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HomeMy WebLinkAbout25-11435 EXHIBIT I Water and Wastewater Impact Fee Update of June 2025 prepared by Kimley-Horn and Associates, Inc. Water and Wastewater Impact Fee Update June 2025 Prepared for: Prepared by: Kimley-Horn and Associates, Inc. 801 Cherry Street, Unit 11, Suite 1300 Fort Worth, TX 76102 817.335.6511 TBPE Firm Registration Number: F-928 Project Number: 061024066 © Kimley-Horn and Associates, Inc. Table of Contents i June 2025 City of Denton, Texas TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................................................................i CHAPTER 1 LAND USE ASSUMPTIONS .......................................................................................................... 1 CHAPTER 2 WATER IMPACT FEE STUDY ..................................................................................................... 13 CHAPTER 3 WASTEWATER IMPACT FEE STUDY ....................................................................................... 29 APPENDIX .................................................................................................................................................................. 42 WATER FINANCIAL ANALYSIS ................................................................................................................... 43 WASTEWATER FINANCIAL ANALYSIS ..................................................................................................... 68 CONSIDERATION FOR THE HUNTER RANCH AND COLE RANCH OPERATING AGREEMENTS ... 93 EXECUTIVE SUMMARY Executive Summary i June 2025 City of Denton, Texas EXECUTIVE SUMMARY INTRODUCTION Impact Fees are a mechanism for funding the public infrastructure necessitated by new development. Across the country, they are used to fund police and fire facilities, parks, schools, roads, and utilities. In Texas, the legislature has allowed their use for roadway, drainage, water, and wastewater facilities. In 2023, the City of Denton began an update to the Water and Wastewater Impact Fees last updated in 2019. In the most basic terms, Impact Fees are meant to recover the incremental cost of the impact of each new unit of development towards new infrastructure needs. Impact Fees are a mathematical calculation that determine a maximum fee that would be equivalent to growth paying for growth. This study’s purpose is to calculate the maximum impact fee per service unit of new growth. The Maximum Impact Fee is considered an appropriate measure of the impacts generated by a new unit of development on a City's infrastructure system. An impact fee program is anticipated to be designed so that it is predictable for both the development community and City. An impact fee program is transparent. This report describes in detail how the fee is calculated and how the Capital Improvements Advisory Committee (CIAC) monitors the Impact Fee program. An impact fee program is flexible in that funds can be used on priority projects and not just on projects adjacent to a specific development. An impact fee program is both equitable and proportional in that every new development pays an equal fee that is directly related to its systemwide impact. IMPACT FEE BASICS Service Areas A Service Area is a geographic area within which a unique maximum impact fee is determined. All fees collected within the Service Area must be spent on eligible improvements within the same Service Area. For Water and Wastewater Impact Fees, a Service Area can be defined for both water and wastewater facilities that consists of the City Limits and extends throughout the Extraterritorial Jurisdiction (ETJ). Denton’s water Impact Fees are distributed across three (3) services areas. Denton’s current wastewater Impact Fees are distributed across a single service area. Due to the need for two additional wastewater treatment plants the City will move to three (3) wastewater services areas. Executive Summary ii June 2025 City of Denton, Texas Land Use Assumptions The Impact Fee determination is required to be based on the projected growth and corresponding capacity needs in a 10-year window. This study considers the years 2024-2034 for the projected 10-year growth. Population growth during that period is projected to increase by approximately 114,000. This projection along with associated non-residential development set the basis for determining water demands and wastewater flows to serve new growth. Service Units The “service unit” is a measure of consumption or use of the capital facilities by new development. In other words, it is the unit of measure used to quantify the supply and demand for utilities in the City. Service units are attributable to an individual unit of development and utilized to calculate the maximum impact fee of a development. The service unit for water and wastewater Impact Fees is based on the size of the individual water meters used to serve growth related development. The base water service unit is the water demand associated with the smallest water meter issued for a new residential unit. The base wastewater service unit is the wastewater flow associated with the smallest water meter issued for a new residential unit. The smallest water meter issued for a new residential unit in the City of Denton is a 5/8-inch x 3/4-inch meter. Capital Improvement Plans The City has identified the water and wastewater projects needed to accommodate the projected growth over the next ten (10) years. These projects include existing, proposed, and recently completed projects that were determined based on their current or anticipated impact on each defined service area. Water Impact Fee Capital Improvements Plan The Water Impact Fee Capital Improvements Plan was developed based on recommended capital improvements outlined in the 2024 Water Master Plan, input from City Staff, and the population growth projections shown in the Land Use Assumptions. The recommended improvements will provide the required capacity and reliability to meet projected water demand through 2034. Elements of the water system, including treatment facilities, storage facilities, pumping facilities, transmission and distribution network were evaluated against industry standards as outlined in the Design Criteria sections of Water Impact Fee Chapter. A total of nineteen (19) existing projects, thirty-one (31) proposed projects, and the Water Impact Fee Study were identified to develop the Water Impact Fee Capital Improvements Plan. The total project cost (not impact fee eligible cost) to be evaluated is $1,003,063,455. Executive Summary iii June 2025 City of Denton, Texas Wastewater Impact Fee Capital Improvements Plan Similar to the Water Impact Fee Capital Improvements Plan, the Wastewater Impact Fee Capital Improvements Plan was developed to address system improvements driven by growth. Elements of the wastewater system, including treatment, gravity pipes, force mains, and lift stations were evaluated against industry standards as outlined in the Design Criteria section of the Wastewater Impact Fee Chapter of this Report. Seventeen (17) existing, forty-seven (47) proposed projects, and the Wastewater Impact Fee Study were identified to develop the Wastewater Impact Fee Capital Improvements Plan. The total project cost (not impact fee eligible cost) to be evaluated is $1,222,435,449. Recoverable Project Costs Impact Fees are a one-time fee meant to recover the incremental cost of the impact of each new unit of development creating new infrastructure needs within a ten-year window. With this consideration, the maximum assessable impact fee does not specifically cover the entire cost of a water or wastewater project. The calculations that determine the percentage of a project’s cost that is impact fee eligible are defined as the project’s recoverable cost. Water Recoverable Project Costs The recoverable costs for water projects are calculated by determining the increase in water demand due to growth over the 10-year window. The City’s current and future water demand were utilized to calculate the percent utilization of each identified impact fee eligible project. The change in utilization of each project is multiplied by the total project cost to determine total recoverable project cost. The total recoverable costs for the water distribution system are $535,273,791 (pre-finance). Wastewater Recoverable Project Costs The recoverable costs for wastewater projects are calculated by determining the increase in wastewater flows due to growth over the 10-year window. The City’s current and future flow projections were utilized to calculate the percent utilization of each identified impact fee eligible project. The change in utilization of each project is multiplied by the total project cost to determine total recoverable project cost. The total recoverable costs for the wastewater collection system are $636,342,861 (pre-finance). Maximum Assessable Impact Fee Calculation In simplest terms, the maximum impact fee allowable by law is calculated by dividing the recoverable cost of the Capital Improvement Plans by the number of new service units of development. In accordance with state law, both the cost of the Capital Improvement Plan and the number of new service units of development Executive Summary iv June 2025 City of Denton, Texas used in the equation are based on the growth and corresponding capacity needs projected to occur within a 10-year window. In practice, there are many factors that complicate this calculation. The 2025 maximum impact fee allowable by law for each service area is shown in the following table: Water Maximum Impact Fee by Service Areas Service Area 1A Service Area 1B Service Area 2 $1,820 $10,745 $12,139 Wastewater Maximum Impact Fee by Service Areas Pecan Creek Service Area Hickory Creek Service Area Clear Creek Service Area $11,615 $12,791 $17,916 Adoption Process Chapter 395 of the Texas Local Government Code stipulates a specific process for the adoption of Impact Fees. A Capital Improvements Advisory Committee (CIAC) is required to review the Land Use Assumptions and the Impact Fee Capital Improvements Plan used in calculating the maximum fee, and to provide the Committee’s findings for consideration by the City Council. This CIAC also reviews the calculation and resulting maximum fees and provides its findings to the City Council. The composition of the CIAC is required to have adequate representation of the building and development communities. In Denton, the CIAC members include real estate, development, and building industry professionals including an ETJ representative. The City Council then conducts a public hearing on the Land Use Assumptions, Impact Fee Capital Improvements Plan, and Impact Fee Ordinance. Following policy adoption, the CIAC is tasked with advising the City Council of the need to update the Land Use Assumptions or the Impact Fee Capital Improvements Plan at any time within five years of adoption. Finally, the CIAC oversees the proper administration of the Impact Fee, once in place, and advises the Council as necessary. Chapter 395 of the Texas Local Government Code requires a minimum of one (1) public hearing before Council to amend an existing impact fee program. CHAPTER 1 LAND USE ASSUMPTION CHAPTER 1LAND USE ASSUMPTIONS Land Use Assumptions 1 June 2025 City of Denton, Texas 1.1 INTRODUCTION Chapter 395 of the Texas Local Government Code describes the procedure Texas cities must follow in order to create and implement Impact Fees. Senate Bill 243 (SB 243) amended Chapter 395 to define an Impact Fee as “a charge or assessment imposed by a political subdivision against new development in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions necessitated by and attributable to the new development.” Chapter 395 mandates that Impact Fees be reviewed and updated at least every five (5) years. The City of Denton’s Water and Wastewater Impact Fee Program was last updated in 2019. The City of Denton has initiated a review of its Land Use Assumptions, Impact Fee Capital Improvements Plan, and Impact Fees. The City has retained Kimley-Horn and Associates, Inc. to provide professional services for the update to the adopted 2025 Water and Wastewater Impact Fee Study. The Land Use Assumptions, which include population and service unit projections, form the basis for the development of the Impact Fee Capital Improvements Plans for water and wastewater facilities. In order to assess an impact fee, Land Use Assumptions must be developed to provide the basis for population and associated service unit growth projections within a political subdivision. As defined by Chapter 395 of the Texas Local Government Code, these assumptions include a description of changes in land uses, densities, and service units in the service areas. In addition, these assumptions are useful in assisting the City of Denton in determining the need and timing of capital improvements to serve future development. In accordance with Chapter 395, information from the following sources was compiled to complete the Land Use Assumptions: • City of Denton’s 2040 Comprehensive Plan; • 2023 Wastewater Master Plan; • 2024 Water Master Plan; • City of Denton Planning and Development Services. Land Use Assumptions 2 June 2025 City of Denton, Texas 1.2 COMPONENTS OF THE LAND USE ASSUMPTIONS CHAPTER The Land Use Assumptions include the following components METHODOLOGY AND 10-YEAR GROWTH ASSUMPTIONS An overview of the general methodology used to generate the land use assumptions and walk through of the growth projections for 2024-2034. IMPACT FEE STUDY AREAS Explanation of the distribution of service areas within Denton for water and wastewater facilities. LAND USE ASSUMPTIONS SUMMARY A synopsis of the land use assumptions. Land Use Assumptions 3 June 2025 City of Denton, Texas 1.3 METHODOLOGY AND 10-YEAR GROWTH ASSUMPTIONS The population growth projections formulated in this report were done using reasonable and generally accepted planning principles. The following documents and factors were considered in developing these projections: • Character, type, density, location and quantity of existing development. • Probable future developments. • Availability of land for future expansion. • The Future Land Use Plan illustrated in the 2040 Comprehensive Plan. • Population Projections (from the 2023 Wastewater Master Plan and 2024 Water Master Plan). The City provided land use type, density, and phasing (if available) for incoming developments, including large multi-phase developments. Developers provided land use type, density, and phasing for any incoming Municipal Utility Districts (MUDs) identified with the Extra Territorial Jurisdiction (ETJ). Known developments are shown on Exhibit 1.1. The phasing information of the larger multi-phase developments and MUDs is listed in Table 1.1. Table 1.1 Probable Future Developments 1Phasing updated from 2023 Wastewater Master Plan (WWMP) based on most recent data provided by developer 2The 2023 WWMP refers to Rosebrook as Astra 3The 2023 WWMP refers to Rockwood as Sherwood Growth projections detailed in Denton’s Water and Wastewater Master Plans established growth trendlines based on the information from Table 1.1 and the results are illustrated on Figure 1.1. Average annual growth projections of 8.1% and 3.5% are shown for the next 5 and 10-year planning periods. Development Residential Units 5-Year 10-Year Multi-Phase Development Hunter-Cole 3,899 7,400 Legends 1,820 1,836 Hickory Creek 1,423 2,923 MUD Rosebrook1,2 1,621 1,621 Churchill 525 1,400 Meadows 1,330 1,830 Ponder Farms 525 592 Sanctuary 1,000 2,500 Rockwood3 0 0 Stonehill 0 0 Tabor Ranch 2,220 2,820 Webster Meadows 405 405 Young Tracts 0 0 Land Use Assumptions 4 June 2025 City of Denton, Texas Figure 1.1 City of Denton Growth Assumptions Based on the 10-year growth projections, summarizing population and service units from 2023 to 2033, are projected to be: • Population Growth = 114,000 • Water Service Unit Growth = 52,774 • Wastewater Service Unit Growth = 52,276 Future growth by land use type is based on the Future Land Use Plan (See Exhibit 1.2) shown in the 2040 Comprehensive Plan. 8.1% 3.5% 2.0% 140,000 170,000 200,000 230,000 260,000 290,000 2024 2026 2028 2030 2032 2034Population Year FM1830FM2449 FM2181FM0156FM0407FM005 1 US 0 0 7 7 FM1515 FM0428FM3 0 4 0FM2164FM0455 FM1173 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RD TRIETSCH RDBELZ RD WBLACKJACKRD NHICKORYRDEDROBSONBLVDJANUARY RD BORTH RD SWITZER RD CARTWRIGHT TRL MILLER RDZACKERYLUGINBYHL RDCASHMILLRD JIMBAKERRD GANZERERD HULINGRDHARMONSONRD WILDCAT RDBURGER RDCHISHOLM RDVIEW RD SCHLUTER RDFLORANCE RDFREEMAN RD SAM BASS RDOLD STONEY RD QUAILRUNCIR KCS RR KCS RR KCS RRKC S R R LAKE RAYROBERTS LAKELEWISVILLE COPPERASBRANCH LAKE LAKEGRAPEVINE UP RRUP RR UP RR UP RRBNSFRRBNSF RRBNSF RRBNSF R R BNSF RR BNSF RRBNSF RRTabor Hunter-Cole Hickory Creek Legends Meadows Sanctuary Stonehill Rosebrook Rockwood Churchill Young Tracts PonderFarms WebsterMeadows CITY OF DENTON KNOWN DEVELOPMENTS This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. I 1 IN = 5,000 FT 1.1EXHIBIT January 2025 LEGEND Background Data Road Railroad Lake City Limit Denton ETJ Known Developments Churchill Hickory Creek Hunter-Cole Legends Meadows Ponder Farms Rockwood Rosebrook Sanctuary Stonehill Tabor Ranch Webster Meadows Young Tracts Other Known Developments FM1830FM2449 FM2181FM0156FM0407FM005 1 US 0 0 7 7 FM1515 FM0428FM3 0 4 0FM2164FM0455 FM1173 REDROCKHIGHLANDVILLAGESPINKSSTUART RDSHADYSHORES CHINNCHAPELMIINGO RD LUSKVALLEYPKWY JIMCHRISTALRD SIMMONS RDDALEEARNHARDT WINDSOR GANZER W RD CORINTHLOOP OLDBLUEMOUNDRDSTACE EL NN KIRKPATRICKHILLTOPTROPHYLAKE DR RYAN MARSHALLCREEKRD LAKESHARONPENNSYLVANIADR CLEVELAND GIBBS RDMALONE STKINGSROW LAKESIDE PKWYGIBBONSRDHICKORY HILL OLDORCHARDEAGLEPKWY COPPERCANYONNOTTINGHAMDRCOLLEGEBELLRDAVE AMCMAKIN RDLAKEVIEWBLVDHIGHLANDSHORES BRIDLEWOO DCHINNCHAPELRDJETER RD PARKRIDGEDRBONNIEBREAR DBRAZOSBLVD S HADYOAKS MILLSRD ALLRED ROBINSON FOX LAKEFORESTJACKSON RD MCGEECOOPERCREEKRDOLD JUSTIN TRINITY DRB OB CATBLVDTROPHYCLUB CRAWFORD RD MAI NBONNIE BRAELONG RD OLDALTONRD AUDRALNLITSEY R D LANTANATRLORCHID HILL STA TES CHOOLCROSSTIM BERSDOBBS RD WAKETON BRUSH CREEK RDAVE CLAKEVIEWSWELCHSTHOPKINS RDDUNCAN LNNORTHTEXASBLVD LABONTEFULTONJAGOEOAK HERCULES LN MINGO R D FLORENCE RDMAYHI LLCARDINAL HICKORYCREEKRDJOHNPAINE LAKESHOREROBERTSO NMORSE ST THRUSHKINGS ROCKEY POINTRDQUAILRUNDRINDI ANCREEKDRSAN JACINTO SAM LEE SPINKSRDRUDDELL HERITAGEPKWYRADECKE RD MEADOWOAKSDRWOAKST DOCMITCHELL VIN T AGEBLVD FLORENCED ENT ONUNI CORN LAKEBLVDOLD NORTH RDCHINCHAPELRDEMCKINNEYST WALNUTPARKVIEWCONGRESS JETERSELLMEYERE WILLOW ST MORSEN MASCH BRANCH RDWESTE RNNBLVDNSUM MITDR RIPPY RDMCKAMEYCREEKRDHINKLEDOUBLEEAGLEBLVDINDIANLN JOHN DAY RDCHURCH RDBRINKER E KIRKPATRICKFORESTRIDGEMONTECITO LEXINGTONAVEGARZAHOBSON LN WILLOWWOOD ELIZABETHTOWNCEMENTERY SWESTERNBLVDSHILOH RDJOHN PAINE RDFIRE WHEELDRSTONECREST RDTURBEVILLERD SCRIPTURE HIGHCOPPER CANYON RDOLDSETTLERSRDFRENCHTOWN VICTORY MASCH BRANCHCORBIN TIMBERCRKRD WICHITA TRL ST.JOHNRD NAIL RDJOHN WILEY RD COUNTYROAD251 SHEPARD RD TOM COLE RD E DAVIDSON RD I35 SERV BARNETT RDSOMERSETLN BURNETT RDMEADOWRANCHRD STAGECOACHPASS ROBINSON RDINDIAN WELLSFAIRVIEW CIRMETZ RDDOYLE RD SHERMAN RDSCHOBER RDCLARKS AIRFIELDB 7 RD SWAFFORD RD JACKSON RD LAKE RAY ROBER T S D A M R D JUSTIN CEMETERY RDSAM REYNOLDS RD TN SKILES RDLAREDOHILLSIDE CIRW PRUETT RD HIGH POINT LN CHISUM RDFAITHCTEMERALDFALLS CT WAIDE RD INDIAN RDOAK B R O O K C T E HUDGINSST CULTIVATORCT SERENECT CITADEL DRRANCH RD HARRISONCT DOWNE RD STONE GATE DR RIDGEVIEWCT NORTH S T ROBMAR LN PARK LN GEORGE OWENS RDHARROW CT SEABORN RD VALLEY CIR POPPYCT ROCKHILLRDSEVENTHST BOBWHITEWAYRD BASHOR RDGREEN VALLEY RDLOIS RD BOULDERDR COVEY LN CINDYLN ATCHISONA VENAVAHO TRL FLAGSTONE DR MOLDBOARD CT SANGERWEST BLVDOLEN C T LISTER LN HOOK LN CEMETERYRD SKEATONRDCLEARMAN STW JAMES ST PARK PLGREENST UTE CT E HUFFMAN ST BELMONTPARKDRSPRINGFLOWERCT JAGOE ST CINNAMON CT MUNDEN DRGOLDEN HOOF DRWILLOWLNCORY CT DOROTHY LN E LAKE ST FIELD S T O N E ST COTTONWOO DLN RECTOR RD WHITCOMBE DR JANUARY LN MESQUITERDG FRANK LINDR FOURHORSETRL SOUTH ST COYOTE PASS TRAILWOODDRBOB CAT RD BROOK STONE CTC WOLFE RDLAZY DAISY CT MEADOWLANDDR COBBLE STONESPRUCE STDOWNINGDR POSEYRDMELISSA CTBOBCAT RD EMU LN YUCCA CIRPARKVIEWST EASY ST AUSTIN DR CORALN AMBERCT VELVETVIEWCT BRUCE RD AV ALO NDR WHITEWING DR BRIDGESCT SUNFIRE LN REDOAKCRE EK GEORGIAAVE E 3RD ST PEPPERIDGEAVE BRANDONDR COTTONWOODSPRINGS CLEARVIEW CIRNFIFTHSTGLEN GARDEN CIR OLD JUSTIN RD W SHAR ON D R HELEN CT LAKE SIDE DRVALLEY VIEW LN CHINOSTRLPW4153 OLDTHOM ASRD EDDIESST ELMBOTTOMRD MEADOWCREEK DRBLUERIDGECIR SANDHURSTDRGREGOR Y RD W WOLFE ST GREGG RD ADAMCT OVALETTA D R HIGHRIDGECT KINGSTO NDR RAVENWOOD DR EDDLEMAN LOOPSANDLEWOODDR STONERAILDR ALAMO DR LONESTARDR DOVE MEADOWS LN MOUNTAINLAKEPKWY SOUTH POIN TCT JAMESRANCHCTEAGLES DRMARYLANDCT EASTRID GEPARKRD SBLUEBONNETCIR HOLDER RD PINE C R E S T D R WAGONWHEELDRPARADISE DRRIDGE DR QUAILRUNCT 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RIVERCRESTDR BALENTINE ARVINHILLRD SPRINGHILLLN TEAKWOODAVE W 7TH ST PORTER LN HELENRD COMPTONSTRIEKRD LONESTAR PARK LNDELMARDR CANTEBURYPARKLN N BRA N C H R D KAWATI WAY KIRA LN W 8TH ST S JON ES ST SORIANOST PEBBLECREEKRD OASISDR E 4TH ST ADA MSONRDHILLRIDGEDR COSNER RDHILLTOP DRSJA CKSON AV EMEADOW DR HILLSIDE DR PW4137EVANS DRAUTUMN BREEZE DRBOBPHINNEYDRF WAKEFIELD RDCALLAWAYCT KLEIN RDFAITHLNROBINSONCANYONRD RE ATTA DR MADISON PL BURKE STDUGAS RDSHARDEMANCIR WOODLAWNST LITTLEFIELD DRJENNIF ERCIR GULF AVEWENATCHEE DRSSECONDST PHEASANT RUN GENTRY DR DEER RUN RD PALOMINO CT SOUTHWINDPL UTILITYRD HITCHING RDJACKSONST SADDLEBROOKDRLAMAR ST STAGS LEAP RD NTHIRDSTTRAVIS ST VALLEY RIDGE DRTOMMAXWELLRDRIDGETOP DRVIR GIN IADR HONEYSUCKLEDRGE HORTON RDLINDENWOOD RIDGECREST PL EAGLESNESTTRL TYSON LN AZTEC TRL CHEROKEELN PAINTEDRDG DAISEYLNOLIVER CRE EK RD PERIMETER STKIO WARD INDIANPAINTDR VALLEYDRBANKS DRSOUTHVIEW CTOLDDOMINION DRHARMONSON AVENCOLLEGEAVEPAFFORD AVEEDMONDSONDR CRESTRIDGEDR W BRITTON S TCRESTVIEW RDLEUTY AVENSECONDST SCOLLEGEAVE DAKOTATRL FREDERICK STKILDEE TRLCOUCH RDCYPRESSST NDENTONAVELAKERIDGECIR AVERY RANCH W WAYSSNYDER AVE SANTAFETRL MEADOWLANDSDR MEADOW LN WILTONTER SHEFIFF LN LAKERAYROBERTSDR HOUSTON STBINGHAM RD CREEKHILLWAYFEATHER CREST DR TRAIL CREEKRD CORRIDA LNBOWIE RDN POIN T D R GOODNIGHT TRL OLD STONEY CTJONES RDRIPY RDWOLF RUN LAKERAYROBERTSDAMW STICE RD DYER RDDOCHOLLIDAYDR WLAKEST VIRGNIALN CROCKETT RDMILLCREEKCT QUAILRUNRDMUSTANG TRAILS GREEN VALLEY CIRSPRING BRANCH DR WODNEALRD GREENSPRINGS ORANGEWOODTRL HARDEMANBLVD BOISDARCRD WBAILEYST NJACKSONAVENSNYDERAVEPEPPERMINT LN NSEALYAVELARIAT RD HARVES TMOONLN SHAFFNER STFLOW CTFREEPORTDR BRIDLEPATHRD DEUSSEN RD KNIGHT LN CRE EKSIDEDR SAULS RDMULKEY RD JERRY JOY RD JAMES SMITH RD BRITTANY HILLMILAM RDGTAY LNRHOADES RD CEDAR CRESTDRPLOVER RDCOUNTRY LN W 3RD ST LINNIEBELLRD QUAIL TRLW2NDST CANYONRIDGERD CHAPARRALRD JOHN GEORGE RD E MCREYNOLDS RD BRUNO LNAIRFIELD DRCOUNTRYSIDEDR INDIAN TRAIL DR ELM BOTTOM CIRSCHUSTER LNBOOMBRANCHRDMURRAYSJOHNSONST OLENDR PETES LNOLAMARIERD BOBCATBLVDARAPAHO RD TRENT RDGUY JAMES RDSTONERIDGEDR MEADOW RIDGE DR WWARSCHUNRD WILLOWRIDGEDR COLLINGWOOD DRCATUS CTSEQUOIADR LAKECRESTDRJANE LONG RDCHINN RD HILLVIEWRDGARDENIA DR HIGH MEADOWS DR BUTTERCUPLNLEANING TREERD EDROBSONCIR HARTLEEFIELDRD W 5TH ST 12TH ST GOODLANDDR HUNNINGTON DR E PRUETT RD OAKBLUFFDRRADAECKE RDCUL PBRANC HRDREINING RD CINDYS LNGEORGE FOSTER RD POLLARD RD UNNAMED HAMPTON RD FAIRVIEW RDTERRACE RDBREEZY RD AMYXHILLRDTHOMAS J EGAN RDHOUSTON RDFIELD LARK LNTHISTLE LNSHEMINGRD HICKORYCREEKLNKNOX RDWARSCHUN RD CHISAM RD HACKAMORE CTMARSHALL RDW MCREYNOLDS RD BILLCOOKRDB JUDGE RDGRIBBLESPRINGSRD DOUBLETREERD FOSTER RDCANYON RDSTRADER RDHILLCOUNTRYCIR EVELYN LNMCREYNOLDSRD H LIVELY RDODOM RD CROW WRIGHT RD ODNEAL RDW DAVIDSON RD E WAKEFIELD RDSMITHRD NANCE RD HICKORY BERNARD RDE STICE RD HARBERSON RD SHAWRDATCHESON RDMICHELLEWAY BLAKELYLOOPRDSOUTHERLANDDR ARKANSASHILLRD BARTHOLD RDBURNS BRANCH RD ECHISHOLMRD SULLIVAN RDMARY POLK RDLOIS E RD AABUMGARNERRD HOVENKAMPLN BRANCH RDPLAINVIEW RD FAUGHT RDTIM DONALD RDUNION HILL RDS BRANCH RD MARIE RD LOVERS LNGRANDVIEWDRMITCHELL RDAUSTIN CIRSEABORN BOSS RANGE RDBUD WILLIAMS RD MICHAEL RD CRESTVIEWDR NICHOLSON RD FLOW RD EAKINS CEMETERY RD ISLEDUBOISSTATEPARKRD MILAM RD N BONNIE BRAE STHAWKEYE RD MELTON RD HOEHN RD TRIETSCH RDBELZ RD WBLACKJACKRD NHICKORYRDEDROBSONBLVDJANUARY RD BORTH RD SWITZER RD CARTWRIGHT TRL MILLER RDZACKERYLUGINBYHL RDCASHMILLRD JIMBAKERRD GANZERERD HULINGRDHARMONSONRD WILDCAT RDBURGER RDCHISHOLM RDVIEW RD SCHLUTER RDFLORANCE RDFREEMAN RD SAM BASS RDOLD STONEY RD QUAILRUNCIR KCS RR KCS RR KCS RRKC S R R LAKE RAYROBERTS LAKELEWISVILLE COPPERASBRANCH LAKE LAKEGRAPEVINE UP RRUP RR UP RR UP RRBNSFRRBNSF RRBNSF RRBNSF R R BNSF RR BNSF RRBNSF RRTabor Hunter-Cole Hickory Creek Legends Meadows Sanctuary Stonehill Rosebrook Rockwood Churchill Young Tracts PonderFarms WebsterMeadows CITY OF DENTON FUTURE LAND USE This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. I 1 IN = 5,000 FT 1.2EXHIBIT January 2025 Light Industrial Neighborhood / UniversityCompatibility Area Industrial Commerce Moderate Residential10 units per acre Low Residential4 units per acre Master Plan Community Downtown Denton Business Innovation Neighborhood Mixed Use Regional Mixed Use Community Mixed Use Future Land Use Industrial Airport Religious Institutional Public Government Commercial Residential - Multi-Family Residential - Single-Family Parks and Open Space Rural Agriculture Existing Land Use Known Developments Denton ETJ City Limit Lake Railroad Road Background Data LEGEND Land Use Assumptions 7 June 2025 City of Denton, Texas 1.4 IMPACT FEE SERVICE AREAS SERVICE AREA DEFINITION According to Chapter 395 of the Local Government Code, a Service Area refers to the area within the corporate boundaries or extraterritorial jurisdiction of the political subdivision to be served by the capital improvement or facilities specified in the Capital Improvement Plan. Funds collected in the specific service areas must be spent in the service area collected. WATER AND WASTEWATER IMPACT FEE SERVICE AREAS The geographic boundary of the proposed water and wastewater impact fee service areas for water and wastewater facilities is shown in Exhibit 1.3 and Exhibit 1.4, respectively. The water and wastewater impact fee service areas include the City Limits and extends throughout the ETJ. DENTONDENTON £¤380 £¤288 £¤380£¤77 £¤280 £¤2181 £¤377 §¨¦35W §¨¦35 §¨¦35E £¤380 1A FM2181 FM2449 FM045 5 FM1830FM1515 FM2164FM0407FM0156 FM 2 4 9 9 FM3040 FM1173 REDROCKSPINKS NWHITECHAPELBLVDMIINGO RD FAIR WAYD RWALNUTCHINNCHAPELI NDIANCREEKDRHENRIETTACREEKRD JIMCHRISTALRD HIGHLANDVILLAGE LUSKSIMMONS RDDALEEARNHARDT HERITAGEPKWYOLD BLUEMOUND RDSTACEELNHILLTOPTROPHYLAKEDRNKIRKPATRICKMARSHALL CREEK RD RYAN LAKE SHARON TROPHYCL U B LAK ES IDE P K WYGIBBONS RDOLDORCHARDEAGLE P K WY COPPERCANYONCOLLEGELAKEVIEWBLVDHIGHLANDSHORE S BRIDLEWOODWINDSOR CHINNCHAPELRDSHADYSHORES PARKRI DGEDRBRAZOSBLVDSHADYOAKS MCMAKIN RDALLRED R OBINSON FOX LAKEFORESTJACKSONRD MCGEECOOPERCREEKRDCORINTHLOOP OLD JUSTIN TRINITY DRJETER RD B OBCATBLVDHICKORY HILL MAINBONNIE BRAELONG RD MILLS RD LITSEY RD LANTANATRLORCHID HILLSTATESCHOOLCRAWFORD RD VALLEYP K WY OLD ALTON RD GANZER W RD DOBBSRD INTERMODALPKWY WAKETON LAKEVIEWDUNCANLNBRUSH CREEK RD LABONTEMINGO R D HICKORYCREEKRD LAKESHOREJOHNDAYRDMORSE ST KINGS ROCKEYPOINT RDQUAILRUNDRCLEVELANDGIBBSRDSAM LEEFLORENCE RDSPINKSRD RADECKE RD MEADOW OAKS DRWOA K ST DOC MITCHELL VINTAGEBLVD FLORENCED E N T O N CHINCHAPELRDEMCKINNEY S TE6THST PARKVIEW JETERSELLMEYERE WILLOW ST CAPITALPKWYN MASCHBRANCH RDWE STERNNBLV D RIPPYRDN SU M MI TDRMCKAMEY CREEK RD DOUB LEEAGLE B LV D IN DIA NLNCHURCH RDBRINKER E KIRKPATRICKFORESTRIDGEMONTECITO LEXINGTONAVEGARZAHOBSON LN ELIZABE THTOWNCEME NTERYSWESTERNBLVDSHILOH RDJOHN PAINE RDFIREW HEELDRSTON ECRESTRD ED ROBSONTURBEVILLE RD HIGHCOPPERCANYONRDOLDSETTLERSRDFRENCHTOWN VICTOR Y MASCH BRANCHCORBIN TIMBERCRKRDWICHITA TRL 2 2 1B 1B LAKE RAY ROBERTS LAKE LEWISVILLE COPPERAS BRANCH LAKE LAKE GRAPEVINELEGEND Background Data Railroads Roads Lakes Service Areas 1A 1B 2 CITY OF DENTON WATER IMPACT FEE SERVICE AREAS This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. I 1 IN = 5,000 FT 1.3EXHIBIT January 2025 DENTON £¤380 £¤288 £¤380 £¤77 £¤280 £¤2181 £¤377 §¨¦35W §¨¦35 §¨¦35E £¤380 £¤380 US 0 0 7 7 FM1515 FM0428 FM1173 FM2164FM0407 FM00 5 1 FM3040FM1830FM0156FM0455 FM2449 FM2181 REDROCKSPINKSSTUART RDMIING O R D CHINNCHAPELLUSKJIMCHRISTALRD HIGHLANDVILLAGE SIMMONS RDDALEEARNHARDT OLD BLUEMOUND RDSTACEELNHILLTOPTROP H Y LAKED R NKIRKPATRICKRYAN LAKE SHARON MARSHALL CREEK RD PENNSYLVANIADRMALONE STKINGS ROW GIBBONS RDOLDORCHARDEAGLE PKWY COPPERCANYONCOLLEGEBELLRDAVEALAKEVIEWBLVDHIGHLANDSHOR ES B RI DLEWOODWINDSOR CHINNCHAPEL RDSHADYSHORES PARKRI DGEDRBRAZOSBLVDSHADYOAKS MCMAKIN RDALLRED ROBINSON FOX LAKEFORESTJACKSONRD MCGEECOOPERCREEKRDCORINTHLOOP OLD JUSTIN TRINITYDRJETER RD BOB C ATBLVD HICKORY HILL T R OPHYCL UBMAINBONNIE BRAELONG RD MILLS RD LITSEY RD LANTANATRLORCHID HILLSTATESCHOOLCRAWFORD RD VALLEYP K WY OLDALTON RDGANZER W RD DOBBSRDAUDRALN WAKETON LAKEVIEWSWELCH STHOPKINSRDDUNCANLNBRUSH CREEK RDAVE CLABONTEFULTONOAK HERCULES LN NOTTINGHAMDRMINGO R D MAYHILLHICKORYCREEK RD LAKESHOREMORSE ST KINGS ROCKEYPOINT RDQUAILRUNDRSA N JAC IN T O CLEVELANDGIBBSRDSAM LEE SPINKSRDFLORENCE RDHERITAGEPKWYRADECKE RD MEADOW OAKS DRWOAKST DOC MITCHELL VINTAGEBLVD FLORENCED E N TO NUNICORNLAKEBLVDOLDNORTHRD CHINCHAPELRDEMCKINNE Y ST WALNUTE6THSTPARKVIEW CONGRESS JETERSELLMEYERE WILLOW ST MORSEN MASCHBRANCH RDWESTERNNBLVDN SUM MITDRRIPPYRDMCKAMEY CREEK RDHINKLEDOUBLE EAGLE B L VDINDIAN LNJOHNDAYRDCHURCH RD B R INKERE KIRKPATRICKFORESTRIDGEMONTECITO LEXINGTONAVEGARZAHOBSON LN WILLOWWOOD E LIZABE THTOWNCEME NTERYSWESTERNBLVDSHILOH RDJOHN PAINE RDFIR EW HEELDRSTONE CRESTRDED R OBSONTURBEVILLE RD SCRIPTURE HIGHCOPPERCANYONRDOLDSETTLERSRDFRENCHTOWN VICTOR Y MASCH BRANCHCORBINTIMBERCRKRD