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2018-176 Utilizing Water and Waste Water Impact FeesDate: December 7, 2018 Report No. 2018-176 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: Projects utilizing water and wastewater impact fees over the past 5-10 years. EXECUTIVE SUMMARY: During the November 13, 2018 City Council meeting, information was requested regarding how impact fees have been used in the past and how staff monitors impact fee revenue. Below is an overview of how staff currently monitors impact fee revenue and expenditures. DISCUSSION: In 1998, the City of Denton started collecting water and wastewater impact fees to fund the cost of growth- related infrastructure. The City has successfully completed four impact fee studies since 1998, each study calculates the appropriate recovery fee to fund eligible impact fee projects for a ten-year period. The State of Texas requires that these studies are updated every five years, allowing the City to confirm and identify growth -related infrastructure and the appropriate recovery fees to pay for that infrastructure. The City of Denton charges impact fees based on plat date, fees are then collected at the time of permitting. Each year, the Water and Wastewater Departments utilize impact fee revenue to fund debt service on eligible impact fee projects. Several impact fee-eligible projects service all zones across the City, such as treatment plants and transmission lines. For this reason, it’s difficult to track impact fee revenue by individual project or impact fee zone. Staff tracks the total revenue for water and wastewater separately, this process insures that the total amount of impact fees collected do not exceed the total recoverable cost of eligible water and wastewater projects. Since 2014, the Water Department has received $25.7 million in total impact fee revenue and has utilized $18.5 million to fund debt service of projects. The Wastewater Department has received $12.4 million total in revenue and utilized $10.4 million to fund debt service. The two tables below, summarize impact fee revenue and the amount of revenue used to fund debt service since 2014. Water Impact Fees Fiscal Year Total Revenue Impact Fee Project Debt Service 2014 $ 3,524,313 $ 3,100,000 2015 $ 4,429,296 $ 3,600,000 2016 $ 4,983,401 $ 4,000,000 2017 $ 4,998,751 $ 4,000,000 2018 $ 7,837,963 $ 3,755,000 Total $ 25,773,724 $ 18,455,000 Wastewater Impact Fees Fiscal Year Total Revenue Impact Fee Project Debt Service 2014 $ 1,667,574 $ 1,100,000 2015 $ 2,046,725 $ 1,800,000 2016 $ 2,303,008 $ 2,000,000 2017 $ 2,410,274 $ 3,520,000 2018 $ 3,966,842 $ 2,000,000 Total $ 12,394,423 $ 10,420,000 Date: December 7, 2018 Report No. 2018-176 Staff has summarized the water and wastewater eligible impact fee projects below, these projects were identified in the 2013 and 2018 impact fee studies. The debt service listed above is associated with the following water and wastewater projects. CONCLUSION: Staff will be glad to provide any additional information upon request. ATTACHMENT(S): Water Impact Fee Projects Wastewater Impact Fee Projects STAFF CONTACT: Nick Vincent Utility Business Manager (940) 349-8063 nicholas.vincent@cityofdenton.com Date: December 7, 2018 Report No. 2018-176 1 Water Impact Fee Projects Lake Ray Roberts 2 Lake Ray Roberts Wtr Treatment Plant 3 54" Transmission Line 4 Loop 288 Water Main, Sherman-UNT 5 Loop 288 Water Main, Sherman-380 6 NW Elevated Storage Tank 7 SW Pump Station 8 SW PS Oversize Discharge Line (30-36") 9 Vintage Oversize Line (12-20") 10 North-South Water Line, Phase I 11 Roselawn Elevated Storage Tank 12 Roselawn Water Line 13 Masch Branch Road Water Line Ext 14 US 380 Urban Utility Relocation 15 Rayzor Ranch Oversize Line (16-20") 16 North-South Water Line, Phase II 17 I-35 Parallel Line Crossing 18 High School Booster Pump Station 19 Elm/Loop 288 Water Lines 20 Alfred/John Paine Water Line 21 Southwest Elevated Storage Tank 22 McKinney Water Line and PRV 23 University Water Line and PRV 24 New McKenna Booster Pump Station 25 I-35W Water Line 26 I-35W /Corbin Water Line 27 South Central Transmission Lines 28 Riney Road Booster Pump Station 29 Ray Roberts WTP Expansion 30 I-35 E Frontage Road Water Line Betterment 31 Locust Water Line Upsize 32 Hickory Water Line Upsize 33 Jim Christal Oversize Line (16" to 20") 34 Jim Christal Oversize Line/I-35 Crossing 35 Water Impact Fee Report Preparation Date: December 7, 2018 Report No. 2018-176 Wastewater Impact Fee Projects 1 Pecan Creek WRP (15 mgd) 2 Pecan WRP (6 mgd) Expansion 3 S Wet Weather Lift Station/Detention Pond 4 Cooper Creek Outfall (Loop 288) 5 Krum Sewer Line 6 Graveyard Branch Interceptor 7 Pecan Creek Interceptor (Ph 1 & 2) 8 Pecan Creek Interceptor I 9 Roark Branch Interceptor 10 State School Interceptor I 11 Carroll Ave Interceptor 12 Cooper Creek Interceptor I 13 Cooper Creek Interceptor II 14 Cooper Creek Interceptor III 15 Cooper Creek Interceptor IV 16 Cooper Creek Lift Station/Detention Pond 17 Dry Fork Hickory Crk Trib 1 Interceptor 18 Elm Street Sewer Replacement 19 Hickory Creek Interceptor I 20 Hickory Creek Interceptor II 21 Hickory Creek Interceptor III 22 Hickory Creek Interceptor IV 23 Hickory Creek Lift Station/Detention Pond 24 Hickory Creek Outfall 25 Pecan Creek Interceptor II 26 Pecan Creek Interceptor III 27 Pecan Creek Interceptor IV 28 Pecan Creek Interceptor V 29 State School Interceptor II 30 US 380 Utility Relocations 31 West Peak Flow Lift Station/Det. Pond 32 Westgate Heights Interceptor 33 Woodhaven Interceptor 34 Eagle Drive Sewer 35 Leatherwood Interceptor 36 State School Interceptor II 37 Audra Interceptor 38 Bonnie Brae Connector 39 Bonnie Brae Relocation 40 Mulberry Interceptor 41 Ranch View Interceptor 42 Wastewater Impact Fee Report Preparation Date: December 7, 2018 Report No. 2018-176