The New Braunfels City Council approved the maximum allowable impact fees after a review of New Braunfels Utilities' water and wastewater impact fees.

Impact fees are allowed by the Local Government Code to provide a mechanism for new development to pay for its impact on water and wastewater systems, according to NBU.

The fees are calculated based on a 10-year capital improvements plan, land-use assumptions, population projections and per capita use. They are updated about every five years, but updates may be initiated when the entity charging the impact fees believes it is necessary.

"The impact fee provides a mechanism for new growth to pay for new growth and its impact on the water and wastewater system, and keeps current customers from bearing the cost of infrastructure that serves that growth,” NBU CEO Ian Taylor said.

The New Braunfels City Council approved maximum impact fees on Nov. 14 for a residential 5/8-inch meter at $19,448 per living unit equivalent, or LUE, for water and $6,244 per LUE for wastewater.

The NBU board of trustees approved the collection rate of 100% with an effective date of Feb. 1, 2023. The new impact fee rate will change for developments in which the final plat was recorded before June 20, 1987, or after Jan. 31, 2023, according to NBU.