WICHITA TRL LAKE RAY ROBERTS LAKE LEWISVILLE COPPERAS BRANCH LAKE LAKE GRAPEVINE Pecan Creek Hickory Creek Clear Creek CITY OF DENTON WASTEWATER IMPACT FEE SERVICE AREAS This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. I 1 IN = 5,000 FT 1.4EXHIBIT January 2025 LEGEND Background Data Railroads Roads Lakes Service Areas Clear Creek Hickory Creek Pecan Creek Land Use Assumptions 10 June 2025 City of Denton, Texas 1.5 DATA FORMAT The population and service unit estimates were all compiled in accordance with the following categories and format: IMPACT FEE SERVICE AREAS: Large zones, which correspond to the water and wastewater facilities service area (as described in the previous section). SERVICE UNITS: Number of water and wastewater connections based on existing and proposed in the next 10-years. Land Use Assumptions 11 June 2025 City of Denton, Texas 1.6 SUMMARY The following is the land use assumptions summary for the City of Denton utilized in the impact fee development. Base growth projections for the City of Denton, summarizing connections from 2023 to 2033, are projected to be: • Water Service Area 1A = 1,616 Connections • Water Service Area 1B = 29,427 Connections • Water Service Area 2 = 21,731 Connections • Wastewater Service Area Pecan Creek = 7,616 Connections • Wastewater Service Hickory Creek = 35,412 Connections • Wastewater Service Area Clear Creek = 9,248 Connections CHAPTER 2 WATER IMPACT FEE STUDY CHAPTER 2 WATER IMPACT FEE STUDY Water Impact Fee Study 13 June 2025 City of Denton, Texas 2.1 INTRODUCTION The City of Denton retained the services of Kimley-Horn and Associates, Inc., for the purpose of updating the Impact Fees for water system improvements required to serve new development. The purpose of this report is to satisfy the requirements of the law and provide the City with an impact fee capital improvements plan and associated Impact Fees. For convenience and reference, the following is excerpted from Chapter 395 of the code: (a) The political subdivision shall use qualified professionals to prepare the capital improvements plan and to calculate the impact fee. The capital improvements plan must contain specific enumeration of the following items: (1) a description of the existing capital improvements within the service area and the costs to upgrade, update, improve, expand, or replace the improvements to meet existing needs and usage and stricter safety, efficiency, environmental, or regulatory standards, which shall be prepared by a qualified professional engineer licensed to perform such professional engineering services in this state; (2) an analysis of the total capacity, the level of current usage, and commitments for usage of capacity of the existing capital improvements, which shall be prepared by a qualified professional engineer licensed to perform such professional engineering services in this state; (3) a description of all or the parts of the capital improvements or facility expansions and their costs necessitated by and attributable to new development in the service area based on the approved land use assumptions, which shall be prepared by a qualified professional engineer licensed to perform such professional engineering services in this state; (4) a definitive table establishing the specific level or quantity of use, consumption, generation, or discharge of a service unit for each category of capital improvements or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including but not limited to residential, commercial, and industrial; (5) the total number of projected service units necessitated by and attributable to new development within the service area based on the approved land use assumptions and calculated in accordance with generally accepted engineering or planning criteria; (6) the projected demand for capital improvements or facility expansions required by new service units projected over a reasonable period of time, not to exceed 10 years; and (7) plan for awarding: Water Impact Fee Study 14 June 2025 City of Denton, Texas (A) a credit for the portion of ad valorem tax and utility service revenues generated by new service units during the program period that is used for the payment of improvements, including the payment of debt, that are included in the capital improvements plan; or (B) in the alternative, a credit equal to 50 percent of the total project cost of implementing the capital improvements plan. The impact fee study includes information from the 2024 Water System Master Plan being completed at this time. The Impact Fees are based on recommended capital improvements outlined in the Draft Water System Master Plan, input from City Staff, and the growth projections shown in the Land Use Assumptions Chapter of this report. The study process was comprised of four tasks: LAND USE ASSUMPTIONS The land use assumptions used for this report were created by Kimley-Horn with input provided by the City of Denton and the Denton 2040 Comprehensive Plan. The development of land use assumptions included the following: • Establishing impact fee service areas; • Collection/determination of service units service area; and • Projection of the ten-year service units by service area. A detailed discussion is outlined in the Land Use Assumptions Chapter of this report. EVALUATION OF WATER SYSTEM MASTER PLAN This task involved reviewing the 2024 Water System Master Plan and its growth projection compatibility with the Land Use Assumptions. The water demand projections were then used to determine the additional service units. IMPACT FEE CAPITAL IMPROVEMENTS PLAN This task involved reviewing the impact fee water capital improvements plan outlined in 2019 Impact Fee Study and the 2024 Water Master Plan. Discussions were also held with City Utility staff to identify projects that will be constructed in the 10-year planning window and meet the design criteria. IMPACT FEE ANALYSIS AND REPORT This task included calculating the additional service units, and credit reduction. These values were then used to determine the impact fee per service unit and the maximum assessable water impact fee by meter size. Water Impact Fee Study 15 June 2025 City of Denton, Texas 2.2 DESIGN CRITERIA In accordance with Chapter 290 of the Texas Administrative Code (Public Drinking Water) and the design criteria in the 2024 Water Master Plan, the following design criteria is followed when planning for future water infrastructure. WATER LINES Water distribution and transmission lines shall be sized to maintain a minimum of 35 pounds per square inch (psi) throughout the system during peak hour demands conditions. In addition to this, the transmission lines shall be designed for a maximum 3.0 feet per second. STORAGE TANKS (a) Elevated Storage Tanks Elevated storage serves three purposes: • Functionally, elevated storage equalizes the pumping rate to compensate for daily variations in demand and to maintain a fairly constant pumping rate (usually referred to as operational storage), or a pumping rate that conforms to the requirements of the electrical rate structure. • Provides pressure maintenance and protection against surges created by instantaneous demand, such as fire flow and main breaks, and instantaneous change in supply, such as pumps turning on and off. • Maintains a reserve capacity for fire protection and pressure maintenance in case of power failure to one or more pump stations. Sufficient storage should be maintained to provide four hours of fire flow demand during a loss of power to the pump station. City criterion for elevated storage is provide sufficient capacity to satisfy ISO Fire Rating plus city wide maximum day demand. Suggested storage capacity established by the TCEQ is adequate operational storage established by determining the required volume to equalize the daily fluctuations in flow during the maximum day demand, plus the reserve volume required for fire protection. The minimum requirements for storage, according to Chapter 290 of the Texas Administrative Code, are as follows: • Total Storage - Equal to 200 gallons per connection. • Elevated Storage - Equal to 100 gallons per connection; or • Elevated Storage – Equal to 200 gallons per connection for a firm pumping capacity reduction from 2.0 gallons per connection to 0.6 gallons per connection. Water Impact Fee Study 16 June 2025 City of Denton, Texas (b) Ground Storage Tanks Ground storage serves two functions: • Equalization for differing feed rates between the water supply and pumping to the system; and • Emergency capacity in the event of temporary loss of water supply. Generally, ground storage facilities are located at water supply points or at each pump station within the water distribution system. The design criteria recommended to size ground storage tank capacity within each pressure plane is to provide adequate storage volume to meet 8 hours of maximum day demand. In addition to these criteria for elevated and ground storage, the City must also meet TCEQ total storage capacity requirements of 200 gallons per connection. PUMP STATIONS Pumping capacities must provide the maximum demand, or the peak hour demand required by the water system or the suggested capacities established by the TCEQ. Pumping capacity should supply the maximum demand with sufficient redundancy to allow for the largest pump at the pump station to be out of service. This is known as firm pumping capacity. Each pump station or pressure plane must have two or more pumps that have a total capacity of 2.0 gallons per minute per connection, or have a total capacity of at least 1,000 gallons per minute and the ability to meet peak hour demand with the largest pump out of service, whichever is less. If the system provides elevated storage capacity of 200 gallons per connection, two service pumps with a minimum combined capacity of 0.6 gpm per connection are required. 2.3 IMPACT FEE CAPITAL IMPROVEMENTS PLAN The purpose of the Water Master Plan is to provide the City with a logical strategy for upgrading and expanding its water distribution system to accommodate future growth and for addressing existing system deficiencies. The Water Master Plan and the recommended system improvements are developed to accommodate growth through the 25-year planning period. The Impact Fee Capital Improvements Plan is developed using projects identified during the master planning process and through discussions with utility staff. State law only allows cost recovery associated with eligible projects in a ten (10) year planning window from the time of the impact fee study. The following details the projects and the eligible recoverable cost. Nineteen (19) existing projects, thirty-one (31) proposed projects, and the Water Impact Fee Study are determined eligible for recoverable cost through impact fees over the next 10 years. The total cost of these projects is $1,003,063,455. The projected total recoverable through impact fees is $535,273,791. After debt service costs are added and the credit reduction calculation is complete, $582,923,277 is Water Impact Fee Study 17 June 2025 City of Denton, Texas recoverable through Impact Fees serving the 10-year system needs. These impact fee capital improvements are shown in Table 2.1 and illustrated in Exhibit 2.1. Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Project # Description 2023 Required Capacity (Percent Utilization) 2033 Required Capacity (Percent Utilization) 2023-2033 Required Capacity (Percent Utilization) 2033 Projected Recoverable Cost Total Project Cost EXISTING 1 Lake Ray Roberts 90% 100% 10% $15,330,616 $153,306,163 2 54" Finished Water Transmission Line 43% 100% 57% $5,467,370 $9,590,299 3 Loop 288 Water Main - Sherman to UNT 35% 100% 65% $2,835,202 $4,361,849 4 Loop 288 Water Main - Sherman to Hwy 380 43% 43% 0% $0 $3,518,352 5 Northwest Elevated Storage Tank 55% 58% 2% $58,500 $2,339,988 6 Southwest Pump Station 50% 100% 50% $2,956,001 $5,912,002 7 Southwest PS Oversize Discharge Line (30" to 36") 32% 73% 41% $116,426 $284,477 8 North-South Water Line Phase I 41% 51% 10% $603,860 $6,038,601 9 Roselawn Elevated Storage Tank 73% 100% 27% $1,679,851 $6,299,440 10 Roselawn Water Line 47% 57% 10% $179,736 $1,797,363 11 Southwest Elevated Storage Tank 55% 58% 2% $135,257 $5,410,280 12 North-South Water Line 26% 36% 10% $1,087,030 $10,870,300 13 Allred Road / John Paine Road Water Lines 21% 56% 34% $2,033,143 $5,930,000 14 McKinney Water Line 14% 21% 7% $85,757 $1,200,600 15 Locust Water Line Upsize 9% 11% 3% $36,622 $1,281,776 16 Hickory Water Line Upsize 19% 20% 1% $7,121 $498,444 17 I-35E Frontage Water Line 21% 29% 7% $72,894 $1,020,510 18 Northwest Booster Pump Station 15% 100% 85% $12,331,809 $14,573,956 19 36" Northwest Water Line 12% 75% 63% $9,383,078 $14,785,456 Existing Subtotal $54,400,271 $249,019,855 PROPOSED 20 Lake Ray Roberts WTP Rerate to 30 MGD 0% 100% 100% $40,000,000 $40,000,000 21 Lake Ray Roberts WTP 20 MGD Expansion to 50 MGD 0% 100% 100% $195,845,000 $195,845,000 22 16" Northwest I-35 Frontage Rd Water Line 0% 54% 54% $2,442,960 $4,524,000 23 16" I-35W/Corbin Water Line 0% 22% 22% $598,862 $2,722,100 24 42" Jim Christal EST Transmission Main Oversize 0% 81% 81% $10,030,313 $12,345,000 25 24/30" West Allred Rd Transmission Main Oversize 0% 100% 100% $742,000 $742,000 26 16" Ponder Water Line 0% 52% 52% $2,249,520 $4,326,000 27 24/30" Rosebrook/Sanctuary Transmission Main 0% 63% 63% $37,811,267 $59,702,000 28 24" Rosebrook Transmission Main 0% 60% 60% $5,658,000 $9,430,000 29 24" North/South Transmission Main 0% 87% 87% $20,291,267 $23,413,000 30 12" Old Stoney Rd Water Line 0% 26% 26% $994,240 $3,824,000 31 12" Rosebrook Water Line 0% 32% 32% $1,494,080 $4,669,000 32 12" Cooper Creek Rd Water Line 0% 30% 30% $4,464,900 $14,883,000 33 12" N Mayhill Rd Water Line 0% 22% 22% $959,860 $4,363,000 34 12" Duchess Dr Water Line 0% 30% 30% $655,500 $2,185,000 Water Impact Fee Study 18 June 2025 City of Denton, Texas Project # Description 2023 Required Capacity (Percent Utilization) 2033 Required Capacity (Percent Utilization) 2023-2033 Required Capacity (Percent Utilization) 2033 Projected Recoverable Cost Total Project Cost 35 12" Shady Oaks Dr Water Line 0% 36% 36% $1,097,280 $3,048,000 36 12" Stuart Ridge Water Line 0% 46% 46% $2,219,960 $4,826,000 37 Lake Ray Roberts HSPS Improvements Phase 1 0% 100% 100% $5,530,000 $5,530,000 38 Lake Ray Roberts WTP 54/60" Transmission Main 0% 58% 58% $68,973,551 $117,964,000 39 Lake Ray Roberts WTP 10 MGD Expansion to 60 MGD 0% 10% 10% $9,792,250 $97,922,500 40 24”/48" Loop 288 Transmission Main 0% 58% 58% $40,406,863 $69,107,000 41 Lake Ray Roberts HSPS Improvements Phase 2 0% 35% 35% $1,908,764 $5,530,000 42 Southwest PS Improvements 0% 25% 25% $2,505,703 $10,087,000 43 12" Northwest Water Line 0% 30% 30% $3,970,500 $13,235,000 44 16" Milam Rd Water Line 0% 58% 58% $5,769,260 $9,947,000 45 16" North Central Water Line 0% 30% 30% $3,656,400 $12,188,000 46 12" N Locust Rd to E Sherman Dr Water Line 0% 30% 30% $1,187,700 $3,959,000 47 12" North Cooper Creek Rd Water Line 0% 36% 36% $2,982,960 $8,286,000 48 12" Swisher Rd Water Line 0% 16% 16% $534,560 $3,341,000 49 20” Ponder Farms Transmission Main 0% 100% 100% $4,500,000 $4,500,000 50 12” Webster Meadows Transmission Main 0% 100% 100% $1,500,000 $1,500,000 51 Water Impact Fees 0% 100% 100% $100,000 $100,000 Proposed Subtotal $480,873,520 $754,043,600 Total $535,273,791 $1,003,063,455 £¤380 £¤288 £¤380 £¤77 £¤280 £¤2181 £¤377 §¨¦35W §¨¦35 §¨¦35E £¤380 *Q @AU@qqT @AUT@ WTP !!!!!!!!!!!!!!!!!!!!!!!!!!!!!![SP7 [SP7 *Q@AU@qqT *Q@AU@qqT *Q @AU@qqT *Q @U@qq ³³PTW FM2181 FM2449 FM0407 FM1830FM1515 FM2164FM0455 FM0156US 0 0 7 7FM0428FM1173 REDROCKSTUART RDJIMCHRISTALRD MIINGO R D LUSKCHINNCHAPELDALEEARNHARDT STACEELNRYAN HILLTOPNKIRKPATRICKLAKE SHARONPENNSYLVANIADRMALONESTKINGSROW GIBBONS RDCOLLEGECOPPERCANYONBELLRDAVEA LAKEVIEWBLVDHIG HLANDSHORES BRI DLEWOODWINDS OR CHINNCHAPELRDSHADYSHORES PARK RI DGEDRBRAZOSBLVDSHADYOAKS MCMAKIN RDALLRED ROBINSON JACKSON RD CORINTHLOOP OLD JUSTIN TRINITY DRJETER RD HICKORY HILLBONNIE BRAELONG RD MILLS RD LANTANATRLORCHID HIL LSTATESCHOOLCRAWFORDRDOLDALTONRD CROSST IMBERSGANZER W RD DOBBS RDAUDRALN WAKETONSWELCHST VA LLE YPKWYHOPKINSRDBRUSH CREEK RDAVE CFULTONOAK HERCULES LN NOTTINGHAMDRMINGO R D HICKORY CREEKRD MORSE ST KINGS QUAILRUNDRS AN JA C INT O C LEVELANDGIBBSRDSAM LEEFLORENCE RDRUDDELLRADECKERD HIGHLANDVILLAGE MEADOW OAKSDRWOAKST DOC MITCHELL VINTAGEB L VDFLORENCEOLD NORTHRDCHIN CHAPELRDEMCKINNEYSTE6THSTCONGRESS JETERSELLMEYERE WILLOW ST MORSE F IR EWHEELDRWES T ERNNBLVDRIPPY RDHINKLEINDIAN LNCHURCH RDBRINKER OLD SETTLERS RDSIMMONSRDE KIRKPATRICKFORESTRIDGEMONTECITO GARZAHOBSON LN WILLOWWOOD HIGHS WESTERNBLVDSHILOH RDJOHN PAINE RDSTONECRESTRDEDROBSO N TURBEVILLERD SCRIPTURE COPPERCANYON RDFRENCHTOWN VIC TO RY MASCH BRANCHCORBINTIMBER CRKRD LAKE RAYROBERTS LAKELEWISVILLE LAKEGRAPEVINE4940 3332 233349 4535 34 5024 284522 26 4830 46 4744 3136 3243 294025 27 3814 19 7 3131510 16 4 3 19 812217 17 CITY OF DENTON WATER IMPACT FEE CAPITAL IMPROVEMENTS PLAN This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. I 1 IN = 4,000 FT 2.1EXHIBIT January 2025 LEGEND Background Data Railroads Roads Lakes Denton City Limits Denton Impact Fee Service Area Existing Infrastructure WTP Water Treatment Plant (WTP)*Q @AU@qqT Existing Elevated Storage Tank (EST) UT Existing Ground Storage Tank (GST)@AUT@ Existing Standpipe Existing Water Line (12" or Greater) Impact Fee CIP Projects ³³PTW Proposed Water Treatment Plant Expansion *Q@AU@qqT Existing Elevated Storage Tank *Q@U@qq Hunter-Cole Elevated Storage Tank [SP7 Existing Pump Station !!Existing Water Line Proposed Water Line Hunter-Cole Water Line 1 Lake Ray Roberts 2 54" Finished Water Transmission Line 3 Loop 288 Water Main - Sherman to UNT 4 Loop 288 Water Main - Sherman to Hwy 380 5 Northwest Elevated Storage Tank 6 Southwest Pump Station 7 Southwest PS Oversize Discharge Line (30" to 36") 8 North-South Water Line Phase I 9 Roselawn Elevated Storage Tank 10 Roselawn Water Line 11 Southwest Elevated Storage Tank 12 North-South Water Line 13 Allred Road / John Paine Road Water Lines 14 McKinney Water Line 15 Locust Water Line Upsize 16 Hickory Water Line Upsize 17 I-35E Frontage Water Line 18 Northwest Booster Pump Station 19 36" Northwest Water Line Project Number Project Name 20 Lake Ray Roberts WTP Rerate to 30 MGD 21 Lake Ray Roberts WTP 20 MGD Expansion to 50 MGD 22 16" Northwest I-35 Frontage Rd Water Line 23 16" I-35W/Corbin Water Line 24 42" Jim Christal EST Transmission Main 25 24/30" West Allred Rd Transmission Main Oversize 26 16" Ponder Water Line 27 24/30" Rosebrook/Sanctuary Transmission Main 28 24" Rosebrook Transmission Main 29 24" North/South Transmission Main 30 12" Old Stoney Rd Water Line 31 12" Rosebrook Water Line 32 12" Cooper Creek Rd Water Line 33 12" N Mayhill Rd Water Line 34 12" Duchess Dr Water Line 35 12" Shady Oaks Dr Water Line 36 12" Stuart Ridge Water Line 37 Lake Ray Roberts HSPS Improvements Phase 1 38 Lake Ray Roberts WTP 54/60" Transmission Main 39 Lake Ray Roberts WTP 10 MGD Expansion to 60 MGD 40 24/48" Loop 288 Transmission Main 41 Lake Ray Roberts HSPS Improvements Phase 2 42 Southwest PS Improvements 43 12" Northwest Water Line 44 16" Milam Rd Water Line 45 16" North Central Water Line 46 12" N Locust Rd to E Sherman Dr Water Line 47 12" North Cooper Creek Rd Water Line 48 12" Swisher Rd Water Line 49 20" Ponder Farms Transmission Main 50 12" Webster Meadows Transmission Main 51 Water Impact Fees Project Number Project Name Lake Ray Roberts WTP and High Service PS Ö Ö Ö Ö õ õ UT UT UT UT WTP WTP WTP WTP 41 39 37 21 20 McKenna Park Standpipe and PS FOR EMERGENCY ONLYÖ Ö Ö@AUT@ Southwest PS Ö Ö õ õ UT UT6 42 Southwest EST *Q @AU@qqT11 Lake Lewisville WTP and PS Ö Ö Ö Ö Ö Ö WTP UT UT UT Roselawn EST *Q @AU@qqT9 Northwest EST *Q@AU@qqT5 Riney EST and Northwest Booster PS *Q@AU@qqT õ õ õ EmptySlot18 Hunter Cole EST**Q@U@qq *Future Jim Christal 3.0 MG EST Water Impact Fee Study 20 June 2025 City of Denton, Texas 2.4 WATER IMPACT FEE CALCULATION SERVICE UNITS Chapter 395 of the Local Government Code defines a service unit as follows, “Service Unit means a standardized measure of consumption attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards and based on historical data and trends applicable to the political subdivision in which the individual unit of development is located during the previous 10 years.” SERVICE UNIT CALCULATION A single service unit for Denton’s water Impact Fees is the 5/8-inch x 3/4-inch meter. A service unit is the water demand of flow associated with the 5/8-inch x 3/4-inch meter, which is typically used by a single- family residence. All meters greater than 5/8-inch x 3/4-inch have a service unit multiplier determined by the ratio of each larger meter’s capacity to the capacity of the 5/8-inch x 3/4-inch meter. The current service unit multipliers (service units/meter) are shown in Table 2.2. Table 2.2 Meter Capacity Ratios Meter Size Service Units/ Meter1 5/8"x3/4” 1 1" 2.5 1-1/2" 5 2" 8 3" 22.5 4" 50 6" 100 8” 200 10” 325 Water Impact Fee Study 21 June 2025 City of Denton, Texas Multiplying the number of existing connections for each meter size by the number of service units per meter yields the total service units for that meter size. Summing all meter sizes yields the total number of water service units connected to the City’s water system as shown in Table 2.3. The current population in the water service area is divided by the total number of service units yielding a Persons per Service Unit number. Table 2.3 Persons per Water Service Unit Meter Size Existing Connections1 Service Units/ Meter Service Units 5/8" 40,662 1 40,662 1" 1,761 2.5 4,403 1-1/2" 922 5 4,610 2" 1,532 8 12,256 3" 99 22.5 2,228 4" 26 50 1,300 6" 11 100 1,100 8” 32 200 6,400 10” 2 325 650 Total Existing Connections: 45,047 Total Service Units: 73,609 Total Served Population: 152,350 Persons per Service Unit: 2.07 (1) Data Sources: City of Denton Water Impact Fee Study 22 June 2025 City of Denton, Texas In accordance with Chapter 395 of the Texas Local Government Code, the City of Denton defines a service unit based on historical and projected water demands. The service unit is the development type that predominately uses a 5/8-inch x 3/4-inch meter. The measure of consumption per service unit is based on a 5/8-inch meter x 3/4-inch meter and the data shown in Table 2.4. Table 2.4 Water Service Unit Consumption Calculation Year Population Service Units (2.07 person/unit) Water Average Day Demand (MGD)1 Demand per Service Unit (GPD) 2014 123,200 59,517 17.28 290 2015 125,980 60,860 18.47 303 2016 128,160 61,913 17.50 283 2017 130,990 63,280 18.24 288 2018 134,460 64,957 19.63 302 2019 139,869 67,570 19.52 289 2020 141,882 68,542 20.40 298 2021 146,751 70,894 19.48 275 2022 149,509 72,227 23.20 321 2023 152,350 73,599 24.70 336 2024 164,737 79,583 24.88 313 2025 178,132 86,054 26.79 311 2026 192,615 93,051 28.70 308 2027 208,276 100,617 30.61 304 2028 225,210 108,797 32.52 299 2029 232,756 112,442 34.43 306 2030 240,554 116,210 35.72 307 2031 248,614 120,104 37.00 308 2032 256,944 124,128 38.29 308 2033 265,554 128,287 39.58 309 2034 270,865 130,852 40.87 312 Average Flow per Service Unit 303 (1) Data Source: City of Denton Water Impact Fee Study 23 June 2025 City of Denton, Texas Based on the City’s 10-year growth projections and the resulting water demand projections, water service will be required for an additional 52,774 Service Units by the year 2034 as shown in Table 2.5. The calculation is as follows: • A service unit, which is a unit of development that consumes approximately 303 gallons per day (GPD), is a typical residential connection that uses a 5/8-inch x 3/4-inch meter. Table 2.5 10-year Additional Service Unit Calculation Year Average Day Demand (MGD) Service Unit Demand (GPD) Projected Service Units 2024 24.875 303 82,096 2034 40.8657 303 134,870 10-year Additional Service Units 52,774 The City’s existing water system is divided into three service areas (Service Area 1A, 1B and 2 as indicated in the Land Use Assumptions chapter). The calculated 10-year additional services units has been distributed across the three services areas based on projected growth and its associated water demand projections as shown in Table 2.6. Table 2.6 10-year Additional Service Units by Service Area Year Service Area 1A Service Area 1B Service Area 2 Total 2024 Service Units 32,060 48,694 1,342 82,096 2034 Service Units 33,676 78,121 23,073 134,870 10-Year Service Units 1,616 29,427 21,731 52,774 2.5 PLAN FOR AWARDING IMPACT FEE CREDIT Impact fee law allows for a credit calculation to credit back the utility revenues or ad valorem taxes that are allocated for paying a portion of future capital improvements. The intent of this credit is to prevent the City from double charging development for future capital improvements via Impact Fees and utility rates. If the City chooses not to do a financial analysis to determine the credit value, they are required by law to reduce the recoverable cost by fifty (50) percent. The City chose to perform a financial analysis. MAXIMUM ASSESSABLE IMPACT FEE DETERMINATION The impact fee determination method employed by NewGen Strategies and Solutions, LLC is developed through a financial based model that recognizes the requirements of Chapter 395, including the recognition of cash and/or debt financing, interest earnings, fund balances, and applicable credits associated with the use of utility revenues. In developing the components of the financial model, assumptions must be made that include the following: Water Impact Fee Study 24 June 2025 City of Denton, Texas • Financing o Method of financing (i.e. cash or debt financing) o The level of financing (e.g. 100% debt) o Cost of financing o Debt repayment structure • Timing and Level of Expenditures and Revenues • Interest Earnings • Annual Service Unit Growth • Portion of Utility Revenue Used to Fund Impact Fee Water Improvements While the assumptions employed in determining the maximum assessable impact fee are a reasonable basis for forecasting, these assumptions may not reflect actual future conditions. To address this, Chapter 395 requires the monitoring of Impact Fees through the Capital Improvement Advisory Committee (CIAC) who can then update or revise Impact Fees to reflect the actual implementation of the impact fee program. FINANCING Once the cost of capacity added that is attributable to growth is determined, a City must decide how the cost will be financed: cash and/or debt. Actual costs of capital for any previously funded projects, whether partially or fully funded, are also included. Based on discussions with City staff, it is assumed that the City will debt finance the future project costs. For debt financing, the cost of financing is based on the City’s Financial Advisor’s estimates of future debt costs for bonds issued with 30-year terms as shown in the Water Financial Analysis Appendix of this report. Debt service payments for each future debt issue are assumed to remain constant over the issue’s term. TIMING AND LEVEL OF EXPENDITURES AND REVENUES The exact timing and annual level of cash capital expenditures over the forecast period is currently indeterminate, therefore it is assumed that capital expenditures will occur in amounts over the 10-year program period. It is also assumed that the City will expand debt proceeds over a 2-year timeframe for debt-financed capital projects. For the calculation of the maximum assessable impact fee, debt is assumed to be issued in equal amounts for each year. In order to recognize the full amount of debt to be issued for the cost of capacity added that is attributable to growth during the 10-year period, a portion of years eight, nine, and ten are assumed to be spend in the final three years. INTEREST EARNINGS While debt is issued over 30-year terms and Impact Fees developed are to be charged over a 10-year period, a sufficient fund balance must be generated to meet the future debt service obligations. Fund balances were identified for each service area as a potential source for the current Impact Fee CIP. Water Impact Fee Study 25 June 2025 City of Denton, Texas Because of the generation of the fund balance, excess monies will be available for interest earnings. Chapter 395 states that interest earnings are funds of the impact fee account and are to be held to the same restrictions as impact fee revenues. In order to recognize that interest earnings are used to fund only impact fee eligible improvements, interest earnings are credited against the costs recoverable through Impact Fees. Chapter 395 does not require the upfront recognition of interest earnings in the impact fee determination. To acknowledge the time value of the impact fee payer’s monies, interest earnings have been credited. For this analysis, interest is assumed to be earned at an annual rate of 1.89% per 10-year historical average. ANNUAL SERVICE UNIT GROWTH The timing and annual level of service unit growth over the 10-year program period is currently indeterminate, therefore it is assumed that service unit growth will be consistent over the 10-year forecast. PORTION OF UTILITY REVENUE USED TO FUND IMPACT FEE WATER IMPROVEMENTS Credit for the portion of ad valorem tax and/or utility service revenues generated by new service units during the program period are used for payment of the improvements included in the Water Impact Fee CIP. The credit is not a determination to recognize the total utility revenue generated by new service units, but is a credit for the portion of utility revenue that is used for payment of the improvements included in the Water Impact Fee CIP. Theoretically, the credit determination could be zero ($0) if the City does not utilize any of the new service unit utility revenue to fund improvements that are included in the Water Impact Fee CIP. To be conservative and recognize potential cash flow issues that can occur with the funding of major capital improvement projects, it is assumed that the debt-funded projects (100% of the improvement