These increased costs for developers will help fund roadway improvements and expand water and wastewater capacity, needed for new growth, according to city documents. The goal is to ensure the cost of new development does not fall disproportionately on existing residents.
Digging deeper
Although transportation impact fees vary significantly based on the specific transportation service area and the type of land use—single-family residential, other residential, nonresidential and warehousing—developers and property owners can anticipate increases from 100% to over 250% for many categories, fully in effect by September 2026.
Updates to the water and wastewater impact fees result from unprecedented inflation and market uncertainty, according to city documents. For water impact fees, the cost will increase from $11,000 to $12,000 on Aug. 31, 2026. It will increase again to $13,000 on Aug. 31, 2027.
For wastewater impact fees, the cost will increase from $6,129 to $7,000 on Aug. 31, 2025. It will increase to $10,250 on Aug. 31, 2026, and again to $13,500 on Aug. 31, 2027.
Also on the agenda
Council also considered an increase to waste collection rates.
Texas Disposal Systems, a residential waste collection services company, requested a 1.47% increase in its wholesale rate with the city beginning Nov. 1, 2026. TDS may request an increase in wholesale rates each year, due to factors like rising fuel prices, higher labor costs or increased disposal fees, at a maximum of 4%.
City staff presented this request to City Council on Aug. 12, and also recommended a 4.5% price increase to residential retail rates and a 9.5% increase to commercial retail rates, which affects the overall cost of utility bills.
What's next
City Council will consider the first reading to implement the waste collection rate change Sept. 9, 2026, and a second reading Sept. 23, 2026.
