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19-008• � • • !I2 � � r � • • • � �� z � �r � � . . • . � • r � •r �r r ��* r r � • . ��, . . �� . . . � �� . �; . , • . � . � �� . � � . �� . �, . .� .� �; . •�. � r *� • : r � � • . . �� • �� • � � � �� • • r * � � �r • � • � �r � � : .. � r � � � . • • � �� • � �r � • • . �� R ��, � �. WHEREAS, Texas Local Government Code, Chapter 395 authorizes a city to adapt and amend impact fees for the purpose of financing capital improvements required by new development; and . . . � �� , . � � � # � . . . .�� . � �- , , .' - .� .� , , � � . � .,� � .. , �� . �_ . � r . _ � . . � ►. ♦�. . rr ' `� � . � � . -�� . �� - - � �� , � w�� . �� . . - � � . � . , , �� -� �� .�� - � �� 11 � .. � - � -�� # � . . � . . . , , * , - - , _ , - � , : • � r 1 1� . � . . _ . • � _ • • . � • ♦ . . . . , �� • ♦ � . - - - � � - �� , - � �� . . . �� _ _ _ _ � • , ., ♦ � . . . . - # . - � . s . .�#4 `� � . � �, . � �. .. . . , . ��.� • .�� - �, ._� , ,� � � . ' . ��'� � � s �! . . '� #i 'UVHEREAS, the City Council of the City of Dentan, Texas in accardance with State law, then enacted water and wastewater impact fees in accordance with Ordinance No. 2013-326 on November 19, 2013; and . _, _ � �� . . _ �� # ��. . �� .. �� w � . � r � �� . - . �� • . �� - � -� . � � • �� . _ . �� • � - • '�� , � . � � � � � ! � ��.. • i � �',.. f ,,. ! • '�. .. � �' s . .. . �. �.... '��. ,.. � " . �:. # a ` ' , � `.� .... . • ..'.... � .'�. �:. ` : � w .� � � ; . � �' � � � - ♦ � r�� . � !'�,r � ' i � . � � . � � � . . .�: �* * �,,� . . �,• . f f� --, � � �� < < '� � � � � � - � ' � ` # �. # . � . *'' • i♦ "! . �� ' i 1' ` ` � i ' f � , . # ,, � # � , � i � ♦ � � i the Council has received written comments as required by law from such Committee, on Novemb 29, 2018; and has adopted Land Use Assumptions and a Capital Improvements Plan for amend water and wastewater im:#act fees all in accordance with the requirements of Texas Local Goverrim, Code, Chapter 395; and `11'AEREAS, the City Council of the City of Denton, Texas also received a recommendati of the Denton Public Utilities Board (the "Board"), an advisory Board, to consider the impact fe and the zones set forth below in this ordinance, which recommendation was obtained in an op meeting of the Board on October 8, 2018; and I '"'AEREAS, on December 18, 2018, after due notice being issued in accordance with State law, a public hearing of the City Council was convened during the regularly called City Council meeting regarding the subject of the land use assumptions, capital improvements plans, and amended impact fees; and WHEREAS, the City Council of the City of Denton, Texas, having complied with all applicable substantive and procedural requirements of Texas Local Government Code, Chapter 395; considering the comments of the Capital Improvements Advisory Committee; considering the recommendation of the Public Utties Board; and after due deliberation and consideration finds it necessary and appropriate and in the public interest to establish water and wastewater impact fees, and to establish amended Z c2nit .1.%" 94 wiw 4-4-ir SE Q TION 1. The facts, circumstances, and recitations contained in the preambles to this Ordinance are hereby found and declared to be true and correct. SECTION.21. The Capital Improvements Plan for Water and Wastewater Impact Fees is hereby amended, as set forth in Exhibit "A," which is attached hereto and incorporated by reference herewith. MAMMON—' = =1 SEC"T I ON 4. Chapter 26 of the Code of Ordinances of the City of Denton, Texas, entitled "Utilities," is hereby amended, which shall hereafter read as follows: 1429047M 11 intenae o assure Me provision oT aaequa e pu ities to serve new aeveiopmem in the City by requiring each development to pay its proportional share of the costs of su improvements necessitated by and attributable to such new development as related to water a wastewater capital improvements. I This Article is adopted pursuant to Chapter 395 of the Texas Local Government Code and pursua � Ju )f to the Denton Charter. The provisions of this Article shall not be construed to limit the powers of t City to utilize other methods authorized under state law, or pursuant to other City powers accom%slish the i%ur effective date of this Article is September 15, 1998. The following words, terms and phrases, as used in this Article, shall have the meanings respective ascribed to them in this Section, unless the context clearly indicates otherwise: I (1) Area-relatedfacility means a capital improvement or facility expansion which is designat 0 in the Impact Fee Capital Improvements Plan and which is not a site -related facility. Area-relat facility may include a capital improvement, which is located offsite, within, or on the perimeter of t Vievelopment site. (2) Assessment means the determination of the amount of the maximum impact fee per servi unit that can be imposed on new development pursuant to this Article. i (3) Capital improvement means any water supply; or treatment, transmission, pumping and storage facilities; or wastewater treatment and conveyance facilities that have a life expectancy of three (3) or more years, and are owned and operated by or on behalf of the City. (4) Director means the Director of Water or Wastewater Utilities, or General Manager of Utilities for the City of Denton, or his or her designee. (5) Facility expansion means the expansion of the capacity of any existing facility for the purpose *f serving new development. The term does not include the repair, maintenance, modernization or ;:;xpansion of an existing facility to serve existing development. (6) Impactfee capital improvements plan means the adopted plan for a service area, as may be amended from time to time, which identifies the water facilities or wastewater facilities and their not to exceed ten (10) years, and which are to be financed in whole or in part through the imposition of water or wastewater impact fees pursuant to this Chapter 26, Article VI. (7) Land use assumptions means the projections of population and employment growth and 2ssociated changes in land uses, densities and intensities for a service area adopted by the City, as may be amended from time to time, upon which the impact fee capital improvements plan for the (8) New development means an activity involving the construction, reconstructio redevelopment, conversion, structural alteration, relocation, or enlargement of any structure, ora �ructlo " or a use or extension of land, which has the effect of increasing water or wastewater demand, measur by an increase in the number of the service units utilizing the City's water or wastewater system thl are attributable to such activity, and which re•uires either the argiroval and fi"lin ofa:#,Iat,or pursuant to the City's subdivision regulations, or the issuance of a building permit, or a utili connection. i (9) Service area means a geographic area within the City or within the City's extraterritorial jurisdiction, within which impact fees for water or wastewater facilities may be collected for new li,e-lvlc� vviwf, e-e-�qy e*kei4J1+1-P* 3C types of improvements identified in the type of capital improvements plan applicable to the servlce area. (10) Service unit means a standardized measure of consumption, use, generation or discharge attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards, for a particular category of capital improvements or facility expansions. For water and wastewater facilities, the service unit shall constitute the basis for establishing equivalency within various customer classes based upon the relationship of the continuous duty maximum flow rate in gallons per minute for a water meter of a given size and type compared to the continuous duty maximum flow rate in gallons per minute for a 3/4-inch diameter simple water meter. (11) Single-family equivalency ("SFE') means an equivalency factor, based on the demand 9ssociated with the smallest water meter used in the City of Denton, Texas utility system. SFE's are utilized to establish the number of service units to be allocated to various meter sizes used in the City tif Denton, Texas Water and Wastewater utilities system. (12) Site-relatedfacility means an improvement or facility which is for the primary use or benefit of a new development and/or which is the for the primary purpose of safe and adequate provision of water and wastewater facilities to serve the new development and which is not included in the impact fee capital improvements plan and for which the developer or property owner is solely responsible under subdivision and other applicable regulations. (13) Small residential housing unit means a single-family residence of less than 1,300 square feet on a lot of less than 6,000 square feet. (14) Utility connection means connection of an individual meter to the City's water or wastewater system, or an increase in the size of an existing meter. Sec. 26-214. Impact fee as condition of development approval. No new development shall be connected to the City's water or wastewater system within the service for service shall be issued until the applicant has paid the impact fee imposed herein, except for tho entities that are expressly exempt from impact fees as set forth in Texas Local Government Coldl Chapter 395. See. 26-215. Land use assumptions. (a) Said land use assumptions for the City shall be updated at least every five (5) years utilizing the amendment procedure set forth in Texas Local Government Code, Chapter 395. (b) Amendment to the land use assumptions shall incorporate projections of changes in land uses, densities, intensities and population for the service area over at least a ten (10) year period. There are hereby established three (3) water impact fee service areas, to include all land within t City and its extraterritorial jurisdiction, the boundaries of which are depicted in Exhibit A, whi Exhibit is attached hereto and incorporated by reference herein. I There is hereby established one (1) wastewater impact fee service area, to include all land within the City and its extraterritorial jurisdiction, the boundaries of which are depicted in Exhibit A, which Exhibit is attached hereto and incorporated by reference herein. The number of service units for both water or wastewater impact fees shall be determined by using the land use, and the service unit equivalencies table which converts the demands for water or wastewater improvements generated by typical land uses to water meter size, and which table is included within Exhibit B and incorporated by reference herein. IMMKIIHIIIEF* = (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 :mch 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 pvpfi-P-AJtoX-deW4# the caAital imCirovements Gwlan is in effect. includinj-, the (siapment of debt associated with the ca�tital improvements in the plan; (3) Divide the resultant amount by the total number of service units anticipated within t service area, based upon the land use assumptions for that service area. I (b) The maximum impact fee per service unit for water or wastewater facilities by servi area shall be as set forth in Schedule 1, which is attached hereto and incorporated herein by referene Schedule I shall be used to assess impact fees. Schedule I may be amended from time to time utilizi the amendment procedure set forth in Section 26-228. 1 (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 Schedule 2, which is attached hereto and incorporated by reference, 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. See. 26-220. Assessment of impact fees. (a) Assessment of impact fees for any new development in all of the Denton Water a Wastewater Service Areas shall be made as follows: I (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 buildin ermit or utilit connection , whichever first occurs and shall be the amount of the maximum I I (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 I 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. (a) Following the filing and acceptance of a written application for building permit or utili connection, the City shall compute the impact fee due in the following manner: i (1) The number of service units shall be determined by the size of the water meter purchased using the Land Use and Service Unit/SFE Equivalencies table incorporated as Exhibit B herein. 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 #.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 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 fee for water and/or wastewater service by the total number of service units generated by the development. The amount of impact fee due for redevelopment shall 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/or 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 im i act fees collected r i 6'w'titi 0- 1 ill ii iiiiii. iiill *"4A "', 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, t e roierti owner shall be entitled to areffund of h gile� _i1r;Jilill 11"'1" 0 iml If the building permit for the property on which an impact fee is paid has expired and new application for a building permit is thereafter filed for the identical property and the identic- number of service units, the impact fee previously paid satisfies the requirements of this Artic] I unless the earlier impact fee was refunded to the applicant at the expiration of the previously-issu building permit, or is 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. 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. (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 Cor 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. (e) 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) Schedule 1 sets the assessment rate and establishes maximum impact fees as set forth in subparagraphs (e)(1) through (e)(4) 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 $2,044 for the water service area, and $483 for the wastewater service area. For #' • # • •recordation# # # # P-9, 2003,but `o Ili , the maximurn impact fee per service unit shall be $3,1 fi ror the waterservicearea;• $1,703 forZone I wastewater service area. For s new development f# plat recordationoccurred on or after July • 2008, but before December 3, 2013 the maximum impact• service unit shall•., as follows: $3,400 for the Zone I water service area and $4,000 for the Zone 2 water service • ' and $1,700 for the Zone I wastewater service area a $1,760 for the Zone wastewater (4) For a new development for which final plat recordation occurred on or after December 3, 2013,but before January • 2019, the maximum impact service unit shall • - r #11#w • # # - . • +� • j t • (5) For a new development for which final plat recordation occurred on or after January 9, 2019, or for any plats filed prior to September 15, 1998, the maximum impact fee per be as follows:$3,569 for a water service area, $5,352 for • e I B water$4,716 for the wastewater service area. (f) Schedule 2 sets the collection rate for impact fees as set forth in subparagraph (f)(1) through (0(5) below: (1) Except as provided in paragraph (2-5) below, impact fees shall be collected and paid as follows: (ZoneWater Service Area . per service unit (ZoneWater Service Area ;, $5,352 per service unit Water Service . •(Zonei per service unit Wastewater Service Area $4,716 per service unit (2) For a new development for which final plat recordation occurred on or after September 99 but before May 29, 2003,d for which no new service units have been •## • impact fees shall be collected as follows: Water Service Area $2,044 per Wastewater Service Area (Zone 1) $483 per service unit • new development f•r which final plat recordationoccurred on or I May 29, 2003, but before • 1'1i 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 (4) 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 ?.dded, 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 (5) For a new development for which final plat recordation occurred on or after Itecember 3 2013. but before JanuarVA 9 ` 2012 xr impact fees shall be collected as follows: Water Service Area (Zone IA) $3,100 per service unit Water Service Area (Zone 113) $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 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. (a) The City shall offset the reasonable value of any area -related facilities, identified in the impact fee capital improvements plan and constructed pursuant to an agreement with the City, except as otherwise provided therein, which are dedicated to and received.by the City on or after the effective date of this ordinance, against the amount of the impact fee due for that category of capital imi,rovement. No offsets or credits shall be �#,rovided for re�#uired over -sizing of lines or lift stations not identified in the capital improvements plan or for pro-rata payments to repay other developers for such over -sizing. (b) The City shall credit any new development that occurs subsequent to the effective date of this Article, any amount of capital recovery fees which have been collected by the City pursuant to duly adopted ordinances and any impact fees collected by the City pursuant to this Article. (c) All offsets and credits against impact fees shall be subject to the following limitations and shall be granted based on this Article and additional standards promulgated by the City, which may be adopted as administrative guidelines. (1) No offset or credit shall be given for the dedication or construction of site -related facilities. (2) No offset or credit shall exceed the impact fee to be collected from new (3) The unit costs used to calculate the offsets shall not exceed those assumed for the capital improvements included in the impact fee capital improvements plan for the category of facility within the service area for which the impact fee is imposed. (4) If an offset or credit applicable to a plat has not been exhausted within ten (10) years from the date of the acquisition of the first building permit issued or connection made after the effective date of this Article or within such %eriod as maAM&M WAQ**M_M�r, agreement for capital improvements pursuant to Section 26-229, such offset or credit shall •, (5) In no event will the City reimburse the property owner or developer for an offset or credit when no •• fees for the new development can • collected • to this Article or for any amount exceeding the total impact fees collected or due for the development for • category of capital improvement, unless otherwise agreed to • the City. (6) No offset shall exceed an amount equal to the eligible costs of the improvemen) multiplied by a fraction, the numerator of which is the impact fee per service unit due for the new development as computed using Schedule 2 and the denominator of which is the maximum impact fee per service unit for the new development as computed using Schedule I . (7) Offsets or credits for area -related facilities dedicated to and accepted by the City for a development prior to the effective date of this Article shall be prorated among the total number of service units within such development and reduced by • amount equivalent to the amount of any participation funds received from the City and by any payments received from other developments who utilize the system facility. (8) The City may participate in the costs of • area -related improvement to • dedicated to the City, including costs that exceed the amount of the impact fees due for the development under Schedule I for that category of capital improvements, in accordance with [�olicies and rules established under the City's subdivision regulations and when incorporated into an agreement for capital improvements pursuant to Section 26-229. The amount of any *ffset shall not include the amount of the City's participation. •, • an agreement for capital improvements is executed providing for • • manner of offsetting or crediting impact fees due pursuant to Section 26-229, an offset or credit associated with a plat shall be applied to reduce an impact fee at the time of application for the first Luilding �ermit or at the time of agilication for the first utilitp connection for the %r of land located within the City's extraterritorial jurisdiction, and, thereafter, to reduce impact fees subsequently to be collected, until the offset or credit is exhausted. (a) The City's Department of Finance shall establish separate interest -bearing accounts -7 ca��,ita I�T*Tefrieni �T.e., water Tacnities anct wastewater tacilities To cazwca��V within the service area for which the impact fee is collected. (b) Interest earned by each account shall be credited to the account on which it is earned and ►hall be used solely for the purposes specified for impact fees as authorized herein. (c) The City's Department of Finance shall establish adequate financial and accounting controls to ensure that impact fees disbursed from the account are utilized solely for the purposes authorized in this Article. Disbursement of funds shall be authorized by the City at such times as are reasonably necessary to carry out the purposes and intent of this Article; provided, however, that any fee paid shall be expended within a reasonable period of time, but not to exceed ten (10) years from the date the fee is deposited into the account. (d) The City's Department of Finance shall maintain and keep adequate financial records for each such account, which shall show the source and disbursement of all revenues, which shall account for all monies received, the number of service units for which the monies are received, and which shall ensure that the disbursement of funds from each account shall be used solely and exclusively for the provision of projects specified in the impact fee capital improvements plan as area - related capital projects. The City's Department of Finance shall also maintain such records as are necessary to ensure that refunds are appropriately made in accordance with this Article. The records of the account into which impact fees are deposited shall be open for public inspection and copying during ordinary business hours. The City may establish a fee for copying services See. 26-225. Use of proceeds of impact fee accounts. (a) The impact fee collected pursuant to this Article may be used to finance or to recoup capital construction costs for water and wastewater facilities identified in the impact fee capital improvements plan and for any purpose authorized in Texas Local Government Code, Chapter 395, as amended. Impact fees may also be used to pay the principal sum and interest and other finance costs on bonds, notes or other obligations issued by or on behalf of the City to finance such capital improvements or facilities expansions. (b) Impact fees collected pursuant to this Article shall not be used to pay for any of the following expenses: (1) Construction, acquisition, or expansion of capital improvements or assets other than those identified for the water and wastewater utility in the impact fee capital improvements plan; (2) Repair, operation, or maintenance of existing or new capital improvements or facilities expansions; (3) Upgrading, expanding, or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards; (4) Upgrading, expanding, or replacing existing capital improvements to serve existing development; provided, however, that impact fees may be used to pay the costs of ujd' It L I fymi PX-t e-, i t -evejair-- rf-r- - iasy- jra N. (a) The property owner or applicant for new development may appeal the following Staff fee to the new development; (b) the method of calculating the amount of the impact fee due; (c) the availability or the amount of an offset, credit or rebate; (d) the application of an offset or credit against an impact fee due; or (e) the amount of a refund due, if any. The Property Owner or Applicant shall notify the City Secretary of the City of Denton, Texas in writing, of its desire to appeal any such decision and determination to the Public Utilities Board, no later than thirty (30) days following the date of Staff decision or determination. This notice shall be untimely if it is received by the City Secretary more than thirty (30) days following the date of Staff decision and determination. (b) The Owner and/or Applicant must file a notice of appeal with the City Secretary within thirty (30) days following the determination of the amount of the impact fees to be paid by the development by city Staff. If the notice of appeal is accompanied by a bond or other sufficient surety satisfactory to the City Attorney in an amount equal to the original determination of the impact fee 4'ue, the development application may be processed while the appeal of the impact fee is pending. (c) The written notice to the City Secretary requesting an appeal shall contain the following information: MMMIS� (2) The business address and telephone number of the Owner and/or Applicant; M (3) The specific decision or determination of Staff which Owner and/or Applicant are complaining of, and the date of issuance thereof-, and (4) State specifically the grounds regarding Owner's and/or Applicant's application for appeal; and (5) State specifically what amount of money that you believe is owing the City, as well as your basis therefor; and (6) The name and address of any legal counsel who will appear before the Public Utilities Board to argue on your behalf-, and (d) The burden of proof shall be on the property owner and/or applicant to demonstrate that the amount of the fee or the amount of the offset, credit or rebate was not calculated according to the y,rovisions of this Article Board (the "Board"), a decision shall be made by the Board, upon Public Hearing, which shall constitute a formal recommendation to the Denton City Council. The Board shall submit all of the materials that it receives as evidence from Staff and all of the materials that it receives as evidence from the Owner and/or Applicant to the City Council for its final consideration. All evidence as well as the record shall be closed by the Public Utilities Board. A record shall be made of the Public Utilities Board hearing and shall be forwarded to the City Council. The City Council shall then make its decision on the record itroduced +limited to not more than fifteen (15) minutes each for the Owner and/or Applicant, and the City. The governmental(a) Any impact fee or portion thereof collected pursuant to this Article which has not been expended within ten (10) years from the date of payment, shall be refunded, upon application, to the record owner of the property at the time the refund is paid, or, if the impact fee was paid by another governmentalsuch applies.collection to the date of refund at the statutory rate as set forth in Texas Local Government Code, Section 395.025(d) which states that Texas Finance Code, Section 302.002, or any successor statute (b) Upon the written request of an owner of the property on which an impact fee has been paid, the City shall refund such fees if: (1) Existing service is available + and service is denied; or (2) Service was not available when the fee was collected and the City has failed to commence construction of facilities to Qrovide service within two (2) years of fee j2a)�ment; or (3) Service was not available when the fee was collected and has not subsequently been +• available within a reasonableperiod of #nsidering the type of • improvement or facility expansion to be constructed, but in any event no later than five (5) years from date of payment. (c) The City shall refund an appropriate proportion of impact fee payments in the event that a previously purchased but uninstalled water meter for which the impact fee has been paid is replaced with a smaller meter, based on - unit differential of #(2) meter r the fee e service unit at the time# original _ payment. (d) A petition for refund under this section shall be submitted to the Director on a form provided by the City for such purpose. Within one (1) month of the date of receipt of a petition for refund, the Director must provide the petitioner, in writing, with a decision on the refund request, J�-� I M Pro P. 11W Z13 all 11 111111�11��Pj�� 1 W1111 11 110 1 0 — (a) The City shall update its land use assumptions and capital improvements plans at lea every five (5) years, commencing approximately from the date of adoption of such plans, and sh recalculate the impact fees based thereon in accordance with the procedures set forth in Texas Loc 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 I 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 by resolution the Land Use and Service Unit/SFE Equivalency table (Exhibit B), 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. — . 11.— 1— W - il UT T-t-c?-C'Tvpyl I fu Ifuj-uvrls a 11110)1 *'T C1 designated in the impact fee capital improvements plan, if required or authorized by the City, by entering into an agreement with the City prior to the issuance of any building permit for the development. The agreement shall be on a form approved by the City and shall identify the estimated cost of the improvement or expansion, the schedule for initiation and completion of the improvement or expansion, a requirement that the improvement be designed and completed to City standards and such other terms and conditions as deemed necessary by the City. The agreement shall provide for the method to be used to determine the amount of the offset to be given against the impact fees due for the development or any reimbursement to the owner for construction of the facility. A i i i Mallff - (a) In addition to the use of impact fees, the City may finance water and wastewater capital 3 (b) Except as otherwise provided herein, the assessment and collection of an impact fee sh be additional and supplemental to, and not in substitution of, any other tax, fee, charge or assessme which is lawfully imposed on and due against the property. (c) The City may pay all or part of impact fees due for a new development taking into accou available offsets and credits pursuant to duly adopted criteria. i All ordinances or parts of ordinances that are in force when the provisions of this ordinance becon Ri effective, which are inconsistent or in conflict with the terms or provisions contained in this ordinanc are hereby repealed to the extent of the conflict. I SECTION 4. Any person violating any provision of this Ordinance shall, upon convictionto fined a sum not to exceed $2,000. Each day that a provision of this Ordinance is violated s constitute a separate and distinct offense. I SECTION 51, If any section, subsection, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions, despite any such invalidity. SECTION 6. This Ordinance shall repeal any conflicting ordinances and resolutions to the contrary; it being the intention of the City Council to fully amend all provisions of Chapter P-6 of the City of Denton, Texas Code of Ordinances dealing with Impact Fees. SECTION 7. This Ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this Ordinance to be published twice in the Denton Record Chronicle, a daily newspaper published in the City of Denton, Denton County, Texas, within ten (10) days of the date of its passage. The motion to approveksvOrdina thince was made by seconded by ", ....111-il i111'111�,'',' and t"the Ordinance was passed and approved by the following vote Aye Nay Abs(ain, Absent Chris Watts, Mayor: . . . . . .... ................. Gerard Hudspeth, District 1: V . . ........ Keely G. Briggs, District 2: Don Duff, District 3: John Ryan, District 4: . ...... Deb Armintor, At Large Place 5: Paul Meltzer, At Large Place 6: .. PASSED AND APPROVED this the day of �,��".� ��.�� -----..._, 2019. 0 11RIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY BY: ............ .._ EXHIBIT A ---Iq I I-W, -Nmq DENT N =mom IM 777 ll w�F11,11111 208 Water and Wastewater Impact F 1ee Updates Chapter 1: Land Use Assumptions for the 2018 Water and Wastewater Impact Fee Updates 1.1 LAND USE ASSUMPTIONS.....................................................................1.1 A. Purpose and Overview.....................................................................1.1 B. Land Use Assumptions Methodology......................................................1.2 C. Water and Wastewater Impact Fee Service Areas....................................1.2 D. Population....................................................................................1.6 E. Land Use Assumptions Summary........................................................... 1.6 IIIII IIIII IIIC°° IIIII"""' IIIII'1 .11ll iIIIIIIIIW' IIIII°°I1 Figure 1.1 —Water Service Areas..................................................................1.4 Figure 1.2 — Wastewater Service Areas...........................................................1.5 Table 1.1 — Population Projections by Water Service Area.....................................1.6 Table 1.2 — Population Projections by Wastewater Service Area..............................1.6 2018 Water and Wastewater Impact Fee Study i September 2018 City of Denton, Texas Kirn ley >>> Horn DENTON IIII IIIII IIII IIII IIIII °° i°IIII IIIII °°I" � IIIII °°�i°IIIII IIIII � IIII IIIIC Chapter 2: 2018 Water Impact Fee Update 2.1 Executive Summary............................................................................ 2.1 2.2 Introduction.......................................................................................2.3 A. Land Use Assumptions...................................................................... 2.4 B. Evaluation of the Water System Master Plan ........................................... 2.4 C. Impact Fee Capital Improvements Plan ................................................... 2.4 D. Impact Fee Analysis......................................................................... 2.5 2.3 Design Criteria................................................................................... 2.6 A. Water Transmission Lines (I2-inchand Larger)..........................................2.6 B. Elevated Storage Tanks.....................................................................2.6 C. Ground Storage Tanks......................................................................2.6 D. Pump Stations................................................................................ 2.7 2.4 Impact Fee Capital Improvements Plan......................................................2.8 2.5 Water Impact Fee Calculation.................................................................2.11 WaterAppendices...................................................................................2.19 2018 Water and Wastewater Impact Fee Study ii September 2018 City of Denton, Texas IIIII °°I" �� IIIII °°�i°IIIII IIIII � IIII '�� IIIIC�� ................................................................................................... Chapter 2: 2018 Water Impact Fee Update IIIII��IIIII ""'IIIC"" 'IIIII'°°° IIIIIIIIIIII�.III� IIIII IIIW'IIIII""'IIIC"" Figure 2.1 — Water Impact Fee Capital Improvements Plan...................................2.10 IIIII�� IIIII °"'IIIC°° � IIIII''°°° °"'IIIC°° IIIWI IIIII�� IIIII�IIIIIII Table 2.1 — 10-year Additional Single -Family Equivalent Calculation ........................2.1 Table 2.2 — Maximum Assessable Water Impact Fee by Zone and Meter Size.............2.2 Table 2.3 — Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost............................................................................... 2.9 Table 2.4 — Meter Capacity Ratio................................................................2.1 1 Table 2.5 — Capita per Service Unit..............................................................2.12 Table 2.6 — SFE Consumption Calculation........................................................2.13 Table 2.7 — 10-year Additional Single -Family Equivalent Calculation ........................2.14 Table 2.8 — 10-year Additional SFE Water Zone Distribution.................................2.14 Table 2.9 — Zone 1 A — 10-year Recoverable Cost Breakdown...............................2.15 Table 2.10 — Zone 1 B — 10-year Recoverable Cost Breakdown..............................2.16 Table 2.1 1 — Zone 2 — 10-year Recoverable Cost Breakdown...............................2.17 Table 2.12 — Maximum Assessable Water Impact Fee by Zone and Meter Size ........... 2.18 2018 Water and Wastewater Impact Fee Study iii September 2018 City of Denton, Texas Kirn ley >>> Horn DENTON IIII IIIII IIII IIII IIIII °° i°IIII IIIII °°I" � IIIII °°�i°IIIII IIIII � IIII IIIIC Chapter 3: 2018 Wastewater Impact Fee Update 3.1 Executive Summary............................................................................ 3.1 3.2 Executive Summary............................................................................ 3.1 3.3 Introduction.......................................................................................3.3 E. Land Use Assumptions...................................................................... 3.4 F. Evaluation of the Wastewater System Master Plan .................................... 3.4 G. Impact Fee Capital Improvements Plan .................................................. 3.4 H. Impact Fee Analysis.........................................................................3.5 3.4 Design Criteria................................................................................... 3.6 E. Sewer Trunk Lines (Interceptor).............................................................3.6 F. Lift Stations Pumping Capacity.............................................................3.6 G. Lift Station Wet Well Capacity............................................................3.6 H. Force Mains....................................................................................3.6 3.5 Impact Fee Capital Improvements Plan......................................................3.7 3.6 Wastewater Impact Fee Calculation..........................................................3.10 WaterAppendices...................................................................................3.16 2018 Water and Wastewater Impact Fee Study iv September 2018 City of Denton, Texas IIIII °°I" �� IIIII °°�i°IIIII IIIII � IIII '�� IIIIC�� Chapter 3: 2018 Wastewater Impact Fee Update IIIII��IIIII ""'IIIC"" 'IIIII'°°° IIIIIIIIIIII�.III� IIIII IIIW'IIIII""'IIIC"" Figure 3.1 — Wastewater Impact Fee Capital Improvements Plan.............................3.9 IIIII�� IIIII °"'IIIC°° � IIIII''°°° °"'IIIC°° IIIWI IIIII�� IIIII�IIIIIII Table 3.1 — 10-year Additional Single -Family Equivalent Calculation ........................3.1 Table 3.2 — Maximum Assessable Water Impact Fee by Zone and Meter Size.............3.2 Table 3.3 — Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost............................................................................... 3.8 Table 3.4 — Meter Capacity Ratio................................................................3.10 Table 3.5 — Capita per Single Family Equivalent(SFE).........................................3.1 1 Table 3.6 — Single -Family Equivalent Consumption Calculation...............................3.12 Table 3.7 — 10-year Additional Single Family Equivalent Calculation .......................3.13 Table 3.8 — 10-year Recoverable Cost Breakdown............................................3.14 Table 3.9 — Maximum Assessable Water Impact Fee by Meter Size .........................3.15 2018 Water and Wastewater Impact Fee Study v September 2018 City of Denton, Texas Chapter 1: Land Use Assumptions for the 2018 Water and Wastewater Impact Fee Update Prepared for: City of Denton, Texas m\Q��i Prepared by: Kimley-Horn and Associates, Inc. 801 Cherry Street, Unit 11, Suite 1300 Fort Worth, TX 76102 817.335.6511 Firm Registration No. F-928 September 2018 © Kimley-Horn and Associates, Inc., 2018 061024024 1.1 III I11111) J IIE �JMIII°°III III III A.IIIC° to ur p o s e a r ur v i In order to assess an impact fee, Land Use Assumptions must be developed to provide the basis for residential and employment 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 development in the service area. The land use assumptions are then used in determining the need and timing of water and wastewater improvements to serve future development. Information from the following sources was compiled to complete the land use assumptions: • Denton Plan 2030 (City of Denton Comprehensive Plan) • Denton Water Master Plan • Denton Wastewater Master Plan • North Central Texas Council of Governments (NCTCOG) • City of Denton staff Development of the Land Use Assumptions include the following components: • Land Use Assumptions Methodology — An overview of the general methodology used to generate the land use assumptions. • Impact Fee Service Areas — Explanation of the division of Denton into service areas for Water and Wastewater facilities. • Population — Data on population growth within the service area over the next ten years (2018 — 2028). • Land Use Assumptions Summary — A synopsis of the land use assumptions. 2018 Water and Wastewater Impact Fee Study 1.1 September 2018 City of Denton, Texas and generally accepted planning principles. The following factors were considered in developing these projections: • Character, type, density, and quantity of existing development; • Current zoning plans; • Future Land Use Plan (based on Denton Plan 2030); • Growth trends; • Location of vacant land; • Physical restrictions (i.e. flood plains, railroads); and • Physical development capacity of Denton. Existing and future population estimates were obtained using projections provided in the on- going Water Master Plan study. These projections are organized into Traffic Analysis Zones (TAZs). The TAZ population projections were applied to the Water and Wastewater Impact Fee service areas to obtain the 10-year growth by service area. In addition, the Water and Wastewater population projects were compared against the household and employment projections developed for the 2015 Roadway Impact Fee study, as well as estimates provided by City staff. 1 e ur a ri d W a s 1 e w a 1 e ur IIII iiirn II '1 IIII'e e S e ur v i c e A ur The geographic boundary of the proposed impact fee service areas for water facilities is shown in Figure 1.1. These three service areas cover the Certificate of Convenience and Necessity (CCN) area in the City of Denton and its Extra -Territorial Jurisdiction (ETJ) that are currently being served or are planned to be served in the future by City water facilities. Service area 1 A represents the inner core of the City, while zone 1 B represents the outer edge, and service area 2 represents a large portion of the southwest area of the City. 2018 Water and Wastewater Impact Fee Study 1.2 September 2018 City of Denton, Texas The geographic boundary of the proposed impact fee service area for wastewater facilities is shown in Figure 1.2. The wastewater service area covers the CCN area in the City of Denton and its ETJ that are currently being served or are planned to be served in the future by City wastewater facilities. 2018 Water and Wastewater Impact Fee Study 1.3 September 2018 City of Denton, Texas r Legend Water Service Areas 1A 1B 2 to �.al rry u 0 ✓., x HrV ORB zs MCKI'pNeNNN h BR a E. SHEPA D II u„ (.5 6 �r r> arc ; LONG VVd�V ILL V V f U Prr, J a V @ N tv/,rmroip Vu "I lUJI f ll Hlwjy�� 11 m �F P �VVullo P � w L','.: € a % d. �. �,� I J ��hr✓ to "��P.�.,,1 ,,,,,,,,,,,,, M f"r 0flA Water Impact Fee Service Area Population Growth Year 1A 1B 2 Total 2018 63,736 61,190 5,213 130,139 2028 77,440 74,668 6,538 158,646 Growth 13,704 13,478 1,325 28,507 Figure 1.1 Water Service Area Population 2018 Water and Wastewater Impact Fee Update 0 0.5 1 2 Miles DENTON Legend M Wastewater Service Area 0 ORB MCKINNEY BR LD P4 SEPARD I KJN . .......... 0 C��flNN CHNN LONG WR L. E F VL1aL MY 1173 4� �EAC - US > " , k, bb" �qd,� �,, ',i�! m (P 4_ J A(.,KSC,)N 0 U.J V", *4 z J' `5 z jr JU U [R�SIAL. �h -tM 04 MKI.111$1�1 Z "I TH, PMVA�,E 0 I OM COLE "A R 5- T '4 air QQQ 'OPAVit 'E AIMYX bi J5 OR'B"N or W, J< FN 2449 UJ Q v L LAVELY LIJ "T A A V`�} K�� ............. 0 Wastewater Impact Fee Service Area Growth Year Total 2018 130,170 2028 160,076 Growth 29,906 Figure 1.2 Wastewater Service Area Population 2018 Water and Wastewater Impact Fee Update 0 0.5 1 2 i Miles Kimley)0orn 11 DENTON �� .IIII'°o p a IIIIa 1 i1i o u'i Population estimates for the base year (2018) and ten-year window (2028) were performed based upon the Waster master plan, the Water and Wastewater service area boundaries, the 2015 Roadway Impact Fee Study, and input from City staff. . IIau"id Use Ass to uirin IIII '1 i1i u'is Suimirinairy Table 1.1 summarizes the Existing and 10-year growth projections for the Water service areas. Table 1.2 summarizes the Existing and 10-year growth projections for the Wastewater service area. The projected growth over the next ten years is reasonable compared to 2015 Roadway Impact Fee Study and estimates provided by City staff. Table Population Prr r by rt Area Year Water Service Area Total 1A 113 2 2018 63,736 61,190 5,213 130,139 2028 77,440 74,668 6,538 158,646 Growth 13,704 13,478 1,325 28,507 Table Population Prr r by rt rt - rt: Year Wastewater Service Area 2018 130,170 2028 160,076 Growth 29,906 2018 Water and Wastewater Impact Fee Study 1.6 September 2018 City of Denton, Texas Chapter 2: 2018 Water Impact Fee Update Prepared for: City of Denton, Texas Prepared by: Kimley-Horn and Associates, Inc. 801 Cherry Street, Unit 11, Suite 1300 Fort Worth, TX 76102 817.335.6511 Firm Registration No. F-928 s/25/2a1 s September 2018 © Kimley-Horn and Associates, Inc., 2018 061024024 Kirn ley >>> Horn DENTON 2.1 EXE CJ J �� III 'ffi IE WMARY This study was performed for the 5-year update of the City of Denton's Water System Impact Fees. Water system analysis and the Water System Master Plan are important tools for facilitating orderly growth of the water system and for providing adequate facilities that promote economic development in the City of Denton. Elements of the water system, including storage facilities, pumping facilities, and the distribution network itself, were evaluated against industry standards as outlined in the Design Criteria section of this report. Water system improvements necessary to serve 10-year (2028) and ultimate system needs were evaluated as well. Typically, infrastructure improvements are sized beyond the 10-year requirements; however, the state's impact fee law (Chapter 395) only allows recovery of costs to serve the 10-year planning period. The remainder can be assessed as the planning window extends beyond 2028 and as the impact fees are updated in the future. Information related to the growth of the City has been provided in Chapter 1 — Land Use Assumptions. Based on the City's 10-year growth projections and the resulting water demand projections, water service will be required for an additional 15,773 single family equivalents. The calculation is as follows: • A single family equivalent (SFE), which is a unit of development that consumes approximately 317 gallons per day (GPD), is a typical residential connection that uses a 5/8x3/4-inch meter. Table 2.1. 10-year Additional Single -Family Equivalent Calculation Year Average Day Flow (MGD)1 SFE Demand (GPD) Projected SFEs 2018 22.0 317 69,401 2028 27.0 317 85,174 10-year Additional SFEs 15,773 (1) Data Sources: - City of Denton Water Master Plan, prepared by Freese and Nichols, Inc. 2018 Water and Wastewater Impact Fee Study 2.1 September 2018 City of Denton, Texas The City of Denton defines a single-family equivalent, as a unit of development that consumes the amount of water requiring a standard 5/8x3/4-inch meter. Based on the additional SFEs and the recoverable capital improvements plan the City may assess a maximum of $3,569 per single-family equivalent in Zone 1 A, $5,352 per single-family equivalent in Zone 1 B, and 7 638 per single-family equivalent in Zone 2. For a development that requires a different size meter, a single-family equivalent is established at a multiplier based on meter capacity with respect to the 5/8-inch meter. The maximum impact fee that could be assessed for other meter sizes is based on the Equivalency Table (Table 2.2). Table 2.2. Maximum Assessable Water Impact Fee by Zone and Meter Size Meter Size Single Family Equivalents Zone 1 A Maximum Assessible Impact Fee Zone 1 B Maximum Assessible Impact Fee Zone 2 Maximum Assessible Impact Fee 5/8x3/4" 1 $3,569 $5,352 $7,638 1 " 2.5 $8,923 $13,380 $19,095 1-1 /2" 5 $17,845 $26,760 $38,190 2" 8 $28,552 $42,816 $61,104 3" 22.5 $80,303 $120,420 $171,855 4" 50 $178,450 $267,600 $381,900 6" 100 $356,900 $535,200 $763,800 8" 200 $713,800 $1,070,400 $1,527,600 10" 325 $1,159,925 $1,739,400 $2,482,350 (1) Data Sources: - City of Denton Code of Ordinances, Chapter 26, Article VI, Exhibit F 2018 Water and Wastewater Impact Fee Study 2.2 September 2018 City of Denton, Texas Kirn ley >>> Horn DENTON . III IIN F I�''X JC FII IIN The City of Denton retained the services of Kimley-Horn and Associates, Inc., for the purpose of the 5-year update of the impact fees for water system improvements required to serve new development. These fees were originally developed in 1998, and updated in the years 2003, 2008 and 2013 in accordance with Chapter 395 of the Local Government Code (impact fees). The purpose of this report is to satisfy the requirements of the law and provide the City with an updated 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: (7) 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; 2018 Water and Wastewater Impact Fee Study 2.3 September 2018 City of Denton, Texas (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) a plan for awarding: (A) a credit for the portion of ad valorem tax and utility service revenues generated by new service unit 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 study process was comprised of four tasks: A. airid Use Ass to uinnrt ptio ri The development of land use assumptions included the following: ♦ Establishing impact fee service areas (SA) for water and wastewater; ♦ Collection/determination of population and employment data by SA; and ♦ Projection of the ten-year population and employment by SA. A detailed discussion is outlined in the Land Use Assumptions Chapter of this report. 911111v a to a 1 i1i o r 1 II[1 e W a 1 e ur S y s 1 e ir 1 e ur uri This task involved coordination with City Staff to determine compatibility between the growth projections of the City's Water System Master Plan as prepared by Freese and Nichols, Inc., and Land Use Assumptions. The water demand projections were then used to determine the additional single-family equivalents (SFEs). C. iinnrt p a c 1 IIII'e e C a p iii 1 a iiirn p ur o v e uinmt e ri'1 sIIII'° IIIIa ri This task involved coordination with City staff to identify proposed water capital improvements outlined in the master plan that will be built in the 1 0-year planning window and meet the design criteria included in Section 2.3 below. 2018 Water and Wastewater Impact Fee Study 2.4 September 2018 City of Denton, Texas Kirn ley >>> Horn DENTON urin II' ' IIII'e e A ri a y s i This task included calculating the additional single-family equivalent units, and credit reduction. These values were then used to determine the impact fee per SFE and the maximum assessable impact fee by meter size. 2018 Water and Wastewater Impact Fee Study 2.5 September 2018 City of Denton, Texas Klmley,'i))Horn DENTON .3 I>II&I IIII4 CIIIIII"11I` IIIIIIRIII 1 e iu "IIII'"' II, a rt s in iir s s iir o rt III iir rrt e s ( 12 iir rrt c h a rt da II, g eirm Water transmission lines shall be sized to maintain a minimum of 50 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 pipeline velocity of 7.0 feet per second with a maximum friction loss of 5 feet per 1,000 feet of pipeline length for 16-inch and 12- inch waterlines. For waterlines 20-inch and larger, a maximum friction loss of 3 feet per 1,000 feet of pipeline length shall be used. I IIevated Stoirage""IIII""rrtIIIIs The design criteria used to size elevated storage tank capacity is the capacity to provide adequate storage for peak hour demands plus emergency storage for fire protection. The required capacity for the peak hour demands is calculated as the storage volume to allow a minimum of a three (3) hour drain time using 2/3rds of the tank volume during a summer peak hour operating condition. The required capacity for emergency fire protection storage is calculated as the volume of water needed to meet a 3,000 gallon per minute (gpm) fire for a three (3) hour time period, which typically is met through the remaining 1 /3rd tank volume. In addition to these criteria, the City must also meet the TCEQ elevated storage capacity requirements of 100 gallons per connection. The above recommended design criteria (to provide storage for peak hour demands plus fire protection) is this most restrictive criteria and therefore recommended for use in sizing future elevated storage facilities. u rri d S 1 o r" a g e"'IIII'°'a rt IIII s The design criteria recommended to size ground storage tank capacity within each pressure plane is to provide adequate storage volume to meet 12 hours of maximum day summer demand utilizing 2/3rds of the available ground storage tank capacity. In addition to these criteria, the City must also meet TCEQ ground storage capacity requirements of 200 gallons per connection (this is for ground storage plus elevated storage). The above recommended criterion (for 12 hours of storage capacity) is the most restrictive criteria and will be used here to size recommended storage capacity. 2018 Water and Wastewater Impact Fee Study 2.6 September 2018 City of Denton, Texas Kirn ley >>> Horn DENTON to rinIIIIS I a I i1i o ri The design criteria recommended for pump station capacity is providing a firm pumping capacity to meet 125% of the summer maximum day demands. The firm pumping capacity is defined as the available total pumping capacity with the largest pump out of service. 2018 Water and Wastewater Impact Fee Study 2.7 September 2018 City of Denton, Texas Kirn ley >>> Horn DENTON 2.4 III II Cm III II "'IIII CWII III III III MNROVEMENIIIIII III JII The City Council commissioned Freese and Nichols, Inc. to update the Water System Master Plan. The purpose of the 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. Freese and Nichols, Inc. completed the Water System Master Plan and recommended system improvements to accommodate growth through the year 2043. Seventeen (17) previously constructed projects as well as fifteen (15) proposed projects identified in the Water System Master Plan are determined eligible for recoverable cost through impact fee over the next 10 years. The total projected cost of these projects is $393,730,167, and has been broken up into Zone 1 A, Zone 1 B and Zone 2 below. These impact fee capital improvements are shown in Table 2.3. IN I :; 111 The projected total recoverable cost in the next 10 years through impact fees in Zone 1 A is $25,711,201. After financing costs are added and the credit reduction calculation is complete, $27,521,502 is recoverable through impact fees serving the 10-year system needs. IN E 111 IB The projected total recoverable cost in the next 10 years through impact fees in Zone 1 B is $36,084,557. After financing costs are added and the credit reduction calculation is complete, $39,703,198 is recoverable through impact fees serving the 10-year system needs. IN E The projected total recoverable cost in the next 10 years through impact fees in Zone 2 is $4,254,101. After financing costs are added and the credit reduction calculation is complete, $4,903,866 is recoverable through impact fees serving the 10-year system needs. 2018 Water and Wastewater Impact Fee Study 2.8 September 2018 City of Denton, Texas 1 o N o V K w w N Q w M N J Y I N N m y ry QN > O O O V V O O p N K M w tR a0 G N j IN o IN oo m H Q O O V N N K w H w tR Q O N j cl a a a V o O o n cli ry V w n th P M —w y N moO O O ya W V Pg OOd mT�' o 0 0 O wVo w `o H y5 0 0 0 ut 0 0 O N 0 0 O ut 0 N 0 0 O ut 0 0 h O 0 0 N N 0 0 N O 0 0 O ut 0 0 O ut 0 0 O Q 0 0 ut � 0 0 0 0 0 0 0 0 0 0 ut h 0 O COi V y O a 0 r r a0 V cc H H o O = H a0 V y O a O m x -o o - `m E m a o ° _ Q V 'O a ` E -o y lo o ° o oo M a a v'N c o 3 v o° v m v a >o O' v H ,6 o `m o->o ro v O a v V ° "c o 3 o 3° o v J v a m �° �° 3 3-' `m 3 L w 3 s„ w`a ° w ° 3 3 J m m 3 o `m `o a 0 3 a L 3 3 3 O 3 3 ° m 0 3. 