AGENDA CAPTION:
Title
Receive a Staff presentation and hold a public hearing regarding Ordinance 2026-29, updating and amending the water and wastewater impact fees to be charged by the city in connection with updates to the city’s Land Development Code and Comprehensive Plan and associated land use assumptions, including amendments to Section 86.294 of the San Marcos City Code to add such new fees; providing a savings clause; providing for the repeal of any conflicting provisions; and declaring an effective date; and consider approval of Ordinance 2026-29 on the first of two readings.
Body
Meeting date: August 5, 2026
Department: Engineering and CIP
Amount & Source of Funding
Funds Required: NA
Account or Project Number (C = CIP funds): NA
Funds Available: NA
Account Name: NA
Fiscal Note:
Prior Council Action: Click or tap here to enter text.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Public Safety, Core Services & Fiscal Excellence
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Arts and Culture - Choose an item.
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Housing + Neighborhoods - Choose an item.
☐ Land Use + Community Design and Character - LU-3: Establish a set of tools and programs which may recommend incentives to direct and manage growth consistent with community goals
☐ Parks & Public Spaces + Health, Safety & Wellness - Choose an item.
☐ Transportation - Choose an item.
☐ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Water Master Plan
Background Information:
The City is proposing an amendment to the current 2018 Water and Wastewater Impact Fees. An update to Land Use Assumptions and growth projections have been proposed in accordance with the adopted Comprehensive Plan. Using these updates Engineering consultants Plummer and Freese & Nichols conducted Water and Wastewater Impact Fee Studies following the completion of the corresponding Master Plan updates.
These studies identified a 10-year Capital Improvement Plan of Impact Fee eligible projects. Based on service growth projections and eligible costs over the 10-year period an amendment to the Water and Wastewater Impact Fee rates are proposed. The Water Impact Fee would increase from the current rate of $3,801 to the maximum allowable rate of $14,519 per Service Unit Equivalent. The Wastewater Impact Fee would increase from the current rate of $2,684 to the maximum allowable rate of $11,161 per Service Unit Equivalent.
This proposed amendment requires an effective date for the new fees to be applied and staff proposes using October 1, 2026 as the effective date.
Council Committee, Board/Commission Action:
Capital Improvements Advisory Committee recommends setting the Water and Wastewater Impact Fees up to the maximum allowable rates.
Alternatives:
City council may choose to set Water and Wastewater Impact Fees at the maximum allowable rate or a cost less than the max and establish an effective date.
Recommendation:
Staff Recommends approval of the Land Use Assumptions, Capital Improvement Plan and Maximum Allowable Water and Wastewater Impact Fees and to establish an effective date of October 1, 2026.