The city of McKinney is looking to increase water and wastewater impact fees in the coming year.
During a Tuesday City Council work session, McKinney Planning Manager Aaron Bloxham outlined proposed impact fee changes for the city. Impact fees, or one-time fees paid by developers that are used to cover infrastructure costs related to growth, are updated at least every five years, Bloxham said.
The proposed wastewater impact fee increase, perhaps the starkest change among the proposals, pushes the fee from $162.14 for a three-fourths-inch meter to $1,644.50. The proposed fee from city staff falls roughly $1,250 below the city’s maximum assessable fee for a meter of that size.
The proposed wastewater impact fee includes McKinney’s infrastructure costs as well as 50% of costs from the North Texas Municipal Water District, according to Bloxham’s presentation.
The increases in water and wastewater impact fees move McKinney to a more comparable rate compared to sister cities like Allen, Celina and Rockwall, which currently include NTMWD costs, according to Bloxham’s presentation. McKinney’s current utility impact fees fall on the lower end compared to those cities and others, including Frisco and Prosper.
“I don’t know how long our wastewater has been down that low, but that should have been a red flag for somebody to say ‘You know what, we need to adjust that,’” Mayor Pro Tem Rainey Rogers said. “That looks like it should have been out of the ordinary years ago. So to me, we should have adjusted that accordingly three or four years ago maybe or something like that.”
In addition to the fee changes, McKinney city staff also recommended establishing a grace period for increased fees of nine months from when the fee amendments are approved to when they take effect.
“Typically, the city offers a six-month grace period,” Bloxham said, “but with the economic situation that we find ourselves [in] and coronavirus and not knowing exactly, we thought we’d extend that to nine months.”
During its Tuesday regular meeting, the council approved setting the date for public hearings on multiple impact fee amendments for Dec. 1.