0 0 0- o o o 2 ° 3 3 u ° a E c o rn c t a a o s a M o o E ii Y M V N N CO V V E E o 0 o a s h 9 ° Z voi r'Oi > Z re° re i° voi n Z- w Q re° i _ 3 v1 •Q Tl I I v1 •O n O] P 1 M Q v1 •O M Q v1 •O n O] P M Q ,�, o➢ / LEGEND WT ExistingWater ter Treatment PS Existing Pump Station Proposed Pump Station Existing Elevated Tank Lake ReY Rohert 1 , — Existing Water Line .. Existing Eligible Protect i---I City Lr¢nuds ETJ Water Zone 1A Water Zone 18 Water Zone 2 RayR ant Pans onatma�nt '"'I........,..�P ; — r J I t te 3 ..,.,..,.—..—..®,.,.,1 54"TransmissionFinis Liner r,,.)�/ ElmVLooP 288 Water Lines r Loop 288 Water Main Elevated Storage flank ��":YkS Sheemaml fa UNIT 7 0 MG r�Uorthwast t Line ncto 0'1 pha zar Rannh Oversize— N y Loop 288 Main ,Y g 'rRineRoad a,�.,. 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III CJJIII A FON The City's water system provides retail water distribution and treatment to customers within the CCN area, as well as some wholesale treated and raw water to the Upper Trinity Regional Water District. The impact fees calculated in this report exclude costs to serve the City's wholesale customers. 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." The service unit for Denton's water and wastewater impact fees is the "single family equivalent" (SFE), which is based on the size of the water meter. An SFE is the water or wastewater demand or flow associated with the smallest water meter used in the system (5/8"x3/4"), which is the meter typically used by a single-family residence. The ratio of each larger meter's capacity to the capacity of the base meter determines the SFE multiplier applied to each larger meter size. The current SFE equivalency factors are shown in Table 2.4. Table 2.4. Meter Capacity Ratios Meter Size SFEs/ Meter' 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 (1) Data Sources: - City of Denton Code of Ordinances, Chapter 26, Article VI, Exhibit F 2018 Water and Wastewater Impact Fee Study 2.11 September 2018 City of Denton, Texas Multiplying the number of existing connections for each meter size by the SFEs per meter yields the total SFEs for that meter size. Summing for all meter sizes yields the total number of water service units connected to the City's water system as shown in Table 2.5. The current population in the water service area is divided by the total number of SFEs yielding a Persons per SFE number. Table 2.5. Capita per Single -Family Equivalent (SFE) Meter Size Existing Connections) SFEs/ Meter Single Family Equivalents 5/8"x3/4" 32,001 1 32,001 1 " 1,441 2.5 3,603 1-1 /2" 847 5 4,235 2" 1,314 8 10,512 3" 151 22.5 3,398 4" 63 50 3,150 6" 17 100 1,700 8" 17 200 3,400 10" 2 325 650 Total Existing Connections: 35,853 Total SFEs: 62,649 Total Served Population: Persons per SFE: (1) Data Sources: - City of Denton 130,139 2.08 2018 Water and Wastewater Impact Fee Study 2.12 September 2018 City of Denton, Texas The City of Denton defines a single-family equivalent (SFE) based on historical water demand over the past 10 years as compared to the estimated residential units. The residential unit is the development type that predominately uses a 5/8x3/4-inch meter. The measure of consumption per SFE is based on a 5/8x3/4-inch meter and the data shown in Table 2.6. Table 2.6. SFE Consumption Calculation Year Population' Residential Units (2.08 capita/SFE) Water Average Day Demand (MGD)' Demand per SFE (GPD) 2008 108,775 52,296 17.9 342 2009 110,828 53,283 16.5 310 2010 112,324 54,002 17.5 324 2011 113,627 54,628 19.8 362 2012 114,907 55,244 19.0 344 2013 117,061 56,279 18.2 323 2014 120001 57,693 16.8 291 2015 122,428 58,860 17.9 304 2016 125,256 60,219 17.0 282 2017 j 128,813 61,929 17.5 283 Average Historical Flow per SFE 317 (1) Data Sources: - City of Denton Water Master Plan, prepared by Freese and Nichols, Inc. 2018 Water and Wastewater Impact Fee Study 2.13 September 2018 City of Denton, Texas Based on the City's 10-year growth projections and the resulting water flow projections, water service will be required for an additional 15,773 single family equivalents. The calculation is as follows: • A single family equivalent (SFE), which is a unit of development that consumes approximately 317 gallons per day (GPD), is a typical residential connection that uses a 5/8x3/4-inch meter. Table 2.7. 10-year Additional Single -Family Equivalent Calculation Year Average Day Flow (MGD)1 SFE Demand (GPD) Projected SFEs 2018 22.0 317 69,401 2028 27.0 317 85,174 10-year Additional SFEs 15,773 (1) Data Sources: - City of Denton Water Master Plan, prepared by Freese and Nichols, Inc. The City's existing water service area is divided into three zones (Zone 1 A, Zone 1 B and Zone 2 as indicated in the Land Use Assumptions chapter). The calculated 10-year additional SFEs have been distributed across the three zones based on current and projected population distribution as shown in Table 2.7. Table 2.8. 10-year Additional SFE Water Zone Distribution Year Zone 1 A Zone 1 B Zone 2 Total Population 63,736 61,190 5,213 130,139 2018 Distribution 48.98% 47.02% 4.01 % 100.00% Population 77,440 74,668 6,538 158,646 2028 Distribution 48.81 % 47.07% 4.12% 100.00% Average Distribution 48.89% 47.04% 4.06% 100.00% 10-year Additional SFEs 7,712 7,419 642 15,773 2018 Water and Wastewater Impact Fee Study 2.14 September 2018 City of Denton, Texas 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 the 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. Newgen Strategies and Solutions, LLC. has detailed the credit calculation in the Water Appendix. A breakdown of the 10-year recoverable costs and the associated impact fee per SFE for Zone 1 A, Zone 1 B, and Zone 2 is as follows: Table 2.9. Zone 1 A — 10-year Recoverable Cost Breakdown' Recoverable Impact Fee CIP Costs $25,71 1,201 Financing Costs $ 8,980,911 Existing Fund Balance $ (2,593,606) Interest Earnings $ (3,644,999) Pre Credit Recoverable Cost for Impact Fee $ 28,453,507 Credit for Utility Revenues $ (932,006) Maximum Zone 1 A Recoverable Cost for Impact Fee $ 27,521,502 (1) Per Newgen Strategies and Solutions, LLC financial analysis, see Water Appendix — Summary of Water Impact Fee Determination Zone 1 A — Impact fee SFE = Zone 1 A — 10-year recoverable costs Zone 1 A — 10-year additional SFEs Zone 1 A — 10-year recoverable costs = $27,521,502 Zone 1 A — Impact fee per SFE _ $27,521,502 7,712 Zone 1 A — Impact fee per SFE _ $3,569 Therefore, the maximum assessable impact fee for Zone 1 A per SFE is $3,569. 2018 Water and Wastewater Impact Fee Study 2.15 September 2018 City of Denton, Texas Table 2.10. Zone 1 B — 10-year Recoverable Cost Breakdown) Recoverable Impact Fee CIP Costs $36,084,557 Financing Costs $ 14,607,078 Existing Fund Balance $ (3,657,649) Interest Earnings $ (6,1 1 2,187) Pre Credit Recoverable Cost for Impact Fee $ 40,921,799 Credit for Utility Revenues $ (1,218,601) Maximum Zone 1 B Recoverable Cost for Impact Fee $ 39,703,198 (1) Per Newgen Strategies and Solutions, LLC financial analysis, see Water Appendix — Summary of Water Impact Fee Determination Zone 1 B — Impact fee per SFE = Zone 1 B — 10-year recoverable costs Zone 1 B — 10-year additional SFEs Zone 1 B — 10-year recoverable costs = $39,703,198 Zone 1 B — Impact fee per SFE _ $39,703,198 7,419 Zone 1 B — Impact fee per SFE _ $5,352 Therefore, the maximum assessable impact fee for Zone 1 B per SFE is $5,352. 2018 Water and Wastewater Impact Fee Study 2.16 September 2018 City of Denton, Texas Table 2.1 1. Zone 2 — 10-year Recoverable Cost Breakdown' Recoverable Impact Fee CIP Costs $4,254,101 Financing Costs $ 1,841,055 Existing Fund Balance $ (399,016) Interest Earnings $ (779,037) Pre Credit Recoverable Cost for Impact Fee $ 4,917,103 Credit for Utility Revenues $ (13,237) Maximum Zone 2 Recoverable Cost for Impact Fee $ 4,903,866 (1) Per Newgen Strategies and Solutions, LLC financial analysis, see Water Appendix — Summary of Water Impact Fee Determination Zone 2 — Impact fee per SFE Zone 2 — 10-year recoverable costs Zone 2 — Impact fee per SFE Zone 2 — Impact fee per SFE Zone 2 — 10-year recoverable costs Zone 2 — 10-year additional SFEs $4,903,866 $4,903,866 642 $7,638 Therefore, the maximum assessable impact fee for Zone 2 per SFE is $7,638. 2018 Water and Wastewater Impact Fee Study 2.17 September 2018 City of Denton, Texas 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 meter. The maximum impact fee that could be assessed for other meter sizes is based on the Equivalency Table (Table 2.12). Table 2.12. Maximum Assessable Water Impact Fee by Zone and Meter Size Meter Size Single Family Equivalents Zone 1 A Maximum Assessible Impact Fee Zone 1 B Maximum Assessible Impact Fee Zone 2 Maximum Assessible Impact Fee 5/8x3/4" 1 $3,569 $5,352 $7,638 1 " 2.5 $8,923 $13,380 $19,095 1-1 /2" 5 $17,845 $26,760 $38,190 2" 8 $28,552 $42,816 $61,104 3" 22.5 $80,303 $120,420 $171,855 4" 50 $178,450 $267,600 $381,900 6" 100 $356,900 $535,200 $763,800 8" 200 $713,800 $1,070,400 $1,527,600 10" 325 $1,159,925 $1,739,400 $2,482,350 (1) Data Sources: - City of Denton Code of Ordinances, Chapter 26, Article VI, Exhibit F 2018 Water and Wastewater Impact Fee Study 2.18 September 2018 City of Denton, Texas "'IIIC"" IIIII'�1�� III IIIII� IIIII�'° IIIII'�1�� IIIII III�� IIIII IIIII'�1�� 2018 Water and Wastewater Impact Fee Study 2.19 September 2018 City of Denton, Texas City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 1A 0 Existing Fund Balance $ 2,593,606 1 Existing Number of Service Units 69,401 2 Total Number of Services Units for Planning Period 77,113 Additional Service Units Added During Planning Period 3 (Line 2 - Line 1) 7,712 4 Total Cost of the Water Impact Fee CIP $ 161,591,439 5 Recoverable Cost for Impact Fee Planning Period $ 25,711,201 Percent Recoverable for Water Impact Fee Planning Period 6 (Line 5 / Line 4) 15.91% 7 Financing Costs (From Financial Analysis) $ 8,980,911 8 Interest Earnings (From Financial Analysis) $ (3,644,999) Recoverable Cost of Water Impact Fee and Financing Costs Less Balance 9 (Line 5 + Line 7 + Line 8 - Line 0) $ 28,453,507 Pre -Credit Maximum Fee (Line 9 / Line 3) 10 $ 3,690 Credit for Utility Revenues 11 (From Financial Analysis) $ (932,006) Recoverable Cost of Water Impact Fee and Financing 12 (Line 9 + Line 11 ) $ 27,521,502 Maximum Assessable Fee 13 Line 12 / Line 3 $ 3,569 SUMMARY OF WATER IMPACT FEE DETERMINATION Water Service Area Zone 1A Recoverable Impact Fee CIP Costs $ 25,711,201 Table 2.3 Financing Cost 8,980,911 See Detail Below Existing Fund Balance (2,593,606) Water Appendices - page 1 Interest Earnings (3,644,999) Water Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee $ 28,453,507 Sum of Above Credit for Utility Revenues I (932,006) Water Appendices - page 6 Maximum Recoverable Cost for Impact Fee $ 27,521,502 Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 2.3 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 Existing Annual Debt Service Principal Component (New and Existing Debt) Financing Costs $ 5,890,699 Water Appendices - page 2 28,783,133 Water Appendices - page 2 (25,692,921) Water Appendices - page 1 $ 8,980,911 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. 2018 Water Impact Fee Update City of Denton, Texas Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 1A I. General Assumptions Annual Interest Rate on Deposits(i) 1.89% Annual Service Unit Growth12) 771 Existing Fund Balance (3) $ 2,593,606 Portion of Projects Funded by Existing Debf') $ 22,050,438 Non -debt Funded Project Cost(5) 18,280 New Project Cost Funded Through New Debt(6) 3,642,483 Total Recoverable Project Cost(') $ 25,711,201 II. New Debt Issues Assumptions Year Principal(8) Interest(0) Term 1 $ 364,248 4.65% 20 2 364,248 5.00% 20 3 364,248 5.00% 20 4 364,248 5.00% 20 5 364,248 5.00% 20 6 364,248 5.25% 20 7 364,248 5.25% 20 8 364,248 5.25% 20 9 364,248 5.25% 20 10 364,248 5.25% 20 I olal Z� 6,042,406 III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 $ 183,952 2 366,076 3 366,076 4 366,076 5 366,076 6 366,076 7 366,076 8 366,076 9 366,076 10 548,200 Total $ 3,660,763 (1) Investment Portfolio Yield as of 08/05/2018 (2) Derived from Table 2.8 10-year Additional SFE Water Zone Distribution (3) Balance from 09/30/2017 provided by City Staff distributed proportionally to recoverable cost (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 2.3 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 from City's Financial Advisor April 26, 2018 (10) Assumes new debt proceeds expended over a 2-year timeframe. Non -debt funded capital expenditures allocated in equal annual amounts 2018 Water Impact Fee Study City of Denton, Texas Page 3 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary Water Service Area Zone 1A I. New Debt Service Detail Tota I 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 $ 28,367 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 28,367 2 28,367 29,228 - - - - - - - - 57,595 3 28,367 29,228 29,228 - - - - - - - 86,824 4 28,367 29,228 29,228 29,228 - - - - - - 116,052 5 28,367 29,228 29,228 29,228 29,228 - - - - - 145,280 6 28,367 29,228 29,228 29,228 29,228 29,851 - - - - 175,131 7 28,367 29,228 29,228 29,228 29,228 29,851 29,851 - - - 204,982 8 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 - - 234,833 9 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 - 264,684 10 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 11 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 12 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 13 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 14 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 15 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 16 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 17 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 18 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 19 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 20 28,367 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 294,535 21 - 29,228 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 266,168 22 - - 29,228 29,228 29,228 29,851 29,851 29,851 29,851 29,851 236,940 23 - - - 29,228 29,228 29,851 29,851 29,851 29,851 29,851 207,711 24 - - - - 29,228 29,851 29,851 29,851 29,851 29,851 178,483 25 - - - - - 29,851 29,851 29,851 29,851 29,851 149,255 26 - - - - - - 29,851 29,851 29,851 29,851 119,404 27 - - - - - - - 29,851 29,851 29,851 89,553 28 - - - - - - - - 29,851 29,851 59,702 29 29,851 29,851 $ 567,343 $ 584,565 $ 584,565 $ 584,565 $ 584,565 $ 597,020 $ 597,020 $ 597,020 $ 597,020 $ 597,020 $ 5,890,699 II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(') Expenditureslzl Proceeds(z) Service(') Credit(') Expense 1 $ 28,367 $ 183,952 $ (364,248) $ 1,439,157 $ (16,128) $ 1,271,099 2 57,595 366,076 (364,248) 1,439,157 (32,541) 1,466,039 3 86,824 366,076 (364,248) 1,439,157 (49,230) 1,478,578 4 116,052 366,076 (364,248) 1,439,157 (66,185) 1,490,851 5 145,280 366,076 (364,248) 1,439,157 (83,399) 1,502,865 6 175,131 366,076 (364,248) 1,439,157 (100,903) 1,515,213 7 204,982 366,076 (364,248) 1,439,157 (118,660) 1,527,306 8 234,833 366,076 (364,248) 1,439,157 (136,665) 1,539,153 9 264,684 366,076 (364,248) 1,439,157 (154,909) 1,550,760 10 294,535 548,200 (364,248) 1,439,157 (173,385) 1,744,259 11 294,535 - - 1,439,157 - 1,733,692 12 294,535 - - 1,439,157 - 1,733,692 13 294,535 - - 1,439,157 - 1,733,692 14 294,535 - - 1,439,157 - 1,733,692 15 294,535 - - 1,439,157 - 1,733,692 16 294,535 - - 1,439,157 - 1,733,692 17 294,535 - - 1,439,157 - 1,733,692 18 294,535 - - 1,439,157 - 1,733,692 19 294,535 - - 1,439,157 - 1,733,692 20 294,535 - - 1,439,157 - 1,733,692 21 266,168 - - - - 266,168 22 236,940 - - - - 236,940 23 207,711 - - - - 207,711 24 178,483 - - - - 178,483 25 149,255 - - - - 149,255 26 119,404 - - - - 119,404 27 89,553 - - - - 89,553 28 59,702 - - - - 59,702 29 29,851 - - - - 29,851 $ 5,890,699 $ 3,660,763 $ (3,642,483) $ 28,783,133 $ (932,006) $ 33,760,106 (1) Water Appendices -page 2 Section 1 (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 2018 Water Impact Fee Study City of Denton, Texas Page 4 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Water Service Area Zone 1A Impact Estimated Impact Service Fee Annual Accumulated Fund Year Fee Units Revenue Expenses Sub -Total Interest Balance Initial 1 $ 3,569 771 2 3,569 771 3 3,569 771 4 3,569 771 5 3,569 771 6 3,569 771 7 3,569 771 8 3,569 771 9 3,569 771 10 3,569 771 11 - - 12 - - 13 - - 14 - - 15 - - 16 - - 17 - - 18 - - 19 - - 20 - - 21 - - 22 - - 23 - - 24 - - 25 - - 26 - - 27 - - 28 - - 29 - - $ 2,752,150 $ 1,271,099 $ 1,481,051 $ 2,752,150 1,466,039 1,286,111 2,752,150 1,478,578 1,273,572 2,752,150 1,490,851 1,261,299 2,752,150 1,502,865 1,249,285 2,752,150 1,515,213 1,236,937 2,752,150 1,527,306 1,224,844 2,752,150 1,539,153 1,212,997 2,752,150 1,550,760 1,201,390 2,752,150 1,744,259 1,007,891 - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 1,733,692 (1,733,692) - 266,168 (266,168) - 236,940 (236,940) - 207,711 (207,711) - 178,483 (178,483) - 149,255 (149,255) - 119,404 (119,404) - 89,553 (89,553) - 59,702 (59,702) - 29,851 (29,851)_ 27,521,502 33,760,106 $ 2,593,606 62,992 4,137,648 90,322 5,514,081 116,208 6,903,862 142,350 8,307,510 168,755 9,725,550 195,430 11,157,917 222,377 12,605,138 249,607 14,067,742 277,131 15,546,264 303,237 16,857,392 302,109 15,425,809 275,062 13,967,180 247,505 12,480,993 219,426 10,966,728 190,817 9,423,853 161,668 7,851,829 131,967 6,250,105 101,706 4,618,119 70,873 2,955,300 39,457 1,261,066 21,311 1,016,209 16,961 796,230 13,081 601,600 9,680 432,797 6,767 290,309 4,357 175,262 2,465 88,174 1,102 29,574 277 - 3,644,999 2018 Water Impact Fee Study City of Denton, Texas Page 5 of 8 Water Appendices Year City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Water Service Area Zone 1A Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense End of Period Factor Factor Actual Escalated Actual Escalated 1 29 1.7048 1.0000 771 2 28 1.6732 1.0000 771 3 27 1.6422 1.0000 771 4 26 1.6118 1.0000 771 5 25 1.5819 1.0000 771 6 24 1.5525 1.0000 771 7 23 1.5237 1.0000 771 8 22 1.4955 1.0000 771 9 21 1.4678 1.0000 771 10 20 1.4405 1.0000 771 11 19 1.4138 1.0000 - 12 18 1.3876 1.0000 13 17 1.3619 1.0000 14 16 1.3366 1.0000 15 15 1.3118 1.0000 16 14 1.2875 1.0000 17 13 1.2636 1.0000 18 12 1.2402 1.0000 19 11 1.2172 1.0000 20 10 1.1946 1.0000 21 9 1.1725 1.0000 22 8 1.1508 1.0000 23 7 1.1294 1.0000 24 6 1.1085 1.0000 25 5 1.0879 1.0000 26 4 1.0677 1.0000 27 3 1.0479 1.0000 28 2 1.0285 1.0000 29 1 1.0094 1.0000 Annual Interest Rate: Present Value of Initial Impact Fee Fund Balance Total Escalated Expense for Entire Period Less Future Value of Initial Impact Fee Fund Balance Sub -Total Total Escalated Service Units Impact Fee for Water Service Area 1,315 $ 1,290 