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Home My WebLink AboutIR 7725 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7725 ",RT,,,,o Way 25, 1993 �'�f f�Rrp To the Mayor and Members of the City Council i WATER AND WASTEWATER IMPACT PZZ UPDATE PROCESS rFx�� Subject: +i T3 Enabling Legislation and Background in accordance with Texas Local Governments Code, Chapter 395 enacted by the Texas State Legislature in 1987, the City Council adopted Ordinance No. 10601 entitled "An Ordinance Amending Chapter 35 - Water and Wastewater - Establishing Water and Wastewater Impact Fees." The Ordinance was adopted on June 6, 1990 and contained future Land Use Assumptions, descriptions of the water and wastewater service areas, and a Capital Improvements Plan to provide for water/wastewater service in the new growth areas of Fort Worth for the next twenty years. - The Ordinance also contained a formula for charging "impact fees" to offset some of the costs for water and/or wastewater capital improvements that would serve the new growth area. The state statute requires that the original ordinance and any amendments to it be reviewed each three years and amended as necessary to reflect any changes in land uses, densities, intensities and population in the service area over at least the following ten (10) year period. The City of Fort Worth's uniform water and wastewater contracts with wholesale customers also require that the, impact fee water and wastewater fee schedule be updated at the same time. On May 25, 1993, the City Council will be asked to conduct a public hearing and to adopt an ordinance that will describe changes in the Land Use Assumptions and/or Capital Improvements Plan and possibly changes in the impact fees that were adopted in June 1990. The final draft versions of the Capital Improvements Plan for Water and Wastewater impact fees have been completed and are ready for public review. These documents have been reviewed by the Citizen's Advisory Committee (CAC), the Wholesale Customer Impact Fee Committee, the Wholesale Water and Wastewater Systems Advisory Committee and the staff of the Fort Worth Water Department. The initial draft was revised into the present form based on comments from these groups. When combined with the Land Use Assumptions, the Capital Improvements Plan provide the necessary engineering calculations and justification for determining the maximum assessable impact fees under the Texas Local Government Code, Chapter 395. These reports update the study performed in 1990 by the Fort Worth Water Department as required by statute. The impact fees calculated in these reports are the maximum assessable fees. Lower fees may be collected by ordinance if desired. The difference between the amount collected in impact fees and the cost of facilities required to serve growth as projected in the Capital Improvements Plan will need to be made up through higher rates or other revenue sources. The fallowing sections present the results of the Capital Improvements Plan and provide the reasons for changes from the 1990 study. OFHCIAL RECORD CITY SECRETARY FT. WORTH, TEX. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7725 'lei �a To the Mayor and Members of the City Council May 25, 1993 �. � Page 2 of 3 �rEX, Subject: WATER AND WASTEWATER IMPACT FEE UPDATE PROCESS to T) Water Capital Improvements Plan (WCIP) The WCIP analyzed what facilities would be required to serve growth between the years 1993 and 2003. Eligible facilities included in this study were treatment plants, pump stations, storage facilities and engineering studies. The present and future capacity of these facilities was analyzed based on the Fort Worth design criteria found in the 1989 Water Master Plan, system operating records over the past 20 years and the Land Use Assumptions. The table below compares the results of the 1990 and 1993 studies. 1990 1993 WCIP Casts $ 54,187,919 $ 30,558,978 Total Equivalent Meters 64,616 34,318 Base Maximum Assessable Impact Fee $ 839 $ 890 The maximum assessable impact fee for a 3k-inch water meter was found to be $890, which is up from $839 in the 1990 study. The primary reason for this increase was the adjustment of equivalent meter factors and the deletion of the inactive meters from the calculation. Although the maximum impact fee for a N-inch meter increased, larger size meters will actually be paying less than before since the new equivalent meter factors are lower. For example, the maximum charge for a 2-inch meter under the 1990 study would be $839 times an equivalent meter factor of 7 or $5,873. Under the new maximum rates, the charge would be $890 times an equivalent meter factor of 5.33 or $4,744. Wastewater Capital Improvement: Plan (WWCIP) The WWCIP analyzed what facilities would be required to serve growth between the years 1993 and 2003. Eligible facilities included in this study were treatment plants and engineering studies. The present and future capacity of the treatment plants was analyzed based on Fort Worth design criteria found in the 1989 Wastewater Master Plan, system operating records over the past ten years, and the Land Use Assumptions. The following table compares the results of the 1990 and 1993 studies. 1990 1993 WWCIP Costs $ 56,135,613 $ 34,945,030 Total Equivalent Meters 43,693 36,109 Base Maximum Assessable Impact Fee $ 1,285 $ 967 The maximum assessable impact fee for a 44-inch water meter was found to be $967. This fee was down from $1,285 in the 1990 study. The primary reasons for the decrease were the deletion of the TRA projects and the red iwztlau in- growth related capital facilities because of the excess capa RECORD available by the anticipated departure of the City of Arlington fra� e System. CITY SECRETARY ISSUED BY THE CITY MANAGER FORt �tlRAPH J INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7725 +pPTi kf �F 4oRr� To the Mayor and Members of the City Council May 25, 1996 ,�f,��y Page 3 of 3 ;rEXh�. Subject: WATER AND WASTEWATER IMPACT FEE UPDATE PROCESS +a�a Based on the revised maximum assessable impact fees, and actual meters sold from February 1992 through 1993, it would require a collection rate of 40% of the maximum water impact fee and 60% of the maximum wastewater impact fee (or an overall collection rate of 50% of the maximum impact fees) to provide the same revenue as the existing impact fees. Changes from the 1990 Capital Improvement Plan The .following items are changes made in the 1993 Capital Improvement Plan: 1. Equivalent meter factors have been changed to more accurately reflect the maximum system demand the respective size meter exerts on the system. This item increased the maximum fee for the k-inch meter but lowered the fee for larger size meters. 2. Inactive meters have been excluded from the service unit determination since these meters exert no demand on the system. This" item increased the maximum fee. 3. A Northside Satellite Maintenance Center has been deleted from the CIP. It was doubtful that this project would be built in the next ten years because of changes in system operations. This item decreased the fee. 4. The costs for the Master Plan Study were allocated over ten years rather than a 20 year basis previously used because Master Plans are typically updated every ten years. This item increased the fee. S. As shown in the Land Use Assumptions, population projections have dropped considerably since the 1990 study. The projects and the allocations in the CIP'have been adjusted to reflect the revised population forecasts. Generally this lowers the fee because fewer new facilities are required to meet the growth. sv_�' J_e_ -x,._.51--�. Bob Terrell City Manager BT:b OFRCIAL RFCQRD CRY or IT. WORM, TEX. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS �-