was noted in the meeting as six in favor and two opposed with one absence (council-level record in the transcript).