1,266 1,243 1,220 1,197 1,175 1,153 1,132 1,111 12,103 1,271,099 $ 2,167,021 1,466,039 2,453,016 1,478,578 2,428,123 1,490,851 2,402,880 1,502,865 2,377,329 1,515,213 2,352,417 1,527,306 2,327,224 1,539,153 2,301,787 1,550,760 2,276,142 1,744,259 2,512,680 1,733,692 2,451,148 1,733,692 2,405,697 1,733,692 2,361,089 1,733,692 2,317,308 1,733,692 2,274,339 1,733,692 2,232,167 1,733,692 2,190, 777 1,733,692 2,150,154 1,733,692 2,110,284 1,733,692 2,071,154 266,168 312,081 236,940 272,660 207,711 234,593 178,483 197,844 149,255 162,378 119,404 127,493 89,553 93,847 59,702 61,405 29,851 30,133 1.89% $ 2,593,606 $ 47,655,170 4,463,060 $ 43,192,110 12,103 $ 3,569 $ 47,655,170 2018 Water Impact Fee Study City of Denton, Texas Page 6 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Water Service Area Zone 1A Cost In Impact Fee Debt Funded121 Non -Debt Impact Fee Impact Fee Project Name' Service Area "I Note Recoverable Cost) Existing Proposed Funded12) Recoverable Cost Lake Ray Roberts $ 73,586,959 A $ 7,358,696 $ 7,358,696 $ - $ - $ 7,358,696 Lake Ray Roberts Water Treatment Plant 27,093,713 A 10,837,485 10,837,485 - - 10,837,485 54" Transmission Line 4,603,344 A 1,150,836 1,150,836 - - 1,150,836 Loop 288 Water Main - Sherman to UNT 2,093,688 A 628,106 628,106 - - 628,106 Loop 288 Water Main - Sherman to Hwy 380 1,688,809 A 422,202 422,202 - - 422,202 North -South Water Line Phase 1 2,898,529 A 724,632 724,632 - - 724,632 Roselawn Elevated Storage Tank 3,023,732 A 755,933 755,933 - - 755,933 Roselawn Water Line 862,735 A 172,547 172,547 - - 172,547 North -South Water Line 1,087,030 C 326,109 - 326,109 - 326,109 Ray Roberts WTP Expansion 42,854,400 C 1,714,176 - 1,714,176 - 1,714,176 Locust Water Line Upsize 1,281,776 C 1,153,598 - 1,153,598 - 1,153,598 Hickory Water Line Upsize 498,444 C 448,600 - 448,600 - 448,600 Water Impact Fee Report Preparation 18,280 C 18,280 - - 18,280 18,280 Total $ 161,591,439 $ 25,711,201 $ 22,050,438 $ 3,642,483 $ 18,280 $ 25,711,201 (1) Derived from Table 3.2 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost for Zone 1A (2) Per discussions with City staff and City files Project Note A'. Project costs from 2013 study Project Note B'. Costs of projects completed since 2013 per City Staff Project Note C'. Proposed projects in 2018 dollars 2018 Water Impact Fee Study City of Denton, Texas Page 7 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination Water Service Area Zone 1A 2018 Service Units(l) 69,401 Ten Year Growth in Service Un its(2) 7,712 10 years Annual Growth in Service Units 771 Debt Service for Debt Funded Projects Eligible for Impact Fees(') $1,467,524 $1,496,752 $1,525,980 $1,555,208 $1,584,437 $1,614,288 $1,644,139 $1,673,990 $1,703,841 $1,733,692 Net Impact Fee Eligible Debt Service Funded by Other Sources $1,467,524 $1,496,752 $1,525,980 $1,555,208 $1,584,437 $1,614,288 $1,644,139 $1,673,990 $1,703,841 $1,733,692 Current Service Units 70,172 70,943 71,715 72,486 73,257 74,028 74,799 75,571 76,342 77,113 Total Net Impact Fee Eligible Debt Service Funded by Other $ 20.91 $ 21.10 $ 21.28 $ 21.46 $ 21.63 $ 21.81 $ 21.98 $ 22.15 $ 22.32 $ 22.48 Sources per Service Unit Annual Growth in Service Units (Cumulative) 771 1,542 2,314 3,085 3,856 4,627 5,398 6,170 6,941 7,712 Annual Water Rate Revenue Generated by Service Unit for Net Impact Fee Eligible Debt Service Funded byOther Sources $ 16,128 $ 32,541 $ 49,230 $ 66,185 $ 83,399 $ 100,903 $ 118,660 $ 136,665 $ 154,909 $ 173,385 Credit Amount $ 932,006 (1) Derived from Table 2.1 10-year Additional Single -Family Equivalent Calculation (2) Derived from Table 2.8 10-year Additional SFE Water Zone Distribution (3) Water Appendices - page 2 Section 11 2018 Water Impact Fee Study City of Denton, Texas Page 8 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 1B 0 Existing Fund Balance $ 3,657,649 1 Existing Number of Service Units 69,401 2 Total Number of Services Units for Planning Period 76,820 Additional Service Units Added During Planning Period 3 (Line 2 - Line 1) 7,419 4 Total Cost of the Water Impact Fee CIP $ 209,184,655 5 Recoverable Cost for Impact Fee Planning Period $ 36,084,557 Percent Recoverable for Water Impact Fee Planning Period 6 (Line 5 / Line 4) 17.25% 7 Financing Costs (From Financial Analysis) $ 14,607,078 8 Interest Earnings (From Financial Analysis) $ (6,112,187) Recoverable Cost of Water Impact Fee and Financing Costs Less Balance 9 (Line 5 + Line 7 + Line 8 - Line 0) $ 40,921,799 Pre -Credit Maximum Fee (Line 9 / Line 3) 10 $ 5,516 Credit for Utility Revenues 11 (From Financial Analysis) $ (1,218,601) Recoverable Cost of Water Impact Fee and Financing 12 (Line 9 + Line 11 ) $ 39,703,198 Maximum Assessable Fee 13 Line 12 / Line 3 $ 5,352 SUMMARY OF WATER IMPACT FEE DETERMINATION Water Service Area Zone 1 B Recoverable Impact Fee CIP Costs $ 36,084,557 Table 2.3 Financing Cost 14,607,078 See Detail Below Existing Fund Balance (3,657,649) Water Appendices - page 1 Interest Earnings (6,112,187) Water Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee $ 40,921,799 Sum of Above Credit for Utility Revenues I (1,218,601) Water Appendices - page 6 Maximum Recoverable Cost for Impact Fee $ 39,703,198 Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 2.3 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 Existing Annual Debt Service Principal Component (New and Existing Debt) Financing Costs $ 19,043,128 Water Appendices -page 2 31,375,888 Water Appendices - page 2 (35,811,938) Water Appendices - page 1 $ 14,607,078 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. 2018 Water Impact Fee Update City of Denton, Texas Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 1 B I. General Assumptions Annual Interest Rate on Deposits(i) 1.89% Annual Service Unit Growth12) 742 Existing Fund Balance (3) $ 3,657,649 Portion of Projects Funded by Existing Debf') $ 24,036,719 Non -debt Funded Project Cost(5) 272,619 New Project Cost Funded Through New Debt(6) 11,775,219 Total Recoverable Project Cost(') $ 36,084,557 II. New Debt Issues Assumptions Year Principal(8) Interest(0) Term 1 $ 1,177,522 4.65% 20 2 1,177,522 5.00% 20 3 1,177,522 5.00% 20 4 1,177,522 5.00% 20 5 1,177,522 5.00% 20 6 1,177,522 5.25% 20 7 1,177,522 5.25% 20 8 1,177,522 5.25% 20 9 1,177,522 5.25% 20 10 1,177,522 5.25% 20 ioial Z 11,110,2Iy III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 $ 616,023 2 1,204, 784 3 1,204, 784 4 1,204, 784 5 1,204, 784 6 1,204, 784 7 204,784 8204,784 Ell 9204,784 10793,545 Total $ 12,047,838 (1) Investment Portfolio Yield as of 08/05/2018 (2) Derived from Table 2.8 10-year Additional SFE Water Zone Distribution (3) Balance from 09/30/2017 provided by City Staff distributed proportionally to recoverable cost (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 2.3 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 from City's Financial Advisor April 26, 2018 (10) Assumes new debt proceeds expended over a 2-year timeframe. Non -debt funded capital expenditures allocated in equal annual amounts 2018 Water Impact Fee Study City of Denton, Texas Page 3 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary Water Service Area Zone 1 B I. New Debt Service Detail Tota I 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 $ 91,704 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 91,704 2 91,704 94,487 - - - - - - - - 186,191 3 91,704 94,487 94,487 - - - - - - - 280,679 4 91,704 94,487 94,487 94,487 - - - - - - 375,166 5 91,704 94,487 94,487 94,487 94,487 - - - - - 469,653 6 91,704 94,487 94,487 94,487 94,487 96,501 - - - - 566,154 7 91,704 94,487 94,487 94,487 94,487 96,501 96,501 - - - 662,655 8 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 - - 759,155 9 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 - 855,656 10 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 11 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 12 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 13 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 14 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 15 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 16 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 17 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 18 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 19 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 20 91,704 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 952,156 21 - 94,487 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 860,453 22 - - 94,487 94,487 94,487 96,501 96,501 96,501 96,501 96,501 765,965 23 - - - 94,487 94,487 96,501 96,501 96,501 96,501 96,501 671,478 24 - - - - 94,487 96,501 96,501 96,501 96,501 96,501 576,990 25 - - - - - 96,501 96,501 96,501 96,501 96,501 482,503 26 - - - - - - 96,501 96,501 96,501 96,501 386,002 27 - - - - - - - 96,501 96,501 96,501 289,502 28 - - - - - - - - 96,501 96,501 193,001 29 96,501 96,501 $ 1,834,075 $ 1,889,748 $ 1,889,748 $ 1,889,748 $ 1,889,748 $ 1,930,012 $ 1,930,012 $ 1,930,012 $ 1,930,012 $ 1,930,012 $ 19,043,128 II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(') Expenditureslzl Proceeds(z) Service(') Credit(') Expense 1 $ 91,704 $ 616,023 $ (1,177,522) $ 1,568,794 $ (17,563) $ 1,081,436 2 186,191 1,204,784 (1,177,522) 1,568,794 (36,736) 1,745,511 3 280,679 1,204,784 (1,177,522) 1,568,794 (57,470) 1,819,265 4 375,166 1,204,784 (1,177,522) 1,568,794 (79,715) 1,891,507 5 469,653 1,204,784 (1,177,522) 1,568,794 (103,427) 1,962,282 6 566,154 1,204,784 (1,177,522) 1,568,794 (128,682) 2,033,528 7 662,655 1,204,784 (1,177,522) 1,568,794 (155,355) 2,103,356 8 759,155 1,204,784 (1,177,522) 1,568,794 (183,402) 2,171,809 9 855,656 1,204,784 (1,177,522) 1,568,794 (212,785) 2,238,927 10 952,156 1,793,545 (1,177,522) 1,568,794 (243,464) 2,893,509 11 952,156 - - 1,568,794 - 2,520,951 12 952,156 - - 1,568,794 - 2,520,951 13 952,156 - - 1,568,794 - 2,520,951 14 952,156 - - 1,568,794 - 2,520,951 15 952,156 - - 1,568,794 - 2,520,951 16 952,156 - - 1,568,794 - 2,520,951 17 952,156 - - 1,568,794 - 2,520,951 18 952,156 - - 1,568,794 - 2,520,951 19 952,156 - - 1,568,794 - 2,520,951 20 952,156 - - 1,568,794 - 2,520,951 21 860,453 - - - - 860,453 22 765,965 - - - - 765,965 23 671,478 - - - - 671,478 24 576,990 - - - - 576,990 25 482,503 - - - - 482,503 26 386,002 - - - - 386,002 27 289,502 - - - - 289,502 28 193,001 - - - - 193,001 29 96,501 - - - - 96,501 $ 19,043,128 $ 12,047,838 $ (11,775,219) $ 31,375,888 $ (1,218,601) $ 49,473,034 (1) Water Appendices -page 2 Section 1 (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 2018 Water Impact Fee Study City of Denton, Texas Page 4 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Water Service Area Zone 1 B Impact Service Year Fee Units Initial 1 $ 5,352 742 2 5,352 742 3 5,352 742 4 5,352 742 5 5,352 742 6 5,352 742 7 5,352 742 8 5,352 742 9 5,352 742 10 5,352 742 11 - - 12 - - 13 - - 14 - - 15 - - 16 - - 17 - - 18 - - 19 - - 20 - - 21 - - 22 - - 23 - - 24 - - 25 - - 26 - - 27 - - 28 - - 29 - - Impact Fee Annual Accumulated Revenue Expenses Sub -Total Interest $ 3,970,320 $ 1,081,436 $ 2,888,884 $ 96,394 3,970,320 1,745,511 2,224,809 146,521 3,970,320 1,819,265 2,151,055 190,626 3,970,320 1,891,507 2,078,813 234,185 3,970,320 1,962,282 2,008,037 277,216 3,970,320 2,033,528 1,936,792 319,718 3,970,320 2,103,356 1,866,964 361,691 3,970,320 2,171,809 1,798,511 403,150 3,970,320 2,238,927 1,731,393 444,112 3,970,320 2,893,509 1,076,810 479,031 - 2,520,951 (2,520,951) 474,439 - 2,520,951 (2,520,951) 435,774 - 2,520,951 (2,520,951) 396,379 - 2,520,951 (2,520,951) 356,239 - 2,520,951 (2,520,951) 315,341 - 2,520,951 (2,520,951) 273,671 - 2,520,951 (2,520,951) 231,213 - 2,520,951 (2,520,951) 187,953 - 2,520,951 (2,520,951) 143,876 - 2,520,951 (2,520,951) 98,966 - 860,453 (860,453) 68,893 - 765,965 (765,965) 54,831 - 671,478 (671,478) 42,288 - 576,990 (576,990) 31,293 - 482,503 (482,503) 21,876 - 386,002 (386,002) 14,085 - 289,502 (289,502) 7,970 - 193,001 (193,001) 3,562 - 96,501 (96,501) 895 39,703,198 49,473,034 6,112,187 Estimated Fund Balance 3,657,649 6,642,927 9,014,257 11,355,938 13,668,936 15,954,189 18,210,700 20,439,354 22,641,016 24,816,521 26,372,362 24,325,850 22,240,673 20,116,101 17,951,390 15,745,780 13,498,501 11,208,763 8,875,765 6,498,690 4,076,705 3,285,145 2,574,010 1,944,820 1,399,122 938,495 566,577 285,045 95,606 2018 Water Impact Fee Study City of Denton, Texas Page 5 of 8 Water Appendices Year City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Water Service Area Zone 1 B Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense End of Period Factor Factor Actual Escalated Actual Escalated 1 29 1.7048 1.0000 742 2 28 1.6732 1.0000 742 3 27 1.6422 1.0000 742 4 26 1.6118 1.0000 742 5 25 1.5819 1.0000 742 6 24 1.5525 1.0000 742 7 23 1.5237 1.0000 742 8 22 1.4955 1.0000 742 9 21 1.4678 1.0000 742 10 20 1.4405 1.0000 742 11 19 1.4138 1.0000 - 12 18 1.3876 1.0000 13 17 1.3619 1.0000 14 16 1.3366 1.0000 15 15 1.3118 1.0000 16 14 1.2875 1.0000 17 13 1.2636 1.0000 18 12 1.2402 1.0000 19 11 1.2172 1.0000 20 10 1.1946 1.0000 21 9 1.1725 1.0000 22 8 1.1508 1.0000 23 7 1.1294 1.0000 24 6 1.1085 1.0000 25 5 1.0879 1.0000 26 4 1.0677 1.0000 27 3 1.0479 1.0000 28 2 1.0285 1.0000 29 1 1.0094 1.0000 Annual Interest Rate: Present Value of Initial Impact Fee Fund Balance Total Escalated Expense for Entire Period Less Future Value of Initial Impact Fee Fund Balance Sub -Total Total Escalated Service Units Impact Fee for Water Service Area 1,265 $ 1,241 1,218 1,196 1,174 1,152 1,130 1,110 1,089 1,069 11,643 1,081,436 $ 1,843,675 1,745,511 2,920,637 1,819,265 2,987,599 1,891,507 3,048,637 1,962,282 3,104, 064 2,033,528 3,157,117 2,103,356 3,204,976 2,171,809 3,247,918 2,238,927 3,286,206 2,893,509 4,168,225 2,520,951 3,564,200 2,520,951 3,498,110 2,520,951 3,433,246 2,520,951 3,369,585 2,520,951 3,307,103 2,520,951 3,245,781 2,520,951 3,185, 595 2,520,951 3,126, 526 2,520,951 3,068,552 2,520,951 3,011,653 860,453 1,008,879 765,965 881,439 671,478 758,379 576,990 639,580 482,503 524,926 386,002 412,154 289,502 303,383 193,001 198,505 96,501 97,412 1.89% $ 3,657,649 $ 68,604,064 6,294,059 $ 62,310,005 11,643 $ 5,352 $ 68,604,064 2018 Water Impact Fee Study City of Denton, Texas Page 6 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Water Service Area Zone 1 B Cost In Impact Fee Debt Funded121 Non -Debt Impact Fee Impact Fee Project Name' Service Area "I Note Recoverable Cost) Existing Proposed Funded12) Recoverable Cost Lake Ray Roberts $ 72,053,897 A $ 7,205,390 $ 7,205,390 $ - $ - $ 7,205,390 Lake Ray Roberts Water Treatment Plant 26,529,260 A 10,611,704 10,611,704 - - 10,611,704 54" Transmission Line 4,507,441 A 1,126,860 1,126,860 - - 1,126,860 Loop 288 Water Main - Sherman to UNT 2,050,069 A 615,021 615,021 - - 615,021 Loop 288 Water Main - Sherman to Hwy 380 1,653,625 A 413,406 413,406 - - 413,406 Northwest Elevated Storage Tank 2,339,988 A 467,998 467,998 - - 467,998 Southwest Pump Station 5,320,802 A 1,330,201 1,330,201 - - 1,330,201 Southwest PS Oversize Discharge Line (30" to 36") 256,029 A 12,802 12,802 - - 12,802 Vintage Oversize Line (12" to 20") 203,415 A 40,683 40,683 - - 40,683 North -South Water Line Phase 1 2,838,142 A 709,536 709,536 - - 709,536 Roselawn Elevated Storage Tank 2,960,737 A 740,184 740,184 - - 740,184 Roselawn Water Line 844,761 A 168,952 168,952 - - 168,952 Masch Branch Road Water Line Extension 645,781 A 32,290 32,290 - - 32,290 US 380 Urban Utility Relocation 1,362,086 A 68,105 68,105 - - 68,105 Rayzor Ranch Oversize Line (16" to 20") 133,226 A 6,662 6,662 - - 6,662 Southwest Elevated Storage Tank 4,869,252 B 486,925 486,925 - - 486,925 University Water Line and PRV 826,468 B 247,941 - - 247,941 247,941 North -South Water Line 7,609,210 C 2,282,763 - 2,282,763 - 2,282,763 1-35 Parallel Line Crossing 1,004,000 C 150,600 - 150,600 - 150,600 Riney Road Booster Pump Station 7,866,000 C 786,600 - 786,600 - 786,600 Elm/Loop 288 Water Lines 5,537,300 C 1,938,055 - 1,938,055 - 1,938,055 Allred Road / John Paine Road Water Lines 4,744,000 C 1,423,200 - 1,423,200 - 1,423,200 Ray Roberts WTP Expansion 41,961,600 C 1,678,464 - 1,678,464 - 1,678,464 McKinney Water Line 1,200,600 C 420,210 - 420,210 - 420,210 1-35E Frontage Road Water Line Betterment 1,020,510 C 663,332 - 663,332 - 663,332 1-35W Water Line 5,213,840 C 1,564,152 - 1,564,152 - 1,564,152 1-35W/Corbin Water Line 2,177,680 C 653,304 - 653,304 - 653,304 Jim Christal Oversize Line (16" to 20") 127,758 C 19,164 - 19,164 - 19,164 Jim Christal Water Line / 1-35 Crossing 1,302,500 C 195,375 - 195,375 - 195,375 Water Impact Fee Report Preparation 24,678 C 24,678 24,678 24,678 Total $ 209,184,655 $ 36,084,557 $ 24,036,719 $ 11,775,219 $ 272,619 $ 36,084,557 (1) Derived from Table 3.2 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost for Zone 1B (2) Per discussions with City staff and City files Project Note A'. Project costs from 2013 study Project Note B'. Costs of projects completed since 2013 per City Staff Project Note C'. Proposed projects in 2018 dollars 2018 Water Impact Fee Study City of Denton, Texas Page 7 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination Water Service Area Zone 1B 2018 Service Units(l) 69,401 Ten Year Growth in Service Un its(2) 7,419 10 years Annual Growth in Service Units 742 Debt Service for Debt Funded Projects Eligible for Impact Fees(') $1,660,498 $1,754,986 $1,849,473 $1,943,960 $2,038,448 $2,134,948 $2,231,449 $2,327,950 $2,424,450 $2,520,951 Net Impact Fee Eligible Debt Service Funded by Other Sources $1,660,498 $1,754,986 $1,849,473 $1,943,960 $2,038,448 $2,134,948 $2,231,449 $2,327,950 $2,424,450 $2,520,951 Current Service Units 70,143 70,885 71,627 72,369 73,111 73,852 74,594 75,336 76,078 76,820 Total Net Impact Fee Eligible Debt Service Funded by Other $ 23.67 $ 24.76 $ 25.82 $ 26.86 $ 27.88 $ 28.91 $ 29.91 $ 30.90 $ 31.87 $ 32.82 Sources per Service Unit Annual Growth in Service Units (Cumulative) 742 1,484 2,226 2,968 3,710 4,451 5,193 5,935 6,677 7,419 Annual Water Rate Revenue Generated by Service Unit for Net Impact Fee Eligible Debt Service Funded by Other Sources $ 17,563 $ 36,736 $ 57,470 $ 79,715 $ 103,427 $ 128,682 $ 155,355 $ 183,402 $ 212,785 $ 243,464 CreditAmount $ 1,218,601 (1) Derived from Table 2.1 10-year Additional Single -Family Equivalent Calculation (2) Derived from Table 2.8 10-year Additional SFE Water Zone Distribution (3) Water Appendices - page 2 Section 11 2018 Water Impact Fee Study City of Denton, Texas Page 8 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 2 0 Existing Fund Balance $ 399,016 1 Existing Number of Service Units 69,401 2 Total Number of Services Units for Planning Period 70,043 Additional Service Units Added During Planning Period 3 (Line 2 - Line 1) 642 4 Total Cost of the Water Impact Fee CIP $ 22,954,077 5 Recoverable Cost for Impact Fee Planning Period $ 4,254,101 Percent Recoverable for Water Impact Fee Planning Period 6 (Line 5 / Line 4) 18.53% 7 Financing Costs (From Financial Analysis) $ 1,841,055 8 Interest Earnings (From Financial Analysis) $ (779,037) Recoverable Cost of Water Impact Fee and Financing Costs Less Balance 9 (Line 5 + Line 7 + Line 8 - Line 0) $ 4,917,103 Pre -Credit Maximum Fee (Line 9 / Line 3) 10 $ 7,659 Credit for Utility Revenues 11 (From Financial Analysis) $ (13,237) Recoverable Cost of Water Impact Fee and Financing 12 (Line 9 + Line 11 ) $ 4,903,866 Maximum Assessable Fee 13 Line 12 / Line 3 $ 7,638 SUMMARY OF WATER IMPACT FEE DETERMINATION Water Service Area Zone 2 Recoverable Impact Fee CIP Costs $ 4,254,101 Table 2.3 Financing Cost 1,841,055 See Detail Below Existing Fund Balance (399,016) Water Appendices - page 1 Interest Earnings (779,037) Water Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee $ 4,917,103 Sum of Above Credit for Utility Revenues (13,237) Water Appendices - page 6 Maximum Recoverable Cost for Impact Fee $ 4,903,866 Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 2.3 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 Existing Annual Debt Service Principal Component (New and Existing Debt) Financing Costs $ 2,815,487 Water Appendices -page 2 3,276,926 Water Appendices - page 2 (4,251,359) Water Appendices - page 1 $ 1,841,055 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. 2018 Water Impact Fee Update City of Denton, Texas Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Water Service Area Zone 2 I. General Assumptions Annual Interest Rate on Deposits(i) 1.89% Annual Service Unit Growth12) 64 Existing Fund Balance (3) $ 399,016 Portion of Projects Funded by Existing Debf') $ 2,510,417 Non -debt Funded Project Cost(5) 2,742 New Project Cost Funded Through New Debt(6) 1,740,942 Total Recoverable Project Cost(') $ 4,254,101 II. New Debt Issues Assumptions Year Principal(8) Interest(0) Term 1 $ 174,094 4.65% 20 2 174,094 5.00% 20 3 174,094 5.00% 20 4 174,094 5.00% 20 5 174,094 5.00% 20 6 174,094 5.25% 20 7 174,094 5.25% 20 8 174,094 5.25% 20 9 174,094 5.25% 20 10 174,094 5.25% 20 i oial Z� 1, 14U,y42 III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 $ 87,321 2 174,368 3 174,368 4 174,368 5 174,368 6 174,368 7 174,368 8 174,368 9 174,368 10 261,416 Total $ 1,743,684 (1) Investment Portfolio Yield as of 08/05/2018 (2) Derived from Table 2.8 10-year Additional SFE Water Zone Distribution (3) Balance from 09/30/2017 provided by City Staff distributed proportionally to recoverable cost (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 2.3 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 from City's Financial Advisor April 26, 2018 (10) Assumes new debt proceeds expended over a 2-year timeframe. Non -debt funded capital expenditures allocated in equal annual amounts 2018 Water Impact Fee Study City of Denton, Texas Page 3 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary Water Service Area Zone 2 I. New Debt Service Detail Tota I 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 $ 13,558 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 13,558 2 13,558 13,970 - - - - - - - - 27,528 3 13,558 13,970 13,970 - - - - - - - 41,498 4 13,558 13,970 13,970 13,970 - - - - - - 55,468 5 13,558 13,970 13,970 13,970 13,970 - - - - - 69,437 6 13,558 13,970 13,970 13,970 13,970 14,267 - - - - 83,705 7 13,558 13,970 13,970 13,970 13,970 14,267 14,267 - - - 97,972 8 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 - - 112,240 9 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 - 126,507 10 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 11 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 12 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 13 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 14 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 15 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 16 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 17 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 18 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 19 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 20 13,558 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 140,774 21 - 13,970 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 127,216 22 - - 13,970 13,970 13,970 14,267 14,267 14,267 14,267 14,267 113,246 23 - - - 13,970 13,970 14,267 14,267 14,267 14,267 14,267 99,277 24 - - - - 13,970 14,267 14,267 14,267 14,267 14,267 85,307 25 - - - - - 14,267 14,267 14,267 14,267 14,267 71,337 26 - - - - - - 14,267 14,267 14,267 14,267 57,070 27 - - - - - - - 14,267 14,267 14,267 42,802 28 - - - - - - - - 14,267 14,267 28,535 29 14,267 14,267 $ 271,164 $ 279,395 $ 279,395 $ 279,395 $ 279,395 $ 285,348 $ 285,348 $ 285,348 $ 285,348 $ 285,348 $ 2,815,487 II. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service(') Expenditureslzl Proceeds(z) Service(') Credit(') Expense 1 $ 13,558 $ 87,321 $ (174,094) $ 163,846 $ (164) $ 90,468 2 27,528 174,368 (174,094) 163,846 (353) 191,295 3 41,498 174,368 (174,094) 163,846 (568) 205,050 4 55,468 174,368 (174,094) 163,846 (809) 218,779 5 69,437 174,368 (174,094) 163,846 (1,074) 232,484 6 83,705 174,368 (174,094) 163,846 (1,366) 246,459 7 97,972 174,368 (174,094) 163,846 (1,684) 260,408 8 112,240 174,368 (174,094) 163,846 (2,028) 274,332 9 126,507 174,368 (174,094) 163,846 (2,397) 288,230 10 140,774 261,416 (174,094) 163,846 (2,792) 389,150 11 140,774 - - 163,846 - 304,621 12 140,774 - - 163,846 - 304,621 13 140,774 - - 163,846 - 304,621 14 140,774 - - 163,846 - 304,621 15 140,774 - - 163,846 - 304,621 16 140,774 - - 163,846 - 304,621 17 140,774 - - 163,846 - 304,621 18 140,774 - - 163,846 - 304,621 19 140,774 - - 163,846 - 304,621 20 140,774 - - 163,846 - 304,621 21 127,216 - - - - 127,216 22 113,246 - - - - 113,246 23 99,277 - - - - 99,277 24 85,307 - - - - 85,307 25 71,337 - - - - 71,337 26 57,070 - - - - 57,070 27 42,802 - - - - 42,802 28 28,535 - - - - 28,535 29 14,267 - - - - 14,267 $ 2,815,487 $ 1,743,684 $ (1,740,942) $ 3,276,926 $ (13,237) $ 6,081,919 (1) Water Appendices -page 2 Section 1 (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 2018 Water Impact Fee Study City of Denton, Texas Page 4 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Water Service Area Zone 2 Impact Estimated Impact Service Fee Annual Accumulated Fund Year Fee Units Revenue Expenses Sub -Total Interest Balance Initial $ 399,016 1 $ 7,638 64 $ 490,387 $ 90,468 $ 399,919 $ 11,316 810,252 2 7,638 64 490,387 191,295 299,092 18,133 1,127,477 3 7,638 64 490,387 205,050 285,337 23,997 1,436,810 4 7,638 64 490,387 218,779 271,607 29,711 1,738,129 5 7,638 64 490,387 232,484 257,903 35,275 2,031,306 6 7,638 64 490,387 246,459 243,928 40,682 2,315,916 7 7,638 64 490,387 260,408 229,978 45,927 2,591,821 8 7,638 64 490,387 274,332 216,055 51,008 2,858,884 9 7,638 64 490,387 288,230 202,157 55,923 3,116,963 10 7,638 64 490,387 389,150 101,237 59,845 3,278,045 11 - - - 304,621 (304,621) 59,055 3,032,479 12 - - - 304,621 (304,621) 54,415 2,782,273 13 - - - 304,621 (304,621) 49,688 2,527,340 14 - - - 304,621 (304,621) 44,871 2,267,591 15 - - - 304,621 (304,621) 39,964 2,002,934 16 - - - 304,621 (304,621) 34,964 1,733,278 17 - - - 304,621 (304,621) 29,869 1,458,526 18 - - - 304,621 (304,621) 24,678 1,178,584 19 - - - 304,621 (304,621) 19,389 893,353 20 - - - 304,621 (304,621) 14,001 602,732 21 - - - 127,216 (127,216) 10,186 485,702 22 - - - 113,246 (113,246) 8,107 380,562 23 - - - 99,277 (99,277) 6,252 287,538 24 - - - 85,307 (85,307) 4,627 206,857 25 - - - 71,337 (71,337) 3,234 138,755 26 - - - 57,070 (57,070) 2,082 83,767 27 - - - 42,802 (42,802) 1,178 42,143 28 - - - 28,535 (28,535) 527 14,135 29 - - - 14,267 (14,267) 132 - 4,903,866 6,081,919 779,037 2018 Water Impact Fee Study City of Denton, Texas Page 5 of 8 Water Appendices Year City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Water Service Area Zone 2 Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense End of Period Factor Factor Actual Escalated Actual Escalated 1 29 1.7048 1.0000 64 2 28 1.6732 1.0000 64 3 27 1.6422 1.0000 64 4 26 1.6118 1.0000 64 5 25 1.5819 1.0000 64 6 24 1.5525 1.0000 64 7 23 1.5237 1.0000 64 8 22 1.4955 1.0000 64 9 21 1.4678 1.0000 64 10 20 1.4405 1.0000 64 11 19 1.4138 1.0000 12 18 1.3876 1.0000 13 17 1.3619 1.0000 14 16 1.3366 1.0000 15 15 1.3118 1.0000 16 14 1.2875 1.0000 17 13 1.2636 1.0000 18 12 1.2402 1.0000 19 11 1.2172 1.0000 20 10 1.1946 1.0000 21 9 1.1725 1.0000 22 8 1.1508 1.0000 23 7 1.1294 1.0000 24 6 1.1085 1.0000 25 5 1.0879 1.0000 26 4 1.0677 1.0000 27 3 1.0479 1.0000 28 2 1.0285 1.0000 29 1 1.0094 1.0000 Annual Interest Rate: Present Value of Initial Impact Fee Fund Balance Total Escalated Expense for Entire Period Less Future Value of Initial Impact Fee Fund Balance Sub -Total Total Escalated Service Units Impact Fee for Water Service Area 109 $ 107 105 103 102 100 98 96 94 92 1,008 90,468 $ 154,233 191,295 320,080 205,050 336,733 218,779 352,618 232,484 367,758 246,459 382,635 260,408 396,795 274,332 410,261 288,230 423,052 389,150 560,587 304,621 430,682 304,621 422,696 304,621 414,858 304,621 407,166 304,621 399,616 304,621 392,206 304,621 384,933 304,621 377,796 304,621 370,790 304,621 363,915 127,216 149,161 113,246 130,319 99,277 112,125 85,307 94,561 71,337 77,609 57,070 60,936 42,802 44,855 28,535 29,349 14,267 14,402 1.89% $ 399,016 $ 8,382,728 686,625 $ 7,696,103 1,008 $ 7,638 $ 8,382,728 2018 Water Impact Fee Study City of Denton, Texas Page 6 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Water Service Area Zone 2 Cost In Impact Fee Debt Funded121 Non -Debt Impact Fee Impact Fee Project Name' Service Area "I Note Recoverable Cost) Existing Proposed Funded12) Recoverable Cost Lake Ray Roberts $ 7,665,308 A $ 766,531 $ 766,531 $ - $ - $ 766,531 Lake Ray Roberts Water Treatment Plant 2,822,262 A 1,128,905 1,128,905 - - 1,128,905 54" Transmission Line 479,515 A 119,879 119,879 - - 119,879 Loop 288 Water Main - Sherman to UNT 218,092 A 65,428 65,428 - - 65,428 Loop 288 Water Main - Sherman to Hwy 380 175,918 A 43,980 43,980 - - 43,980 Southwest Pump Station 591,200 A 147,800 147,800 - - 147,800 Southwest PS Oversize Discharge Line (30" to 36") 28,448 A 1,422 1,422 - - 1,422 Vintage Oversize Line (12" to 20") 50,854 A 10,171 10,171 - - 10,171 North -South Water Line Phase 1 301,930 A 75,483 75,483 - - 75,483 Roselawn Elevated Storage Tank 314,972 A 78,743 78,743 - - 78,743 Roselawn Water Line 89,868 A 17,974 17,974 - - 17,974 Southwest Elevated Storage Tank 541,028 B 54,103 54,103 - - 54,103 North -South Water Line 2,174,060 C 652,218 - 652,218 - 652,218 Allred Road / John Paine Road Water Lines 1,186,000 C 355,800 - 355,800 - 355,800 Ray Roberts WTP Expansion 4,464,000 C 178,560 - 178,560 - 178,560 1-35W Water Line 1,303,460 C 391,038 - 391,038 - 391,038 1-35W/Corbin Water Line 544,420 C 163,326 - 163,326 - 163,326 Water Impact Fee Report Preparation 2,742 C 2,742 2,742 2,742 Total $ 22,954,077 $ 4,254,101 $ 2,510,417 $ 1,740,942 $ 2,742 $ 4,254,101 (1) Derived from Table 3.2 Water Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost for Zone 2 (2) Per discussions with City staff and City files Project Note A'. Project costs from 2013 study Project Note B'. Costs of projects completed since 2013 per City Staff Project Note C'. Proposed projects in 2018 dollars 2018 Water Impact Fee Study City of Denton, Texas Page 7 of 8 Water Appendices City of Denton - 2018 Water Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination Water Service Area Zone 2 2018 Service Units(l) 69,401 Ten Year Growth in Service Un its(2) 642 10 years Annual Growth in Service Units 64 Debt Service for Debt Funded Projects Eligible for Impact Fees(') $ 177,405 $ 191,374 $ 205,344 $ 219,314 $ 233,284 $ 247,551 $ 261,818 $ 276,086 $ 290,353 $ 304,621 Net Impact Fee Eligible Debt Service Funded by Other Sources $ 177,405 $ 191,374 $ 205,344 $ 219,314 $ 233,284 $ 247,551 $ 261,818 $ 276,086 $ 290,353 $ 304,621 Current Service Units 69,465 69,529 69,594 69,658 69,722 69,786 69,850 69,915 69,979 70,043 Total Net Impact Fee Eligible Debt Service Funded by Other $ 2.55 $ 2.75 $ 2.95 $ 3.15 $ 3.35 $ 3.55 $ 3.75 $ 3.95 $ 4.15 $ 4.35 Sources per Service Unit Annual Growth in Service Units (Cumulative) 64 128 193 257 321 385 449 514 578 642 Annual Water Rate Revenue Generated by Service Unit for Net Impact Fee Eligible Debt Service Funded by Other Sources $ 164 $ 353 $ 568 $ 809 $ 1,074 $ 1,366 $ 1,684 $ 2,028 $ 2,397 $ 2,792 Credit Amount $ 13,237 (1) Derived from Table 2.1 10-year Additional Single -Family Equivalent Calculation (2) Derived from Table 2.8 10-year Additional SFE Water Zone Distribution (3) Water Appendices - page 2 Section 11 2018 Water Impact Fee Study City of Denton, Texas Page 8 of 8 Water Appendices 'TO„ Tim Fisher, P.E., City of Denton FROM„ Stephanie Neises, P.E., Freese and Nichols, Inc Scott Cole, P.E., Freese and Nichols, Inc. SUBJECT„ Water Impact Fee Utilization Calculations DATE„ September 26, 2018 PROJECT„ Water Distribution System Master Plan 1.0 INTRODUCTION OF i.•// i STEPHANIE NEISES•• / ................... AO//��'• 106195 •��% o• - ,11,�ONAL�� 9/26/18 � ." FREESE AND NICHOLS, INC. TEXAS REGISTERED ENGINEERING FIRM F-2144 Freese and Nichols, Inc. developed a capital improvements plan as part of the ongoing Water Distribution System Master Plan. Projects identified in the 10-year CIP, along with recently constructed projects, are eligible for cost recovery through impact fees. The Impact Fee Capital Improvements Plan is shown on Figure 1. The portion of each project associated with growth that will be utilized within the 10-year timeframe is impact fee eligible. Utilization percentages were calculated by evaluating the existing capacity and future capacity of each project. The following sections document this analysis. 2.0 DEVELOPMENT OF UTILIZATION PERCENTAGES The hydraulic model was used as a tool to determine the utilization of the pipeline improvements. For the recently constructed projects, the 2018 percent utilized was calculated by dividing the flow observed in the existing system model runs by the ultimate capacity of the pipe. The ultimate capacity of a pipe was assumed to be the capacity calculated in the 2043 system analysis performed as part of the ongoing Water Distribution System Master Plan. The 2018 utilization for proposed projects indicates the portion of the project that will be used to address deficiencies in the existing system or improvements that serve existing customers. The 2028 utilization percentages were calculated by taking the flow observed in the 10-year model runs and dividing it by the ultimate capacity of the pipe. 1 lo,N;,r�l r tDx •Lake Ray soberts / $153,30 Lt i167v9r. ,163 ' MII m + ., Ray n eatment Expansion + r (� I... d • '� Ray Roberts W 1-- alant �+ j f $56,t , r � i, = y i r g. + � I y I I --, i; t fr r f I _ � I A r 12" IVM Ail WL H _....... 54" Finished Water Trensmission Line I( w 0 EIMLoo 286 p Water Lines 537 l d , Loop 288 Water Main ti ( 1.0 mG Northwest ' Sherman to UNT � re e Tank _ $4, 61,849 may., + Elevatetl Sto g ( $2 339 988 — ' l 1 '� Riney Road a A l Booster Pump Station u $7,866,000 �. 12" Razor Ranch Oversize Line 16"to 20"II ^. y ( ' - 1P•• Loop 286 Water Maln � I-35 Parallel Line Cross 226 g _ Sherman to HWY 380 $133 a m s" 12" s. .. 3 004,000 Crossing a North -South Water Line Phase l 10 _ + : $1 m .. ' a-'"" gp•• University Water Line and PRV s 4 e a $1 y \ Locust/Elm Water Line m $826468 U.S. 380 Ur$13621086 Relocation ^ Uu 281776 $645 � a McKinney,2 Water Line t. er Line Extension 20" y 1 200 600 I $ march Brench 645781 / a P Jim Christal Oversize a, a r A $127,758 a w ine/1-35 Crossing 16 Hickory �a6"" 6 =,1 • y Jim Christal WaterL 4^M �$1302,500 North -South Water Line n 12 �• Y, " $10,870,300� /k Roselawn Elevated Storage Tank dry. Ill IiJ 4 j Water Line) $2 fJ $6299,440 i 722 100 12/l , 24.. $5 Elevatetl Oversizetl Vintage W ater Line (12" to 20") c' 12 [ Tank $254 269 e I" 0 Storage$5,410,280 o-nq 4a,o South w est -- - - Roselawn Water Line - l H $1,797,363 16e I-35W Water Line " 2 I $6517300 , I-35E Frontage a tage Water Line m $1,020,510 1. j, Allred John Paine Water Line a ry $5,930 000 r;c 6„ P s `Y m P4' I o , : p" a a r,• s„ m a ; Southwest Pump Station ,f Overeizetl Discharge Line (30" to 36") $5'912'002 I 07 u'7.11'.0 111h1l RO l f, vu 1 I FIGURE I CITY OF DENTON 2018 WATER IMPACT FEE CAPITAL IMPROVEMENTS PLAN rr LEGEND "+ I �Ic Proposed Pump Station Existing Water Line Eli PS Existing Eligible Existing Pump Station Project }: N Denton CCN 1P..1111 I 1 r" P Existing Elevated Tank IIN.,teml EllI''1hu r — � City Limit " Existing Ground Tank »», ETJ Boundary " WTPExisting Water Treatment Plant 0 7,500 �7FREESE "NICHOLS DENTClN SCALE IN FEET Utilization percentages for water system facilities (i.e. water treatment plants, pump stations, storage tanks) were calculated based on the recommended capacities developed as part of the ongoing Water Distribution System Master Plan for the existing and projected demands. The 2018 percentages account for existing system deficiencies or projects designed to serve existing customers while the 2028 percentages indicate the portion of the capacity that will be utilized within the 10-year timeframe. The following provides example calculations for each type of project: ■ Pine (42-inch Loon 288 Sherman to UNT) Existing Flow = 14.5 mgd 10-year Flow = 27.4 mgd Ultimate Flow = 42.0 mgd 2018 % Utilization = 14.5 med = 0.345 = 35% 42.0 mgd 2028 % Utilization = 27.4 med = 0.652 = 65% 42.0 mgd Eligible % = 65% - 35% = 30% ■ Water Treatment Plant (Ray Roberts Water Treatment Plc Existing Total WTP Capacity (LLWTP + RRWTP) = 50.0 mgd Proposed RRWTP Expansion = 30.0 mgd Existing Treatment Requirement = 42.1 mgd 10-year Treatment Requirement = 51.3 mgd 2018 % Utilization = 42.1 mgd < 50.0 mgd 4 0.0% 2028 % Utilization = 51.3 med — 50.0 med = 0.04 4 4% 30.0 mgd Eligible % = 4% - 0% = 4% 3 ■ Pump Station (Southwest Booster Pump Station) Existing Firm Capacity = 6.05 mgd Existing Pumping Requirement = 3.17 mgd 10-year Pumping Requirement = 4.42 mgd 2018 % Utilization = 3.17 mgd = 0.524 50% 6.05 mgd 2028 % Utilization = 4.42 mgd = 0.730 75% 6.05 mgd Eligible % = 75% - 50% = 25% ■ Storage Tank (Roselawn EST) Existing Storage Capacity (Central Pressure Plane) = 3.0 MG New Storage Capacity = 3.0 MG Existing Storage Requirement = 4.70 MG 10-year Storage Requirement = 5.63 MG 2018 % Utilization = 4.70 MG — 3.0 MG = 0.567 = 60% we LA C 2028 % Utilization = 5.63 MG — 3.0 MG = 0.876 = 85% we LA C Eligible % = 85% - 60% = 25% 3.0 ZONE PERCENTAGES The City divided the water service area into three zones: ■ Infill Zone (1A) — the area bounded to the west by Bonnie Brae Street, to the north by Windsor Drive, to the east by Old North Road, Mockingbird Lane, and Woodrow Lane, and to the south by 1-35E and Willowwood Street ■ Zone 1B — the area north of Hickory Creek and the Robson Ranch, Country Lakes, Meadows at Hickory Creek, and The Vintage developments ■ Zone 2 — the area south of Hickory Creek, with the exception of the exacted developments that are included in Zone 1B After the utilization percentages were calculated, each project was evaluated to determine the zone percentages. Percentages for projects that improve the entire system equally (such as water treatment plants) were calculated based on growth in population over the next 10 years. Approximately 48% of the :l 10-year growth occurs in Zone 1A while 47% occurs in Zone 113 and 5% in Zone 2. Table 1 shows the population for each zone. The model was utilized as a tool to assign various percentages to the remaining improvements based on the hydraulic relevance to each zone. For example, the new Riney Road Booster Pump Station provides no benefit to the customers in Zone 2 and therefore is 100% attributable to Zone 113. Similarly, projects that offer more hydraulic benefit to Zone 2 customers were given percentages higher than 5% for Zone 2. Table 2 presents the utilization percentages, as well as the zone percentages for each project. Table 1: Water Service Population by Zone Zone 2018 Population 2028 Population % of Total Growth Zone 1A , 63,736 77,440 48% Zone 113 61,190 74,668 47% Zone 2 5,213 6,538 - 5% Total 130,139 158,646 100% 4.0 COST ESTIMATES Cost estimates were developed for the proposed future projects as part of the ongoing Water Distribution System Master Plan. The costs are in 2018 dollars and include an allowance for engineering, surveying, and contingencies, with the exception of several projects that are already in the process of design. For these projects, cost estimates were provided by the City based on information from the current design projects. For existing eligible projects, costs from the 2013 Impact Fee Report were utilized. It should be noted that for projects consisting of oversize participation and upsize replacement, only the costs associated with the increase in capacity were included in the impact fee calculations. 6 p �� co w� �. 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U iC 'i" Z fb^" QE 'Q rz6 * m U n uj w 0 2 se Z lfl ni Chapter 3: 2018 Wastewater Impact Fee Update Prepared for: City of Denton, Texas Prepared by: Kimley-Horn and Associates, Inc. 801 Cherry Street, Unit 11, Suite 1300 Fort Worth, TX 76102 817.335.6511 Firm Registration No. F-928 September 2018 © Kimley-Horn and Associates, Inc., 2018 061024024 9/25/2018 11 EIECJ J�IF III VIE S (WMAIII This study was performed for the 5-year update of the City of Denton's Wastewater System Impact Fees. Wastewater system analysis and the Wastewater System Master Plan are important tools for facilitating orderly growth of the wastewater system and for providing adequate facilities that promote economic development in the City of Denton. Elements of the wastewater system, including water reclamation plant improvements, peak wet weather facilities, gravity pipes, force mains and lift station facilities, were evaluated against industry standards as outlined in the Design Criteria section of this report. Wastewater system improvements necessary to serve 10-year (2028) and ultimate system needs were evaluated as well. Typically, infrastructure improvements are sized beyond the 10-year requirements; however, the state's impact fee law (Chapter 395) only allows recovery of costs to serve the 10-year planning period. The remainder can be assessed as the planning window extends beyond 2028 and as the impact fees are updated in the future. Information related to the growth of the City has been provided in Chapter 1 — Land Use Assumptions. Based on the City's 10-year growth projections and the resulting wastewater flow projections, wastewater service will be required for an additional 12,041 single family equivalents. The calculation is as follows: • A single family equivalent (SFE), which is a unit of development that discharges approximately 299 gallons per day (GPD), is a typical residential connection that uses a 5/8x3/4-inch meter. Table 3.1. 10-year Additional Single -Family Equivalent Calculation Year Average Day Flow (MGD)1 SFE Demand (GPD) Projected SFEs 2018 15.6 299 52,174 2028 19.2 299 64,215 10-year Additional SFEs 12,041 (1) Data Sources: - City of Denton 2018 Water and Wastewater Impact Fee Study 3.1 September 2018 City of Denton, Texas The City of Denton defines a single-family equivalent, as a unit of development that consumes the amount of water requiring a standard 5/8x3/4-inch meter. Based on the additional SFEs and the recoverable capital improvements plan the City may assess a maximum of $4,716 per single-family equivalent. For a development that requires a different size meter, a single-family equivalent is established at a multiplier based on its capacity with respect to the 5/8-inch meter. The maximum impact fee that could be assessed for other meter sizes is based on the Equivalency Table (Table 3.2). Table 3.2. Maximum Assessable Wastewater Impact Fee by Meter Size Meter Size Single Family Equivalent' Maximum Assessible Impact Fee 5/8x3/4" 1 $4,716 V 2.5 $1 1,790 1-1 /2" 5 $23,580 2" 8 $37,728 3" 22.5 $106,1 10 4" 50 $235,800 6" 100 $471,600 8" 200 $943,200 10" 325 $1,532,700 (1) Data Sources: - City of Denton Code of Ordinances, Chapter 26, Article VI, Exhibit F 2018 Water and Wastewater Impact Fee Study 3.2 September 2018 City of Denton, Texas The City of Denton retained the services of Kimley-Horn and Associates, Inc., for the purpose of 5- year update of the impact fees for wastewater system improvements required to serve new development. These fees were originally developed in 1998, and updated in the years 2003, 2008 and 2013 in accordance with Chapter 395 of the Local Government Code (impact fees). The purpose of this report is to satisfy the requirements of the law and provide the City with an updated 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: (7) 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; 2018 Water and Wastewater Impact Fee Study 3.3 September 2018 City of Denton, Texas (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) a plan for awarding: (A) a credit for the portion of ad valorem tax and utility service revenues generated by new service unit 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 study process was comprised of four tasks: A. airid Use Ass to uinnrt ptio ri The development of land use assumptions included the following: ♦ Establishing impact fee service areas (SA) for water and wastewater; ♦ Collection/determination of population by SA; and ♦ Projection of the ten-year population by SA. A detailed discussion is outlined in the Land Use Assumptions chapter of this report. 911111 to i i1i uY°of 11"ie Wastewater Systeirn Masteir IIIC°� IIII uY°� This task involved coordination with City Staff to determine compatibility between the growth projections of the City's Wastewater System Master Plan and the Land Use Assumptions. The wastewater flow projections were then used to determine the additional single-family equivalents (SFEs). C. irn IIII 'i' IIII' III iii i I ninmt IIII ur uinmt uY"' 'i' IIII'° IIII uY° This task involved coordination with City staff to identify proposed wastewater capital improvements outlined in the master plan that will be built in the 10-year planning window and meet the design criteria included in Section 3.3 below. 2018 Water and Wastewater Impact Fee Study 3.4 September 2018 City of Denton, Texas rin II' ' IIII'e e A ri a y s i This task included calculating the additional single-family equivalent units, and credit reduction. These values were then used to determine the impact fee per SFE and the maximum assessable impact fee by meter size. 2018 Water and Wastewater Impact Fee Study 3.5 September 2018 City of Denton, Texas 13 ,III III I IE III III A. it °"IIII'° it to iri k ui iri e s ( IIII iri 1 e it c e II'1 o it Proposed sewers lines shall be designed with slopes sufficient to give a velocity of not less than 2 feet per second with a Manning's "n" value of 0.013. Minimum and maximum slopes shall be in accordance with the City of Denton Water and Wastewater Criteria Manual. ui 1 Statioiris II°Ito ii n IIII ui ire pacify The design criteria for lift station pumping shall be to provide firm pumping capacity to be 100% of the projected peak flows. The firm pumping capacity is defined as the available total pumping capacity with the largest pump out of service. C. ui1 Statioiri Wet IIIIIIII pacify Wet well volume shall be calculated by the following method: t = V/(D-Q) + V/Q where, t = Total time between successive pump starts in minutes (operating cycle) D = Rated pump capacity in GPM V = Storage volume between lead pump on and pump off elevations in gallons Q = Inflow to wet well in GPM The operation cycle `t' shall not be less than 10 minutes for Average Flow and not more than 60 minutes for Minimum Flow conditions. . 1Pi oirce Maiiris Force main capacity shall be sized to meet the capacity of the entire basin. The minimum recommended velocity is 3 feet per second, and the velocity shall not be less than 2 feet per second when only the smallest pump is in operation. 2018 Water and Wastewater Impact Fee Study 3.6 September 2018 City of Denton, Texas Kirn ley >>> Horn DENTON .4 III II Cm III II "'IIII CWII III III III MNROVEMENIIIIII III JII The City of Denton staff has developed a Wastewater System Master Plan. The purpose of the 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. City staff completed the Wastewater System Master Plan and recommended system improvements to accommodate growth through the year 2040. Twenty-one (21) previously constructed projects as well as nineteen (19) proposed projects identified in the Wastewater System Master Plan are determined eligible for recoverable cost through impact fee over the next 10 years. The total projected cost of these projects is $156,586,808. The projected total recoverable cost in the next 10 years through impact fees is $49,714,840. After financing costs are added and the credit reduction calculation is complete, $56,786,844 is recoverable through impact fees serving the 10-year system needs. These impact fee capital improvements are shown in Table 3.3. 2018 Water and Wastewater Impact Fee Study 3.7 September 2018 City of Denton, Texas Table 3.3. Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost Proj. # I Description 1 South Wet Weather Lift Station & Detention Pond 2 Cooper Creek Interceptor III 3 Cooper Creek Outfall (Loop 288) 4 Eagle Drive Sewer 5 Krum Sewer Line 6 Graveyard Branch Interceptor 7 Hickory Creek Outfall 8 Leatherwood Interceptor 9 Parvin Sewer Line 10 Pecan Creek Interceptor (Ph 1 & 11 Pecan Creek Interceptor I 12 Pecan Creek Interceptor II 13 Pecan Creek Interceptor III 14 Pecan Creek Interceptor IV 15 Pecan WRP (15MGD) 16 Pecan WRP Expansion (6MGD) 17 Roark Branch Interceptor 18 State School Interceptor I 19 State School Interceptor II 20 US 380 Utility Relocations 21 lWoodhaven Interceptor 1 Audra Interceptor 2 Ave G Interceptor 3 Bonnie Brae Connector 4 Bonnie Brae Relocation 5 Carroll Ave Interceptor 6 Clear Creek Interceptor 7 Cooper Creek Interceptor I 8 Cooper Creek Interceptor II 9 Dry Fork Hickory Creek Tributary 1 Interceptor 10 Elm Street Sewer Replacements 11 Hickory Creek Interceptor I 12 Hickory Creek Interceptor II 13 Hickory Creek Interceptor III 14 Hickory Creek Interceptor IV 15 Hickory Creek Lift Station Detention Facility 16 Mulberry Interceptor 17 Ranch View Interceptor (Oversize) 18 West Peak Flow Detention Lift Station and Pond 19 Wastewater Impact Fee Report Preparation Total 2018 Required Capacity (Percent Utilization) 2028 Required Capacity (Percent Utilization) EXISTING 48.4 % 62.4 % 47.6 % 49.5 % 64.7 % 72.3% 18.1% 19.4% 10.0% 51.3% 6.6% 18.1 % 34.4% 38.5% 32.0% 33.5% 59.0% 71.9% 96.0% 100.0% 53.4% 66.9% 40.6 % 46.0 % 36.1% 41.0% 26.9% 32.5% 85.0% 100.0% 0.0% 70.0% 0.0% 60.6% 82.4% 91.6% 35.3% 46.2 % 26.5% 30.6% 41.8% 44.5% PROPOSED 75.9% 82.0% 92.2% 99.3% 0.0% 79.4 % 30.9% 89.3% 70.4 % 73.6% 0.0% 16.0% 74.2 % 83.0% 54.6% 58.3% 80.5% 84.1 % 48.7% 52.5% 50.2% 72.6% 46.7 % 87.2% 29.1 % 70.3% 29.8% 39.1 % 0.0% 96.3% 44.4% 50.7% 0.0% 56.5% 0.0% 23.1 % 2018-2028 Required Capacity (Percent Utilization) 14.0% 1.9% 7.6% 1.3% 41.3% 11.5% 4.1 % 1.5% 12.9% 4.0 % 13.5% 5.4 % 4.9 % 5.6% 15.0% 70.0% 60.6% 9.2% 10.9% 4.1 % 2.7% 6.1 % 7.1 % 79.4 % 58.4 % 3.2% 16.0% 8.8% 3.7% 3.6% 3.8% 22.4 % 40.5 % 41.2% 9.3% 96.3% 6.3% 56.5% 23.1 % 0.0% 1 100.0% 1 100.0% 2028 Projected Recoverable Cost $ 217,406 $ $ 24,282 $ $ 296,310 $ $ 11,731 $ $ 164,560 $ $ 575,570 $ $ 45,572 $ $ 2,349 $ $ 42,116 $ $ 134,528 $ $ 266,716 $ $ 100,558 $ $ 150,879 $ $ 54,784 $ $ 5,929,227 $ $ 21,003,588 $ $ 517,994 $ $ 152,800 $ $ 362,579 $ $ 115,747 $ $ 26,075 $ $ 16,990 $ $ 30,749 $ $ 152,247 $ $ 1,101,486 $ $ 14,036 $ $ 2,400,000 $ $ 231,616 $ $ 41,736 $ $ 41,190 $ $ 25,752 $ $ 324,240 $ $ 3,281,513 $ $ 1,184,678 $ $ 117,892 $ $ 9,533,700 $ $ 7,927 $ $ 90,219 $ $ 877,800 $ $ 45,700 $ Total Project Cost 1 1'552,898 1,277,970 3,898,807 902,329 5,004,952 1,111,495 156,592 326,474 3,363,189 1,975,672 1,862,175 3,079,149 39,528,174 30,005,125 854,774 1,660,869 3,326,406 2,823,082 278,530 191,746 1,886,106 15,000,000 2,632,000 1,128,000 1,144,159 677,674 1,447,500 8,102,500 2,875,433 1,267,658 9,900,000 125,820 159,680 3,800,000 45,700 2018 Water and Wastewater Impact Fee Study 3.8 September 2018 City of Denton, Texas LEGEND Existing Wastewater Treatment Plant Proposed Lift Station Ls Existing Lift Station Existing Force Main .... Existing Sanitary Sewer Existing Eligible Project [,--.]City Limits i ETJ M Sewer Service Area US 380 Utility Relocations 1 �0=5% Carroll Avenue Interceptor Mulberry Interceptor Aw I G Interceptor Bonnie Brae Connector Krum SewerUne Hickory Creek Imerooplor IV rr Bonnie Bras ReEocartionl-----.�-111 Hickory Creek Interceptor It LS Hickory Creek Interceptor 11 rM M i ' F I I Roark Branch Interceptor = J Pecan Creek IS Interceptor III Pecan Greek WmmdlAawan Interceptor IV Intercaptor Hickory Creek Intercepto Graveyard Branch I Figure 3.1: 2018 Wastewater Impact Fee Capital Improvements Plan KimleyoHorn DENTON Elm Street Sewer Replacements Id Cooper Creek Interceptor III Clear Creek Interceptor and WRP Cooprta:rceptar II Cooper Creek fermeptmrl 5 Audra Interceptor 111m, Pecan preek Interce r I I ON , X Cooper Creek Cuffall (Loop 288) t Pecan Creek Interceptor (Ph 1 and2) In LS is Eagle Drive Sewer t5 It yR,lT Parvin Sewer Lin Dry For Ink ry Creek Tribute Int'arc ptor J1 rl U Hickory Creek Lift Station it Detention Facility ff", L1 Leathorwood Interceptor' Ranch V1 w Interceptor (Overs ze'J'' ITP WR Expansionj. st Peak Flow Bandon LS LM Station and Pond South Wet Weather Llft d Station and Detention Pon 0120 L9,ar� State School InterceptorI I State SchoolI iterceptorll Hickory Creek uffaH N A 1 inch = 8,000 feet 2 — I 15 FE FER I C III III°° IEE C,�ICJ YFII . I The City's wastewater system provides retail wastewater collection and treatment to customers within the defined service area, as well as wastewater treatment to four wholesale customers — Corinth, Krum, Argyle and the Lake City Municipal Utility District. The impact fees calculated in this report exclude costs to serve the City's wholesale customers. 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." The service unit for Denton's water and wastewater impact fees is the "single family equivalent" (SFE), which is based on the size of the water meter. An SFE is the water or wastewater demand or flow associated with the smallest water meter used in the system (5/8"x3/4"), which is the meter typically used by a single-family residence. The ratio of each larger meter's capacity to the capacity of the base meter determines the SFE multiplier applied to each larger meter size. The current SFE equivalency factors are shown in Table 3.4. Table 3.4. Meter Capacity Ratios Meter Size SFEs/ Meter' 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 (1) Data Sources: - City of Denton Code of Ordinances, Chapter 26, Article VI, Exhibit F 2018 Water and Wastewater Impact Fee Study 3.10 September 2018 City of Denton, Texas Multiplying the number of existing connections for each meter size by the SFEs per meter yields the total SFEs for that meter size. Summing for all meter sizes yields the total number of wastewater SFEs connected to the City's wastewater system as shown in Table 3.5. The current population in the wastewater service area is divided by the total number of SFEs yielding a Persons per SFE number. Table 3.5. Capita per Single Family Equivalent (SFE) Meter Size Existing Connections) SFEs/ Meter Single Family Equivalents 5/8"x3/4" 30,143 1 30,143 1 " 995 2.5 2,488 1-1 /2" 633 5 3,165 2" 868 8 6,944 3" 106 22.5 2,385 4" 51 50 2,550 6" 17 100 1,700 8" 15 200 3,000 10" 2 325 650 Total Existing Connections: 32,830 Total SFEs: 53,025 Total Served Population: Persons per SFE: (1) Data Sources: - City of Denton 130,170 2.46 2018 Water and Wastewater Impact Fee Study 3.11 September 2018 City of Denton, Texas The City of Denton defines a single family equivalent (SFE) based on historical wastewater discharge over the past 10 years as compared to the estimated residential units. The residential unit is the development type that predominately uses a 5/8x3/4-inch meter. The measure of consumption per SFE is based on a 5/8x3/4-inch meter and the data shown in Table 3.6. Table 3.6. Single -Family Equivalent Consumption Calculation Year Population' Residential Units (2.46 capita/SFE) Wastewater Average Day Flow (MGD)' Flow per SFE (GPD) 2008 112,487 45,726 15.3 335 2009 114,610 46,589 13.6 292 2010 116,218 47,243 16.1 341 2011 117,383 47,717 13.5 283 2012 118,705 48,254 13.8 286 2013 120,868 49,133 13.7 279 2014 123841 50,342 13.6 270 2015 1261280 51,333 16.1 314 2016 129,130 52,492 16.8 320 2017 131,364 53,400 j 14.2 266 Average Historical Flow per SFE 299 (1) Data Sources: - City of Denton 2018 Water and Wastewater Impact Fee Study 3.12 September 2018 City of Denton, Texas Based on the City's 10-year growth projections and the resulting wastewater flow projections, wastewater service will be required for an additional 12,041 single family equivalents. The calculation is as follows: • A single family equivalent (SFE), which is a unit of development that discharges approximately 299 gallons per day (GPD), is a typical residential connection that uses a 5/8x3/4-inch meter. Table 3.7. 10-year Additional Single -Family Equivalent Calculation Year Average Day Flow (MGD)1 SFE Demand (GPD) Projected SFEs 2018 15.6 299 52,174 2028 19.2 299 64,215 10-year Additional SFEs 12,041 (1) Data Sources: - City of Denton 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 the 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. Newgen Strategies and Solutions, LLC. has detailed the credit calculation in the Wastewater Appendix. 2018 Water and Wastewater Impact Fee Study 3.13 September 2018 City of Denton, Texas A breakdown of the 10-year recoverable costs and the associated impact fee per SFE is as follows: Table 3.8. 10-year Recoverable Cost Breakdown' Recoverable Impact Fee CIP Costs $49,714,840 Financing Costs $ 21,231,253 Existing Fund Balance $ (2,194,686) Interest Earnings $ (8,627,092) Pre Credit Recoverable Cost for Impact Fee $ 60,124,315 Credit for Utility Revenues $ (3,337,470) Maximum Recoverable Cost for Impact Fee $ 56,786,844 (1) Per Newgen Strategies and Solutions, LLC financial analysis, see Wastewater Appendix — Summary of Wastewater Impact Fee Determination Impact fee per SFE 10-year recoverable costs Impact fee per SFE Impact fee per SFE 10-year recoverable costs 10-year additional SFEs Therefore, the maximum assessable impact fee per SFE is $4,716. $56,786,844 $56,786,844 12,041 $4,716 2018 Water and Wastewater Impact Fee Study 3.14 September 2018 City of Denton, Texas For a development that requires a different size meter, a single-family equivalent is established at a multiplier based on its capacity with respect to the 5/8-inch meter. The maximum impact fee that could be assessed for other meter sizes is based on the Equivalency Table (Table 3.9). Table 3.9. Maximum Assessable Wastewater Impact Fee by Meter Size Meter Size Single Family Equivalent' Maximum Assessable Impact Fee 5/8x3/4" 1 $4,716 V 2.5 $1 1,790 1-1 /2" 5 $23,580 2" 8 $37,728 3" 22.5 $106,1 10 4" 50 $235,800 6" 100 $471,600 8" 200 $943,200 10" 325 $1,532,700 (1) Data Sources: - City of Denton Code of Ordinances, Chapter 26, Article VI, Exhibit F 2018 Water and Wastewater Impact Fee Study 3.15 September 2018 City of Denton, Texas WAS FIEPER 2018 Water and Wastewater Impact Fee Study 3.16 September 2018 City of Denton, Texas City of Denton - 2018 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Wastewater Service Area 0 Existing Fund Balance $ 2,194,686 1 Existing Number of Service Units 52,174 2 Total Number of Services Units for Planning Period 64,215 Additional Service Units Added During Planning Period 3 (Line 2 - Line 1) 12,041 4 Total Cost of the Wastewater Impact Fee CIP $ 156,586,808 5 Recoverable Cost for Impact Fee Planning Period $ 49,714,840 Percent Recoverable for Wastewater Impact Fee Planning Period 6 (Line 5 / Line 4) 31.75% 7 Financing Costs (From Financial Analysis) $ 21,231,253 8 Interest Earnings (From Financial Analysis) $ (8,627,092) Recoverable Cost of Wastewater Impact Fee and Financing Costs Less Balance 9 (Line 5 + Line 7 + Line 8 - Line 0) $ 60,124,315 Pre -Credit Maximum Fee (Line 9 / Line 3) 10 $ 4,993 Credit for Utility Revenues 11 (From Financial Analysis) $ (3,337,470) Recoverable Cost of Wastewater Impact Fee and Financing 12 (Line 9 + Line 11 ) $ 56,786,844 Maximum Assessable Fee 13 Line 12 / Line 3 $ 4,716 SUMMARY OF WASTEWATER IMPACT FEE DETERMINATION Wastewater Service Area Recoverable Impact Fee CIP Costs $ 49,714,840 Table 3.3 Financing Cost 21,231,253 See Detail Below Existing Fund Balance (2,194,686) Wastewater Appendices - page 1 Interest Earnings (8,627,092) Wastewater Appendices - page 3 Pre Credit Recoverable Cost for Impact Fee $ 60,124,315 Sum of Above Credit for Utility Revenues 1 (3,337,470)1 Wastewater Appendices - page 6 Maximum Recoverable Cost for Impact Fee 1 $ 56,786,844 Recoverable Impact Fee CIP Costs: Represents the portion of capital improvement costs that are eligible for funding through impact fees. Reference is Table 3.3 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 Existing Annual Debt Service Principal Component (New and Existing Debt) Financing Costs $ 31,493,383 Wastewater Appendices - page 2 39,380,935 Wastewater Appendices - page 2 (49,643,065) Wastewater Appendices - page 1 $ 21,231,253 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. 2018 Wastewater Impact Fee Update City of Denton, Texas Wastewater Appendices City of Denton - 2018 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Assumptions Wastewater Service Area I. General Assumptions Annual Interest Rate on Deposits(l) 1.89% Annual Service Unit Growth (2) 1,204 Existing Fund Balance (3) $ 2,194,686 Portion of Projects Funded by Existing Debt(4) $ 30,169,296 Non -debt Funded Project Cost(s) 71,775 New Project Cost Funded Through New Debt(6) 19,473,769 Total Recoverable Project Cost(') $ 49,714,840 II. New Debt Issues Assumptions Year Principal(8) Interestls) Term 1 $ 1,947,377 4.65% 20 2 1,947,377 5.00% 20 3 1,947,377 5.00% 20 4 1,947,377 5.00% 20 5 1,947,377 5.00% 20 6 1,947,377 5.25% 20 7 1,947,377 5.25% 20 8 1,947,377 5.25% 20 9 1,947,377 5.25% 20 10 1,947,377 5.25% 20 total $ 19,4/3,tb9 III. Capital Expenditure Assumptions Annual Capital Year Expenditures(10) 1 $ 980,866 2 1,954,554 3 1,954,554 4 1,954,554 5 1,954,554 6 1,954,554 7 1,954,554 8 1,954,554 9 1,954,554 10 2,928,243 Total $ 19,545,544 (1) Investment Portfolio Yield as of 08/05/2018 (2) Derived from Table 3.1 10-year Additional Single -Family Equivalent Calculation (3) Balance from 09/30/2017 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 3.3 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 from City's Financial Advisor April 26, 2018 (10) Assumes new debt proceeds expended over a 2-year timeframe. Non -debt funded capital expenditures allocated in equal annual amounts 2018 Wastewater Impact Fee Update City of Denton, Texas Page 3 of 8 Wastewater Appendices City of Denton - 2018 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Debt Service and Expense Summary Wastewater Service Area 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 $ 151,659 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 151,659 2 151,659 156,263 - - - - - - - - 307,922 3 151,659 156,263 156,263 - - - - - - - 464,184 4 151,659 156,263 156,263 156,263 - - - - - - 620,447 5 151,659 156,263 156,263 156,263 156,263 - - - - - 776,709 6 151,659 156,263 156,263 156,263 156,263 159,592 - - - - 936,301 7 151,659 156,263 156,263 156,263 156,263 159,592 159,592 - - - 1,095,893 8 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 - - 1,255,485 9 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 - 1,415,077 10 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 11 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 12 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 13 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 14 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 15 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 16 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 17 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 18 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 19 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 20 151,659 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,574,669 21 - 156,263 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,423,010 22 - - 156,263 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,266,748 23 - - - 156,263 156,263 159,592 159,592 159,592 159,592 159,592 1,110,485 24 - - - - 156,263 159,592 159,592 159,592 159,592 159,592 954,222 25 - - - - - 159,592 159,592 159,592 159,592 159,592 797,960 26 - - - - - - 159,592 159,592 159,592 159,592 638,368 27 - - - - - - - 159,592 159,592 159,592 478,776 28 - - - - - - - - 159,592 159,592 319,184 29 159,592 159,592 $ 3,033,179 $ 3,125,251 $ 3,125,251 $ 3,125,251 $ 3,125,251 $ 3,191,840 $ 3,191,840 $ 3,191,840 $ 3,191,840 $ 3,191,840 $ 31,493,383 0. Summary of Annual Expenses New Existing Annual Annual Annual Annual Debt Capital Bond Debt Annual Total Year Service'' Expenditures(') Proceeds(') Service(') Credit(') Expense 1 $ 151,659 $ 980,866 $ (1,947,377) $ 1,969,047 $ (47,839) $ 1,106,356 2 307,922 1,954,554 (1,947,377) 1,969,047 (100,461) 2,183,685 3 464,184 1,954,554 (1,947,377) 1,969,047 (157,558) 2,282,851 4 620,447 1,954,554 (1,947,377) 1,969,047 (218,845) 2,377,826 5 776,709 1,954,554 (1,947,377) 1,969,047 (284,062) 2,468,872 6 936,301 1,954,554 (1,947,377) 1,969,047 (353,375) 2,559,151 7 1,095,893 1,954,554 (1,947,377) 1,969,047 (426,276) 2,645,842 8 1,255,485 1,954,554 (1,947,377) 1,969,047 (502,554) 2,729,155 9 1,415,077 1,954,554 (1,947,377) 1,969,047 (582,017) 2,809,284 10 1,574,669 2,928,243 (1,947,377) 1,969,047 (664,485) 3,860,097 11 1,574,669 - - 1,969,047 - 3,543,716 12 1,574,669 - - 1,969,047 - 3,543,716 13 1,574,669 - - 1,969,047 - 3,543,716 14 1,574,669 - - 1,969,047 - 3,543,716 15 1,574,669 - - 1,969,047 - 3,543,716 16 1,574,669 - - 1,969,047 - 3,543,716 17 1,574,669 - - 1,969,047 - 3,543,716 18 1,574,669 - - 1,969,047 - 3,543,716 19 1,574,669 - - 1,969,047 - 3,543,716 20 1,574,669 - - 1,969,047 - 3,543,716 21 1,423,010 - - - - 1,423,010 22 1,266,748 - - - - 1,266,748 23 1,110,485 - - - - 1,110,485 24 954,222 - - - - 954,222 25 797,960 - - - - 797,960 26 638,368 - - - - 638,368 27 478,776 - - - - 478,776 28 319,184 - - - - 319,184 29 159,592 - - - - 159,592 $ 31,493,383 $ 19,545,544 $ (19,473,769) $ 39,380,935 $ (3,337,470) $ 67,608,623 (1) Wastewater Appendices - page 2 Section 1 (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 2018 Wastewater Impact Fee Update City of Denton, Texas Page 4 of 8 Wastewater Appendices City of Denton - 2018 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Revenue Test Wastewater Service Area Impact Impact Service Fee Annual Year Fee Units Revenue Expenses Initial 1 $ 4,716 1,204 $ 5,678,684 $ 1,106,356 $ 2 4,716 1,204 5,678,684 2,183,685 3 4,716 1,204 5,678,684 2,282,851 4 4,716 1,204 5,678,684 2,377,826 5 4,716 1,204 5,678,684 2,468,872 6 4,716 1,204 5,678,684 2,559,151 7 4,716 1,204 5,678,684 2,645,842 8 4,716 1,204 5,678,684 2,729,155 9 4,716 1,204 5,678,684 2,809,284 10 4,716 1,204 5,678,684 3,860,097 11 - - - 3,543,716 12 - - - 3,543,716 13 - - - 3,543,716 14 - - - 3,543,716 15 - - - 3,543,716 16 - - - 3,543,716 17 - - - 3,543,716 18 - - - 3,543,716 19 - - - 3,543,716 20 - - - 3,543,716 21 - - - 1,423,010 22 - - - 1,266,748 23 - - - 1,110,485 24 - - - 954,222 25 - - - 797,960 26 - - - 638,368 27 - - - 478,776 28 - - - 319,184 29 - - - 159,592 56,786,845 67,608,623 Estimated Accumulated Fund Sub -Total Interest Balance $ 2,194,686 4,572,328 $ 84,657 6,851,671 3,495,000 162,464 10,509,135 3,395,834 230,628 14,135,597 3,300,858 298,245 17,734,700 3,209,813 365,383 21,309,896 3,119,534 432,077 24,861,507 3,032,843 498,358 28,392,708 2,949,529 564,286 31,906,523 2,869,400 629,916 35,405,839 1,818,587 686,102 37,910,528 (3,543,716) 682,768 35,049,580 (3,543,716) 628,716 32,134,580 (3,543,716) 573,643 29,164,507 (3,543,716) 517,529 26,138,320 (3,543,716) 460,356 23,054,960 (3,543,716) 402,102 19,913,346 (3,543,716) 342,747 16,712,377 (3,543,716) 282,271 13,450,933 (3,543,716) 220,653 10,127,869 (3,543,716) 157,870 6,742,024 (1,423,010) 113,935 5,432,948 (1,266,748) 90,678 4,256,879 (1,110,485) 69,935 3,216,329 (954,222) 51,752 2,313,858 (797,960) 36,178 1,552,076 (638,368) 23,293 937,001 (478,776) 13,180 471,405 (319,184) 5,891 158,112 (159,592) 1,480 - 8,627,092 2018 Wastewater Impact Fee Update City of Denton, Texas Page 5 of 8 Wastewater Appendices Year City of Denton - 2018 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Calculation Wastewater Service Area Future Value Escalation Number of Interest Recovery Years to Rate Fee Annual Service Units Annual Expense End of Period Factor Factor Actual Escalated Actual Escalated 1 29 1.7048 1.0000 1,204 2 28 1.6732 1.0000 1,204 3 27 1.6422 1.0000 1,204 4 26 1.6118 1.0000 1,204 5 25 1.5819 1.0000 1,204 6 24 1.5525 1.0000 1,204 7 23 1.5237 1.0000 1,204 8 22 1.4955 1.0000 1,204 9 21 1.4678 1.0000 1,204 10 20 1.4405 1.0000 1,204 11 19 1.4138 1.0000 - 12 18 1.3876 1.0000 13 17 1.3619 1.0000 14 16 1.3366 1.0000 15 15 1.3118 1.0000 16 14 1.2875 1.0000 17 13 1.2636 1.0000 18 12 1.2402 1.0000 19 11 1.2172 1.0000 20 10 1.1946 1.0000 21 9 1.1725 1.0000 22 8 1.1508 1.0000 23 7 1.1294 1.0000 24 6 1.1085 1.0000 25 5 1.0879 1.0000 26 4 1.0677 1.0000 27 3 1.0479 1.0000 28 2 1.0285 1.0000 29 1 1.0094 1.0000 Annual Interest Rate: Present Value of Initial Impact Fee Fund Balance Total Escalated Expense for Entire Period Less Future Value of Initial Impact Fee Fund Balance Sub -Total Total Escalated Service Units Impact Fee for Wastewater Service Area 2,053 $ 2,015 1,977 1,941 1,905 1,869 1,835 1,801 1,767 1,735 18,897 1,106,356 $ 1,886,159 2,183,685 3,653,800 2,282,851 3,748,900 2,377,826 3,832,462 2,468,872 3,905,420 2,559,151 3,973,164 2,645,842 4,031,586 2,729,155 4,081,424 2,809,284 4,123,354 3,860,097 5,560,637 3,543,716 5,010,218 3,543,716 4,917,315 3,543,716 4,826,135 3,543,716 4,736,645 3,543,716 4,648,815 3,543,716 4,562,614 3,543,716 4,478,011 3,543,716 4,394,977 3,543,716 4,313,482 3,543,716 4,233,498 1,423,010 1,668,476 1,266,748 1,457,718 1,110,485 1,254,202 954,222 1,057,733 797,960 868,118 638,368 681,617 478,776 501,733 319,184 328,286 159,592 161,100 1.89% $ 2,194,686 $ 92,897,599 3,776,602 $ 89,120,997 18,897 $ 4,716 $ 92,897,599 2018 Wastewater Impact Fee Update City of Denton, Texas Page 6 of 8 Wastewater Appendices City of Denton - 2018 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Impact Fee Project Funding Wastewater Service Area Cost In Impact Fee Debt Funded1�1 Non -Debt Impact Fee Impact Fee Project Name" Service Area in Note Recoverable Cost(') Existing Proposed Funded(2) Recoverable Cost South Wet Weather Lift Station & Detention Pond $ 1,552,898 A $ 217,406 $ 217,406 $ - $ - $ 217,406 Cooper Creek Interceptor III 1,277,970 B 24,282 24,282 - - 24,282 Cooper Creek Outfall (Loop 288) 3,898,807 A 296,310 296,310 - - 296,310 Eagle Drive Sewer 902,329 B 11,731 11,731 - - 11,731 Krum Sewer Line 398,450 A 164,560 164,560 - - 164,560 Graveyard Branch Interceptor 5,004,952 A 575,570 575,570 - - 575,570 Hickory Creek Outfall 1,111,495 B 45,572 45,572 - - 45,572 Leatherwood Interceptor 156,592 B 2,349 2,349 - - 2,349 Parvin Sewer Line 326,474 B 42,116 42,116 - - 42,116 Pecan Creek Interceptor (Ph 1 & 2) 3,363,189 A 134,528 134,528 - - 134,528 Pecan Creek Interceptor 1 1,975,672 A 266,716 266,716 - - 266,716 Pecan Creek Interceptor 11 1,862,175 B 100,558 100,558 - - 100,558 Pecan Creek Interceptor 111 3,079,149 B 150,879 150,879 - - 150,879 Pecan Creek Interceptor IV 978,285 B 54,784 54,784 - - 54,784 Pecan WRP (15MGD) 39,528,174 A 5,929,227 5,929,227 - - 5,929,227 Pecan WRP Expansion (6MGD) 30,005,125 A 21,003,588 21,003,588 - - 21,003,588 Roark Branch Interceptor 854,774 A 517,994 517,994 - - 517,994 State School Interceptor 1 1,660,869 A 152,800 152,800 - - 152,800 State School Interceptor 11 3,326,406 B 362,579 362,579 - - 362,579 US 380 Utility Relocations 2,823,082 B 115,747 115,747 - - 115,747 Woodhaven Interceptor 965,735 B 26,075 - - 26,075 26,075 Audra Interceptor 278,530 C 16,990 - 16,990 - 16,990 Ave G Interceptor 433,078 C 30,749 - 30,749 - 30,749 Bonnie Brae Connector 191,746 C 152,247 - 152,247 - 152,247 Bonnie Brae Relocation 1,886,106 C 1,101,486 - 1,101,486 - 1,101,486 Carroll Ave Interceptor 438,623 C 14,036 - 14,036 - 14,036 Clear Creek Interceptor 15,000,000 C 2,400,000 - 2,400,000 - 2,400,000 Cooper Creek Interceptor 1 2,632,000 C 231,616 - 231,616 - 231,616 Cooper Creek Interceptor 11 1,128,000 C 41,736 - 41,736 - 41,736 Dry Fork Hickory Creek Tributary 1 Interceptor 1,144,159 C 41,190 - 41,190 - 41,190 Elm Street Sewer Replacements 677,674 C 25,752 - 25,752 - 25,752 Hickory Creek Interceptor 1 1,447,500 C 324,240 - 324,240 - 324,240 Hickory Creek Interceptor 11 8,102,500 C 3,281,513 - 3,281,513 - 3,281,513 Hickory Creek Interceptor 111 2,875,433 C 1,184,678 - 1,184,678 - 1,184,678 Hickory Creek Interceptor IV 1,267,658 C 117,892 - 117,892 - 117,892 Hickory Creek Lift Station Detention Facility 9,900,000 C 9,533,700 - 9,533,700 - 9,533,700 Mulberry Interceptor 125,820 C 7,927 - 7,927 - 7,927 Ranch View Interceptor (Oversize) 159,680 C 90,219 - 90,219 - 90,219 West Peak Flow Detention Lift Station and Pond 3,800,000 C 877,800 - 877,800 - 877,800 Wastewater Impact Fee Report Preparation 45,700 C 45,700 45,700 45,700 Total $ 156,586,808 $ 49,714,840 $ 30,169,296 $ 19,473,769 $ 71,775 $ 49,714,840 (1) Table 3.3 Wastewater Impact Fee Capital Improvements Project Cost and 10-Year Recoverable Cost (2) Per discussions with City staff and City files Project Note A Project costs from 2013 study Project Note B'. Costs of projects completed since 2013 per City Staff Project Note C Proposed projects in 2018 dollars 2018 Wastewater Impact Fee Update City of Denton, Texas Page 7 of 8 Wastewater Appendices City of Denton - 2018 Wastewater Impact Fee Update Capital Improvement Plan for Impact Fees Credit Determination Wastewater Service Area 2018 Service Units(l) 52,174 Ten Year Growth in Service Units(') 12,041 10 years Annual Growth in Service Units 1,204 Debt Service for Debt Funded Projects Eligible for Impact Fees(2) $2,120,706 $2,276,968 $2,433,231 $2,589,493 $2,745,756 $2,905,348 $3,064,940 $3,224,532 $3,384,124 $3,543,716 Net Impact Fee Eligible Debt Service Funded by Other Sources $2,120,706 $2,276,968 $2,433,231 $2,589,493 $2,745,756 $2,905,348 $3,064,940 $3,224,532 $3,384,124 $3,543,716 Current Service Units 53,378 54,582 55,786 56,990 58,195 59,399 60,603 61,807 63,011 64,215 Total Net Impact Fee Eligible Debt Service Funded by Other $ 39.73 $ 41.72 $ 43.62 $ 45.44 $ 47.18 $ 48.91 $ 50.57 $ 52.17 $ 53.71 $ 55.19 Sources per Service Unit Annual Growth in Service Units (Cumulative) 1,204 2,408 3,612 4,816 6,021 7,225 8,429 9,633 10,837 12,041 Annual Wastewater Rate Revenue Generated by Service Unit for Net Impact Fee Eligible Debt Service Funded by Other Sources $ 47,839 $ 100,461 $ 157,558 $ 218,845 $ 284,062 $ 353,375 $ 426,276 $ 502,554 $ 582,017 $ 664,485 CreditAmount $ 3,337,470 (1) Derived from Table 3.1 10-year Additional Single -Family Equivalent Calculation (2) Wastewater Appendices - page 2 Section 11 2018 Wastewater Impact Fee Update City of Denton, Texas Page 8 of 8 Wastewater Appendices EXHIBIT B Water Equivalency Table Meter Size Single Family Equivalent' Zone 1A Maximum Assessable Impact Fee Zone 1 B Maximum Assessable Impact Fee Zone 2 Maximum Assessable Impact Fee 5/8 x 3/a" 1 $3,569 $5,352 $7,638 1 " 2.5 $8,923 $13,380 $19,095 1-1 /2" 5 $17,845 $26,760 $38,190 2" 8 $28,552 $42,816 $61,104 3" 22.5 $80,303 $120,420 $171,855 4" 50 $178,450 $267,600 $381,900 6" 100 $356,900 $535,200 $763,800 8" 200 $713,800 $1,070,400 $1,527,600 loll 325 $1,159,925 $1,739,400 $2,482,350 Wastewater Equivalency Table Meter Size Single Family Equivalent' Maximum Assessable Impact Fee 5/8x3/4" 1 $4,716 1" 2.5 $11,790 1 - 1/2" 5 $23,580 2" 8 $37,728 3" 22.5 $106,110 4" 50 $235,800 6" 100 $471,600 8" 200 $943,200 10" 325 $1,532,700