costs included in the Water Impact Fee CIP but not otherwise funded) could potentially be funded by utility revenue. When an impact fee program is in place, payments made through utility revenue will consist of revenue generated by new service units in the defined service area and existing service units throughout the City; therefore, the portion attributable to the new service units in the defined service area must be isolated. The credit calculation illustrating how the credit is isolated is shown in the Water Financial Analysis Appendix of this report. Water Impact Fee Study 26 June 2025 City of Denton, Texas 2.6 MAXIMUM ASSESSABLE IMPACT FEE A breakdown of the 10-year recoverable costs and the associated impact fee per service unit by service area is as follows: Table 2.7 Service Area 1A - 10-Year Recoverable Cost Breakdown Recoverable Impact Fee CIP Costs $2,454,148 Financing Costs $1,106,314 Interest Earnings ($604,035) Pre Credit Recoverable Cost for Impact Fee $2,956,427 Credit for Utility Revenues ($15,105) Maximum Recoverable Cost for Impact Fee $2,941,322 (1) Per NewGen Strategies and Solutions, LLC financial analysis, See Appendix A. Impact fee per service units = 10-year recoverable costs 10-year additional service units Impact fee per service units = $2,941,322 1,616 Impact fee per service units = $1,820 Therefore, the maximum assessable water impact fee for Service Area 1A is $1,820. Table 2.8 Service Area 1B - 10-Year Recoverable Cost Breakdown Recoverable Impact Fee CIP Costs $292,309,445 Financing Costs $129,102,582 Interest Earnings ($81,750,244) Pre Credit Recoverable Cost for Impact Fee $339,661,783 Credit for Utility Revenues ($23,479,052) Maximum Recoverable Cost for Impact Fee $316,182,731 (1) Per NewGen Strategies and Solutions, LLC financial analysis, See Appendix A. Impact fee per service units = 10-year recoverable costs 10-year additional service units Impact fee per service units = $316,182,731 29,427 Impact fee per service units = $10,745 Therefore, the maximum assessable water impact fee for Service Area 1B is $10,745. Water Impact Fee Study 27 June 2025 City of Denton, Texas Table 2.9 Service Area 2 - 10-Year Recoverable Cost Breakdown Recoverable Impact Fee CIP Costs $240,510,198 Financing Costs $106,564,481 Interest Earnings ($68,197,039) Pre Credit Recoverable Cost for Impact Fee $278,877,640 Credit for Utility Revenues ($15,078,415) Maximum Recoverable Cost for Impact Fee $263,799,224 (1) Per Newgen Strategies and Solutions, LLC financial analysis, See Appendix A. Impact fee per service units = 10-year recoverable costs 10-year additional service units Impact fee per service units = $263,799,224 21,731 Impact fee per service units = $12,139 Therefore, the maximum assessable water impact fee for Service Area 2 is $12,139. For a development that requires a different size meter, a service unit equivalent is established at a multiplier based on its capacity with respect to the 5/8-inch x 3/4-inch meter. The maximum impact fee that could be assessed for other meter sizes is based on the Equivalency Table (Table 2.10). Table 2.10 Maximum Assessable Water Impact Fee by Service Area and Meter Size Meter Size Service Unit Equivalent Service Area 1A Maximum Assessable Water Impact Fee Service Area 1B Maximum Assessable Water Impact Fee Service Area 2 Maximum Assessable Water Impact Fee 5/8"x3/4” 1 $1,820 $10,745 $12,139 1" 2.5 $4,550 $26,863 $30,348 1-1/2" 5 $9,100 $53,725 $60,695 2" 8 $14,560 $85,960 $97,112 3" 22.5 $40,950 $241,763 $273,128 4" 50 $91,000 $537,250 $606,950 6" 100 $182,000 $1,074,500 $1,213,900 8” 200 $364,000 $2,149,000 $2,427,800 10” 325 $591,500 $3,492,125 $3,945,175 CHAPTER 3 WASTEWATER IMPACT FEE STUDY CHAPTER 3WASTEWATER IMPACT FEE STUDY Wastewater Impact Fee Study 29 June 2025 City of Denton, Texas 3.1 INTRODUCTION The City of Denton retained the services of Kimley-Horn and Associates, Inc., for the purpose of updating the Impact Fees for wastewater system improvements required to serve new development. The purpose of this report is to satisfy the requirements of the law and provide the City with an impact fee capital improvements plan and associated Impact Fees. For convenience and reference, the following is excerpted from Chapter 395 of the code: (b) The political subdivision shall use qualified professionals to prepare the capital improvements plan and to calculate the impact fee. The capital improvements plan must contain specific enumeration of the following items: (1) a description of the existing capital improvements within the service area and the costs to upgrade, update, improve, expand, or replace the improvements to meet existing needs and usage and stricter safety, efficiency, environmental, or regulatory standards, which shall be prepared by a qualified professional engineer licensed to perform such professional engineering services in this state; (2) an analysis of the total capacity, the level of current usage, and commitments for usage of capacity of the existing capital improvements, which shall be prepared by a qualified professional engineer licensed to perform such professional engineering services in this state; (3) a description of all or the parts of the capital improvements or facility expansions and their costs necessitated by and attributable to new development in the service area based on the approved land use assumptions, which shall be prepared by a qualified professional engineer licensed to perform such professional engineering services in this state; (4) a definitive table establishing the specific level or quantity of use, consumption, generation, or discharge of a service unit for each category of capital improvements or facility expansions and an equivalency or conversion table establishing the ratio of a service unit to various types of land uses, including but not limited to residential, commercial, and industrial; (5) the total number of projected service units necessitated by and attributable to new development within the service area based on the approved land use assumptions and calculated in accordance with generally accepted engineering or planning criteria; (6) the projected demand for capital improvements or facility expansions required by new service units projected over a reasonable period of time, not to exceed 10 years; and (7) plan for awarding: Wastewater Impact Fee Study 30 June 2025 City of Denton, Texas (A) a credit for the portion of ad valorem tax and utility service revenues generated by new service units during the program period that is used for the payment of improvements, including the payment of debt, that are included in the capital improvements plan; or (B) in the alternative, a credit equal to 50 percent of the total project cost of implementing the capital improvements plan. The impact fee study includes information from the 2023 Wastewater System Master Plan being completed at this time. The Impact Fees are based on recommended capital improvements outlined in the Wastewater Master Plan, input from City Staff, and the growth projections shown in the Land Use Assumptions Chapter of this report. The study process was comprised of four tasks: LAND USE ASSUMPTIONS The land use assumptions used for this report were created by Kimley-Horn with input provided by the City of Denton and the Denton 2040 Comprehensive Plan. The development of land use assumptions included the following: • Establishing impact fee service areas. • Collection/determination of service units service area; and • Projection of the ten-year service units by service area. A detailed discussion is outlined in the Land Use Assumptions Chapter of this report. EVALUATION OF WASTEWATER SYSTEM MASTER PLAN This task involved reviewing the 2023 Wastewater Master Plan and its growth projection compatibility with the Land Use Assumptions. The wastewater flow projections were then used to determine the additional service units. IMPACT FEE CAPITAL IMPROVEMENTS PLAN This task involved reviewing the impact fee wastewater capital improvements plan outlined in 2019 Impact Fee Study and the 2023 Wastewater Master Plan. Discussions were also held with City Utility staff to identify projects that will be constructed in the 10-year planning window and meet the design criteria. IMPACT FEE ANALYSIS AND REPORT This task included calculating the additional service units, and credit reduction. These values were then used to determine the impact fee per service unit and the maximum assessable wastewater impact fee by meter size. Wastewater Impact Fee Study 31 June 2025 City of Denton, Texas 3.2 DESIGN CRITERIA In accordance with the Chapter 217 of the Texas Administrative Code (Design Criteria for Domestic Wastewater Systems) and the design criteria in the 2023 Wastewater Master Plan the following design criteria is followed when planning for future wastewater infrastructure. COLLECTION LINES (INTERCEPTORS) The design criteria for collection lines or interceptors is based on the TCEQ requirements that meet peak wet weather design flows and not exceed 80% of the pipe capacity. LIFT STATIONS PUMPING CAPACITY The design criteria for lift station pumping shall be to provide firm pumping capacity to meet the peak wet weather design flows. The firm pumping capacity is defined as the available total pumping capacity with the largest pump out of service. LIFT STATION WET WELL CAPACITY The design criteria for lift station wet wells are to provide adequate volumes to limit pump cycling to once every 10 minutes. Based on this criterion, the required operating volume for each pump can be calculated as V = tQ/4 where, t = Maximum pump cycling time = 10 minutes Q = Lead pump discharge rate in gallons per minute (gpm) V = Required wet well volume between pump start and stop elevation FORCE MAINS The design criteria recommended for force mains is to meet the required pumping capacity of the lift station at a velocity less than 7 feet per second and a maximum discharge pressure of 100 psi and to allow a minimum of 3 feet per second scouring velocity during a single pump operation. Wastewater Impact Fee Study 32 June 2025 City of Denton, Texas 3.3 IMPACT FEE CAPITAL IMPROVEMENTS PLAN The purpose of the wastewater master plan is to provide the City with a logical strategy for upgrading and expanding its wastewater collection system to accommodate future growth and for addressing existing system deficiencies. The Wastewater Master Plan and the recommended system improvements are developed to accommodate growth through the 25-year planning period. The impact fee capital improvements plan is developed using projects identified during the master planning process and through discussions with utility staff. State law only allows cost recovery associated with eligible projects in a ten (10) year planning window from the time of the impact fee study. The following details the projects and the eligible recoverable cost. Seventeen (17) existing projects, forty-seven (47) proposed projects, and the Wastewater Impact Fee Study are determined eligible for recoverable cost through Impact Fees over the next 10 years. The total cost of these projects is $1,222,435,449. The projected total recoverable through Impact Fees is $636,342,861. After debt service costs are added and the credit reduction calculation is complete, $707,097,573 is recoverable through Impact Fees serving the 10-year system needs. These impact fee capital improvements are shown in Table 3.1 and illustrated in Exhibit 3.1. Wastewater Impact Fee Study 33 June 2025 City of Denton, Texas Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Project # Description 2023 Required Capacity (Percent Utilization) 2033 Required Capacity (Percent Utilization) 2023-2033 Required Capacity (Percent Utilization) 2033 Projected Recoverable Cost Total Project Cost EXISTING 1 Cooper Creek Interceptor III 52% 54% 2% $26,887 $1,277,970 2 Cooper Creek Outfall (Loop 288) 52% 62% 11% $411,553 $3,898,807 3 Krum Sewer Line 20% 42% 22% $87,775 $398,450 4 Graveyard Branch Interceptor 8% 18% 10% $484,130 $5,004,952 5 Leatherwood Interceptor 22% 25% 3% $4,616 $156,592 6 Pecan Creek Interceptor (Ph 1 & 2) 57% 65% 8% $257,047 $3,363,189 7 Pecan Creek Interceptor I 78% 84% 6% $123,815 $1,975,672 8 Pecan Creek Interceptor II 37% 43% 6% $103,913 $1,862,175 9 Pecan Creek Interceptor III 32% 37% 6% $172,497 $3,079,149 10 Pecan Creek Interceptor IV 23% 31% 8% $77,121 $978,285 11 Pecan WRP Expansion (6 MGD) 17% 100% 83% $25,004,271 $30,005,125 12 Cooper Creek Interceptor I 48% 60% 12% $309,649 $2,632,000 13 Cooper Creek Interceptor II 44% 54% 10% $113,537 $1,128,000 14 Hickory Creek Interceptor I 27% 100% 73% $1,058,753 $1,447,500 15 Hickory Creek Interceptor II 52% 90% 39% $3,120,135 $8,102,500 16 Hickory Creek Interceptor III 24% 49% 25% $721,323 $2,875,433 17 Hickory Creek Lift Station Detention Facility 35% 100% 65% $6,435,000 $9,900,000 Existing Subtotal $38,512,020 $78,085,799 PROPOSED 18 PCWRP Headworks Facility 62% 83% 22% $12,333,923 $56,260,000 19 PCWRP 5.0 MGD Expansion to 26 MGD 0% 14% 14% $16,800,000 $120,000,000 20 CCWRP 2.5 MGD MBR Plant 4% 73% 69% $82,034,726 $118,800,000 21 Clear Creek Interceptor (27"- 42") 0% 49% 49% $44,055,019 $89,440,000 22 Roark Branch Interceptor Oversize (27" - 42") 5% 35% 30% $829,989 $2,810,200 23 Cole Ranch Interceptor Oversize (36"- 42") 0% 100% 100% $4,809,000 $4,809,000 24 North Cole Ranch Sewer Line (36") 0% 60% 60% $4,377,794 $7,310,000 25 Legends Sewer Line (12"- 15") 0% 100% 100% $32,080,000 $32,080,000 26 Robson Ranch Sewer Line (12") 27% 30% 4% $112,722 $3,086,000 27 Robson West Lift Station, Force Main, and Sewer Line Oversize 15% 26% 11% $1,438,690 $13,079,000 28 Milam Creek Sewer Line (18"- 24") 19% 46% 26% $3,630,769 $13,750,000 29 Denton ICC Sewer Line Oversize (18") 0% 10% 10% $33,899 $324,720 30 Ganzer Rd Sewer Line (12") 49% 95% 46% $1,167,692 $2,530,000 31 North Masch Sewer Line (12"- 18") 11% 45% 34% $2,965,667 $8,680,000 32 Masch Sewer Line Replacement (15"- 18") 32% 86% 54% $3,003,678 $5,560,000 33 North Loop 288 Sewer Line (12"- 15") 0% 22% 22% $1,750,452 $7,980,000 34 Mingo Road Sewer Line (12") 0% 59% 59% $2,580,649 $4,380,000 35 Lakeview Interceptor Replacement (24" - 30") 7% 24% 17% $399,875 $2,367,000 36 Lakeview South Lift Station 0% 26% 26% $2,191,051 $8,300,000 Wastewater Impact Fee Study 34 June 2025 City of Denton, Texas Project # Description 2023 Required Capacity (Percent Utilization) 2033 Required Capacity (Percent Utilization) 2023-2033 Required Capacity (Percent Utilization) 2033 Projected Recoverable Cost Total Project Cost 37 Grissom Sewer Line (15") 5% 36% 31% $927,382 $2,960,000 38 Lakeview Ranch Sewer Line (24") 6% 23% 17% $1,009,502 $5,820,000 39 United Copper Sewer Line (12"-24") 6% 18% 13% $1,193,632 $9,500,000 40 Dry Fork Sewer Line (18") 73% 90% 17% $627,467 $3,620,000 41 Hickory Creek Peak Flow Basin Improvements 0% 100% 100% $23,400,000 $23,400,000 42 Cooper Creek Sewer Line Replacement (18"- 24") 60% 64% 4% $147,710 $3,590,000 43 Pecan Creek Interceptor Replacement (36") 42% 77% 35% $1,349,783 $3,890,000 44 Beaver Creek Sewer Line (12") 49% 95% 46% $1,343,077 $2,910,000 45 North Milam Sewer Line (12"- 18") 0% 53% 53% $3,667,912 $6,890,000 46 HCWRP 10.0 MGD MBR Plant 15% 73% 58% $260,188,000 $448,600,000 47 Stark Farms Sewer Line (8"- 12") 7% 80% 73% $978,783 $1,340,000 48 C Wolfe Road Interceptor (36") 0% 57% 57% $10,282,047 $18,120,000 49 TN Skiles Road Interceptor (36") 0% 61% 61% $8,855,122 $14,420,000 50 Ponder Sewer Line (12"- 15") 0% 45% 45% $2,331,446 $5,230,000 51 South Hickory Creek Sewer Line (24") 0% 86% 86% $19,345,135 $22,580,000 52 Wolf Branch Sewer Line (12"- 21") 0% 52% 52% $9,466,267 $18,040,000 53 Sanctuary Sewer Line (12"- 18") 0% 99% 99% $4,217,059 $4,280,000 54 Meadows Sewer Line (12") 0% 100% 100% $2,130,000 $2,130,000 55 Cole Ranch West Sewer Line Oversize (15"- 18") 0% 40% 40% $116,714 $294,000 56 East Clear Creek Sewer Line (8"- 15") 0% 52% 52% $1,633,769 $3,170,000 57 East Milam Sewer Line (12"- 15") 0% 47% 47% $1,358,994 $2,920,000 58 Stella Hills Lift Station, Force Main, and Onsite Sewer Line Oversize 11% 24% 13% $639,957 $4,934,730 59 East McKinney Street Sewer Line (15" - 21") 0% 15% 15% $473,921 $3,180,000 60 North Trinity Lift Station and Force Main Oversize 0% 15% 15% $873,029 $5,858,000 61 North Trinity Road Sewer Line Oversize (15") 0% 15% 15% $78,540 $527,000 62 Ponder Farms/Webster Meadows Lift Station and Force Main 0% 100% 100% $11,500,000 $11,500,000 63 Ponder-Farms/Webster-Meadows Interceptor (15”- 21”) 0% 100% 100% $13,000,000 $13,000,000 63 Wastewater Impact Fees 0% 100% 100% $100,000 $100,000 Proposed Subtotal $597,830,840 $1,144,349,650 Total $636,342,861 $1,222,435,449 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 £¤380 £¤288 £¤380 £¤77 £¤280 £¤2181 £¤377 §¨¦35W §¨¦35 §¨¦35E £¤380 £¤380 !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!![SL7 [SL7 [SL7 [SL7 [SL7 ³³PRW ³³PRW ³³PRW ³³PRW ³³PRW UT US 0 0 7 7 FM1515 FM042 8 FM1173 FM2164FM0407 FM3040 FM 1 8 30FM0156FM2449 FM2181 REDROCKMIING O R D JIMCHRISTALRD LUSKSTUART RDCHINNCHAPELSIMMONS RDDALEEARNHARDT STACEELNRYAN HILLTOPN KIRKPATRICKMARSHALL CREEK RD LAKE SHARONPENNSYLVANIADRMALONE STKINGSROW GIBBONS RDCOPPERCANYONCOLLEGE B ELLRDAVEAHIG HLANDSHORES BRIDLEWOODWINDS O R CHINNCHAPELRDSHADYSHORES PARKRI DGEDRBRAZOS BLVD SHADYOAKS MCMAKIN RDALLRED R O BINSON LAKEFORESTJACKSON RD COOPERCREEKRDCORINTHLOOP OLD JUSTIN TRINITY DRJETER RD BOBCATBLVD HICKORYHILL T ROPHYCLUB BONNIE BRAELONG RD MILLS RD LITSEY RD LANTANATRLORCHID HIL LSTATESCHOOLCRAWFORD RD OLDALTON RDCROSST IMBERSGANZER W RD DOBBSRDAUDRALN WAKETONSWELCHST VA LL E YPKWY BRUSH CREEK RDAVE CLABONTEFULTONHOPKINSRDLA KE V IEWB L VDOAK HERCULES LN NOTTINGHAMDRMINGO R D MAYHILLHICKORY CREEKRDJOHNPAINE MORSE ST THRUSHKINGS ROCKEYPOINTRDQUAILRUNDRS A N J AC IN T O C LEVELANDGIBBSRDSAM LEEFLORENCE RDRADECKE RD MEADOW OAKS DR HIGHLANDVILLAGEWOA K ST DOC MITCHELL PARKVIEW VINTAGE BLVD FLORENCELEXINGTON AVECHIN CHAPELRDEMCKINNEYSTE6THSTCONGRESS JETERSELLMEYERMORSEN MASCHBRANCH RDWESTERNNBLVDRIPPY RDMCKAMEY CREEK RDHINKLEDOUBLE EAG L E BLV DCHURCH RDBRINKER E KIRKPATRICKFORESTRIDGEMONTECITO GARZAHOBSON LN WILLOWWOODSWESTERNBLVD SHILOH RDJOHN PAINE RDF IR EWHEELDRSTONECRESTRDED ROBSONTURBEVILLE RD SCRIPTURE HIGHCOPPERCANYON RDOLDSETTLERSRDFRENCHTOWN VIC TO R Y MASCH BRANCH CORBIN TIMBERCRKRDWICHITA TRL LAKELEWISVILLE LAKEGRAPEVINE15151 4 12 13 16 1 8510 48 1 27 9 6 43 284229 47 30 28 245 4 42 43 5927 47193 8 2661343540 37 5 7 49 4433 48 53 5528325051 45 39 56 3125 23 63 22 52 21 62583627 60 1 IN = 4,000 FT CITY OF DENTON WASTEWATER IMPACT FEE CAPITAL IMPROVEMENTS PLAN This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. I 1 IN = 4,000 FT 3.1EXHIBIT January 2025 LEGEND Background Data Railroads Roads Lakes Denton City Limits Denton Impact Fee Service Area Existing Infrastructure Ex. 8-10-inch Sewer Line* Ex. ≥12-inch Sewer Line Force Main [SL7 Ex. Lift Station** Impact Fee CIP Projects ³³PRW Existing Water Reclamation Facility UT Existing Peak Flow Basin !!Existing Sewer Line ³³PRW Proposed Water Reclamation Facility [SL7 Proposed Lift Station !!Proposed Force Main Proposed Sewer Line Hunter-Cole Sewer Line 1 Cooper Creek Interceptor III 2 Cooper Creek Outfall (Loop 288) 3 Krum Sewer Line 4 Graveyard Branch Interceptor 5 Leatherwood Interceptor 6 Pecan Creek Interceptor (Ph 1 & 2) 7 Pecan Creek Interceptor I 8 Pecan Creek Interceptor II 9 Pecan Creek Interceptor III 10 Pecan Creek Interceptor IV 11 Pecan WRP Expansion (6 MGD) 12 Cooper Creek Interceptor I 13 Cooper Creek Interceptor II 14 Hickory Creek Interceptor I 15 Hickory Creek Interceptor II 16 Hickory Creek Interceptor III 17 Hickory Creek Lift Station Detention Facility Project Number Project Name 18 PCWRP Headworks Facility 19 PCWRP 5.0 MGD Expansion to 26 MGD 20 CCWRP 2.5 MGD MBR Plant 21 Clear Creek Interceptor (27"- 42") 22 Roark Branch Interceptor Oversize (27" - 42") 23 Cole Ranch Interceptor Oversize (36"- 42") 24 North Cole Ranch Sewer Line (36") 25 Legends Sewer Line (12"- 15") 26 Robson Ranch Sewer Line (12") 27 Robson West Lift Station, Force Main, and Sewer Line Oversize 28 Milam Creek Sewer Line (18"- 24") 29 Denton ICC Sewer Line Oversize (18") 30 Ganzer Rd Sewer Line (12") 31 North Masch Sewer Line (12"- 18") 32 Masch Sewer Line Replacement (15"- 18") 33 North Loop 288 Sewer Line (12"- 15") 34 Mingo Road Sewer Line (12") 35 Lakeview Interceptor Replacement (24" - 30") 36 Lakeview South Lift Station 37 Grissom Sewer Line (15") 38 Lakeview Ranch Sewer Line (24") 39 United Copper Sewer Line (12"-24") 40 Dry Fork Sewer Line (18") 41 Hickory Creek Peak Flow Basin Improvements 42 Cooper Creek Sewer Line Replacement (18"- 24") 43 Pecan Creek Interceptor Replacement (36") 44 Beaver Creek Sewer Line (12") 45 North Milam Sewer Line (12"- 18") 46 HCWRP 10.0 MGD MBR Plant 47 Stark Farms Sewer Line (8"- 12") 48 C Wolfe Road Interceptor (36") 49 TN Skiles Road Interceptor (36") 50 Ponder Sewer Line (12"- 15") 51 South Hickory Creek Sewer Line (24") 52 Wolf Branch Sewer Line (12"- 21") 53 Sanctuary Sewer Line (12"- 18") 54 Meadows Sewer Line (12") 55 Cole Ranch West Sewer Line Oversize (15"- 18") 56 East Clear Creek Sewer Line (8"- 15") 57 East Milam Sewer Line (12"- 15") 58 Stella Hills Lift Station, Force Main, and Onsite Sewer Line Oversize 59 East McKinney Sreet Sewer Line (15" - 21") 60 North Trinity Lift Station and Force Main Oversize 61 North Trinity Road Sewer Line Oversize (15") 62 Ponder Farms/Webster Meadows Lift Station and Force Main 63 Ponder Farms/Webster Meadows Interceptor (15" - 21") 64 Wastewater Impact Fees Project Number Project Name Clear Creek WRP 20 WRP Pecan Creek WRP 19 WRP 18 WRP 11 WRP Hickory Creek WRP 46 WRP Hickory Creek Peak Flow Basin 41 17 UT UT Robson West Lift Station 27 õõ õ Force MainUTWet Well Stella Hills Lift Station 58 õõ Force MainUTWet Well Lakeview South Lift Station 36 õõ õ Force MainUTWet Well North Trinity Lift Station 60 õõ Force MainUTWet Well *Existing sewer lines smaller than 8" are not shown. **Existing lift stations planned to be abandoned are not shown. Wastewater Impact Fee Study 36 June 2025 City of Denton, Texas 3.4 WASTEWATER IMPACT FEE CALCULATION SERVICE UNITS Chapter 395 of the Local Government Code defines a service unit as follows, “Service Unit means a standardized measure of consumption attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards and based on historical data and trends applicable to the political subdivision in which the individual unit of development is located during the previous 10 years.” SERVICE UNIT CALCULATION A single service unit for Denton’s water Impact Fees is the 5/8-inch x 3/4-inch meter. A service unit is the wastewater flow associated with water demand of accommodated by a 5/8-inch x 3/4-inch meter, which is typically used by a single-family residence. All meters greater than 5/8-inch x 3/4-inch have a service unit multiplier determined by the ratio of each larger meter’s capacity to the capacity of the 5/8-inch x 3/4-inch meter. The current service unit multipliers (service units/meter) are shown in Table 3.2. Table 3.2 Meter Capacity Ratios Meter Size Service Units/ Meter1 5/8"x3/4” 1 1" 2.5 1-1/2" 5 2" 8 3" 22.5 4" 50 6" 100 8” 200 10” 325 Wastewater Impact Fee Study 37 June 2025 City of Denton, Texas Based on the City’s 10-year growth projections and the resulting wastewater flow in relation to water demand projections, wastewater service will be required for an additional 52,276 Service Units by the year 2034 as shown in Table 3.3. The City’s existing wastewater system is a single service area because it treats wastewater at a single treatment facility. Over the next 10-years the City will construct two additional treatment facilities to accommodate growth and will therefore divide into three service areas (Pecan Creek, Hickory Creek, Clear Creek as indicated in the Land Use Assumptions chapter). The calculated 10-year additional services units has been distributed across the three services areas based on projected growth and its associated wastewater flow projections as shown in Table 3.3. Table 3.3 10-year Additional Service Units by Service Area Year Pecan Creek Hickory Creek Clear Creek Total 2024 Service Units 59,597 21,283 1,216 82,096 2034 Service Units 67,213 56,695 10,464 134,372 10-Year Service Units 7,616 35,412 9,248 52,276 3.5 PLAN FOR AWARDING IMPACT FEE CREDIT Impact fee law allows for a credit calculation to credit back the utility revenues or ad valorem taxes that are allocated for paying a portion of future capital improvements. The intent of this credit is to prevent the City from double charging development for future capital improvements via Impact Fees and utility rates. If the City chooses not to do a financial analysis to determine the credit value, they are required by law to reduce the recoverable cost by 50 percent. The City chose to perform a financial analysis. MAXIMUM ASSESSABLE IMPACT FEE DETERMINATION The impact fee determination method employed by NewGen Strategies and Solutions, LLC is developed through a financial based model that recognizes the requirements of Chapter 395, including the recognition of cash and/or debt financing, interest earnings, fund balances, and applicable credits associated with the use of utility revenues. In developing the components of the financial model, assumptions must be made that include the following: • Financing o Method of financing (i.e. cash or debt financing) o The level of financing (e.g. 100% debt) o Cost of financing o Debt repayment structure Wastewater Impact Fee Study 38 June 2025 City of Denton, Texas • Timing and Level of Expenditures and Revenues • Interest Earnings • Annual Service Unit Growth • Portion of Utility Revenue Used to Fund Impact Fee Wastewater Improvements While the assumptions employed in determining the maximum assessable impact fee are a reasonable basis for forecasting, these assumptions may not reflect actual future conditions. To address this, Chapter 395 requires the monitoring of Impact Fees through the Capital Improvement Advisory Committee (CIAC) who can then update or revise Impact Fees to reflect the actual implementation of the impact fee program. FINANCING Once the cost of capacity added that is attributable to growth is determined, a City must decide how the cost will be financed: cash and/or debt. Actual costs of capital for any previously funded projects, whether partially or fully funded, are also included. Based on discussions with City staff, it is assumed that the City will debt finance the future project costs. For debt financing, the cost of financing is based on the City’s Financial Advisor’s estimates of future debt costs for bonds issued with 30-year terms as shown in the Wastewater Financial Analysis Appendix of this report. Debt service payments for each future debt issue are assumed to remain constant over the issue’s term. TIMING AND LEVEL OF EXPENDITURES AND REVENUES The exact timing and annual level of cash capital expenditures over the forecast period is currently indeterminate, therefore it is assumed that capital expenditures will occur in amounts over the 10-year program period. It is also assumed that the City will expand debt proceeds over a 2-year timeframe for debt-financed capital projects. For the calculation of the maximum assessable impact fee, debt is assumed to be issued in equal amounts for each year. In order to recognize the full amount of debt to be issued for the cost of capacity added that is attributable to growth during the 10-year period, a portion of years eight, nine, and ten are assumed to be spend in the final three years. INTEREST EARNINGS While debt is issued over 30-year terms and Impact Fees developed are to be charged over a 10-year period, a sufficient fund balance must be generated to meet the future debt service obligations. Fund balances were identified for each service area as a potential source for the current Impact Fee CIP. Because of the generation of the fund balance, excess monies will be available for interest earnings. Chapter 395 states that interest earnings are funds of the impact fee account and are to be held to the same restrictions as impact fee revenues. In order to recognize that interest earnings are used to fund only impact fee eligible improvements, interest earnings are credited against the costs recoverable through Wastewater Impact Fee Study 39 June 2025 City of Denton, Texas Impact Fees. Chapter 395 does not require the upfront recognition of interest earnings in the impact fee determination. To acknowledge the time value of the impact fee payer’s monies, interest earnings have been credited. For this analysis, interest is assumed to be earned at an annual rate of 1.89% per 10-year historical average. ANNUAL SERVICE UNIT GROWTH The timing and annual level of service unit growth over the 10-year program period is currently indeterminate, therefore it is assumed that service unit growth will be consistent over the 10-year forecast. PORTION OF UTILITY REVENUE USED TO FUND IMPACT FEE WASTEWATER IMPROVEMENTS Credit for the portion of ad valorem tax and/or utility service revenues generated by new service units during the program period are used for payment of the improvements included in the Wastewater Impact Fee CIP. The credit is not a determination to recognize the total utility revenue generated by new service units but is a credit for the portion of utility revenue that is used for payment of the improvements included in the Wastewater Impact Fee CIP. Theoretically, the credit determination could be zero ($0) if the City does not utilize any of the new service unit utility revenue to fund improvements that are included in the Wastewater Impact Fee CIP. To be conservative and recognize potential cash flow issues that can occur with the funding of major capital improvement projects, it is assumed that the debt-funded projects (100% of the improvement costs included in the Wastewater Impact Fee CIP but not otherwise funded) could potentially be funded by utility revenue. When an impact fee program is in place, payments made through utility revenue will consist of revenue generated by new service units in the defined service area and existing service units throughout the City; therefore, the portion attributable to the new service units in the defined service area must be isolated. The credit calculation illustrating how the credit is isolated is shown in the Wastewater Financial Analysis Appendix of this report. Wastewater Impact Fee Study 40 June 2025 City of Denton, Texas 3.6 MAXIMUM ASSESSABLE IMPACT FEE A breakdown of the 10-year recoverable costs and the associated impact fee per service unit by service area is as follows: Table 3.4 Pecan Creek Service - 10-Year Recoverable Cost Breakdown Recoverable Impact Fee CIP Costs $69,883,844 Financing Costs $34,160,000 Interest Earnings ($13,234,573) Pre Credit Recoverable Cost for Impact Fee $90,809,271 Credit for Utility Revenues ($2,347,057) Maximum Recoverable Cost for Impact Fee $88,462,214 (1) Per NewGen Strategies and Solutions, LLC financial analysis, See Appendix A. Impact fee per service units = 10-year recoverable costs 10-year additional service units Impact fee per service units = $88,462,214 7,616 Impact fee per service units = $11,615 Therefore, the maximum assessable wastewater impact fee for Pecan Creek Service Area is $11,615. Table 3.5 Hickory Creek Service Area - 10-Year Recoverable Cost Breakdown Recoverable Impact Fee CIP Costs $426,546,589 Financing Costs $190,088,853 Interest Earnings ($124,870,363) Pre Credit Recoverable Cost for Impact Fee $491,765,079 Credit for Utility Revenues ($38,817,845) Maximum Recoverable Cost for Impact Fee $452,947,234 (1) Per NewGen Strategies and Solutions, LLC financial analysis, See Appendix A. Impact fee per service units = 10-year recoverable costs 10-year additional service units Impact fee per service units = $452,947,234 35,412 Impact fee per service units = $12,791 Therefore, the maximum assessable wastewater impact fee for Hickory Creek Service Area is $12,791. Wastewater Impact Fee Study 41 June 2025 City of Denton, Texas Table 3.6 Clear Creek Service Area - 10-Year Recoverable Cost Breakdown Recoverable Impact Fee CIP Costs $139,912,428 Financing Costs $47,194,860 Interest Earnings ($17,484,683) Pre Credit Recoverable Cost for Impact Fee $169,622,605 Credit for Utility Revenues ($3,934,480) Maximum Recoverable Cost for Impact Fee $165,688,125 (1) Per NewGen Strategies and Solutions, LLC financial analysis, See Appendix A. Impact fee per service units = 10-year recoverable costs 10-year additional service units Impact fee per service units = $165,688,125 9,248 Impact fee per service units = $17,916 Therefore, the maximum assessable wastewater impact fee for Clear Creek is $17,916. For a development that requires a different size meter, a service unit equivalent is established at a multiplier based on its capacity with respect to the 5/8-inch x 3/4-inch meter. The maximum impact fee that could be assessed for other meter sizes is based on the Equivalency Table (Table 2.10). Table 3.7 Maximum Assessable Wastewater Impact Fee by Service Area and Meter Size Meter Size Service Unit Equivalent Pecan Creek Maximum Assessable Water Impact Fee Hickory Creek Maximum Assessable Water Impact Fee Clear Creek Maximum Assessable Water Impact Fee 5/8"x3/4” 1 $11,615 $12,791 $17,916 1" 2.5 $29,038 $31,977 $44,790 1-1/2" 5 $58,075 $63,954 $89,581 2" 8 $92,920 $102,326 $143,329 3" 22.5 $261,338 $287,793 $403,112 4" 50 $580,750 $639,539 $895,805 6" 100 $1,161,500 $1,279,078 $1,791,610 8” 200 $2,323,000 $2,558,157 $3,583,221 10” 325 $3,774,875 $4,157,005 $5,822,734 APPENDIX WATER FINANCIAL ANALYSIS City of Denton ‐ 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 1A 0 Existing Fund Balance ‐$                             1 Existing Number of Service Units Over Entire City 82,096                         2 Additional Service Units Added During Planning Period In the Service Area 1,616                           3 Total Cost of the Water Impact Fee CIP 10,654,473$               4  Recoverable Cost for Impact Fee Planning Period 2,454,148$                 5 Percent Recoverable for Water Impact Fee Planning Period (Line 4 / Line 3)23.03% 6 Financing Costs (From Financial Analysis)1,106,314$                 7 Interest Earnings (From Financial Analysis)(604,035)$                   8 Recoverable Cost of Water Impact Fee and Financing Costs Less Balance  (Line 5 + Line 7 + Line 8 ‐ Line 0)2,956,427$                 9 Pre‐Credit Maximum Fee (Line 8 / Line 2)1,830$                         10 Credit for Utility Revenues (From Financial Analysis)(15,105)$                     11 Recoverable Cost of Water Impact Fee and Financing  (Line 8 + Line 10)2,941,322$                 12 Maximum Assessable Fee (Line 11 / Line 2)1,820$                         2024 Water Impact Fee Study City of Denton, Texas Page 1 of 8 Water Appendices SUMMARY OF WATER IMPACT FEE DETERMINATION Recoverable Impact Fee CIP Costs 2,454,148$ Table 2.1 Financing Cost 1,106,314 See Detail Below Existing Fund Balance - Water Appendices - page 1 Interest Earnings (604,035) Water Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee 2,956,427$ Sum of Above Credit for Utility Revenues (15,105) Water Appendices - page 6 Maximum Recoverable Cost for Impact Fee 2,941,322$ Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Financing Costs: Represents the interest costs associated with debt financing the new impact fee project costs. Interest costs are derived from existing debt issues and forecasted debt issues. New Annual Debt Service 2,231,971$ Water Appendices - page 2 Existing Annual Debt Service 1,269,285 Water Appendices - page 2 Principal Component (New and Existing Debt) (2,394,943) Water Appendices - page 1 Financing Costs 1,106,314$ Existing Fund Balance: Represents impact fee revenue collected but not yet expended. Some projects that are included in the 2018 Impact Fee Update were also included in prior Impact Fee Updates. To avoid charging twice for the same project, the impact fee revenues collected but yet to be expended (i.e. fund balance) are credited against the recoverable costs. Reference is page 1 of Water Appendices. Interest Earnings Represents the interest earned on cash flows and assumes a 1.89% annual interest rate. The Impact Fee Statute states that interest earnings are funds of the impact fee account and are held to the same restrictions as impact fee revenues. Therefore in order to recognize that interest earnings are used to fund capital improvements, interest earnings are credited against the recoverable costs. Reference is the sum of Accumulated Interest on page 3 of Water Appendices. Pre Credit Recoverable Cost for Impact Fee Represents Recoverable Impact Fee CIP Costs plus Financing Costs less Existing Fund Balance and Interest Earnings. Credit for Utility Revenues In 2001, the Impact Fee Statute was amended to include a credit for ad valorem and utility revenues generated by new service units during the ten-year timeframe that are used to fund impact fee eligible projects for which the new service units were charged an impact fee. The intent of this amendment is to avoid double-charging the new service units for impact fee capital improvements. The credit recognizes utility revenues used to fund the debt service of debt financed impact fee eligible projects. Reference is page 6 of Water Appendices. Maximum Recoverable Cost for Impact Fee: Represents Pre Credit Recoverable Cost for Impact Fee less Credit for Utility Revenues. This is the maximum cost that can be recovered through impact fees. Water Service Area Zone 1A 2024 Water Impact Fee Update City of Denton, Texas Page 2 of 8 Water Appendices I. General Assumptions Annual Interest Rate on Deposits(1)2.50% Annual Service Unit Growth(2)162 Existing Fund Balance(3)-$ Portion of Projects Funded by Existing Debt(4)850,650$ Non-debt Funded Project Cost(5)59,206 New Project Cost Funded Through New Debt(6)1,544,292 Total Recoverable Project Cost(7)2,454,148$ II. New Debt Issues Assumptions Year Principal(8)Interest(9)Term 1 154,429$ 3.80% 20 2 154,429 3.80% 20 3 154,429 3.80% 20 4 154,429 3.80% 20 5 154,429 3.80% 20 6 154,429 3.80% 20 7 154,429 3.80% 20 8 154,429 3.80% 20 9 154,429 3.80% 20 10 154,429 3.80% 20 Total 1,544,292$ III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 83,135$ 2 160,350 3 160,350 4 160,350 5 160,350 6 160,350 7 160,350 8 160,350 9 160,350 10 237,564 Total 1,603,498$ (1) Per discussions with City Staff (2) Derived from Table 2.6 10-year Additional SFE Water Zone Distribution (3) Balance from 03/30/2024 provided by City Staff (4) Per discussions with City Staff and City files (5) From allocation per City Staff; assumes 0% of new project costs funded through sources other than debt (6) This assumes 100% of new project costs funded through new debt issues (7) Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (8) Assumes new debt issued in equal annual amounts (9) Estimated interest on future debt per discussions with City Staff (10) Assumes new debt proceeds expended over a 2-year timeframe. Non-debt funded capital expenditures allocated in equal annual amounts City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 1A 2024 Water Impact Fee Study City of Denton, Texas Page 3 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary I. New Debt Service Detail Total Annual Series Series Series Series Series Series Series Series Series Series New Debt Year 1 2 3 4 5 6 7 8 9 10 Service 1 11,160$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 11,160$ 2 11,160 11,160 - - - - - - - - 22,320 3 11,160 11,160 11,160 - - - - - - - 33,480 4 11,160 11,160 11,160 11,160 - - - - - - 44,639 5 11,160 11,160 11,160 11,160 11,160 - - - - - 55,799 6 11,160 11,160 11,160 11,160 11,160 11,160 - - - - 66,959 7 11,160 11,160 11,160 11,160 11,160 11,160 11,160 - - - 78,119 8 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 - - 89,279 9 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 - 100,439 10 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 11 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 12 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 13 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 14 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 15 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 16 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 17 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 18 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 19 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 20 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 111,599 21 - 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 100,439 22 - - 11,160 11,160 11,160 11,160 11,160 11,160 11,160 11,160 89,279 23 - - - 11,160 11,160 11,160 11,160 11,160 11,160 11,160 78,119 24 - - - - 11,160 11,160 11,160 11,160 11,160 11,160 66,959 25 - - - - - 11,160 11,160 11,160 11,160 11,160 55,799 26 - - - - - - 11,160 11,160 11,160 11,160 44,639 27 - - - - - - - 11,160 11,160 11,160 33,480 28 - - - - - - - - 11,160 11,160 22,320 29 - - - - - - - - - 11,160 11,160 223,197$ 223,197$ 223,197$ 223,197$ 223,197$ 223,197$ 223,197$ 223,197$ 223,197$ 223,197$ 2,231,971$ II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(1)Expenditures(2)Proceeds(2)Service(3)Credit(4)Expense 1 11,160$ 83,135$ (154,429)$ 63,464$ (147)$ 3,183$ 2 22,320 160,350 (154,429) 63,464 (336) 91,368 3 33,480 160,350 (154,429) 63,464 (569) 102,295 4 44,639 160,350 (154,429) 63,464 (844) 113,180 5 55,799 160,350 (154,429) 63,464 (1,162) 124,022 6 66,959 160,350 (154,429) 63,464 (1,522) 134,822 7 78,119 160,350 (154,429) 63,464 (1,924) 145,580 8 89,279 160,350 (154,429) 63,464 (2,368) 156,296 9 100,439 160,350 (154,429) 63,464 (2,853) 166,971 10 111,599 237,564 (154,429) 63,464 (3,379) 254,819 11 111,599 - - 63,464 - 175,063 12 111,599 - - 63,464 - 175,063 13 111,599 - - 63,464 - 175,063 14 111,599 - - 63,464 - 175,063 15 111,599 - - 63,464 - 175,063 16 111,599 - - 63,464 - 175,063 17 111,599 - - 63,464 - 175,063 18 111,599 - - 63,464 - 175,063 19 111,599 - - 63,464 - 175,063 20 111,599 - - 63,464 - 175,063 21 100,439 - - - - 100,439 22 89,279 - - - - 89,279 23 78,119 - - - - 78,119 24 66,959 - - - - 66,959 25 55,799 - - - - 55,799 26 44,639 - - - - 44,639 27 33,480 - - - - 33,480 28 22,320 - - - - 22,320 29 11,160 - - - - 11,160 2,231,971$ 1,603,498$ (1,544,292)$ 1,269,285$ (15,105)$ 3,545,357$ (1) Water Appendices - page 2 Section I (2) Water Appendices - page 1 (3) Actual timing of payment varies. Calculated P&I above assumes City's estimated average cost of outstanding system debt and constant annual debt service payments. (4) Water Appendices - page 6 Water Service Area Zone 1A 2024 Water Impact Fee Study City of Denton, Texas Page 4 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Impact Estimated Impact Service Fee Annual Accumulated Fund Year Fee Units Revenue Expenses Sub-Total Interest Balance Initial -$ 1 1,820$ 162 294,132$ 3,183$ 290,949$ 3,637$ 294,586 2 1,820 162 294,132 91,368 202,764 9,899 507,249 3 1,820 162 294,132 102,295 191,837 15,079 714,165 4 1,820 162 294,132 113,180 180,952 20,116 915,234 5 1,820 162 294,132 124,022 170,110 25,007 1,110,351 6 1,820 162 294,132 134,822 159,311 29,750 1,299,412 7 1,820 162 294,132 145,580 148,553 34,342 1,482,307 8 1,820 162 294,132 156,296 137,836 38,781 1,658,924 9 1,820 162 294,132 166,971 127,162 43,063 1,829,148 10 1,820 162 294,132 254,819 39,313 46,220 1,914,681 11 - - - 175,063 (175,063) 45,679 1,785,297 12 - - - 175,063 (175,063) 42,444 1,652,679 13 - - - 175,063 (175,063) 39,129 1,516,744 14 - - - 175,063 (175,063) 35,730 1,377,412 15 - - - 175,063 (175,063) 32,247 1,234,596 16 - - - 175,063 (175,063) 28,677 1,088,210 17 - - - 175,063 (175,063) 25,017 938,164 18 - - - 175,063 (175,063) 21,266 784,367 19 - - - 175,063 (175,063) 17,421 626,725 20 - - - 175,063 (175,063) 13,480 465,142 21 - - - 100,439 (100,439) 10,373 375,077 22 - - - 89,279 (89,279) 8,261 294,059 23 - - - 78,119 (78,119) 6,375 222,315 24 - - - 66,959 (66,959) 4,721 160,076 25 - - - 55,799 (55,799) 3,304 107,582 26 - - - 44,639 (44,639) 2,132 65,074 27 - - - 33,480 (33,480) 1,208 32,802 28 - - - 22,320 (22,320) 541 11,024 29 - - - 11,160 (11,160) 136 - 2,941,322 3,545,357 604,035 Water Service Area Zone 1A 2024 Water Impact Fee Study City of Denton, Texas Page 5 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense Year End of Period Factor Factor Actual Escalated Actual Escalated 1 29 2.0215 1.0000 162 327 3,183$ 6,435$ 2 28 1.9721 1.0000 162 319 91,368 180,192 3 27 1.9240 1.0000 162 311 102,295 196,821 4 26 1.8771 1.0000 162 303 113,180 212,452 5 25 1.8313 1.0000 162 296 124,022 227,126 6 24 1.7867 1.0000 162 289 134,822 240,882 7 23 1.7431 1.0000 162 282 145,580 253,759 8 22 1.7006 1.0000 162 275 156,296 265,793 9 21 1.6591 1.0000 162 268 166,971 277,021 10 20 1.6186 1.0000 162 262 254,819 412,458 11 19 1.5792 1.0000 - - 175,063 276,451 12 18 1.5406 1.0000 - - 175,063 269,709 13 17 1.5031 1.0000 - - 175,063 263,130 14 16 1.4664 1.0000 - - 175,063 256,712 15 15 1.4306 1.0000 - - 175,063 250,451 16 14 1.3957 1.0000 - - 175,063 244,343 17 13 1.3617 1.0000 - - 175,063 238,383 18 12 1.3285 1.0000 - - 175,063 232,569 19 11 1.2961 1.0000 - - 175,063 226,896 20 10 1.2645 1.0000 - - 175,063 221,362 21 9 1.2336 1.0000 - - 100,439 123,904 22 8 1.2035 1.0000 - - 89,279 107,451 23 7 1.1742 1.0000 - - 78,119 91,727 24 6 1.1456 1.0000 - - 66,959 76,705 25 5 1.1176 1.0000 - - 55,799 62,362 26 4 1.0904 1.0000 - - 44,639 48,673 27 3 1.0638 1.0000 - - 33,480 35,614 28 2 1.0378 1.0000 - - 22,320 23,164 29 1 1.0125 1.0000 - - 11,160 11,299 2,930 5,333,843$ Annual Interest Rate: 2.50% Present Value of Initial Impact Fee Fund Balance -$ Total Escalated Expense for Entire Period 5,333,843$ Less Future Value of Initial Impact Fee Fund Balance - Sub-Total 5,333,843$ Total Escalated Service Units 2,930 Impact Fee for Water Service Area 1,820$ Water Service Area Zone 1A 2024 Water Impact Fee Study City of Denton, Texas Page 6 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Water Service Area Zone 1A Cost In Percent in Impact Fee Debt Funded (2)Non-Debt Impact Fee Impact Fee Project Name(1)Service Area (1)Demand Recoverable Cost(1)Existing Proposed Funded(2)Recoverable Cost Lake Ray Roberts $ 4,693,949 10% $ 469,395 $ 469,395 $ - $ - $ 469,395 54" Finished Water Transmission Line 293,637 57% 167,401 140,694 - 26,706 167,401 Loop 288 Water Main - Sherman to UNT 133,552 65% 86,809 86,809 - - 86,809 Loop 288 Water Main - Sherman to Hwy 380 183,135 0% - - - - - North-South Water Line Phase I 314,318 10% 31,432 31,432 - - 31,432 Roselawn Elevated Storage Tank 192,877 27% 51,434 51,434 - - 51,434 North-South Water Line 565,815 10% 56,581 37,230 - 19,352 56,581 Locust Water Line Upsize 1,281,776 3% 36,622 31,251 - 5,371 36,622 Hickory Water Line Upsize 498,444 1% 7,121 2,406 - 4,714 7,121 42" Jim Christal EST Transmission Main 377,981 81% 307,109 - 307,109 - 307,109 24/48" Loop 288 Transmission Main 2,115,928 58% 1,237,183 - 1,237,183 - 1,237,183 Water Impact Fee Report Preparation 3,062 100% 3,062 - - 3,062 3,062 Total $ 10,654,473 $ 2,454,148 $ 850,650 $ 1,544,292 $ 59,206 $ 2,454,148 (1) Derived from Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost for Zone 1A (2) Per discussions with City staff and City files 2024 Water Impact Fee Study City of Denton, Texas Page 7 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination 2024 Service Units(1)82,096 Ten Year Growth in Service Units(2)1,616 10 years Annual Growth in Service Units 162 12345678910Total Debt Service for Debt Funded Projects Eligible for Impact Fees(3)74,624$ 85,784$ 96,944$ 108,104$ 119,264$ 130,423$ 141,583$ 152,743$ 163,903$ 175,063$ 1,248,435$ Net Impact Fee Eligible Debt Service Funded by Other Sources 74,624$ 85,784$ 96,944$ 108,104$ 119,264$ 130,423$ 141,583$ 152,743$ 163,903$ 175,063$ 1,248,435$ Current Service Units 82,258 82,419 82,581 82,742 82,904 83,066 83,227 83,389 83,550 83,712 Total Net Impact Fee Eligible Debt Service Funded by Other 0.91$ 1.04$ 1.17$ 1.31$ 1.44$ 1.57$ 1.70$ 1.83$ 1.96$ 2.09$ Sources per Service Unit Annual Growth in Service Units (Cumulative) 162 323 485 646 808 970 1,131 1,293 1,454 1,616 147$ 336$ 569$ 844$ 1,162$ 1,522$ 1,924$ 2,368$ 2,853$ 3,379$ 15,105$ Credit Amount (1) Derived from Table 2.5 10-year Additional Single-Family Equivalent Calculation (2) Derived from Table 2.6 10-year Additional SFE Water Zone Distribution (3) Water Appendices - page 2 Section II y Net Impact Fee Eligible Debt Service Funded by Other Sources Water Service Area Zone 1A 15,105$ 2024 Water Impact Fee Study City of Denton, Texas Page 8 of 8 Water Appendices City of Denton ‐ 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 1B 0 Existing Fund Balance ‐$                             1 Existing Number of Service Units Over Entire City 82,096                         2 Additional Service Units Added During Planning Period In the Service Area 29,427                         3 Total Cost of the Water Impact Fee CIP 573,022,860$             4  Recoverable Cost for Impact Fee Planning Period 292,309,445$             5 Percent Recoverable for Water Impact Fee Planning Period (Line 4 / Line 3)51.01% 6 Financing Costs (From Financial Analysis)129,102,582$             7 Interest Earnings (From Financial Analysis)(81,750,244)$             8 Recoverable Cost of Water Impact Fee and Financing Costs Less Balance  (Line 5 + Line 7 + Line 8 ‐ Line 0)339,661,784$             9 Pre‐Credit Maximum Fee (Line 8 / Line 2)11,542$                       10 Credit for Utility Revenues (From Financial Analysis)(23,479,052)$             11 Recoverable Cost of Water Impact Fee and Financing  (Line 8 + Line 10)316,182,731$             12 Maximum Assessable Fee (Line 11 / Line 2)10,745$                       2024 Water Impact Fee Study City of Denton, Texas Page 1 of 8 Water Appendices SUMMARY OF WATER IMPACT FEE DETERMINATION Recoverable Impact Fee CIP Costs 292,309,445$ Table 2.1 Financing Cost 129,102,582 See Detail Below Existing Fund Balance - Water Appendices - page 1 Interest Earnings (81,750,244) Water Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee 339,661,784$ Sum of Above Credit for Utility Revenues (23,479,052) Water Appendices - page 6 Maximum Recoverable Cost for Impact Fee 316,182,731$ Total Cost of the Water Impact Fee CIP Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Financing Costs: Represents the interest costs associated with debt financing the new impact fee project costs. Interest costs are derived one-half of the new impact fee project costs will be funded through new debt issues (Page 7 of Appendix E - ). Interest costs are derived from forecasted debt issues. from existing debt issues and forecasted debt issues. New Annual Debt Service 376,804,966$ Water Appendices - page 2 Existing Annual Debt Service 39,438,370 Water Appendices - page 2 Principal Component (New and Existing Debt) (287,140,753) Water Appendices - page 1 Financing Costs 129,102,582$ Existing Fund Balance: Represents impact fee revenue collected but not yet expended. Some projects that are included in the 2018 Impact Fee Update were also included in prior Impact Fee Updates. To avoid charging twice for the same project, the impact fee revenues collected but yet to be expended (i.e. fund balance) are credited against the recoverable costs. Reference is page 1 of Water Appendices. Interest Earnings Represents the interest earned on cash flows and assumes a 1.89% annual interest rate. The Impact Fee Statute states that interest earnings are funds of the impact fee account and are held to the same restrictions as impact fee revenues. Therefore in order to recognize that interest earnings are used to fund capital improvements, interest earnings are credited against the recoverable costs. Reference is the sum of Accumulated Interest on page 3 of Water Appendices. Pre Credit Recoverable Cost for Impact Fee Represents Recoverable Impact Fee CIP Costs plus Financing Costs less Existing Fund Balance and Interest Earnings. Credit for Utility Revenues In 2001, the Impact Fee Statute was amended to include a credit for ad valorem and utility revenues generated by new service units during the ten-year timeframe that are used to fund impact fee eligible projects for which the new service units were charged an impact fee. The intent of this amendment is to avoid double-charging the new service units for impact fee capital improvements. The credit recognizes utility revenues used to fund the debt service of debt financed impact fee eligible projects. Reference is page 6 of Water Appendices. Maximum Recoverable Cost for Impact Fee: Represents Pre Credit Recoverable Cost for Impact Fee less Credit for Utility Revenues. This is the maximum cost that can be recovered through impact fees. Water Service Area Zone 1B 2024 Water Impact Fee Update City of Denton, Texas Page 2 of 8 Water Appendices I. General Assumptions Annual Interest Rate on Deposits(1)2.50% Annual Service Unit Growth(2)2,943 Existing Fund Balance(3)-$ Total Cost of the Water Impact Fee CIP Portion of Projects Funded by Existing Debt(4)26,430,833$ Recoverable 5,168,692 New Project Cost Funded Through New Debt(6)260,709,921 Total Recoverable Project Cost(7)292,309,445$ II. New Debt Issues Assumptions Principal(8)Interest(9)Term 1 26,070,992$ 3.80% 20 2 26,070,992 3.80% 20 3 26,070,992 3.80% 20 4 26,070,992 3.80% 20 5 26,070,992 3.80% 20 6 26,070,992 3.80% 20 7 26,070,992 3.80% 20 8 26,070,992 3.80% 20 9 26,070,992 3.80% 20 10 26,070,992 3.80% 20 Total 260,709,921$ III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 13,552,365$ 2 26,587,861 3 26,587,861 4 26,587,861 5 26,587,861 6 26,587,861 7 26,587,861 8 26,587,861 9 26,587,861 10 39,623,357 Total 265,878,613$ (1) Per discussions with City Staff (2) Derived from Table 2.6 10-year Additional SFE Water Zone Distribution (3) Balance from 03/30/2024 provided by City Staff (4) Per discussions with City Staff and City files (5) From allocation per City Staff; assumes 0% of new project costs funded through sources other than debt (6) This assumes 100% of new project costs funded through new debt issues (7) Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (8) Assumes new debt issued in equal annual amounts (9) Estimated interest on future debt per discussions with City Staff (10) Assumes new debt proceeds expended over a 2-year timeframe. Non-debt funded capital expenditures allocated in equal annual amounts City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 1B 2024 Water Impact Fee Study City of Denton, Texas Page 3 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary I. New Debt Service Detail Total Annual Series Series Series Series Series Series Series Series Series Series New Debt Yearof the Water Imp 2 3 4 5 6 7 8 9 10 Service 1 -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,884,025$ 2 1,884,025 1,884,025 - - - - - - - - 3,768,050 3 1,884,025 1,884,025 1,884,025 - - - - - - - 5,652,074 4 1,884,025 1,884,025 1,884,025 1,884,025 - - - - - - 7,536,099 5 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 - - - - - 9,420,124 6 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 - - - - 11,304,149 7 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 - - - 13,188,174 8 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 - - 15,072,199 9 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 - 16,956,223 10 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 11 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 12 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 13 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 14 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 15 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 16 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 17 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 18 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 19 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 20 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 18,840,248 21 - 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 16,956,223 22 - - 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 15,072,199 23 - - - 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 13,188,174 24 - - - - 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 11,304,149 25 - - - - - 1,884,025 1,884,025 1,884,025 1,884,025 1,884,025 9,420,124 26 - - - - - - 1,884,025 1,884,025 1,884,025 1,884,025 7,536,099 27 - - - - - - - 1,884,025 1,884,025 1,884,025 5,652,074 28 - - - - - - - - 1,884,025 1,884,025 3,768,050 29 - - - - - - - - - 1,884,025 1,884,025 37,680,497$ 37,680,497$ 37,680,497$ 37,680,497$ 37,680,497$ 37,680,497$ 37,680,497$ 37,680,497$ 37,680,497$ 37,680,497$ 376,804,966$ II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(1)Expenditures(2)Proceeds(2)Service(3)Credit(4)Expense 1 1,884,025$ 13,552,365$ (26,070,992)$ 1,971,918$ (133,433)$ (8,796,117)$ 2 3,768,050 26,587,861 (26,070,992) 1,971,918 (383,972) 5,872,866 3 5,652,074 26,587,861 (26,070,992) 1,971,918 (740,244) 7,400,618 4 7,536,099 26,587,861 (26,070,992) 1,971,918 (1,192,307) 8,832,580 5 9,420,124 26,587,861 (26,070,992) 1,971,918 (1,731,425) 10,177,487 6 11,304,149 26,587,861 (26,070,992) 1,971,918 (2,349,893) 11,443,043 7 13,188,174 26,587,861 (26,070,992) 1,971,918 (3,040,891) 12,636,071 8 15,072,199 26,587,861 (26,070,992) 1,971,918 (3,798,356) 13,762,630 9 16,956,223 26,587,861 (26,070,992) 1,971,918 (4,616,885) 14,828,126 10 18,840,248 39,623,357 (26,070,992) 1,971,918 (5,491,644) 28,872,888 11 18,840,248 - - 1,971,918 - 20,812,167 12 18,840,248 - - 1,971,918 - 20,812,167 13 18,840,248 - - 1,971,918 - 20,812,167 14 18,840,248 - - 1,971,918 - 20,812,167 15 18,840,248 - - 1,971,918 - 20,812,167 16 18,840,248 - - 1,971,918 - 20,812,167 17 18,840,248 - - 1,971,918 - 20,812,167 18 18,840,248 - - 1,971,918 - 20,812,167 19 18,840,248 - - 1,971,918 - 20,812,167 20 18,840,248 - - 1,971,918 - 20,812,167 21 16,956,223 - - - - 16,956,223 22 15,072,199 - - - - 15,072,199 23 13,188,174 - - - - 13,188,174 24 11,304,149 - - - - 11,304,149 25 9,420,124 - - - - 9,420,124 26 7,536,099 - - - - 7,536,099 27 5,652,074 - - - - 5,652,074 28 3,768,050 - - - - 3,768,050 29 1,884,025 - - - - 1,884,025 376,804,966$ 265,878,613$ (260,709,921)$ 39,438,370$ (23,479,052)$ 397,932,976$ (1) Water Appendices - page 2 Section I (2) Water Appendices - page 1 (3) Actual timing of payment varies. Calculated P&I above assumes City's estimated average cost of outstanding system debt and constant annual debt service payments. (4) Water Appendices - page 6 Water Service Area Zone 1B 2024 Water Impact Fee Study City of Denton, Texas Page 4 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Impact Estimated Impact Service Fee Annual Accumulated Fund Year Fee Units Revenue Expenses Sub-Total Interest Balance Initial Total Cost of the Water Impact Fee CIP -$ 1 10,745$ 2,943 31,618,273$ (8,796,117)$ 40,414,390$ 505,180$ 40,919,570 2 10,745 2,943 31,618,273 5,872,866 25,745,407 1,344,807 68,009,784 3 10,745 2,943 31,618,273 7,400,618 24,217,655 2,002,965 94,230,405 4 10,745 2,943 31,618,273 8,832,580 22,785,693 2,640,581 119,656,679 5 10,745 2,943 31,618,273 10,177,487 21,440,786 3,259,427 144,356,893 6 10,745 2,943 31,618,273 11,443,043 20,175,230 3,861,113 168,393,235 7 10,745 2,943 31,618,273 12,636,071 18,982,203 4,447,108 191,822,546 8 10,745 2,943 31,618,273 13,762,630 17,855,643 5,018,759 214,696,949 9 10,745 2,943 31,618,273 14,828,126 16,790,147 5,577,301 237,064,397 10 10,745 2,943 31,618,273 28,872,888 2,745,385 5,960,927 245,770,709 11 - - - 20,812,167 (20,812,167) 5,884,116 230,842,658 12 - - - 20,812,167 (20,812,167) 5,510,914 215,541,406 13 - - - 20,812,167 (20,812,167) 5,128,383 199,857,622 14 - - - 20,812,167 (20,812,167) 4,736,288 183,781,744 15 - - - 20,812,167 (20,812,167) 4,334,392 167,303,968 16 - - - 20,812,167 (20,812,167) 3,922,447 150,414,249 17 - - - 20,812,167 (20,812,167) 3,500,204 133,102,286 18 - - - 20,812,167 (20,812,167) 3,067,405 115,357,524 19 - - - 20,812,167 (20,812,167) 2,623,786 97,169,144 20 - - - 20,812,167 (20,812,167) 2,169,077 78,526,053 21 - - - 16,956,223 (16,956,223) 1,751,199 63,321,028 22 - - - 15,072,199 (15,072,199) 1,394,623 49,643,453 23 - - - 13,188,174 (13,188,174) 1,076,234 37,531,513 24 - - - 11,304,149 (11,304,149) 796,986 27,024,350 25 - - - 9,420,124 (9,420,124) 557,857 18,162,083 26 - - - 7,536,099 (7,536,099) 359,851 10,985,835 27 - - - 5,652,074 (5,652,074) 203,995 5,537,755 28 - - - 3,768,050 (3,768,050) 91,343 1,861,049 29 - - - 1,884,025 (1,884,025) 22,976 - 316,182,731 397,932,976 81,750,244 Water Service Area Zone 1B 2024 Water Impact Fee Study City of Denton, Texas Page 5 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense Year of the Water Impact Factor Factor Actual Escalated Actual Escalated 1 29 2.0215 1.0000 2,943 5,949 (8,796,117)$ (17,780,921)$ 2 28 1.9721 1.0000 2,943 5,804 5,872,866 11,582,158 3 27 1.9240 1.0000 2,943 5,662 7,400,618 14,239,132 4 26 1.8771 1.0000 2,943 5,524 8,832,580 16,579,798 5 25 1.8313 1.0000 2,943 5,389 10,177,487 18,638,388 6 24 1.7867 1.0000 2,943 5,258 11,443,043 20,444,923 7 23 1.7431 1.0000 2,943 5,129 12,636,071 22,025,821 8 22 1.7006 1.0000 2,943 5,004 13,762,630 23,404,407 9 21 1.6591 1.0000 2,943 4,882 14,828,126 24,601,331 10 20 1.6186 1.0000 2,943 4,763 28,872,888 46,734,618 11 19 1.5792 1.0000 - - 20,812,167 32,865,626 12 18 1.5406 1.0000 - - 20,812,167 32,064,025 13 17 1.5031 1.0000 - - 20,812,167 31,281,976 14 16 1.4664 1.0000 - - 20,812,167 30,519,001 15 15 1.4306 1.0000 - - 20,812,167 29,774,635 16 14 1.3957 1.0000 - - 20,812,167 29,048,424 17 13 1.3617 1.0000 - - 20,812,167 28,339,926 18 12 1.3285 1.0000 - - 20,812,167 27,648,708 19 11 1.2961 1.0000 - - 20,812,167 26,974,350 20 10 1.2645 1.0000 - - 20,812,167 26,316,439 21 9 1.2336 1.0000 - - 16,956,223 20,917,756 22 8 1.2035 1.0000 - - 15,072,199 18,140,059 23 7 1.1742 1.0000 - - 13,188,174 15,485,416 24 6 1.1456 1.0000 - - 11,304,149 12,949,477 25 5 1.1176 1.0000 - - 9,420,124 10,528,030 26 4 1.0904 1.0000 - - 7,536,099 8,216,999 27 3 1.0638 1.0000 - - 5,652,074 6,012,438 28 2 1.0378 1.0000 - - 3,768,050 3,910,529 29 1 1.0125 1.0000 - - 1,884,025 1,907,575 53,364 573,371,044$ Annual Interest Rate: 2.50% Present Value of Initial Impact Fee Fund Balance -$ Total Escalated Expense for Entire Period 573,371,044$ Less Future Value of Initial Impact Fee Fund Balance - Sub-Total 573,371,044$ Total Escalated Service Units 53,364 Impact Fee for Water Service Area 10,745$ Water Service Area Zone 1B 2024 Water Impact Fee Study City of Denton, Texas Page 6 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Water Service Area Zone 1B Cost In Impact Fee Debt Funded (2)Non-Debt Impact Fee Impact Fee Project Name(1)Service Area (1)Recoverable Cost(1)Existing Proposed Funded(2)Recoverable Cost Lake Ray Roberts $ 85,485,098 $ 8,548,510 $ 8,548,510 $ - $ - $ 8,548,510 54" Finished Water Transmission Line 5,347,650 3,048,662 2,562,290 - 486,372 3,048,662 Loop 288 Water Main - Sherman to UNT 2,432,212 1,580,938 1,580,938 - - 1,580,938 Loop 288 Water Main - Sherman to Hwy 380 3,335,217 - - - - - Northwest Elevated Storage Tank 2,339,988 58,500 58,500 - - 58,500 Southwest Pump Station 3,400,717 1,700,358 1,700,358 - - 1,700,358 Southwest PS Oversize Discharge Line (30" to 36") 163,638 66,971 66,971 - - 66,971 North-South Water Line Phase I 5,724,283 572,429 572,429 - - 572,429 Roselawn Elevated Storage Tank 3,512,633 936,702 936,702 - - 936,702 Roselawn Water Line 1,033,884 103,388 103,388 - - 103,388 Southwest Elevated Storage Tank 3,112,115 77,803 77,803 - - 77,803 North-South Water Line 10,304,485 1,030,449 678,022 - 352,426 1,030,449 Allred Road / John Paine Road Water Lines 3,411,070 1,169,510 301,745 - 867,765 1,169,510 McKinney Water Line 1,200,600 85,758 63,329 - 22,429 85,758 I-35E Frontage Water Line 1,020,510 72,894 72,894 - - 72,894 Northwest Booster Pump Station 8,383,268 7,093,535 4,417,073 - 2,676,462 7,093,535 36" Northwest Water Line 8,504,928 5,397,358 4,689,881 - 707,477 5,397,358 Lake Ray Roberts WTP Rerate to 30 MGD 23,008,902 23,008,902 - 23,008,902 - 23,008,902 Lake Ray Roberts WTP 20 MGD Expansion to 50 MGD 112,654,462 112,654,462 - 112,654,462 - 112,654,462 16" Northwest I-35 Frontage Rd Water Line 4,524,000 2,442,960 - 2,442,960 - 2,442,960 16" I-35W/Corbin Water Line 2,722,100 598,862 - 598,862 - 598,862 42" Jim Christal EST Transmission Main 6,883,699 5,593,006 - 5,593,006 - 5,593,006 24/30" West Allred Rd Transmission Main Oversize 426,815 426,815 - 426,815 - 426,815 24" Rosebrook Transmission Main 5,424,349 3,254,609 - 3,254,609 - 3,254,609 24" North/South Transmission Main 13,467,686 11,671,994 - 11,671,994 - 11,671,994 12" Cooper Creek Rd Water Line 14,883,000 4,464,900 - 4,464,900 - 4,464,900 12" N Mayhill Rd Water Line 4,363,000 959,860 - 959,860 - 959,860 12" Duchess Dr Water Line 2,185,000 655,500 - 655,500 - 655,500 12" Shady Oaks Dr Water Line 3,048,000 1,097,280 - 1,097,280 - 1,097,280 12" Stuart Ridge Water Line 4,826,000 2,219,960 - 2,219,960 - 2,219,960 Lake Ray Roberts HSPS Improvements Phase 1 3,180,981 3,180,981 - 3,180,981 - 3,180,981 Lake Ray Roberts WTP 54/60" Transmission Main 67,855,554 39,675,142 - 39,675,142 - 39,675,142 Lake Ray Roberts WTP 10 MGD Expansion to 60 MGD 56,327,231 5,632,723 - 5,632,723 - 5,632,723 24/48" Loop 288 Transmission Main 38,534,776 22,531,284 - 22,531,284 - 22,531,284 Lake Ray Roberts HSPS Improvements Phase 2 3,180,981 1,097,964 - 1,097,964 - 1,097,964 Southwest PS Improvements 5,802,270 1,441,337 - 1,441,337 - 1,441,337 12" Northwest Water Line 13,235,000 3,970,500 - 3,970,500 - 3,970,500 16" Milam Rd Water Line 9,947,000 5,769,260 - 5,769,260 - 5,769,260 16" North Central Water Line 12,188,000 3,656,400 - 3,656,400 - 3,656,400 12" N Locust Rd to E Sherman Dr Water Line 3,959,000 1,187,700 - 1,187,700 - 1,187,700 12" North Cooper Creek Rd Water Line 8,286,000 2,982,960 - 2,982,960 - 2,982,960 12" Swisher Rd Water Line 3,341,000 534,560 - 534,560 - 534,560 Water Impact Fee Report Preparation 55,761 55,761 - - 55,761 55,761 Total $ 573,022,860 $ 292,309,445 $ 26,430,833 $ 260,709,921 $ 5,168,692 $ 292,309,445 (1) Derived from Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost for Zone 1B (2) Per discussions with City staff and City files 2024 Water Impact Fee Study City of Denton, Texas Page 7 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination 2024 Service Units(1)82,096 Ten Year Growth in ServTotal Cost of the Water Impact Fee CIP 29,427 10 years Annual Growth in Service Units 12345678910Total Debt Service for Debt Funded Projects Eligible for Impact Fees(3)3,855,943$ 5,739,968$ 7,623,993$ 9,508,018$ 11,392,043$ 13,276,067$ 15,160,092$ 17,044,117$ 18,928,142$ 20,812,167$ 123,340,551$ Net Impact Fee Eligible Debt Service Funded by Other Sources 3,855,943$ 5,739,968$ 7,623,993$ 9,508,018$ 11,392,043$ 13,276,067$ 15,160,092$ 17,044,117$ 18,928,142$ 20,812,167$ 123,340,551$ Current Service Units 85,039 87,981 90,924 93,867 96,810 99,752 102,695 105,638 108,581 111,523 Total Net Impact Fee Eligible Debt Service Funded by Other 45.34$ 65.24$ 83.85$ 101.29$ 117.67$ 133.09$ 147.62$ 161.34$ 174.32$ 186.62$ Sources per Service Unit Annual Growth in Service Units (Cumulative) 2,943 5,885 8,828 11,771 14,714 17,656 20,599 23,542 26,485 29,427 133,433$ 383,972$ 740,244$ 1,192,307$ 1,731,425$ 2,349,893$ 3,040,891$ 3,798,356$ 4,616,885$ 5,491,644$ 23,479,052$ Credit Amount (1) Derived from Table 2.5 10-year Additional Single-Family Equivalent Calculation (2) Derived from Table 2.6 10-year Additional SFE Water Zone Distribution (3) Water Appendices - page 2 Section II Annual Water Rate Revenue Generated by Service Unit for Net Impact Fee Eligible Debt Service Funded by Other Sources Water Service Area Zone 1B 23,479,052$ 2,943 2024 Water Impact Fee Study City of Denton, Texas Page 8 of 8 Water Appendices City of Denton ‐ 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 2 0 Existing Fund Balance ‐$                             1 Existing Number of Service Units Over Entire City 82,096                         2 Additional Service Units Added During Planning Period In the Service Area 21,731                         3 Total Cost of the Water Impact Fee CIP 419,386,122$             4  Recoverable Cost for Impact Fee Planning Period 240,510,198$             5 Percent Recoverable for Water Impact Fee Planning Period (Line 4 / Line 3)57.35% 6 Financing Costs (From Financial Analysis)106,564,481$             7 Interest Earnings (From Financial Analysis)(68,197,039)$             8 Recoverable Cost of Water Impact Fee and Financing Costs Less Balance  (Line 5 + Line 7 + Line 8 ‐ Line 0)278,877,639$             9 Pre‐Credit Maximum Fee (Line 8 / Line 2)12,833$                       10 Credit for Utility Revenues (From Financial Analysis)(15,078,415)$             11 Recoverable Cost of Water Impact Fee and Financing  (Line 8 + Line 10)263,799,224$             12 Maximum Assessable Fee (Line 11 / Line 2)12,139$                       2024 Water Impact Fee Study City of Denton, Texas Page 1 of 8 Water Appendices SUMMARY OF WATER IMPACT FEE DETERMINATION Recoverable Impact Fee CIP Costs 240,510,198$ Table 2.1 Financing Cost 106,564,481 See Detail Below Existing Fund Balance - Water Appendices - page 1 Interest Earnings (68,197,039) Water Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee 278,877,639$ Sum of Above Credit for Utility Revenues (15,078,415) Water Appendices - page 6 Maximum Recoverable Cost for Impact Fee 263,799,224$ Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Financing Costs: Represents the interest costs associated with debt financing the new impact fee project costs. Interest costs are derived from existing debt issues and forecasted debt issues. New Annual Debt Service 315,826,720$ Water Appendices - page 2 Existing Annual Debt Service 28,067,078 Water Appendices - page 2 Principal Component (New and Existing Debt) (237,329,318) Water Appendices - page 1 Financing Costs 106,564,481$ Existing Fund Balance: Represents impact fee revenue collected but not yet expended. Some projects that are included in the 2018 Impact Fee Update were also included in prior Impact Fee Updates. To avoid charging twice for the same project, the impact fee revenues collected but yet to be expended (i.e. fund balance) are credited against the recoverable costs. Reference is page 1 of Water Appendices. Interest Earnings Represents the interest earned on cash flows and assumes a 1.89% annual interest rate. The Impact Fee Statute states that interest earnings are funds of the impact fee account and are held to the same restrictions as impact fee revenues. Therefore in order to recognize that interest earnings are used to fund capital improvements, interest earnings are credited against the recoverable costs. Reference is the sum of Accumulated Interest on page 3 of Water Appendices. Pre Credit Recoverable Cost for Impact Fee Represents Recoverable Impact Fee CIP Costs plus Financing Costs less Existing Fund Balance and Interest Earnings. Credit for Utility Revenues In 2001, the Impact Fee Statute was amended to include a credit for ad valorem and utility revenues generated by new service units during the ten-year timeframe that are used to fund impact fee eligible projects for which the new service units were charged an impact fee. The intent of this amendment is to avoid double-charging the new service units for impact fee capital improvements. The credit recognizes utility revenues used to fund the debt service of debt financed impact fee eligible projects. Reference is page 6 of Water Appendices. Maximum Recoverable Cost for Impact Fee: Represents Pre Credit Recoverable Cost for Impact Fee less Credit for Utility Revenues. This is the maximum cost that can be recovered through impact fees. Water Service Area Zone 2 2024 Water Impact Fee Update City of Denton, Texas Page 2 of 8 Water Appendices I. General Assumptions Annual Interest Rate on Deposits(1)2.50% Annual Service Unit Growth(2)2,173 Existing Fund Balance(3)-$ Portion of Projects Funded by Existing Debt(4)18,810,013$ Non-debt Funded Project Cost(5)3,180,880 New Project Cost Funded Through New Debt(6)218,519,305 Total Recoverable Project Cost(7)240,510,198$ II. New Debt Issues Assumptions Year Principal(8)Interest(9)Term 1 21,851,930$ 3.80% 20 2 21,851,930 3.80% 20 3 21,851,930 3.80% 20 4 21,851,930 3.80% 20 5 21,851,930 3.80% 20 6 21,851,930 3.80% 20 7 21,851,930 3.80% 20 8 21,851,930 3.80% 20 9 21,851,930 3.80% 20 10 21,851,930 3.80% 20 Total 218,519,305$ III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 11,244,053$ 2 22,170,018 3 22,170,018 4 22,170,018 5 22,170,018 6 22,170,018 7 22,170,018 8 22,170,018 9 22,170,018 10 33,095,984 Total 221,700,185$ (1) Per discussions with City Staff (2) Derived from Table 2.6 10-year Additional SFE Water Zone Distribution (3) Balance from 03/30/2024 provided by City Staff (4) Per discussions with City Staff and City files (5) From allocation per City Staff; assumes 0% of new project costs funded through sources other than debt (6) This assumes 100% of new project costs funded through new debt issues (7) Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (8) Assumes new debt issued in equal annual amounts (9) Estimated interest on future debt per discussions with City Staff (10) Assumes new debt proceeds expended over a 2-year timeframe. Non-debt funded capital expenditures allocated in equal annual amounts City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 2 2024 Water Impact Fee Study City of Denton, Texas Page 3 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary I. New Debt Service Detail Total Annual Series Series Series Series Series Series Series Series Series Series New Debt Year 1 2 3 4 5 6 7 8 9 10 Service 1 1,579,134$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,579,134$ 2 1,579,134 1,579,134 - - - - - - - - 3,158,267 3 1,579,134 1,579,134 1,579,134 - - - - - - - 4,737,401 4 1,579,134 1,579,134 1,579,134 1,579,134 - - - - - - 6,316,534 5 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 - - - - - 7,895,668 6 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 - - - - 9,474,802 7 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 - - - 11,053,935 8 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 - - 12,633,069 9 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 - 14,212,202 10 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 11 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 12 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 13 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 14 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 15 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 16 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 17 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 18 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 19 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 20 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 15,791,336 21 - 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 14,212,202 22 - - 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 12,633,069 23 - - - 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 11,053,935 24 - - - - 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 9,474,802 25 - - - - - 1,579,134 1,579,134 1,579,134 1,579,134 1,579,134 7,895,668 26 - - - - - - 1,579,134 1,579,134 1,579,134 1,579,134 6,316,534 27 - - - - - - - 1,579,134 1,579,134 1,579,134 4,737,401 28 - - - - - - - - 1,579,134 1,579,134 3,158,267 29 - - - - - - - - - 1,579,134 1,579,134 31,582,672$ 31,582,672$ 31,582,672$ 31,582,672$ 31,582,672$ 31,582,672$ 31,582,672$ 31,582,672$ 31,582,672$ 31,582,672$ 315,826,720$ II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(1)Expenditures(2)Proceeds(2)Service(3)Credit(4)Expense 1 1,579,134$ 11,244,053$ (21,851,930)$ 1,403,354$ (76,911)$ (7,702,300)$ 2 3,158,267 22,170,018 (21,851,930) 1,403,354 (229,351) 4,650,358 3 4,737,401 22,170,018 (21,851,930) 1,403,354 (451,763) 6,007,079 4 6,316,534 22,170,018 (21,851,930) 1,403,354 (739,124) 7,298,852 5 7,895,668 22,170,018 (21,851,930) 1,403,354 (1,086,878) 8,530,232 6 9,474,802 22,170,018 (21,851,930) 1,403,354 (1,490,887) 9,705,356 7 11,053,935 22,170,018 (21,851,930) 1,403,354 (1,947,382) 10,827,995 8 12,633,069 22,170,018 (21,851,930) 1,403,354 (2,452,924) 11,901,587 9 14,212,202 22,170,018 (21,851,930) 1,403,354 (3,004,367) 12,929,278 10 15,791,336 33,095,984 (21,851,930) 1,403,354 (3,598,828) 24,839,915 11 15,791,336 - - 1,403,354 - 17,194,690 12 15,791,336 - - 1,403,354 - 17,194,690 13 15,791,336 - - 1,403,354 - 17,194,690 14 15,791,336 - - 1,403,354 - 17,194,690 15 15,791,336 - - 1,403,354 - 17,194,690 16 15,791,336 - - 1,403,354 - 17,194,690 17 15,791,336 - - 1,403,354 - 17,194,690 18 15,791,336 - - 1,403,354 - 17,194,690 19 15,791,336 - - 1,403,354 - 17,194,690 20 15,791,336 - - 1,403,354 - 17,194,690 21 14,212,202 - - - - 14,212,202 22 12,633,069 - - - - 12,633,069 23 11,053,935 - - - - 11,053,935 24 9,474,802 - - - - 9,474,802 25 7,895,668 - - - - 7,895,668 26 6,316,534 - - - - 6,316,534 27 4,737,401 - - - - 4,737,401 28 3,158,267 - - - - 3,158,267 29 1,579,134 - - - - 1,579,134 315,826,720$ 221,700,185$ (218,519,305)$ 28,067,078$ (15,078,415)$ 331,996,263$ (1) Water Appendices - page 2 Section I (2) Water Appendices - page 1 (3) Actual timing of payment varies. Calculated P&I above assumes City's estimated average cost of outstanding system debt and constant annual debt service payments. (4) Water Appendices - page 6 Water Service Area Zone 2 2024 Water Impact Fee Study City of Denton, Texas Page 4 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Impact Estimated Impact Service Fee Annual Accumulated Fund Year Fee Units Revenue Expenses Sub-Total Interest Balance Initial -$ 1 12,139$ 2,173 26,379,922$ (7,702,300)$ 34,082,223$ 426,028$ 34,508,251 2 12,139 2,173 26,379,922 4,650,358 21,729,564 1,134,326 57,372,140 3 12,139 2,173 26,379,922 6,007,079 20,372,843 1,688,964 79,433,947 4 12,139 2,173 26,379,922 7,298,852 19,081,070 2,224,362 100,739,380 5 12,139 2,173 26,379,922 8,530,232 17,849,691 2,741,606 121,330,676 6 12,139 2,173 26,379,922 9,705,356 16,674,566 3,241,699 141,246,941 7 12,139 2,173 26,379,922 10,827,995 15,551,928 3,725,573 160,524,441 8 12,139 2,173 26,379,922 11,901,587 14,478,336 4,194,090 179,196,867 9 12,139 2,173 26,379,922 12,929,278 13,450,645 4,648,055 197,295,567 10 12,139 2,173 26,379,922 24,839,915 1,540,007 4,951,639 203,787,213 11 - - - 17,194,690 (17,194,690) 4,879,747 191,472,270 12 - - - 17,194,690 (17,194,690) 4,571,873 178,849,453 13 - - - 17,194,690 (17,194,690) 4,256,303 165,911,066 14 - - - 17,194,690 (17,194,690) 3,932,843 152,649,219 15 - - - 17,194,690 (17,194,690) 3,601,297 139,055,826 16 - - - 17,194,690 (17,194,690) 3,261,462 125,122,598 17 - - - 17,194,690 (17,194,690) 2,913,131 110,841,040 18 - - - 17,194,690 (17,194,690) 2,556,092 96,202,442 19 - - - 17,194,690 (17,194,690) 2,190,127 81,197,880 20 - - - 17,194,690 (17,194,690) 1,815,013 65,818,203 21 - - - 14,212,202 (14,212,202) 1,467,803 53,073,803 22 - - - 12,633,069 (12,633,069) 1,168,932 41,609,666 23 - - - 11,053,935 (11,053,935) 902,067 31,457,799 24 - - - 9,474,802 (9,474,802) 668,010 22,651,007 25 - - - 7,895,668 (7,895,668) 467,579 15,222,918 26 - - - 6,316,534 (6,316,534) 301,616 9,208,000 27 - - - 4,737,401 (4,737,401) 170,982 4,641,582 28 - - - 3,158,267 (3,158,267) 76,561 1,559,876 29 - - - 1,579,134 (1,579,134) 19,258 - 263,799,224 331,996,263 68,197,039 Water Service Area Zone 2 2024 Water Impact Fee Study City of Denton, Texas Page 5 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense Year End of Period Factor Factor Actual Escalated Actual Escalated 1 29 2.0215 1.0000 2,173 4,393 (7,702,300)$ (15,569,824)$ 2 28 1.9721 1.0000 2,173 4,286 4,650,358 9,171,193 3 27 1.9240 1.0000 2,173 4,181 6,007,079 11,557,899 4 26 1.8771 1.0000 2,173 4,079 7,298,852 13,700,810 5 25 1.8313 1.0000 2,173 3,980 8,530,232 15,621,712 6 24 1.7867 1.0000 2,173 3,883 9,705,356 17,340,252 7 23 1.7431 1.0000 2,173 3,788 10,827,995 18,874,180 8 22 1.7006 1.0000 2,173 3,695 11,901,587 20,239,560 9 21 1.6591 1.0000 2,173 3,605 12,929,278 21,450,954 10 20 1.6186 1.0000 2,173 3,517 24,839,915 40,206,714 11 19 1.5792 1.0000 - - 17,194,690 27,153,071 12 18 1.5406 1.0000 - - 17,194,690 26,490,801 13 17 1.5031 1.0000 - - 17,194,690 25,844,684 14 16 1.4664 1.0000 - - 17,194,690 25,214,326 15 15 1.4306 1.0000 - - 17,194,690 24,599,342 16 14 1.3957 1.0000 - - 17,194,690 23,999,358 17 13 1.3617 1.0000 - - 17,194,690 23,414,008 18 12 1.3285 1.0000 - - 17,194,690 22,842,935 19 11 1.2961 1.0000 - - 17,194,690 22,285,790 20 10 1.2645 1.0000 - - 17,194,690 21,742,234 21 9 1.2336 1.0000 - - 14,212,202 17,532,641 22 8 1.2035 1.0000 - - 12,633,069 15,204,458 23 7 1.1742 1.0000 - - 11,053,935 12,979,416 24 6 1.1456 1.0000 - - 9,474,802 10,853,867 25 5 1.1176 1.0000 - - 7,895,668 8,824,282 26 4 1.0904 1.0000 - - 6,316,534 6,887,244 27 3 1.0638 1.0000 - - 4,737,401 5,039,447 28 2 1.0378 1.0000 - - 3,158,267 3,277,689 29 1 1.0125 1.0000 - - 1,579,134 1,598,873 39,407 478,377,917$ Annual Interest Rate: 2.50% Present Value of Initial Impact Fee Fund Balance -$ Total Escalated Expense for Entire Period 478,377,917$ Less Future Value of Initial Impact Fee Fund Balance - Sub-Total 478,377,917$ Total Escalated Service Units 39,407 Impact Fee for Water Service Area 12,139$ Water Service Area Zone 2 2024 Water Impact Fee Study City of Denton, Texas Page 6 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Water Service Area Zone 2 Cost In Impact Fee Debt Funded (2)Non-Debt Impact Fee Impact Fee Project Name(1)Service Area (1)Recoverable Cost(1)Existing Proposed Funded(2)Recoverable Cost Lake Ray Roberts $ 63,127,116 $ 6,312,712 $ 6,312,712 $ - $ - $ 6,312,712 54" Finished Water Transmission Line 3,949,012 2,251,307 2,251,307 - - 2,251,307 Loop 288 Water Main - Sherman to UNT 1,796,085 1,167,455 1,167,455 - - 1,167,455 Southwest Pump Station 2,511,285 1,255,643 1,255,643 - - 1,255,643 Southwest PS Oversize Discharge Line (30" to 36") 120,839 49,455 49,455 - - 49,455 Roselawn Elevated Storage Tank 2,593,930 691,715 691,715 - - 691,715 Roselawn Water Line 763,479 76,348 76,348 - - 76,348 Southwest Elevated Storage Tank 2,298,165 57,454 57,454 - - 57,454 Allred Road / John Paine Road Water Lines 2,518,930 863,633 222,826 - 640,807 863,633 Northwest Booster Pump Station 6,190,688 5,238,274 3,261,821 - 1,976,453 5,238,274 36" Northwest Water Line 6,280,528 3,985,720 3,463,278 - 522,442 3,985,720 Lake Ray Roberts WTP Rerate to 30 MGD 16,991,098 16,991,098 - 16,991,098 - 16,991,098 Lake Ray Roberts WTP 20 MGD Expansion to 50 MGD 83,190,538 83,190,538 - 83,190,538 - 83,190,538 42" Jim Christal EST Transmission Main 5,083,320 4,130,197 - 4,130,197 - 4,130,197 24/30" West Allred Rd Transmission Main Oversize 315,185 315,185 - 315,185 - 315,185 16" Ponder Water Line 4,326,000 2,249,520 - 2,249,520 - 2,249,520 24/30" Rosebrook/Sanctuary Transmission Main 59,702,000 37,811,267 - 37,811,267 - 37,811,267 24" Rosebrook Transmission Main 4,005,651 2,403,391 - 2,403,391 - 2,403,391 24" North/South Transmission Main 9,945,314 8,619,272 - 8,619,272 - 8,619,272 12" Old Stoney Rd Water Line 3,824,000 994,240 - 994,240 - 994,240 12" Rosebrook Water Line 4,669,000 1,494,080 - 1,494,080 - 1,494,080 Lake Ray Roberts HSPS Improvements Phase 1 2,349,019 2,349,019 - 2,349,019 - 2,349,019 Lake Ray Roberts WTP 54/60" Transmission Main 50,108,446 29,298,408 - 29,298,408 - 29,298,408 Lake Ray Roberts WTP 10 MGD Expansion to 60 MGD 41,595,269 4,159,527 - 4,159,527 - 4,159,527 24/48" Loop 288 Transmission Main 28,456,296 16,638,396 - 16,638,396 - 16,638,396 Lake Ray Roberts HSPS Improvements Phase 2 2,349,019 810,800 - 810,800 - 810,800 Southwest PS Improvements 4,284,730 1,064,366 - 1,064,366 - 1,064,366 20" Ponder Farms Transmission Main 4,500,000 4,500,000 - 4,500,000 - 4,500,000 12" Webster Meadows Transmission Main 1,500,000 1,500,000 - 1,500,000 - 1,500,000 Water Impact Fee Report Preparation 41,177 41,177 - - 41,177 41,177 Total $ 419,386,122 $ 240,510,198 $ 18,810,013 $ 218,519,305 $ 3,180,880 $ 240,510,198 (1) Derived from Table 2.1 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost for Zone 2 (2) Per discussions with City staff and City files 2024 Water Impact Fee Study City of Denton, Texas Page 7 of 8 Water Appendices City of Denton - 2024 Water Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination 2024 Service Units(1)82,096 Ten Year Growth in Service Units(2)21,731 10 years Annual Growth in Service Units 12345678910Total Debt Service for Debt Funded Projects Eligible for Impact Fees(3)2,982,488$ 4,561,621$ 6,140,755$ 7,719,888$ 9,299,022$ 10,878,156$ 12,457,289$ 14,036,423$ 15,615,556$ 17,194,690$ 100,885,887$ Net Impact Fee Eligible Debt Service Funded by Other Sources 2,982,488$ 4,561,621$ 6,140,755$ 7,719,888$ 9,299,022$ 10,878,156$ 12,457,289$ 14,036,423$ 15,615,556$ 17,194,690$ 100,885,887$ Current Service Units 84,269 86,442 88,615 90,788 92,961 95,134 97,308 99,481 101,654 103,827 Total Net Impact Fee Eligible Debt Service Funded by Other 35.39$ 52.77$ 69.30$ 85.03$ 100.03$ 114.35$ 128.02$ 141.10$ 153.62$ 165.61$ Sources per Service Unit Annual Growth in Service Units (Cumulative) 2,173 4,346 6,519 8,692 10,865 13,038 15,212 17,385 19,558 21,731 76,911$ 229,351$ 451,763$ 739,124$ 1,086,878$ 1,490,887$ 1,947,382$ 2,452,924$ 3,004,367$ 3,598,828$ 15,078,415$ Credit Amount (1) Derived from Table 2.5 10-year Additional Single-Family Equivalent Calculation (2) Derived from Table 2.6 10-year Additional SFE Water Zone Distribution (3) Water Appendices - page 2 Section II Annual Water Rate Revenue Generated by Service Unit for Net Impact Fee Eligible Debt Service Funded by Other Sources Water Service Area Zone 2 15,078,415$ 2,173 2024 Water Impact Fee Study City of Denton, Texas Page 8 of 8 Water Appendices APPENDIX WASTEWATER FINANCIAL ANALYSIS City of Denton ‐ 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Wastewater Service Area Pecan Creek 0 Existing Fund Balance ‐$                             1 Existing Number of Service Units Over Entire City 82,096                         2 Additional Service Units Added During Planning Period In the Service Area 7,616                           3 Total Cost of the Wastewater Impact Fee CIP 294,802,074$             4  Recoverable Cost for Impact Fee Planning Period 69,883,844$               5 Percent Recoverable for Wastewater Impact Fee Planning Period (Line 4 / Line 3)23.71% 6 Financing Costs (From Financial Analysis)34,160,000$               7 Interest Earnings (From Financial Analysis)(13,234,573)$             8 Recoverable Cost of Wastewater Impact Fee and Financing Costs Less Balance  (Line 5 + Line 7 + Line 8 ‐ Line 0)90,809,272$               9 Pre‐Credit Maximum Fee (Line 8 / Line 2)11,923$                       10 Credit for Utility Revenues (From Financial Analysis)(2,347,057)$                11 Recoverable Cost of Wastewater Impact Fee and Financing  (Line 8 + Line 10)88,462,214$               12 Maximum Assessable Fee (Line 11 / Line 2)11,615$                       2024 Wastewater Impact Fee Update City of Denton, Texas Page 1 of 8 Wastewater Appendices SUMMARY OF WASTEWATER IMPACT FEE DETERMINATION Recoverable Impact Fee CIP Costs 69,883,844$ Table 3.1 Financing Cost 34,160,000 See Detail Below Existing Fund Balance - Wastewater Appendices - page 1 Interest Earnings (13,234,573) Wastewater Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee 90,809,271$ Sum of Above Credit for Utility Revenues (2,347,057) Wastewater Appendices - page 6 Maximum Recoverable Cost for Impact Fee 88,462,214$ Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Financing Costs: Represents the interest costs associated with debt financing the new impact fee project costs. Interest costs are derived from existing debt issues and forecasted debt issues. New Annual Debt Service 19,678,504$ Wastewater Appendices - page 2 Existing Annual Debt Service 84,255,782 Wastewater Appendices - page 2 Principal Component (New and Existing Debt) (69,774,285) Wastewater Appendices - page 1 Financing Costs 34,160,000$ Existing Fund Balance: Represents impact fee revenue collected but not yet expended. Some projects that are included in the 2018 Impact Fee Update were also included in prior Impact Fee Updates. To avoid charging twice for the same project, the impact fee revenues collected but yet to be expended (i.e. fund balance) are credited against the recoverable costs. Reference is page 1 of Wastewater Appendices. Interest Earnings Represents the interest earned on cash flows and assumes a 1.89% annual interest rate. The Impact Fee Statute states that interest earnings are funds of the impact fee account and are held to the same restrictions as impact fee revenues. Therefore in order to recognize that interest earnings are used to fund capital improvements, interest earnings are credited against the recoverable costs. Reference is the sum of Accumulated Interest on page 3 of Wastewater Appendices. Pre Credit Recoverable Cost for Impact Fee Represents Recoverable Impact Fee CIP Costs plus Financing Costs less Existing Fund Balance and Interest Earnings. Credit for Utility Revenues In 2001, the Impact Fee Statute was amended to include a credit for ad valorem and utility revenues generated by new service units during the ten-year timeframe that are used to fund impact fee eligible projects for which the new service units were charged an impact fee. The intent of this amendment is to avoid double-charging the new service units for impact fee capital improvements. The credit recognizes utility revenues used to fund the debt service of debt financed impact fee eligible projects. Reference is page 6 of Wastewater Appendices. Maximum Recoverable Cost for Impact Fee: Represents Pre Credit Recoverable Cost for Impact Fee less Credit for Utility Revenues. This is the maximum cost that can be recovered through impact fees. Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Wastewater Appendices I. General Assumptions Annual Interest Rate on Deposits(1)2.50% Annual Service Unit Growth(2)762 Existing Fund Balance(3)-$ Portion of Projects Funded by Existing Debt(4)56,158,803$ Non-debt Funded Project Cost(5)109,559 New Project Cost Funded Through New Debt(6)13,615,482 Total Recoverable Project Cost(7)69,883,844$ II. New Debt Issues Assumptions Year Principal(8)Interest(9)Term 1 1,361,548$ 3.80% 20 2 1,361,548 3.80% 20 3 1,361,548 3.80% 20 4 1,361,548 3.80% 20 5 1,361,548 3.80% 20 6 1,361,548 3.80% 20 7 1,361,548 3.80% 20 8 1,361,548 3.80% 20 9 1,361,548 3.80% 20 10 1,361,548 3.80% 20 Total 13,615,482$ III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 691,730$ 2 1,372,504 3 1,372,504 4 1,372,504 5 1,372,504 6 1,372,504 7 1,372,504 8 1,372,504 9 1,372,504 10 2,053,278 Total 13,725,041$ (1) Per discussions with City Staff (2) Derived from Table 3.3 10-year Additional Single-Family Equivalent Calculation (3) Balance from 03/30/2024 provided by City Staff (4) Per discussions with City Staff and City files (5) From allocation per City Staff; assumes 0% of new project costs funded through sources other than debt (6) This assumes 100% of new project costs funded through new debt issues (7) Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (8) Assumes new debt issued in equal annual amounts (9) Estimated interest on future debt per discussions with City Staff (10) Assumes new debt proceeds expended over a 2-year timeframe. Non-debt funded capital expenditures allocated in equal annual amounts City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 3 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary I. New Debt Service Detail Total Annual Series Series Series Series Series Series Series Series Series Series New Debt Year 1 2 3 4 5 6 7 8 9 10 Service 1 98,393$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 98,393$ 2 98,393 98,393 - - - - - - - - 196,785 3 98,393 98,393 98,393 - - - - - - - 295,178 4 98,393 98,393 98,393 98,393 - - - - - - 393,570 5 98,393 98,393 98,393 98,393 98,393 - - - - - 491,963 6 98,393 98,393 98,393 98,393 98,393 98,393 - - - - 590,355 7 98,393 98,393 98,393 98,393 98,393 98,393 98,393 - - - 688,748 8 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 - - 787,140 9 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 - 885,533 10 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 11 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 12 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 13 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 14 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 15 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 16 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 17 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 18 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 19 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 20 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 983,925 21 - 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 885,533 22 - - 98,393 98,393 98,393 98,393 98,393 98,393 98,393 98,393 787,140 23 - - - 98,393 98,393 98,393 98,393 98,393 98,393 98,393 688,748 24 - - - - 98,393 98,393 98,393 98,393 98,393 98,393 590,355 25 - - - - - 98,393 98,393 98,393 98,393 98,393 491,963 26 - - - - - - 98,393 98,393 98,393 98,393 393,570 27 - - - - - - - 98,393 98,393 98,393 295,178 28 - - - - - - - - 98,393 98,393 196,785 29 - - - - - - - - - 98,393 98,393 1,967,850$ 1,967,850$ 1,967,850$ 1,967,850$ 1,967,850$ 1,967,850$ 1,967,850$ 1,967,850$ 1,967,850$ 1,967,850$ 19,678,504$ II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(1)Expenditures(2)Proceeds(2)Service(3)Credit(4)Expense 1 98,393$ 691,730$ (1,361,548)$ 4,212,789$ (39,628)$ 3,601,735$ 2 196,785 1,372,504 (1,361,548) 4,212,789 (80,326) 4,340,204 3 295,178 1,372,504 (1,361,548) 4,212,789 (122,066) 4,396,856 4 393,570 1,372,504 (1,361,548) 4,212,789 (164,820) 4,452,495 5 491,963 1,372,504 (1,361,548) 4,212,789 (208,560) 4,507,148 6 590,355 1,372,504 (1,361,548) 4,212,789 (253,260) 4,560,840 7 688,748 1,372,504 (1,361,548) 4,212,789 (298,896) 4,613,596 8 787,140 1,372,504 (1,361,548) 4,212,789 (345,444) 4,665,442 9 885,533 1,372,504 (1,361,548) 4,212,789 (392,879) 4,716,399 10 983,925 2,053,278 (1,361,548) 4,212,789 (441,179) 5,447,265 11 983,925 - - 4,212,789 - 5,196,714 12 983,925 - - 4,212,789 - 5,196,714 13 983,925 - - 4,212,789 - 5,196,714 14 983,925 - - 4,212,789 - 5,196,714 15 983,925 - - 4,212,789 - 5,196,714 16 983,925 - - 4,212,789 - 5,196,714 17 983,925 - - 4,212,789 - 5,196,714 18 983,925 - - 4,212,789 - 5,196,714 19 983,925 - - 4,212,789 - 5,196,714 20 983,925 - - 4,212,789 - 5,196,714 21 885,533 - - - - 885,533 22 787,140 - - - - 787,140 23 688,748 - - - - 688,748 24 590,355 - - - - 590,355 25 491,963 - - - - 491,963 26 393,570 - - - - 393,570 27 295,178 - - - - 295,178 28 196,785 - - - - 196,785 29 98,393 - - - - 98,393 19,678,504$ 13,725,041$ (13,615,482)$ 84,255,782$ (2,347,057)$ 101,696,787$ (1) Wastewater Appendices - page 2 Section I (2) Wastewater Appendices - page 1 (3) Actual timing of payment varies. Calculated P&I above assumes City's estimated average cost of outstanding system debt and constant annual debt service payments. (4) Wastewater Appendices - page 6 Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 4 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Impact Estimated Impact Service Fee Annual Accumulated Fund Year Fee Units Revenue Expenses Sub-Total Interest Balance Initial -$ 1 11,615$ 762 8,846,221$ 3,601,735$ 5,244,486$ 65,556$ 5,310,042 2 11,615 762 8,846,221 4,340,204 4,506,018 189,076 10,005,136 3 11,615 762 8,846,221 4,396,856 4,449,365 305,745 14,760,247 4 11,615 762 8,846,221 4,452,495 4,393,726 423,928 19,577,900 5 11,615 762 8,846,221 4,507,148 4,339,074 543,686 24,460,660 6 11,615 762 8,846,221 4,560,840 4,285,382 665,084 29,411,125 7 11,615 762 8,846,221 4,613,596 4,232,625 788,186 34,431,936 8 11,615 762 8,846,221 4,665,442 4,180,780 913,058 39,525,774 9 11,615 762 8,846,221 4,716,399 4,129,822 1,039,767 44,695,364 10 11,615 762 8,846,221 5,447,265 3,398,956 1,159,871 49,254,191 11 - - - 5,196,714 (5,196,714) 1,166,396 45,223,873 12 - - - 5,196,714 (5,196,714) 1,065,638 41,092,796 13 - - - 5,196,714 (5,196,714) 962,361 36,858,443 14 - - - 5,196,714 (5,196,714) 856,502 32,518,231 15 - - - 5,196,714 (5,196,714) 747,997 28,069,513 16 - - - 5,196,714 (5,196,714) 636,779 23,509,578 17 - - - 5,196,714 (5,196,714) 522,781 18,835,644 18 - - - 5,196,714 (5,196,714) 405,932 14,044,862 19 - - - 5,196,714 (5,196,714) 286,163 9,134,310 20 - - - 5,196,714 (5,196,714) 163,399 4,100,995 21 - - - 885,533 (885,533) 91,456 3,306,918 22 - - - 787,140 (787,140) 72,834 2,592,612 23 - - - 688,748 (688,748) 56,206 1,960,070 24 - - - 590,355 (590,355) 41,622 1,411,337 25 - - - 491,963 (491,963) 29,134 948,508 26 - - - 393,570 (393,570) 18,793 573,731 27 - - - 295,178 (295,178) 10,654 289,207 28 - - - 196,785 (196,785) 4,770 97,193 29 - - - 98,393 (98,393) 1,200 - 88,462,214 101,696,787 13,234,573 Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 5 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense Year End of Period Factor Factor Actual Escalated Actual Escalated 1 29 2.0215 1.0000 762 1,540 3,601,735$ 7,280,733$ 2 28 1.9721 1.0000 762 1,502 4,340,204 8,559,522 3 27 1.9240 1.0000 762 1,465 4,396,856 8,459,755 4 26 1.8771 1.0000 762 1,430 4,452,495 8,357,861 5 25 1.8313 1.0000 762 1,395 4,507,148 8,254,098 6 24 1.7867 1.0000 762 1,361 4,560,840 8,148,708 7 23 1.7431 1.0000 762 1,328 4,613,596 8,041,918 8 22 1.7006 1.0000 762 1,295 4,665,442 7,933,941 9 21 1.6591 1.0000 762 1,264 4,716,399 7,824,974 10 20 1.6186 1.0000 762 1,233 5,447,265 8,817,125 11 19 1.5792 1.0000 - - 5,196,714 8,206,415 12 18 1.5406 1.0000 - - 5,196,714 8,006,258 13 17 1.5031 1.0000 - - 5,196,714 7,810,983 14 16 1.4664 1.0000 - - 5,196,714 7,620,472 15 15 1.4306 1.0000 - - 5,196,714 7,434,607 16 14 1.3957 1.0000 - - 5,196,714 7,253,275 17 13 1.3617 1.0000 - - 5,196,714 7,076,366 18 12 1.3285 1.0000 - - 5,196,714 6,903,771 19 11 1.2961 1.0000 - - 5,196,714 6,735,387 20 10 1.2645 1.0000 - - 5,196,714 6,571,109 21 9 1.2336 1.0000 - - 885,533 1,092,422 22 8 1.2035 1.0000 - - 787,140 947,358 23 7 1.1742 1.0000 - - 688,748 808,720 24 6 1.1456 1.0000 - - 590,355 676,282 25 5 1.1176 1.0000 - - 491,963 549,823 26 4 1.0904 1.0000 - - 393,570 429,130 27 3 1.0638 1.0000 - - 295,178 313,997 28 2 1.0378 1.0000 - - 196,785 204,226 29 1 1.0125 1.0000 - - 98,393 99,622 13,811 160,418,856$ Annual Interest Rate: 2.50% Present Value of Initial Impact Fee Fund Balance -$ Total Escalated Expense for Entire Period 160,418,856$ Less Future Value of Initial Impact Fee Fund Balance - Sub-Total 160,418,856$ Total Escalated Service Units 13,811 Impact Fee for Wastewater Service Area 11,615$ Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 6 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Cost In Impact Fee Debt Funded (2)Non-Debt Impact Fee Impact Fee Project Name(1)Service Area (1)Recoverable Cost(1)Existing Proposed Funded(2)Recoverable Cost Cooper Creek Interceptor III $ 1,277,970 $ 26,887 $ 26,887 $ - $ - $ 26,887 Cooper Creek Outfall (Loop 288) 3,898,807 411,553 411,553 - - 411,553 Graveyard Branch Interceptor 5,004,952 484,130 484,130 - - 484,130 Pecan Creek Interceptor (Ph 1 & 2) 3,363,189 257,047 257,047 - - 257,047 Pecan Creek Interceptor I 1,975,672 123,815 123,815 - - 123,815 Pecan Creek Interceptor II 1,862,175 103,913 103,913 - - 103,913 Pecan Creek Interceptor III 3,079,149 172,497 172,497 - - 172,497 Pecan Creek Interceptor IV 978,285 77,121 77,121 - - 77,121 Pecan WRP Expansion (6 MGD) 30,005,125 25,004,271 25,004,271 - - 25,004,271 Cooper Creek Interceptor I 2,632,000 309,649 266,084 - 43,565 309,649 Cooper Creek Interceptor II 1,128,000 113,537 97,563 - 15,974 113,537 PCWRP Headworks Facility 56,260,000 12,333,923 12,333,923 - - 12,333,923 PCWRP 5.0 MGD Expansion to 26 MGD 120,000,000 16,800,000 16,800,000 - - 16,800,000 North Loop 288 Sewer Line (12"- 15") 7,980,000 1,750,452 - 1,750,452 - 1,750,452 Mingo Road Sewer Line (12") 4,380,000 2,580,649 - 2,580,649 - 2,580,649 Lakeview Interceptor Replacement (24" - 30") 2,367,000 399,875 - 399,875 - 399,875 Lakeview South Lift Station 8,300,000 2,191,051 - 2,191,051 - 2,191,051 Grissom Sewer Line (15") 2,960,000 927,382 - 927,382 - 927,382 Lakeview Ranch Sewer Line (24") 5,820,000 1,009,502 - 1,009,502 - 1,009,502 United Copper Sewer Line (12"-24") 9,500,000 1,193,632 - 1,193,632 - 1,193,632 Cooper Creek Sewer Line Replacement (18"- 24") 3,590,000 147,710 - 147,710 - 147,710 Pecan Creek Interceptor Replacement (36") 3,890,000 1,349,783 - 1,349,783 - 1,349,783 Stella Hills Lift Station, Force Main, and Onsite Sewer Line Oversize 4,934,730 639,957 - 639,957 - 639,957 East McKinney Sreet Sewer Line (15" - 21") 3,180,000 473,921 - 473,921 - 473,921 North Trinity Lift Station and Force Main Oversize 5,858,000 873,029 - 873,029 - 873,029 North Trinity Road Sewer Line Oversize (15") 527,000 78,540 - 78,540 - 78,540 Wastewater Impact Fee Report Preparation 50,020 50,020 - - 50,020 50,020 Total $ 294,802,074 $ 69,883,844 $ 56,158,803 $ 13,615,482 $ 109,559 $ 69,883,844 (1) Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (2) Per discussions with City staff and City files Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 7 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination 2024 Service Units(1)82,096 Ten Year Growth in Service Units(1)7,616 10 years Annual Growth in Service Units 12345678910Total Debt Service for Debt Funded Projects Eligible for Impact Fees (2)4,311,182$ 4,409,574$ 4,507,967$ 4,606,359$ 4,704,752$ 4,803,144$ 4,901,537$ 4,999,929$ 5,098,322$ 5,196,714$ 47,539,479$ Net Impact Fee Eligible Debt Service Funded by Other Sources 4,311,182$ 4,409,574$ 4,507,967$ 4,606,359$ 4,704,752$ 4,803,144$ 4,901,537$ 4,999,929$ 5,098,322$ 5,196,714$ 47,539,479$ Current Service Units 82,858 83,619 84,381 85,142 85,904 86,666 87,427 88,189 88,951 89,712 Total Net Impact Fee Eligible Debt Service Funded by Other 52.03$ 52.73$ 53.42$ 54.10$ 54.77$ 55.42$ 56.06$ 56.70$ 57.32$ 57.93$ Sources per Service Unit Annual Growth in Service Units (Cumulative) 762 1,523 2,285 3,046 3,808 4,570 5,331 6,093 6,855 7,616 39,628$ 80,326$ 122,066$ 164,820$ 208,560$ 253,260$ 298,896$ 345,444$ 392,879$ 441,179$ 2,347,057$ Credit Amount (1) Derived from Table 3.3 10-year Additional Single-Family Equivalent Calculation (2) Wastewater Appendices - page 2 Section II 2,347,057$ y Service Unit for Net Impact Fee Eligible Debt Service Funded by Other Sources Wastewater Service Area: Pecan Creek 762 2024 Wastewater Impact Fee Update City of Denton, Texas Page 8 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Wastewater Service Area 0 Existing Fund Balance -$ 1 Existing Number of Service Units Over Entire City 82,096 2 Additional Service Units Added During Planning Period In the Service Area 35,412 3 Total Cost of the Wastewater Impact Fee CIP 685,550,867$ 4 Recoverable Cost for Impact Fee Planning Period 426,546,589$ 5 Percent Recoverable for Wastewater Impact Fee Planning Period (Line 4 / Line 3)62.22% 6 Financing Costs (From Financial Analysis)190,088,853$ 7 Interest Earnings (From Financial Analysis)(124,870,363)$ 8 Recoverable Cost of Wastewater Impact Fee and Financing Costs Less Balance (Line 5 + Line 7 + Line 8 - Line 0)491,765,079$ 9 Pre-Credit Maximum Fee (Line 8 / Line 2)13,887$ 10 Credit for Utility Revenues (From Financial Analysis)(38,817,845)$ 11 Recoverable Cost of Wastewater Impact Fee and Financing (Line 8 + Line 10)452,947,234$ 12 Maximum Assessable Fee (Line 11 / Line 2)12,791$ SUMMARY OF WASTEWATER IMPACT FEE DETERMINATION Recoverable Impact Fee CIP Costs 426,546,589$ Table 3.1 Financing Cost 190,088,853 See Detail Below Existing Fund Balance - Wastewater Appendices - page 1 Interest Earnings (124,870,363) Wastewater Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee 491,765,079$ Sum of Above Credit for Utility Revenues (38,817,845) Wastewater Appendices - page 6 Maximum Recoverable Cost for Impact Fee 452,947,234$ Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Financing Costs: Represents the interest costs associated with debt financing the new impact fee project costs. Interest costs are derived from existing debt issues and forecasted debt issues. New Annual Debt Service 599,911,952$ Wastewater Appendices - page 2 Existing Annual Debt Service 15,754,514 Wastewater Appendices - page 2 Principal Component (New and Existing Debt)(425,577,613) Wastewater Appendices - page 1 Financing Costs 190,088,853$ Existing Fund Balance: Represents impact fee revenue collected but not yet expended. Some projects that are included in the 2018 Impact Fee Update were also included in prior Impact Fee Updates. To avoid charging twice for the same project, the impact fee revenues collected but yet to be expended (i.e. fund balance) are credited against the recoverable costs. Reference is page 1 of Wastewater Appendices. Interest Earnings Represents the interest earned on cash flows and assumes a 1.89% annual interest rate. The Impact Fee Statute states that interest earnings are funds of the impact fee account and are held to the same restrictions as impact fee revenues. Therefore in order to recognize that interest earnings are used to fund capital improvements, interest earnings are credited against the recoverable costs. Reference is the sum of Accumulated Interest on page 3 of Wastewater Appendices. Pre Credit Recoverable Cost for Impact Fee Represents Recoverable Impact Fee CIP Costs plus Financing Costs less Existing Fund Balance and Interest Earnings. Credit for Utility Revenues In 2001, the Impact Fee Statute was amended to include a credit for ad valorem and utility revenues generated by new service units during the ten-year timeframe that are used to fund impact fee eligible projects for which the new service units were charged an impact fee. The intent of this amendment is to avoid double-charging the new service units for impact fee capital improvements. The credit recognizes utility revenues used to fund the debt service of debt financed impact fee eligible projects. Reference is page 6 of Wastewater Appendices. Maximum Recoverable Cost for Impact Fee: Represents Pre Credit Recoverable Cost for Impact Fee less Credit for Utility Revenues. This is the maximum cost that can be recovered through impact fees. Wastewater Service Area: Hickory Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Wastewater Appendices I. General Assumptions Annual Interest Rate on Deposits(1)2.50% Annual Service Unit Growth(2)3,541 Existing Fund Balance(3)-$ Portion of Projects Funded by Existing Debt(4)10,500,818$ Non-debt Funded Project Cost(5)968,975 New Project Cost Funded Through New Debt(6)415,076,795 Total Recoverable Project Cost(7)426,546,589$ II. New Debt Issues Assumptions Year Principal(8)Interest(9)Term 1 41,507,680$ 3.80%20 2 41,507,680 3.80%20 3 41,507,680 3.80%20 4 41,507,680 3.80%20 5 41,507,680 3.80%20 6 41,507,680 3.80%20 7 41,507,680 3.80%20 8 41,507,680 3.80%20 9 41,507,680 3.80%20 10 41,507,680 3.80%20 Total 415,076,795$ III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 20,850,737$ 2 41,604,577 3 41,604,577 4 41,604,577 5 41,604,577 6 41,604,577 7 41,604,577 8 41,604,577 9 41,604,577 10 62,358,417 Total 416,045,771$ (1) Per discussions with City Staff (2) Derived from Table 3.3 10-year Additional Service Units by Service Area (3) Balance from 03/30/2024 provided by City Staff (4) Per discussions with City Staff and City files (5) From allocation per City Staff; assumes 0% of new project costs funded through sources other than debt (6) This assumes 100% of new project costs funded through new debt issues (7) Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (8) Assumes new debt issued in equal annual amounts (9) Estimated interest on future debt per discussions with City Staff (10) Assumes new debt proceeds expended over a 2-year timeframe. Non-debt funded capital expenditures allocated in equal annual amounts City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Wastewater Service Area: Hickory Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 3 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary I. New Debt Service Detail Total Annual Series Series Series Series Series Series Series Series Series Series New Debt Year 1 2 3 4 5 6 7 8 9 10 Service 1 2,999,560$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2,999,560$ 2 2,999,560 2,999,560 - - - - - - - - 5,999,120 3 2,999,560 2,999,560 2,999,560 - - - - - - - 8,998,679 4 2,999,560 2,999,560 2,999,560 2,999,560 - - - - - - 11,998,239 5 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 - - - - - 14,997,799 6 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 - - - - 17,997,359 7 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 - - - 20,996,918 8 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 - - 23,996,478 9 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 - 26,996,038 10 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 11 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 12 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 13 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 14 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 15 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 16 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 17 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 18 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 19 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 20 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 29,995,598 21 - 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 26,996,038 22 - - 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 23,996,478 23 - - - 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 20,996,918 24 - - - - 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 17,997,359 25 - - - - - 2,999,560 2,999,560 2,999,560 2,999,560 2,999,560 14,997,799 26 - - - - - - 2,999,560 2,999,560 2,999,560 2,999,560 11,998,239 27 - - - - - - - 2,999,560 2,999,560 2,999,560 8,998,679 28 - - - - - - - - 2,999,560 2,999,560 5,999,120 29 - - - - - - - - - 2,999,560 2,999,560 59,991,195$ 59,991,195$ 59,991,195$ 59,991,195$ 59,991,195$ 59,991,195$ 59,991,195$ 59,991,195$ 59,991,195$ 59,991,195$ 599,911,952$ II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(1)Expenditures(2)Proceeds(2)Service(3)Credit(4)Expense 1 2,999,560$ 20,850,737$ (41,507,680)$ 787,726$ (156,607)$ (17,026,264)$ 2 5,999,120 41,604,577 (41,507,680) 787,726 (538,993) 6,344,749 3 8,998,679 41,604,577 (41,507,680) 787,726 (1,121,291) 8,762,012 4 11,998,239 41,604,577 (41,507,680) 787,726 (1,881,437) 11,001,426 5 14,997,799 41,604,577 (41,507,680) 787,726 (2,800,500) 13,081,922 6 17,997,359 41,604,577 (41,507,680) 787,726 (3,862,143) 15,019,838 7 20,996,918 41,604,577 (41,507,680) 787,726 (5,052,196) 16,829,345 8 23,996,478 41,604,577 (41,507,680) 787,726 (6,358,305) 18,522,796 9 26,996,038 41,604,577 (41,507,680) 787,726 (7,769,652) 20,111,009 10 29,995,598 62,358,417 (41,507,680) 787,726 (9,276,721) 42,357,339 11 29,995,598 - - 787,726 - 30,783,323 12 29,995,598 - - 787,726 - 30,783,323 13 29,995,598 - - 787,726 - 30,783,323 14 29,995,598 - - 787,726 - 30,783,323 15 29,995,598 - - 787,726 - 30,783,323 16 29,995,598 - - 787,726 - 30,783,323 17 29,995,598 - - 787,726 - 30,783,323 18 29,995,598 - - 787,726 - 30,783,323 19 29,995,598 - - 787,726 - 30,783,323 20 29,995,598 - - 787,726 - 30,783,323 21 26,996,038 - - - - 26,996,038 22 23,996,478 - - - - 23,996,478 23 20,996,918 - - - - 20,996,918 24 17,997,359 - - - - 17,997,359 25 14,997,799 - - - - 14,997,799 26 11,998,239 - - - - 11,998,239 27 8,998,679 - - - - 8,998,679 28 5,999,120 - - - - 5,999,120 29 2,999,560 - - - - 2,999,560 599,911,952$ 416,045,771$ (415,076,795)$ 15,754,514$ (38,817,845)$ 577,817,596$ (1) Wastewater Appendices - page 2 Section I (2) Wastewater Appendices - page 1 (3) Actual timing of payment varies. Calculated P&I above assumes City's estimated average cost of outstanding system debt and constant annual debt service payments. (4) Wastewater Appendices - page 6 Wastewater Service Area: Hickory Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 4 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Impact Estimated Impact Service Fee Annual Accumulated Fund Year Fee Units Revenue Expenses Sub-Total Interest Balance Initial -$ 1 12,791$ 3,541 45,294,723$ (17,026,264)$ 62,320,987$ 779,012$ 63,099,999 2 12,791 3,541 45,294,723 6,344,749 38,949,974 2,064,375 104,114,348 3 12,791 3,541 45,294,723 8,762,012 36,532,712 3,059,518 143,706,577 4 12,791 3,541 45,294,723 11,001,426 34,293,298 4,021,331 182,021,205 5 12,791 3,541 45,294,723 13,081,922 32,212,801 4,953,190 219,187,196 6 12,791 3,541 45,294,723 15,019,838 30,274,885 5,858,116 255,320,197 7 12,791 3,541 45,294,723 16,829,345 28,465,378 6,738,822 290,524,397 8 12,791 3,541 45,294,723 18,522,796 26,771,927 7,597,759 324,894,084 9 12,791 3,541 45,294,723 20,111,009 25,183,714 8,437,149 358,514,946 10 12,791 3,541 45,294,723 42,357,339 2,937,384 8,999,591 370,451,921 11 - - - 30,783,323 (30,783,323) 8,876,506 348,545,104 12 - - - 30,783,323 (30,783,323) 8,328,836 326,090,617 13 - - - 30,783,323 (30,783,323) 7,767,474 303,074,768 14 - - - 30,783,323 (30,783,323) 7,192,078 279,483,522 15 - - - 30,783,323 (30,783,323) 6,602,297 255,302,495 16 - - - 30,783,323 (30,783,323) 5,997,771 230,516,943 17 - - - 30,783,323 (30,783,323) 5,378,132 205,111,752 18 - - - 30,783,323 (30,783,323) 4,743,002 179,071,430 19 - - - 30,783,323 (30,783,323) 4,091,994 152,380,101 20 - - - 30,783,323 (30,783,323) 3,424,711 125,021,489 21 - - - 26,996,038 (26,996,038) 2,788,087 100,813,538 22 - - - 23,996,478 (23,996,478) 2,220,382 79,037,442 23 - - - 20,996,918 (20,996,918) 1,713,475 59,753,999 24 - - - 17,997,359 (17,997,359) 1,268,883 43,025,523 25 - - - 14,997,799 (14,997,799) 888,166 28,915,890 26 - - - 11,998,239 (11,998,239) 572,919 17,490,570 27 - - - 8,998,679 (8,998,679) 324,781 8,816,671 28 - - - 5,999,120 (5,999,120) 145,428 2,962,980 29 - - - 2,999,560 (2,999,560) 36,580 - 452,947,233 577,817,596 124,870,363 Wastewater Service Area: Hickory Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 5 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense Year End of Period Factor Factor Actual Escalated Actual Escalated 1 29 2.0215 1.0000 3,541 7,158 (17,026,264)$ (34,417,761)$ 2 28 1.9721 1.0000 3,541 6,984 6,344,749 12,512,782 3 27 1.9240 1.0000 3,541 6,813 8,762,012 16,858,517 4 26 1.8771 1.0000 3,541 6,647 11,001,426 20,650,979 5 25 1.8313 1.0000 3,541 6,485 13,081,922 23,957,383 6 24 1.7867 1.0000 3,541 6,327 15,019,838 26,835,470 7 23 1.7431 1.0000 3,541 6,173 16,829,345 29,335,081 8 22 1.7006 1.0000 3,541 6,022 18,522,796 31,499,434 9 21 1.6591 1.0000 3,541 5,875 20,111,009 33,366,159 10 20 1.6186 1.0000 3,541 5,732 42,357,339 68,561,000 11 19 1.5792 1.0000 - - 30,783,323 48,611,622 12 18 1.5406 1.0000 - - 30,783,323 47,425,973 13 17 1.5031 1.0000 - - 30,783,323 46,269,242 14 16 1.4664 1.0000 - - 30,783,323 45,140,724 15 15 1.4306 1.0000 - - 30,783,323 44,039,730 16 14 1.3957 1.0000 - - 30,783,323 42,965,591 17 13 1.3617 1.0000 - - 30,783,323 41,917,649 18 12 1.3285 1.0000 - - 30,783,323 40,895,268 19 11 1.2961 1.0000 - - 30,783,323 39,897,822 20 10 1.2645 1.0000 - - 30,783,323 38,924,704 21 9 1.2336 1.0000 - - 26,996,038 33,303,201 22 8 1.2035 1.0000 - - 23,996,478 28,880,825 23 7 1.1742 1.0000 - - 20,996,918 24,654,363 24 6 1.1456 1.0000 - - 17,997,359 20,616,889 25 5 1.1176 1.0000 - - 14,997,799 16,761,698 26 4 1.0904 1.0000 - - 11,998,239 13,082,301 27 3 1.0638 1.0000 - - 8,998,679 9,572,415 28 2 1.0378 1.0000 - - 5,999,120 6,225,961 29 1 1.0125 1.0000 - - 2,999,560 3,037,054 64,216 821,382,075$ Annual Interest Rate:2.50% Present Value of Initial Impact Fee Fund Balance -$ Total Escalated Expense for Entire Period 821,382,075$ Less Future Value of Initial Impact Fee Fund Balance - Sub-Total 821,382,075$ Total Escalated Service Units 64,216 Impact Fee for Wastewater Service Area 12,791$ Wastewater Service Area: Hickory Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 6 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Cost In Impact Fee Debt Funded(2)Non-Debt Impact Fee Impact Fee Project Name(1)Service Area (1)Recoverable Cost(1)Existing Proposed Funded(2)Recoverable Cost Krum Sewer Line $ 398,450 $ 87,775 $ 87,775 $ - $ - $ 87,775 Leatherwood Interceptor 156,592 4,616 4,616 - - 4,616 Hickory Creek Interceptor I 1,447,500 1,058,753 1,052,544 - 6,208 1,058,753 Hickory Creek Interceptor II 8,102,500 3,120,135 3,101,839 - 18,296 3,120,135 Hickory Creek Interceptor III 2,875,433 721,323 566,544 - 154,779 721,323 Hickory Creek Lift Station Detention Facility 9,900,000 6,435,000 5,687,500 - 747,500 6,435,000 Roark Branch Interceptor Oversize (27" - 42") 2,810,200 829,989 - 829,989 - 829,989 Cole Ranch Interceptor Oversize (36"- 42") 4,809,000 4,809,000 - 4,809,000 - 4,809,000 North Cole Ranch Sewer Line (36") 7,310,000 4,377,794 - 4,377,794 - 4,377,794 Legends Sewer Line (12"- 15") 32,080,000 32,080,000 - 32,080,000 - 32,080,000 Robson Ranch Sewer Line (12") 3,086,000 112,722 - 112,722 - 112,722 Robson West Lift Station, Force Main, and Sewer Line Oversize 13,079,000 1,438,690 - 1,438,690 - 1,438,690 North Masch Sewer Line (12"- 18") 8,680,000 2,965,667 - 2,965,667 - 2,965,667 Masch Sewer Line Replacement (15"- 18") 5,560,000 3,003,678 - 3,003,678 - 3,003,678 Dry Fork Sewer Line (18") 3,620,000 627,467 - 627,467 - 627,467 Hickory Creek Peak Flow Basin Improvements 23,400,000 23,400,000 - 23,400,000 - 23,400,000 HCWRP 10.0 MGD MBR Plant 448,600,000 260,188,000 - 260,188,000 - 260,188,000 C Wolfe Road Interceptor (36") 18,120,000 10,282,047 - 10,282,047 - 10,282,047 TN Skiles Road Interceptor (36") 14,420,000 8,855,122 - 8,855,122 - 8,855,122 Ponder Sewer Line (12"- 15") 5,230,000 2,331,446 - 2,331,446 - 2,331,446 South Hickory Creek Sewer Line (24") 22,580,000 19,345,135 - 19,345,135 - 19,345,135 Wolf Branch Sewer Line (12"- 21") 18,040,000 9,466,267 - 9,466,267 - 9,466,267 Sanctuary Sewer Line (12"- 18") 4,280,000 4,217,059 - 4,217,059 - 4,217,059 Meadows Sewer Line (12") 2,130,000 2,130,000 - 2,130,000 - 2,130,000 Cole Ranch West Sewer Line Oversize (15"- 18") 294,000 116,714 - 116,714 - 116,714 Ponder Farms/Webster Meadows Lift Station and Force Main 11,500,000 11,500,000 - 11,500,000 - 11,500,000 Ponder Farms/Webster Meadows Interceptor (15"-21") 13,000,000 13,000,000 - 13,000,000 - 13,000,000 Wastewater Impact Fee Report Preparation 42,192 42,192 - - 42,192 42,192 Total $ 685,550,867 $ 426,546,589 $ 10,500,818 $ 415,076,795 $ 968,975 $ 426,546,589 (1) Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (2) Per discussions with City staff and City files Wastewater Service Area: Hickory Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 7 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination 2024 Service Units(1)82,096 Ten Year Growth in Service Units(1)35,412 10 yearsAnnual Growth in Service Units 1 2 3 4 5 6 7 8 9 10 Total Debt Service for Debt Funded Projects Eligible for Impact Fees(2)3,787,285$ 6,786,845$ 9,786,405$ 12,785,965$ 15,785,524$ 18,785,084$ 21,784,644$ 24,784,204$ 27,783,764$ 30,783,323$ 172,853,044$ Net Impact Fee Eligible Debt Service Funded by Other Sources 3,787,285$ 6,786,845$ 9,786,405$ 12,785,965$ 15,785,524$ 18,785,084$ 21,784,644$ 24,784,204$ 27,783,764$ 30,783,323$ 172,853,044$ Current Service Units 85,637 89,178 92,719 96,261 99,802 103,343 106,884 110,425 113,966 117,508 Total Net Impact Fee Eligible Debt Service Funded by Other 44.22$ 76.10$ 105.55$ 132.83$ 158.17$ 181.77$ 203.82$ 224.44$ 243.79$ 261.97$ Sources per Service Unit Annual Growth in Service Units (Cumulative)3,541 7,082 10,623 14,165 17,706 21,247 24,788 28,329 31,870 35,412 156,607$ 538,993$ 1,121,291$ 1,881,437$ 2,800,500$ 3,862,143$ 5,052,196$ 6,358,305$ 7,769,652$ 9,276,721$ 38,817,845$ Credit Amount (1) Derived from Table 3.3 10-year Additional Service Units by Service Area (2) Wastewater Appendices - page 2 Section II 38,817,845$ Annual Wastewater Rate Revenue Generated by Service Unit for Net Impact Fee Eligible Debt Wastewater Service Area: Hickory Creek 3,541 2024 Wastewater Impact Fee Update City of Denton, Texas Page 8 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Wastewater Service Area 0 Existing Fund Balance -$ 1 Existing Number of Service Units Over Entire City 82,096 2 Additional Service Units Added During Planning Period In the Service Area 9,248 3 Total Cost of the Wastewater Impact Fee CIP 242,082,508$ 4 Recoverable Cost for Impact Fee Planning Period 139,912,428$ 5 Percent Recoverable for Wastewater Impact Fee Planning Period (Line 4 / Line 3)57.80% 6 Financing Costs (From Financial Analysis)47,194,860$ 7 Interest Earnings (From Financial Analysis)(17,484,683)$ 8 Recoverable Cost of Wastewater Impact Fee and Financing Costs Less Balance (Line 5 + Line 7 + Line 8 - Line 0)169,622,605$ 9 Pre-Credit Maximum Fee (Line 8 / Line 2)18,341$ 10 Credit for Utility Revenues (From Financial Analysis)(3,934,480)$ 11 Recoverable Cost of Wastewater Impact Fee and Financing (Line 8 + Line 10)165,688,125$ 12 Maximum Assessable Fee (Line 11 / Line 2)17,916$ SUMMARY OF WASTEWATER IMPACT FEE DETERMINATION Recoverable Impact Fee CIP Costs 139,912,428$ Table 3.3 Financing Cost 47,194,860 See Detail Below Existing Fund Balance - Wastewater Appendices - page 1 Interest Earnings (17,484,683) Wastewater Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee 169,622,605$ Sum of Above Credit for Utility Revenues (3,934,480) Wastewater Appendices - page 6 Maximum Recoverable Cost for Impact Fee 165,688,125$ Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Financing Costs: Represents the interest costs associated with debt financing the new impact fee project costs. Interest costs are derived from existing debt issues and forecasted debt issues. New Annual Debt Service 19,966,716$ Wastewater Appendices - page 2 Existing Annual Debt Service 123,077,765 Wastewater Appendices - page 2 Principal Component (New and Existing Debt)(95,849,621) Wastewater Appendices - page 1 Financing Costs 47,194,860$ Existing Fund Balance: Represents impact fee revenue collected but not yet expended. Some projects that are included in the 2018 Impact Fee Update were also included in prior Impact Fee Updates. To avoid charging twice for the same project, the impact fee revenues collected but yet to be expended (i.e. fund balance) are credited against the recoverable costs. Reference is page 1 of Wastewater Appendices. Interest Earnings Represents the interest earned on cash flows and assumes a 1.89% annual interest rate. The Impact Fee Statute states that interest earnings are funds of the impact fee account and are held to the same restrictions as impact fee revenues. Therefore in order to recognize that interest earnings are used to fund capital improvements, interest earnings are credited against the recoverable costs. Reference is the sum of Accumulated Interest on page 3 of Wastewater Appendices. Pre Credit Recoverable Cost for Impact Fee Represents Recoverable Impact Fee CIP Costs plus Financing Costs less Existing Fund Balance and Interest Earnings. Credit for Utility Revenues In 2001, the Impact Fee Statute was amended to include a credit for ad valorem and utility revenues generated by new service units during the ten-year timeframe that are used to fund impact fee eligible projects for which the new service units were charged an impact fee. The intent of this amendment is to avoid double-charging the new service units for impact fee capital improvements. The credit recognizes utility revenues used to fund the debt service of debt financed impact fee eligible projects. Reference is page 6 of Wastewater Appendices. Maximum Recoverable Cost for Impact Fee: Represents Pre Credit Recoverable Cost for Impact Fee less Credit for Utility Revenues. This is the maximum cost that can be recovered through impact fees. Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Wastewater Appendices I. General Assumptions Annual Interest Rate on Deposits(1)2.50% Annual Service Unit Growth(2)925 Existing Fund Balance(3)-$ Portion of Projects Funded by Existing Debt(4)82,034,726$ Non-debt Funded Project Cost(5)44,062,806 New Project Cost Funded Through New Debt(6)13,814,895 Total Recoverable Project Cost(7)139,912,428$ II. New Debt Issues Assumptions Year Principal(8)Interest(9)Term 1 1,381,489$ 3.80%20 2 1,381,489 3.80%20 3 1,381,489 3.80%20 4 1,381,489 3.80%20 5 1,381,489 3.80%20 6 1,381,489 3.80%20 7 1,381,489 3.80%20 8 1,381,489 3.80%20 9 1,381,489 3.80%20 10 1,381,489 3.80%20 Total 13,814,895$ III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 5,097,025$ 2 5,787,770 3 5,787,770 4 5,787,770 5 5,787,770 6 5,787,770 7 5,787,770 8 5,787,770 9 5,787,770 10 6,478,515 Total 57,877,701$ (1) Per discussions with City Staff (2) Derived from Table 3.3 10-year Additional Service Units by Service Area (3) Balance from 03/30/2024 provided by City Staff (4) Per discussions with City Staff and City files (5) From allocation per City Staff; assumes 0% of new project costs funded through sources other than debt (6) This assumes 100% of new project costs funded through new debt issues (7) Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (8) Assumes new debt issued in equal annual amounts (9) Estimated interest on future debt per discussions with City Staff (10) Assumes new debt proceeds expended over a 2-year timeframe. Non-debt funded capital expenditures allocated in equal annual amounts City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 3 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary I. New Debt Service Detail Total Annual Series Series Series Series Series Series Series Series Series Series New Debt Year 1 2 3 4 5 6 7 8 9 10 Service 1 99,834$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 99,834$ 2 99,834 99,834 - - - - - - - - 199,667 3 99,834 99,834 99,834 - - - - - - - 299,501 4 99,834 99,834 99,834 99,834 - - - - - - 399,334 5 99,834 99,834 99,834 99,834 99,834 - - - - - 499,168 6 99,834 99,834 99,834 99,834 99,834 99,834 - - - - 599,001 7 99,834 99,834 99,834 99,834 99,834 99,834 99,834 - - - 698,835 8 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 - - 798,669 9 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 - 898,502 10 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 11 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 12 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 13 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 14 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 15 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 16 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 17 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 18 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 19 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 20 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 998,336 21 - 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 898,502 22 - - 99,834 99,834 99,834 99,834 99,834 99,834 99,834 99,834 798,669 23 - - - 99,834 99,834 99,834 99,834 99,834 99,834 99,834 698,835 24 - - - - 99,834 99,834 99,834 99,834 99,834 99,834 599,001 25 - - - - - 99,834 99,834 99,834 99,834 99,834 499,168 26 - - - - - - 99,834 99,834 99,834 99,834 399,334 27 - - - - - - - 99,834 99,834 99,834 299,501 28 - - - - - - - - 99,834 99,834 199,667 29 - - - - - - - - - 99,834 99,834 1,996,672$ 1,996,672$ 1,996,672$ 1,996,672$ 1,996,672$ 1,996,672$ 1,996,672$ 1,996,672$ 1,996,672$ 1,996,672$ 19,966,716$ II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(1)Expenditures(2)Proceeds(2)Service(3)Credit(4)Expense 1 99,834$ 5,097,025$ (1,381,489)$ 6,153,888$ (69,665)$ 9,899,593$ 2 199,667 5,787,770 (1,381,489) 6,153,888 (139,994) 10,619,842 3 299,501 5,787,770 (1,381,489) 6,153,888 (210,967) 10,648,703 4 399,334 5,787,770 (1,381,489) 6,153,888 (282,561) 10,676,942 5 499,168 5,787,770 (1,381,489) 6,153,888 (354,758) 10,704,579 6 599,001 5,787,770 (1,381,489) 6,153,888 (427,538) 10,731,632 7 698,835 5,787,770 (1,381,489) 6,153,888 (500,884) 10,758,120 8 798,669 5,787,770 (1,381,489) 6,153,888 (574,776) 10,784,061 9 898,502 5,787,770 (1,381,489) 6,153,888 (649,199) 10,809,472 10 998,336 6,478,515 (1,381,489) 6,153,888 (724,137) 11,525,112 11 998,336 - - 6,153,888 - 7,152,224 12 998,336 - - 6,153,888 - 7,152,224 13 998,336 - - 6,153,888 - 7,152,224 14 998,336 - - 6,153,888 - 7,152,224 15 998,336 - - 6,153,888 - 7,152,224 16 998,336 - - 6,153,888 - 7,152,224 17 998,336 - - 6,153,888 - 7,152,224 18 998,336 - - 6,153,888 - 7,152,224 19 998,336 - - 6,153,888 - 7,152,224 20 998,336 - - 6,153,888 - 7,152,224 21 898,502 - - - - 898,502 22 798,669 - - - - 798,669 23 698,835 - - - - 698,835 24 599,001 - - - - 599,001 25 499,168 - - - - 499,168 26 399,334 - - - - 399,334 27 299,501 - - - - 299,501 28 199,667 - - - - 199,667 29 99,834 - - - - 99,834 19,966,716$ 57,877,701$ (13,814,895)$ 123,077,765$ (3,934,480)$ 183,172,808$ (1) Wastewater Appendices - page 2 Section I (2) Wastewater Appendices - page 1 (3) Actual timing of payment varies. Calculated P&I above assumes City's estimated average cost of outstanding system debt and constant annual debt service payments. (4) Wastewater Appendices - page 6 Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 4 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Impact Estimated Impact Service Fee Annual Accumulated Fund Year Fee Units Revenue Expenses Sub-Total Interest Balance Initial -$ 1 17,916$ 925 16,568,812$ 9,899,593$ 6,669,219$ 83,365$ 6,752,585 2 17,916 925 16,568,812 10,619,842 5,948,971 243,177 12,944,732 3 17,916 925 16,568,812 10,648,703 5,920,109 397,620 19,262,461 4 17,916 925 16,568,812 10,676,942 5,891,870 555,210 25,709,541 5 17,916 925 16,568,812 10,704,579 5,864,234 716,041 32,289,817 6 17,916 925 16,568,812 10,731,632 5,837,180 880,210 39,007,207 7 17,916 925 16,568,812 10,758,120 5,810,692 1,047,814 45,865,713 8 17,916 925 16,568,812 10,784,061 5,784,751 1,218,952 52,869,417 9 17,916 925 16,568,812 10,809,472 5,759,341 1,393,727 60,022,485 10 17,916 925 16,568,812 11,525,112 5,043,700 1,563,608 66,629,793 11 - - - 7,152,224 (7,152,224) 1,576,342 61,053,911 12 - - - 7,152,224 (7,152,224) 1,436,945 55,338,632 13 - - - 7,152,224 (7,152,224) 1,294,063 49,480,471 14 - - - 7,152,224 (7,152,224) 1,147,609 43,475,856 15 - - - 7,152,224 (7,152,224) 997,494 37,321,126 16 - - - 7,152,224 (7,152,224) 843,625 31,012,527 17 - - - 7,152,224 (7,152,224) 685,910 24,546,213 18 - - - 7,152,224 (7,152,224) 524,253 17,918,242 19 - - - 7,152,224 (7,152,224) 358,553 11,124,571 20 - - - 7,152,224 (7,152,224) 188,711 4,161,058 21 - - - 898,502 (898,502) 92,795 3,355,351 22 - - - 798,669 (798,669) 73,900 2,630,583 23 - - - 698,835 (698,835) 57,029 1,988,777 24 - - - 599,001 (599,001) 42,232 1,432,007 25 - - - 499,168 (499,168) 29,561 962,400 26 - - - 399,334 (399,334) 19,068 582,134 27 - - - 299,501 (299,501) 10,810 293,443 28 - - - 199,667 (199,667) 4,840 98,616 29 - - - 99,834 (99,834) 1,217 - 165,688,125 183,172,808 17,484,683 Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 5 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense Year End of Period Factor Factor Actual Escalated Actual Escalated 1 29 2.0215 1.0000 925 1,869 9,899,593$ 20,011,544$ 2 28 1.9721 1.0000 925 1,824 10,619,842 20,943,895 3 27 1.9240 1.0000 925 1,779 10,648,703 20,488,598 4 26 1.8771 1.0000 925 1,736 10,676,942 20,041,884 5 25 1.8313 1.0000 925 1,694 10,704,579 19,603,670 6 24 1.7867 1.0000 925 1,652 10,731,632 19,173,867 7 23 1.7431 1.0000 925 1,612 10,758,120 18,752,383 8 22 1.7006 1.0000 925 1,573 10,784,061 18,339,123 9 21 1.6591 1.0000 925 1,534 10,809,472 17,933,985 10 20 1.6186 1.0000 925 1,497 11,525,112 18,654,930 11 19 1.5792 1.0000 - - 7,152,224 11,294,466 12 18 1.5406 1.0000 - - 7,152,224 11,018,992 13 17 1.5031 1.0000 - - 7,152,224 10,750,236 14 16 1.4664 1.0000 - - 7,152,224 10,488,035 15 15 1.4306 1.0000 - - 7,152,224 10,232,229 16 14 1.3957 1.0000 - - 7,152,224 9,982,663 17 13 1.3617 1.0000 - - 7,152,224 9,739,183 18 12 1.3285 1.0000 - - 7,152,224 9,501,642 19 11 1.2961 1.0000 - - 7,152,224 9,269,895 20 10 1.2645 1.0000 - - 7,152,224 9,043,800 21 9 1.2336 1.0000 - - 898,502 1,108,422 22 8 1.2035 1.0000 - - 798,669 961,233 23 7 1.1742 1.0000 - - 698,835 820,565 24 6 1.1456 1.0000 - - 599,001 686,187 25 5 1.1176 1.0000 - - 499,168 557,875 26 4 1.0904 1.0000 - - 399,334 435,415 27 3 1.0638 1.0000 - - 299,501 318,596 28 2 1.0378 1.0000 - - 199,667 207,217 29 1 1.0125 1.0000 - - 99,834 101,082 16,771 300,461,612$ Annual Interest Rate:2.50% Present Value of Initial Impact Fee Fund Balance -$ Total Escalated Expense for Entire Period 300,461,612$ Less Future Value of Initial Impact Fee Fund Balance - Sub-Total 300,461,612$ Total Escalated Service Units 16,771 Impact Fee for Wastewater Service Area 17,916$ Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 6 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Cost In Impact Fee Debt Funded(2)Non-Debt Impact Fee Impact Fee Project Name(1)Service Area (1)Recoverable Cost(1)Existing Proposed Funded(2)Recoverable Cost CCWRP 2.5 MGD MBR Plant $ 118,800,000 $ 82,034,726 $ 82,034,726 $ - $ - $ 82,034,726 Clear Creek Interceptor (27"- 42") 89,440,000 44,055,019 - - 44,055,019 44,055,019 Milam Creek Sewer Line (18"- 24") 13,750,000 3,630,769 - 3,630,769 - 3,630,769 Denton ICC Sewer Line Oversize (18") 324,720 33,899 - 33,899 - 33,899 Ganzer Rd Sewer Line (12") 2,530,000 1,167,692 - 1,167,692 - 1,167,692 Beaver Creek Sewer Line (12") 2,910,000 1,343,077 - 1,343,077 - 1,343,077 North Milam Sewer Line (12"- 18") 6,890,000 3,667,912 - 3,667,912 - 3,667,912 Stark Farms Sewer Line (8"- 12") 1,340,000 978,783 - 978,783 - 978,783 East Clear Creek Sewer Line (8"- 15") 3,170,000 1,633,769 - 1,633,769 - 1,633,769 East Milam Sewer Line (12"- 15") 2,920,000 1,358,994 - 1,358,994 - 1,358,994 Wastewater Impact Fee Report Preparation 7,788 7,788 - - 7,788 7,788 Total $ 242,082,508 $ 139,912,428 $ 82,034,726 $ 13,814,895 $ 44,062,806 $ 139,912,428 (1) Table 3.1 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (2) Per discussions with City staff and City files Wastewater Service Area: Pecan Creek 2024 Wastewater Impact Fee Update City of Denton, Texas Page 7 of 8 Wastewater Appendices City of Denton - 2024 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination 2024 Service Units(1)82,096 Ten Year Growth in Service Units(1)9,248 10 years Annual Growth in Service Units 1 2 3 4 5 6 7 8 9 10 Total Debt Service for Debt Funded Projects Eligible for Impact Fees(2)6,253,722$ 6,353,555$ 6,453,389$ 6,553,223$ 6,653,056$ 6,752,890$ 6,852,723$ 6,952,557$ 7,052,390$ 7,152,224$ 67,029,729$ Net Impact Fee Eligible Debt Service Funded by Other Sources 6,253,722$ 6,353,555$ 6,453,389$ 6,553,223$ 6,653,056$ 6,752,890$ 6,852,723$ 6,952,557$ 7,052,390$ 7,152,224$ 67,029,729$ Current Service Units 83,021 83,946 84,870 85,795 86,720 87,645 88,570 89,495 90,419 91,344 Total Net Impact Fee Eligible Debt Service Funded by Other 75.33$ 75.69$ 76.04$ 76.38$ 76.72$ 77.05$ 77.37$ 77.69$ 78.00$ 78.30$ Sources per Service Unit Annual Growth in Service Units (Cumulative)925 1,850 2,774 3,699 4,624 5,549 6,474 7,399 8,323 9,248 69,665$ 139,994$ 210,967$ 282,561$ 354,758$ 427,538$ 500,884$ 574,776$ 649,199$ 724,137$ 3,934,480$ Credit Amount (1) Derived from Table 3.3 10-year Additional Service Units by Service Area (2) Wastewater Appendices - page 2 Section II 3,934,480$ Annual Wastewater Rate Revenue Generated by Service Unit for Net Impact Fee Eligible Debt Service Funded by Other Sources Wastewater Service Area: Pecan Creek 925 2024 Wastewater Impact Fee Update City of Denton, Texas Page 8 of 8 Wastewater Appendices APPENDIX CONSIDERATION FOR THE HUNTER RANCH AND COLE RANCH OPERATING AGREEMENTS kimley-horn.com 801 Cherry Street, Unit 11, Suite 950, Ft. Worth, TX 76102 817-335-6511 APPENDIX – CONSIDERATION FOR THE HUNTER RANCH AND COLE RANCH OPERATING AGREEMENTS Introduction Consideration for Hunter Ranch and Cole Ranch Operating Agreement The City of Denton has operating agreements with the Hunter Ranch District (Ordinance No. 20-763 – Operating Agreement with Hunter Ranch Improvement District No. 1) and the Cole Ranch District (Ordinance No. 20-761 – Operating Agreement with Cole Ranch Improvement District No. 1) which stipulate certain calculations to be included in the Water and Wastewater Impact Fee Study. The purpose of this appendix is to explain what calculations were performed, and how they will be used in the administration of both the Impact Fee Program and the operating agreements. The terms City Offsites, District Cost, District Area Revenue, and District Tax Revenue are defined in Section 4.11 of the operating agreements. Consideration for Hunter Ranch and Cole Ranch Operating Agreement The operating agreements define City Offsites as specific water and wastewater infrastructure that are to be constructed by the City. The City Offsites are described in Exhibits K1-A and K1-B of the operating agreements. City Offsite facilities are impact fee eligible water and wastewater infrastructure that are anticipated to be funded in part by impact fees collected within the service area (including within the districts) and by district financial participation in the form of District Tax assessed and paid from properties in the districts. As part of the operating agreements, the Water and Wastewater Impact Fee Study is to include a capacity analysis which shows “what portion of each City Offsite will serve the District Area and what portion will serve other areas of the City”. This preliminary non-binding analysis is provided in the tables included in this appendix. Maps identifying the City Offsite facilities and development Improvement Projects as identified within the context of the 2025 Water and Wastewater Impact Fee CIP are provided in Exhibits 1 and 2. The original maps of the City Offsites from the operating agreements are included in Exhibits K1-A and K1-B. Page 2 kimley-horn.com 801 Cherry Street, Unit 11, Suite 950, Ft. Worth, TX 76102 817-335-6511 Executive Summary Water Capacity Analysis Hunter Ranch For Hunter Ranch seven (7) City Offsite projects (See Exhibits 1, K-1A and L) were identified for capacity analysis. Exhibit 1 correlates the City impact fee projects to Exhibit K1-A projects from the Hunter/Cole Agreements. As illustrated in the City’s 2025 Water and Wastewater Impact Fee Study the total cost of these projects is approximately $502 million with a 10-year recoverable cost of approximately $325 million and a Hunter Ranch Service Area 2 10-year utilization cost of approximately $27.5 million. Cole Ranch For Cole Ranch seven (7) City Offsite projects (See Exhibits 1, K1-A and L) were identified for capacity analysis. As illustrated in the City’s 2025 Water and Wastewater Impact Fee the total cost of these projects is approximately $502 million with a 10-year recoverable cost of approximately $325 million and a Cole Ranch Service Area 2 10-year utilization cost of approximately $30.2 million and a Service Area 1B 10-year utilization cost of approximately $745,000. Wastewater Capacity Analysis Hunter Ranch For Hunter Ranch two (2) City Offsite projects (See Exhibit 2, K1-B and L) were identified for capacity analysis. Exhibit 2 correlates the City impact fee projects to Exhibit K1-B projects from the Hunter/Cole Agreements. As illustrated in the City’s 2025 Water and Wastewater Impact Fee Study the total cost of these projects is approximately $472 million with a 10-year recoverable cost of approximately $284 million and a Hunter Ranch Hickory Creek Service Area 10-year utilization cost of approximately $34 million. Cole Ranch For Cole Ranch two (2) City Offsite projects (See Exhibit 2, K1-B and L) were identified for capacity analysis. As illustrated in the City’s 2025 Water and Wastewater Impact Fee the total cost of these projects is approximately $472 million with a 10-year recoverable cost of approximately $284 million and a Cole Ranch Hickory Creek Service Area 10-year utilization cost of approximately $39.7 million. Page 3 kimley-horn.com 801 Cherry Street, Unit 11, Suite 950, Ft. Worth, TX 76102 817-335-6511 Calculations Water Recoverable Cost Calculation The water capital projects shown in Table 1 match the City of Denton Impact Fee Capital Improvement projects and they correspond to “City Offsite” projects shown on Exhibit K1-A and Exhibit L. The first two columns of Table 1 list the corresponding “City Offsite” and Impact Fee Capital Improvement projects. The last three columns of Table 1 list the recoverable cost attributed to Hunter and Cole Ranch per “City Offsite” project and service area. Table 1 City-Offsite Water Capital Improvements Plan City Offsite Project Impact Fee Project Description Total Project Cost 10-Year Recoverable Cost Area 2 Recoverable Cost Area 1B Recoverable Cost Area 2 Hunter Recoverable Cost Area 2 Cole Recoverable Cost Area 1B Cole Recoverable Cost O-1 21 Lake Ray Roberts WTP 20 MGD Expansion to 50 MGD $195,845,000 $195,845,000 $83,190,538 $112,654,462 $16,638,108 $18,301,918 $450,618 O-1 37 Lake Ray Roberts HSPS Improvements Phase 1 $5,530,000 $5,530,000 $2,349,019 $3,180,981 $469,804 $516,784 $12,724 O-2 42 Southwest PS Improvements $10,087,000 $2,505,703 $1,064,366 $1,441,337 $212,873 $234,160 $5,765 O-3 40 24/48” Loop 288 Transmission Main $69,107,000 $40,406,863 $16,638,396 $22,531,284 $3,327,679 $3,660,447 $90,125 O-6 39 Lake Ray Roberts WTP 10 MGD Expansion to 60 MGD $97,922,500 $9,792,250 $4,159,527 $5,632,723 $831,905 $915,096 $22,531 O-6 41 Lake Ray Roberts HSPS Improvements Phase 2 $5,530,000 $1,908,764 $810,800 $1,097,964 $162,160 $178,376 $4,392 O-7 38 Lake Ray Roberts WTP 54/60” Transmission Main $117,964,000 $68,973,551 $29,298,408 $39,675,142 $5,859,682 $6,445,650 $158,701 Total $501,985,500 $324,962,130 $137,511,055 $186,213,892 $27,502,211 $30,252,432 $744,856 Note: From Exhibit L Offsite Projects O-4, O-5 and O-8 do not exist as City Impact Fee Capital Improvement Projects. Therefore, they are not part of the calculation. Page 4 kimley-horn.com 801 Cherry Street, Unit 11, Suite 950, Ft. Worth, TX 76102 817-335-6511 Wastewater Impact Fee Calculation Recoverable Cost Calculation The wastewater capital projects shown in Table 2 match the listed City of Denton Impact Fee Capital Improvement projects and they correspond to “City Offsite” projects shown on Exhibit K1-B and Exhibit L. The first two columns of Table 2 list the corresponding “City Offsite” and Impact Fee Capital Improvement projects. The last two columns of Table 2 list the recoverable cost attributed to Hunter and Cole Ranch per “City Offsite” project. Table 2 City-Offsite Wastewater Capital Improvements Plan City Offsite Project Impact Fee Project Description Total Project Cost 10-Year Recoverable Cost Hickory Creek Recoverable Cost Hickory Creek Hunter Recoverable Cost Hickory Creek Cole Recoverable Cost Sub O-1* 41 Hickory Creek Peak Flow Basin Improvements $23,400,000 $23,400,000 $23,400,000 $2,808,000 $3,276,000 O-2 46 HCWRP 10.0 MGD MBR Plant $448,600,000 $260,188,000 $260,188,000 $31,222,560 $36,426,320 Total $472,000,000 $283,588,000 $283,588,000 $34,030,560 $39,702,320 Note: *Sub O-1 indicates Hunter/Cole Project O-1 is replaced by Impact Fee project 41. From Exhibit L Offsite Project O-3 is no longer a project and O-5 is planned for design and construction beyond the 10-year planning window. Therefore, they are not part of the calculation. Page 5 kimley-horn.com 801 Cherry Street, Unit 11, Suite 950, Ft. Worth, TX 76102 817-335-6511 EXHIBITS £¤380 £¤288 £¤380 £¤77 £¤280 £¤2181 £¤377 §¨¦35W §¨¦35 §¨¦35E £¤380 *Q @AU@qqT @AUT@ WTP [SP7 [SP7 *Q@AU@qqT *Q@AU@qqT *Q @AU@qqT ³³PTW FM2181 FM2449 FM0407 FM1830FM1515 FM2164FM0455 FM0156US 0 0 7 7FM0428FM1173 REDROCKMIINGO R D JIMCHRISTAL RD STUART RDCHINNCHAPELLUSKDALEEARNHARDT RYAN LAKE SHARON STACEELNHILLTOPNKIRKPATRICKPENNSYLVAN IADRKINGSROW MALONE STGIBBONS RDCOLLEGECOPPERCANYONBELLRDAVEAHIG HLANDSHORES LAKEVIEWBLVDBRI DLEWOODWIN DS OR SHADYSHORES CHINNCHAPELRDPARKRI DGEDRBRAZOS BLVD SHADY OAKS MCMAKIN RDALLRED RO BINSON JACKSONRD COOPERCREEKRDCORINTHLOOP OLD JUSTIN TRINITY DRJETER RD HICKORY HILLBONNIE BRAELONG RD MILLS RD LANTANATRLORCHID HIL L ST ATES C HOOL CRAWFORDRDOLDALTON RDCROSST IMBERSGANZER W RD DOBBS RDAUDRALN WAKETONSWELCHST VA LLE YPKWYHOPKINSRDBRUSH CREEK RDAVE CFULTONOAK HERCULES LN NOTTINGHAMDRMINGO R D HICKORY CREEKRDJOHNPAINE MORSE ST KINGS QUAILRUNDRS A N JA CIN T O C LEVELANDGIBBSRDSAM LEEFLORENCE RDRUDDELLRADECKERD HIGHLANDVILLAGE MEADOW OAKS DRWOAKST DOC MITCHELL VINTAGEB L VDFLORENCEOLDNORTHRDCHINCHAPELRDEMCKINNEY STE6THSTCONGRESS JETERSELLMEYERE WILLOW ST MORSEN MASCHBRANCH RDFI R EWHEELDRWESTERNNBLVDRIPPY RDHINKLEINDIAN LNCHURCH RDBRINKER OLDSETTLERSRDSIMMONSRDE KIRKPATRICKFORESTRIDGEMONTECITO HOBSON LN GARZAWILLOWWOOD HIGHS WESTERNBLVDSHILOH RDJOHN PAINE RDSTONECRESTRDEDROBS O NTURBEVILLERD SCRIPTURE COPPERCANYON RDFRENCHTOWN VIC TO RY MASCH BRANCHCORBIN TIMBERCRKRD LAKE RAYROBERTS LAKELEWISVILLE LAKEGRAPEVINE4040 38LEGEND Background Data Railroads Roads Lakes Service Areas 1A 1B 2 Existing Infrastructure WTP Water Treatment Plant (WTP) [SP7 Existing Pump Station *Q@AU@qqT Existing Elevated Storage Tank (EST) UT Existing Ground Storage Tank (GST)@AUT@ Existing Standpipe Existing Water Line (12" or Greater) City Offsite Projects ³³PTW Proposed Water Treatment Plant Expansion Proposed Water Line I35E_Mayhill_Water_Lines Road Labels RU_F_SYSTE R1; R3; R4; R5; R6; R7; U1; U3; U4 U5; U6; U7 CITY OF DENTON CITY OFFSITE WATER PROJECTS This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. June 2025 I 1 IN = 4,000 FT 1EXHIBIT Agreement Project Number Impact Fee Project Number Project Name O-1 21 Lake Ray Roberts WTP 20 MGD Expansion to 50 MGD O-1 37 Lake Ray Roberts HSPS Improvements Phase 1 O-2 42 Southwest PS Improvements O-3 40 24/48" Loop 288 Transmission Main O-6 39 Lake Ray Roberts WTP 10 MGD Expansion to 60 MGD O-6 41 Lake Ray Roberts HSPS Improvements Phase 2 O-7 38 Lake Ray Roberts WTP 54/60" Transmission Main City Offsite Projects McKenna Park Standpipe and PS FOR EMERGENCY ONLY Ö Ö Ö@AUT@ Southwest PS Ö Ö õ õ UT UT 42 Southwest EST *Q@AU@qqT Lake Lewisville WTP and PS Ö Ö Ö Ö Ö Ö WTP UT UT UT UT Roselawn EST *Q@AU@qqT Northwest EST *Q @AU@qqT Riney EST and Northwest Booster PS *Q@AU@qqT õ õ õ EmptySlot Lake Ray Roberts WTP and High Service PS Ö Ö Ö Ö õ õ UT UT UT WTP WTP WTP 41 39 37 21 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 [SL7 £¤380 £¤288 £¤380 £¤77 £¤280 £¤2181 £¤377 §¨¦35W §¨¦35 §¨¦35E £¤380 £¤380 ³³PRW ³³PRW UT US 0 0 7 7 FM1515 FM042 8 FM1173 FM2164FM0407 FM3040 FM 1 8 30FM0156FM2449 FM2181 REDROCKMIINGO R D JIMCHRISTALRD STUART RDCHINNCHAPELLUSKSIM MONSRDDALEEARNHARDT RYAN LAKE SHARON MARSHALLCREEK RD STACEELNHILLTOPNKIRKPATRICKPENNSYLVANIADRKINGSROW MALONESTGIBBONS RDCOLLEGECOPPERCANYONBELLRDAVEAHIG HLANDSHORES LAKEVIEWBLVDBRIDLEWOODWINDSOR SHADYSHORES CHINNCHAPELRDPARKRI DGEDRBRAZOS BLVD SHA D Y OA KS MCMAKIN RDALLRED ROBINS O N LAKEFORESTJACKSON RD COOPERCREEKRDCORINTHLOOP OLD JUSTIN TRINITY DRJETER RD BOBCATBLVD HICKORYHILL TROPHY CLUB BONNIE BRAELONG RD MILLS RD LITSEY RD LANTANATRLORCHID HIL LSTATESCHOOLCRAWFORD RD OLDALTON RDCROSST IMBERSGANZER W RD DOBBSRDAUDRALN WAKETONSWELCH STV ALL EYPKWY BRUSH CREEK RDAVE CLABONTEFULTONHOPKINSRDOAK HERCULES LN NOTTINGHAMDRMINGO R D MAYHILLHICKORY CREEKRDJOHNPAINE MORSE ST THRUSHKINGS ROCKEYPOINT RDQUAILRUNDRS AN JA CIN T O C LEVELANDGIBBSRDSAM LEEFLORENCE RDRADECKE RD MEADOW OAKS DR HIGHLANDVILLAGEWO A KST DOC MITCHELL PARKVIEW VINTAGE BLVD FLORENCELEXINGTON AVECHINCHAPELRDEMCKINNEYSTE6THSTCONGRESSJETERSELLMEYERMORSEN MASCH BRANCH RDWESTERNNBLVDRIPPY RDMCKAMEY CREEK RDHINKLEDOUBLEEAGLEBLVD CHURCH RDBRINKER E KIRKPATRICKFORESTRIDGEMONTECITO HOBSON LN GARZAWILLOWWOODSWESTERNBLVD SHILOH RDFIR E W HEELDRJOHN PAINE RDSTONECRESTRDED ROBSONTURBEVILLE RD SCRIPTURE HIGHCOPPERCANYON RDOLDSETTLERSRDFRENCHTOWN VIC TO R Y MASCH BRANCHCORBIN TIMBERCRKRD WICHITA TRL LAKELEWISVILLE LAKEGRAPEVINE CITY OF DENTON CITY OFFSITE WASTEWATER PROJECTS This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. March 2025 I 1 IN = 4,000 FT 2EXHIBIT LEGEND Background Data Railroads Roads Lakes Denton City Limits Service Areas Clear Creek Hickory Creek Pecan Creek Existing Infrastructure Ex. 8-10-inch Sewer Line* Ex. ≥12-inch Sewer Line Force Main [SL7 Ex. Lift Station**³³PRW Ex. Water Reclamation Facility UT Ex. Peak Flow Basin City Offsite Projects ³³PRW Proposed Water Reclamation Facility *Existing sewer lines smaller than 8" are not shown.**Existing lift stations planned to be abandoned are not shown. Agreement Project Number Impact Fee Project Number Project Name Sub O-1 41 Hickory Creek Peak Flow Basin Improvements O-2 46 HCWRP 10.0 MGD MBR Plant Pecan Creek WRP WRP Hickory Creek WRP 46 WRP Hickory Creek Peak Flow Basin 41 UT UT City Offsite Projects EXHIBIT K1-A - MAPS OF CITY OFFSITES EXHIBIT K1-B - MAPS OF CITY OFFSITES Exhibit L - List of Improvement Projects Project Number Project Name Project Type Construction Party Service Facility Type Required Right of Way City Utilization Development Utilization Estimate City Cost MMD/ Development Cost MMD Reimbursement? COD Off-Site/ MMD Participation Ownership Maintainance D-1 12/20-inch Robson Ranch Transmission Main Offsite MMD Water 2,856,600$ -$ 2,856,600$ Eligible N/A COD COD D-2 36-inch I-35 Transmission Main Offsite MMD Water 13,405,900$ -$ 13,405,900$ Eligible N/A COD COD D-3 30-inch Cole Ranch Transmission Main Offsite MMD Water 12,266,600$ -$ 12,266,600$ Eligible N/A COD COD D-4 24-inch Southwest EST Transmission Main Offsite MMD Water 12,151,900$ -$ 12,151,900$ Eligible N/A COD COD D-5 12/16-inch John Pane Transmission Main Onsite MMD Water 4,388,000$ -$ 4,388,000$ Eligible N/A COD COD D-6 12-inch Underwood Transmission Main Offsite MMD Water 2,888,200$ -$ 2,888,200$ Eligible N/A COD COD D-7 2.0 MG Hunter Cole Elevated Storage Tank & 24-inch Water Line Onsite MMD Water 10,841,900$ -$ 10,841,900$ Eligible N/A COD COD D-8 12/16-inch Hunter Ranch Transmission Main Onsite MMD Water 5,896,600$ -$ 5,896,600$ Eligible N/A COD COD D-9 12-inch Cole Ranch Looping Transmission Main Onsite MMD Water 4,326,700$ -$ 4,326,700$ Eligible N/A COD COD D-10 12-inch Hunter Ranch Looping Transmission Main Onsite MMD Water 2,284,300$ -$ 2,284,300$ Eligible N/A COD COD D-1 27-inch Cole Ranch Interceptor Phase-2 Offsite MMD Wastewater 14,177,100$ -$ 14,177,100$ Eligible N/A COD COD D-2 24/36-inch Roark Branch Interceptor Phase 1 Offsite MMD Wastewater 11,915,200$ -$ 11,915,200$ Eligible N/A COD COD D-3 24-inch Creekway Drive Interceptor Offsite MMD Wastewater 8,440,800$ -$ 8,440,800$ Eligible N/A COD COD D-4 21/27/30-inch Roark Branch Interceptor Phase 2 Onsite MMD Wastewater 17,108,800$ -$ 17,108,800$ Eligible N/A COD COD D-5 8/12/15-inch Hunter Ranch West Collectors Onsite MMD Wastewater 4,772,100$ -$ 4,772,100$ Eligible N/A COD COD D-6 8/12/15/21-inch Cole Ranch Collectors Onsite MMD Wastewater 13,032,000$ -$ 13,032,000$ Eligible N/A COD COD D-7 27-inch Cole Ranch Interceptor Phase 1 Offsite MMD Wastewater 3,975,300$ -$ 3,975,300$ Eligible N/A COD COD D-8 8/12/15-inch Hunter Ranch East Collectors Onsite MMD Wastewater 7,525,900$ -$ 7,525,900$ Eligible N/A COD COD D-9 8/12/15-inch Hunter Ranch Central Collectors Onsite MMD Wastewater 5,737,900$ -$ 5,737,900$ Eligible N/A COD COD D-10 8/15-inch Hunter Ranch South Collectors Onsite MMD Wastewater 4,254,800$ -$ 4,254,800$ Eligible N/A COD COD O-1 Lake Ray Roberts WTP Expansion #1 Offsite COD Water 60.00%40.00%70,020,000$ 70,020,000$ -$ N/A N/A COD COD O-2 Southwest Pump Station Improvements Offsite COD Water 15.00%85.00%6,325,000$ 6,325,000$ -$ N/A 5,376,250$ COD COD O-3 36/42-inch North Loop 288 Transmission Main Offsite COD Water 20.00%80.00%48,614,700$ 48,614,700$ -$ N/A 38,891,760$ COD COD O-4 Highway 380 Pump Station Improvements Phase 1 Offsite COD Water 10.00%90.00%6,325,000$ 6,325,000$ -$ N/A 5,692,500$ COD COD O-5 36-inch West Loop 288 Transmission Main Offsite COD Water 10.00%90.00%7,120,400$ 7,120,400$ -$ N/A 6,408,360$ COD COD O-6 Lake Ray Roberts WTP Expansion #2 Offsite COD Water 50.00%50.00%50,331,000$ 50,331,000$ -$ N/A N/A COD COD O-7 42-inch LRRWTP Transmission Main Offsite COD Water 40.00%60.00%57,716,700$ 57,716,700$ -$ N/A N/A COD COD O-8 Highway 380 Pump Station Improvements Phase 2 Offsite COD Water 10.00%90.00%6,325,000$ 6,325,000$ -$ N/A 5,692,500$ COD COD O-9 16-inch Jim Christal Transmission Main Offsite COD Water 30.00%70.00%4,528,200$ 4,528,200$ -$ N/A 3,169,740$ COD COD O-1 Proposed Hickory Creek WRP Phase 1 Offsite COD Wastewater 20.00%80.00%65,010,100$ 65,010,100$ -$ N/A N/A COD COD O-2 Proposed Hickory Creek WRP Phase 2 Offsite COD Wastewater 5.00%95.00%44,850,000$ 44,850,000$ -$ N/A N/A COD COD O-3 Proposed Diversion Lift Station Offsite COD Wastewater 50.00%50.00%10,007,600$ 10,007,600$ -$ N/A 5,003,800$ COD COD O-4 12/15-inch Robson Ranch Interceptor Offsite COD Wastewater 100.00%0.00%4,884,200$ 4,884,200$ -$ N/A N/A COD COD O-5 Proposed Hickory Creek WRP Phase 3 Offsite COD Wastewater 40.00%60.00%74,750,000$ 74,750,000$ -$ N/A N/A COD COD 52925 Loop 288 SB - North of R7 Offsite TXDOT Roads Freeway 6-lane divided -$ -$ -$ N/A N/A TXDOT TXDOT 52946 Loop 288 SB - West of R1 Offsite TXDOT Roads Freeway 6-lane divided -$ -$ -$ N/A N/A TXDOT TXDOT 51039 Jim Christal Road - East of Loop 288 Offsite COD Roads Minor 4-lane divided 98.59%1.41%19,674,900$ 19,674,900$ -$ N/A 277,416$ COD COD 45891 Vintage Blvd - East of IH 35W Offsite COD/County Roads Principal 6-lane divided 90.57%9.43%15,000,700$ 15,000,700$ -$ N/A 1,414,566$ COD COD 52790 R3/FM 2449 - West of Loop 288 Onsite MMD Roads Principal 6-lane divided 12,500,200$ -$ 12,500,200$ Eligible N/A COD/TXDOT COD/TXDOT 52776 R2/Allred Road - East of R9/West of US 377 Offsite COD Roads Principal 6-lane divided 93.75%6.25%11,589,900$ 11,589,900$ -$ N/A 724,369$ COD COD 52771 R2/Allred Road - East of John Paine Road Onsite MMD Roads Principal 6-lane divided 7,775,700$ -$ 7,775,700$ Eligible N/A COD COD 52773 R2/Allred Road - West of John Paine Road Onsite MMD Roads Principal 6-lane divided 26,420,500$ -$ 26,420,500$ Eligible N/A COD COD 52709 Crawford Road - West of IH 35 W Offsite TXDOT/COD/County Roads Minor 4-lane divided 83.87%16.13%11,470,700$ 11,470,700$ -$ N/A 1,850,224$ COD COD 52758 Robson Ranch - East/West of R1 Offsite TXDOT/COD/County Roads Principal 6-lane divided 90.77%9.23%8,383,600$ 8,383,600$ -$ N/A 773,806$ COD COD 52879 R6 - South of FM 2449 Onsite MMD Roads Minor 4-lane divided 24,968,700$ -$ 24,968,700$ Eligible N/A COD COD 52866 R7 - West of Loop 288 Onsite MMD Roads Minor 4-lane divided 10,551,700$ -$ 10,551,700$ Eligible N/A COD COD 52823 R16 - North of FM 2449 Onsite MMD Roads Collector 4-lane divided 9,842,200$ -$ 9,842,200$ Eligible N/A COD COD 52943 R10 - East of Loop 288 Onsite MMD Roads Minor 4-lane divided 1,596,100$ -$ 1,596,100$ Eligible N/A COD COD 52872 R18 - West of John Paine Road Onsite MMD Roads Collector 4-lane divided 8,423,500$ -$ 8,423,500$ Eligible N/A COD COD 52791 R15 - North of Allred Road Onsite MMD Roads Collector 4-lane divided 6,384,200$ -$ 6,384,200$ Eligible N/A COD COD 52828 R5 - North of Allred Road Onsite MMD Roads Minor 4-lane divided 19,684,500$ -$ 19,684,500$ Eligible N/A COD COD 52853 R13 - North of R2 Onsite MMD Roads Collector 4-lane divided 10,019,600$ -$ 10,019,600$ Eligible N/A COD COD 52767 R12 - West of R4 Onsite MMD Roads Collector 4-lane divided 17,379,400$ -$ 17,379,400$ Eligible N/A COD COD 52953 R1/John Paine Road - North/South of Allred Road Onsite MMD Roads Principal 4-lane divided 41,787,600$ -$ 41,787,600$ Eligible N/A COD COD 52756 R4 - North of Robson Ranch Road Onsite MMD Roads Principal 4-lane divided 6,445,300$ -$ 6,445,300$ Eligible N/A COD COD 52777 R9 - South of Allred Road Onsite MMD Roads Minor 4-lane divided 4,344,600$ -$ 4,344,600$ Eligible N/A COD COD 52824 R11 - East of R4 Onsite MMD Roads Collector 4-lane divided 12,058,900$ -$ 12,058,900$ Eligible N/A COD COD 52782 R19 - West of R9 Onsite MMD Roads Collector 4-lane divided 3,901,400$ -$ 3,901,400$ Eligible N/A COD COD 52782 R20 - West of R9 Onsite MMD Roads Collector 4-lane divided 2,926,000$ -$ 2,926,000$ Eligible N/A COD COD 52808 R8 - North of Loop 288 Onsite MMD Roads Principal 4-lane divided 5,546,100$ -$ 5,546,100$ Eligible N/A COD COD 52808 R8 - Underwood Dr - North of Cole Property Offsite COD Roads Principal 4-lane divided 57.89%42.11%12,160,800$ 12,160,800$ -$ N/A 5,120,913$ COD COD 52897 R6 - North of Tom Cole Rd Offsite COD Roads Minor 4-lane divided 100.00%0.00%11,398,100$ 11,398,100$ -$ N/A -$ COD COD 52807 R14 - Hunter NE Collector Onsite MMD Roads Collector 4-lane divided 5,675,000$ -$ 5,675,000$ Eligible N/A COD COD 52788 R17 - Cole - West Collector Onsite MMD Roads Collector 4-lane divided 2,926,000$ -$ 2,926,000$ Eligible N/A COD COD EXHIBIT L - LIST OF IMPROVEMENT PROJECTS EXHIBIT II Subpart A - CODE OF ORDINANCES Chapter 26 - UTILITIES ARTICLE VI. IMPACT FEES 2025 DRAFT REDLINE CHANGES EXHIBIT II Amended Sections 26-213, 26-216 through 26-222, and Section 26-228 of Article VI. Impact Fees of Chapter 26 Utilities “Sec. 26-213. Definitions. *** Director means the Director of Water or Wastewater Utilities, or General Manager of Water Utilities for the City of Denton, or his or her designee. *** Sec. 26-216. Water impact fee service area. There are hereby established three (3) water impact fee service areas, to include all land within the City and its extraterritorial jurisdiction, the boundaries of which are depicted in Appendix A incorporated by reference herein. Sec. 26-217. Wastewater impact fee service areas. There are hereby established three (3) wastewater impact fee service areas, to include all land within the City and its extraterritorial jurisdiction, the boundaries of which are depicted in Appendix B incorporated by reference herein. Sec. 26-218. Determination of service units. The number of service units for both water or wastewater impact fees shall be determined by using the Service Unit/Single Family Equivalency (SFE) table which converts the demands for water or wastewater improvements generated by typical land uses to water meter size, and which table is incorporated by reference herein by Appendix C. Sec. 26-219. Impact fees per service unit. (a) Maximum impact fees per service unit for each service area shall be established by category of capital improvements. The maximum impact fee per service unit for each service area for each category of capital improvement shall be computed in the following manner: (1) For each category of capital improvements, calculate the total projected costs of capital improvements necessitated by and attributable to new development in the service area identified in the impact fee capital improvements plan; (2) From such amount, subtract a credit in the amount of that portion of utility service revenues, if any, including the payment of debt, to be generated by new service units during the period the capital improvements plan is in effect, including the payment of debt, associated with the capital improvements in the plan; (3) Divide the resultant amount by the total number of service units anticipated within the service area, based upon the land use assumptions for that service area. (b) The maximum impact fee per service unit for water or wastewater facilities by service area shall be as set forth in Section 26-222(e) hereinafter referred to as “Schedule 1”. Schedule 1 shall be used to assess impact fees. Schedule 1 may be amended from time to time utilizing the amendment procedure set forth in Section 26-228. (c) The impact fee per service unit which is to be paid by each new development within a service area shall be as set forth in Section 26-222(f) hereinafter referred to as “Schedule 2” and shall be an amount less than or equal to the maximum impact fee per service unit established in Schedule 1. Schedule 2 may be amended from time to time utilizing the amendment procedure set forth in Section 26-228. Sec. 26-220. Assessment of impact fees. (a) Assessment of impact fees for any new development in all of the Denton Water and Wastewater Service Areas shall be made as follows: (1) For land which is unplatted at the time of application for a building permit or utility connection, or for a new development which received final plat approval prior to the effective date of this Article, and for which no re-platting is necessary pursuant to the City's subdivision regulations prior to development, assessment of impact fees shall occur at the time application is made for the building permit or utility connection, whichever first occurs, and shall be the amount of the maximum impact fee per service unit in effect, as set forth in Schedule 1. (2) For a new development which is submitted for approval pursuant to the City's subdivision regulations on or after the effective date of this Article, or for which re- platting results in an increase in the number of service units after such date, assessment of impact fees shall be at the time of final plat recordation, and shall be the amount of the maximum impact fee per service unit in effect as set forth in Schedule 1. (b) Following assessment of impact fees pursuant to subsection (a), the amount of impact fee assessment per service unit for that development cannot be increased, unless the owner proposes to change the approved development by the submission of a new application for final plat approval or other development application that results in approval of additional service units, in which case a new assessment shall occur at the Schedule 1 rate then in effect for such additional service units. (c) Following the vacating of any plat or approval of any re-plat, a new assessment must be made in accordance with subsection (a)(2). (d) An application for an amending plat made pursuant to Texas Local Government Code §212.016 and the City of Denton Subdivision Ordinance, and for which no new development is proposed, is not subject to reassessment for an impact fee. Sec. 26-221. Computation of impact fees. (a) Following the filing and acceptance of a written application for building permit or utility connection, the City shall compute the impact fee due in the following manner: (1) The number of service units shall be determined by the size of the water meter purchased using the SFE table in Appendix C. The service units for multi-family apartment projects with eight (8) or more units shall be determined by multiplying the number of bedrooms in said apartment project by 0.26 SFE; (2) Service units shall be summed for all meters, or for all bedrooms within a multi- family apartment project with eight (8) or more units purchased for the development; (3) The total number of service units shall be multiplied by the impact fee per service unit for water and/or wastewater service facilities using Schedule 1 then in effect as established in Section 26-219; (4) The amount of each impact fee shall be reduced by any allowable offsets or credits for that category of capital improvements, in the manner provided in Section 26-223. (b) The amount of impact fee due for new development shall not exceed the amount computed by multiplying the assessed fees for water and wastewater service, as applicable, by the total number of service units generated by the development. The amount of impact fee due for redevelopment shall not exceed the amount computed by multiplying the assessed fees for water and wastewater service, as applicable, by the net increase in service units generated by the redevelopment. (c) The developer may submit or the Director may require the submission of a study, prepared by a professional engineer, licensed in the State of Texas, clearly indicating the number of water and wastewater service units which will be consumed or generated by the new development. The Director will review the information for completeness and conformity with generally accepted engineering practices and will, when satisfied with the completeness and conformity of the study, multiply the number of service units determined by the study, times the impact fee per service unit contained in Section 26-219 above to determine the total impact fee to be collected for the development. The Director may also use recent historical water billing records for existing customers to determine water demands and single-family equivalents ("SFE") in accordance with data from the most recent Capital Improvements Plan. (d)Whenever the property owner increases the number of service units for a development, the additional impact fees collected for such new service units shall be determined based on Schedule 1 and applicable offsets, credits, and discounts then in effect, and such additional fee shall be assessed and collected at the time the additional meters are purchased. (e)In the event the property owner decreases the number of service units for a development, the property owner shall be entitled to a refund of the impact fee or impact fees actually paid, but only for the amounts represented by the decrease in service units based on the assessed fee and offsets, credits, or discounts applicable at the time the fee was paid. (f)If the building permit for the property on which an impact fee is paid has expired and a new application for a building permit is thereafter filed for the identical property and the identical number of service units, the impact fee previously paid satisfies the requirements of this Article, unless the earlier impact fee was refunded to the applicant at the expiration of the previously- issued building permit, or was otherwise refunded. (g)The impact fee shall attach to the property for which the impact fee was paid and shall not be transferable to other properties or service units. (h)No building permit or utility connection shall be issued if the applicant cannot verify payment to Staff of the appropriate impact fee and other applicable fees, or if existing facilities do not have actual capacity to provide service to the new connection(s), except for those entities that are exempted from impact fees as are specifically set forth in Texas Local Government Code, Chapter 395. (i)All matters pertaining to the enforcement, assessment, computation, or collection of impact fees provided for herein shall be determined by the Director, or his or her designate. Sec. 26-222. Collection of impact fees. (a)Except as otherwise provided in this Section, the impact fee for the new development shall be collected at the time the City issues a building permit, or if a building permit is not required, at the time an application is filed for a new connection, to the City's water or wastewater system or for an increase in water meter size. (b)Except as otherwise provided by contracts with political subdivisions, developer's contracts, or wholesale customers, no building permit shall be issued until all impact fees due and owing have been paid to the City. (c)The City may enter into an agreement for capital improvements with a property owner pursuant to Section 26-229 that establishes a different time and manner of payment. (d)In the event that a property owner agrees to construct or finance capital improvements in the capital improvements plan pursuant to Section 26-229, the costs of which are to be reimbursed to the owner from impact fees paid from other new developments that will use such facilities, the City may collect impact fees from such other new developments at the time final plats are recorded for such development. (e)This Schedule 1 sets the assessment rate and establishes maximum impact fees as set forth in subparagraphs (e)(1) through (e)(6) below: (1)For a new development for which final plat recordation occurred on or after September 15, 1998, but before May 29, 2003, the maximum impact fee per service unit shall be assessed as follows: Water Service Area $2,044 per service unit Wastewater Service Area $483 per service unit (2)For a new development for which final plat recordation occurred on or after May 29, 2003, but before July 29, 2008, the maximum impact fee per service unit shall be assessed as follows: Water Service Area $3,155 per service unit Wastewater Service Area (Zone 1) $1,703 per service unit Wastewater Service Area (Zone 2) $2614 per service unit (3)For a new development for which final plat recordation occurred on or after July 29, 2008, but before December 3, 2013 the maximum impact fee per service unit shall be assessed as follows: Water Service Area (Zone 1) $3,400 per service unit Water Service Area (Zone 2) $4,000 per service unit Wastewater Service Area (Zone 1) $1,700 per service unit Wastewater Service Area (Zone 2) $1,760 per service unit (4)For a new development for which final plat recordation occurred on or after December 3, 2013, but before January 29th, 2019, the maximum impact fee per service unit shall be as follows: Water Service Area (Zone 1A) $3,167 per service unit Water Service Area (Zone 1B) $5,250 per service unit Water Service Area (Zone 2) $5,773 per service unit Wastewater Service Area (Zone 1) $2,851 per service unit (5)For a new development for which final plat recordation occurred on or after January 29, 2019, but before June 1, 2026, the maximum impact fee per service unit shall be assessed as follows: Water Service Area (Zone 1A) $3,569 per service unit Water Service Area (Zone 1B) $5,352 per service unit Water Service Area (Zone 2) $7,638 per service unit Wastewater Service Area $4,716 per service unit (6)For a new development for which final plat recordation occurred on or after June 1, 2026, , the maximum impact fee per service unit shall be assessed as follows: Water Service Area Zone 1A $1,365.00 per service unit Water Service Area Zone 1B $8,058.75 per service unit Water Service Area Zone 2 $9,104.25 per service unit Pecan Creek Wastewater Service Area $8,711.25 per service unit Hickory Creek Wastewater Service Area $9,593.25 per service unit Clear Creek Wastewater Service Area $13,437.00 per service unit See also: Appendix D (f)This Schedule 2 sets the collection rate for impact fees as set forth in subparagraphs (f)(1) through (f)(6) below: (1)For a new development for which final plat recordation occurred on or after September 15, 1998, but before May 29, 2003, and for which no new service units have been added, impact fees shall be collected as follows: Water Service Area $2,044 per service unit Wastewater Service Area $483 per service unit (2)For a new development for which final plat recordation occurred on or after May 29, 2003, but before July 29, 2008, and for which no new service units have been added, impact fees shall be collected as follows: Water Service Area (Zone 1) $3,155 per service unit Wastewater Service Area(Zone 1): $1,703 per service unit Wastewater Service Area (Zone 2): $2,614 per service unit (3)For a new development for which final plat recordation occurred on or after July 29, 2008, but before December 3, 2013, and for which no new service units have been added, impact fees shall be collected as follows: Water Service Area (Zone 1) $3,400 per service unit Water Service Area (Zone 2) $4,000 per service unit Wastewater Service Area (Zone 1) $1,700 per service unit Wastewater Service Area (Zone 2) $1,760 per service unit (4)For a new development for which final plat recordation occurred on or after December 3, 2013, but before January 29, 2019 for which no new service units have been added, impact fees shall be collected as follows: Water Service Area (Zone 1A) $3,100 per service unit Water Service Area (Zone 1B) $3,900 per service unit Water Service Area (Zone 2) $4,500 per service unit Wastewater Service Area (Zone 1) $2,200 per service unit (5)For a new development for which final plat recordation occurred on or after January 29, 2019, but before June 1, 2026, and for which no new service units have been added, impact fees shall be collected as follows: Water Service Area (Zone 1A) $3,569 per service unit Water Service Area (Zone 1B) $5,352 per service unit Water Service Area (Zone 2) $7,638 per service unit Wastewater Service Area $4,716 per service unit (6)For a new development for which final plat recordation occurred on or after June 1, 2026, and for which no new service units have been added, impact fees shall be collected as follows: Water Service Area Zone 1A $1,365.00 per service unit Water Service Area Zone 1B $8,058.75 per service unit Water Service Area Zone 2 $9,104.25 per service unit Pecan Creek Wastewater Service Area $8,711.25 per service unit Hickory Creek Wastewater Service Area $9,593.25 per service unit Clear Creek Wastewater Service Area $13,437.00 per service unit See also: Appendix D Provided, however, if the service unit is a "small residential housing unit" as defined herein, which consists of a residence of less than 1,300 square feet, which is also located on a lot of less than 6,000 square feet, that service unit shall be assessed and charged a 0.5. SFE charge, no matter in which Zone it is located in, and no matter when the lot is platted. (g)For land for which a plat was recorded prior to September 15, 1998, and for which no replats have been recorded, the assessment shall be the amount of the maximum impact fee per service unit in effect, as set forth in Schedule 1 on September 15, 1998. *** Sec. 26-228. Update of plan and revision of fees. (a)The City shall update its land use assumptions and capital improvements plans at least every five (5) years, commencing approximately from the date of adoption of such plans, and shall recalculate the impact fees based thereon in accordance with the procedures set forth in Texas Local Government Code, Chapter 395, or in any successor statute. (b)The City may review its land use assumptions, impact fees, capital improvements plans and other factors such as market conditions more frequently than provided in subsection (a) to determine whether the land use assumptions and capital improvements plans should be updated and the impact fee recalculated accordingly, or whether Schedules 1 or 2 should be changed. Schedule 2 may be amended without revising land use assumptions and capital improvements plans at any time prior to the update provided for in subsection (a), provided that the impact fees to be collected under Schedule 2 do not exceed the impact fees assessed under Schedule 1. (c) If, at the time an update is required pursuant to Subsection (a), the City Council determines that no change to the land use assumptions, capital improvements plan or impact fee is needed, it may dispense with such update by following the procedures in Texas Local Government Code, Section 395.0575. (d) The City may amend the SFE table (Appendix C), at any time prior to the update provided for in Subsection (a), provided that the number of service units associated with a particular land use shall not be increased.” APPENDICES APPENDIX A – WATER SERVICE AREAS MAP APPENDIX B –WASTEWATER SERVICE AREAS MAP APPENDIX C – SINGLE FAMILY EQUIVALENCY (SFE) TABLE APPENDIX D – UPDATED IMPACT FEES TABLE DENTONDENTON £¤380 £¤288 £¤380£¤77 £¤280 £¤2181 £¤377 §¨¦35W §¨¦35 §¨¦35E £¤380 1A FM2181 FM2449 FM045 5 FM1830FM1515 FM2164FM0407FM0156 FM 2 4 9 9 FM3040 FM1173 REDROCKSPINKS NWHITECHAPEL BLVD MIINGO RD FAIR WAYD RWALNUTCHINNCHAPELIN D IANCREEKDRHENRIETTACREEK R D JIM C HRISTALRD HIGHLANDVILLAGE LUSKSIMMONS RDDALEEARNHARD T HERITAGEPKWYOLD BLUEMOUND RDSTACEELNHILLTOPTROPHYLAKEDRNKIRKPATRICKMARSHALL CREEK RD RYAN LAKE SHARON TROP HYCL U B LAK ES IDE P K WYGIBBONS RDOLDORCHARDEAGL E P K WY COPPERCANYONCOLLEGELAKEVIEWBLVDHIGHLA NDSHO RE S BRIDLEWOODWINDSOR CHINNCHAPELRDSHADYSHORES PARKRI DGEDRBRA ZOSBLVDSHADYOAKS MCMAKIN RDALLRED R OBINSON FOX LAKEFORESTJACKSONRD MCGEECOOPERCREEKRDCORINTHLOOP OLD JUSTIN TRINITY DRJETER RD B OBCATBLVDHICKORY HILL MAINBONNIE BRAELONG RD MILLS RD LITSEY RD LANTANATRLORCHID HILLSTATESCHOOLCRAWFORD RD VALLEYP K WY OLD ALTON RD GANZER W RD DOBBSRD INTERMODALPKWY WAKETON LAKEVIEWDUNCANLNBRUSH CREEK RD LABONTEMINGO R D HICKORYCREEKRD LAKESHOREJOHNDAYRDMORSE ST KINGS ROCKEYPOINT RDQUAILRUNDRCLEVELANDGIBBSRDSAM LEEFLORENCE RDSPINKSRD RADECKE RD MEADOW OAKS DRWOA K ST DOC MITCHELL VINTAGE B LVD FLORENCED E N T O N CHINCHAPELRDEMCKINNEY S TE6THST PARKVIEW JETERSELLMEYERE WILLOW ST CAPITALPKWYN MASCHBRANCH RDWE STERNNBLV D RIPPYRDN SU M MI TDRMCKAMEY CREEK RD DOUB LEEAGLE B LVD IN DIA NLNCHURCH RDBRINKER E KIRKPATRICKFORESTRIDGEMONTECITO LEXINGTONAVEGARZAHOBSON LN ELIZABE THTOWNCEME NTERYSWESTERNBLVDSHILOH RDJOHN PAINE RDFIREW HEELDRSTON ECRESTRD ED ROBSONTURBEVILLE RD HIGHCOPPERCANYON RDOLD SETTLERSRDFRENCHTOWN VICTOR Y MASCH BRANCHCORBIN TIMBERCRKRDWICHITA TRL 2 2 1B 1B LAKE RAY ROBERTS LAKE LEWISVILLE COPPERAS BRANCH LAKE LAKE GRAPEVINELEGEND Background Data Railroads Roads Lakes Service Areas 1A 1B 2 CITY OF DENTON WATER IMPACT FEE SERVICE AREAS This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. I 1 IN = 5,000 FT AAppendix January 2025 DENTON £¤380 £¤288 £¤380 £¤77 £¤280 £¤2181 £¤377 §¨¦35W §¨¦35 §¨¦35E £¤380 £¤380 US 0 0 7 7 FM1515 FM0428 FM1173 FM2164FM0407 FM00 5 1 FM3040FM1830FM0156FM0455 FM2449 FM2181 RED ROCKSPINKSSTUART RDMIING O R D CHINN CHAPELLUSKJIMCHRISTALRD HIGHLANDVILLAGE SIMMONS RDDALEEARNHARD T OLD BLUEMOUND RDSTACEELNHILLTOPTROP H Y LAKED R NKIRKPATRICKRYAN LAKE SHARON MARSHALL CREEK RD PENNSYLVANIADRMALONE STKINGS ROW GIBBONS RDOLDORCHARDEAGLE PKWY COPPERCANYONCOLLEGEBELLRDAVEALAKEVIEWBLVDHIGHLANDSHOR ES BR I DLEWOODWINDSOR CHINNCHAPEL RDSHADYSHORES PARKRI DGEDRBRAZOS BLVDSHADYOAKS MCMAKIN RDALLRED ROBINSON FOX LAKEFORESTJACKSONRD MCGEECOOPERCREEKRDCORINTHLOOP OLD JUSTIN TRINITYDRJETER RD BOB C ATBLVD HICKORY HILL TR OPHYCL UBMAINBONNIE BRAELONG RD MILLS RD LITSEY RD LANTANATRLORCHID HILLSTATESCHOOLCRAWFORD RD VALLEYP K WY OLDALTON RDGANZER W RD DOBBSRDAUDRALN WAKETON LAKEVIEWSWELCH STHOPKINSRDDUNCANLNBRUSH CREEK RDAVE CLABONTEFULTONOAK HERCULES LN NOTTINGHAMDRMINGO R D MAYHILLHICKORY C REEK RD LAKESHOREMORSE ST KINGS ROCKEYPOINT RDQUAILRUN DR SA N JAC IN TO CLEVELANDGIBBSRDSAM LEE SPINKSRDFLORENCE RDHERITAGEPKWYRADECKE RD MEADOW OAKS DRWOAK ST DOC MITCHELL VINTAGEBLVD FLORENCED E N TO NUNICORNLAKEBLVDOLDNORTH RDCHINCHAPELRDEMCKINNE Y ST WALNUTE 6THSTPARKVIEW CONGRESS JETERSELLMEYERE WILLOW ST MORSEN MASCHBRANCH RDWESTERNNBLVDN SUM MITDRRIPPYRDMCKAMEY CREEK RDHINKLEDOUBLE EAGLE B L VDINDIA N LNJOHN DAYRDCHURCH RD B R INKERE KIRKPATRICKFORESTRIDGEMONTECITO LEXINGTONAVEGARZAHOBSON LN WILLOWWOOD E LIZABE THTOWNCEME NTERYSWESTERNBLVDSHILOH RDJOHN PAINE RDFIR EW HEEL DRSTONE CREST RDED R OBSONTURBEVILLE RD SCRIPTURE HIGHCOPPERCANYON RDOLDSETTLERS RDFRENCHTOWN VICTOR Y MASCH BRANCHCORBINTIMBERCRKRD WICHITA TRL LAKE RAY ROBERTS LAKE LEWISVILLE COPPERAS BRANCH LAKE LAKE GRAPEVINE Pecan Creek Hickory Creek Clear Creek CITY OF DENTON WASTEWATER IMPACT FEE SERVICE AREAS This map product is for information purposes andmay not have been prepared for or be suitablefor legal, engineering, or surveying purposes. Itdoes not represent an on-the-ground survey andrepresents only the approximate relative locationof property boundaries. I 1 IN = 5,000 FT BAppendix January 2025 LEGEND Background Data Railroads Roads Lakes Service Areas Clear Creek Hickory Creek Pecan Creek Appendix C Service Unit/Single Family Equivalency Table Meter Size Singel Family Equivalent 5/8" x 3/4"1 1"2.5 1-1/2"5 2"8 3"22.5 4"50 6"100 8"200 10"325 Appendix D 2025 Impact Fee Table with Land Use and Service Unit/SFE Equivalency Water Service Area Wastewater Service Area Meter Size Singel Family Equivalent Water Service Area Zone 1A Water Service Area Zone 1B Water Service Area Zone 2 5/8" x 3/4"1 1,365.00 8,058.75 9,104.25 1"2.5 3,412.50 20,147.25 22,761.00 1-1/2"5 6,825.00 40,293.75 45,521.25 2"8 10,920.00 64,470.00 72,834.00 3"22.5 30,712.50 181,322.25 204,846.00 4"50 68,250.00 402,937.50 455,212.50 6"100 136,500.00 805,875.00 910,425.00 8"200 273,000.00 1,611,750.00 1,820,850.00 10"325 443,625.00 2,619,093.75 2,958,881.25 Meter Size Singel Family Equivalent Pecan Creek Wastewater Service Area Hickory Creek Wastewater Service Area Clear Creek Wastewater Service Area 5/8" x 3/4"1 8,711.25 9,593.25 13,437.00 1"2.5 21,778.50 23,982.75 33,592.50 1-1/2"5 43,556.25 47,965.50 67,185.75 2"8 69,690.00 76,744.50 107,496.75 3"22.5 196,003.50 215,844.75 302,334.00 4"50 435,562.50 479,654.25 739,353.75 6"100 871,125.00 959,308.50 1,343,707.50 8"200 1,742,250.00 1,918,617.75 2,687,415.75 10"325 2,831,156.25 3,117,753.75 4,367,050.50