Montgomery council approves increase in new development impact fees

Montgomery City Council approved an approximate 17% increase to the city’s water and wastewater impact fees during its Sept. 9 meeting.

The details

Impact fees are charged to new developments to help cover the cost of growth-related infrastructure, such as water and sewer capacity expansions. City officials said the increase is intended to ensure new growth pays for its share of utility improvements instead of shifting costs onto existing residents.

City Attorney Alan Petrov said during a July 22 meeting that this is the city’s final chance to update impact fees before a new state law, Senate Bill 1883, takes effect Sept. 1, changing the review cycle for impact fees from every two years to three, as previously reported.

Diving in deeper

The change updates Chapter 90 of the city’s Code of Ordinances and follows a water and wastewater impact fee analysis completed May 29, per the agenda. The update also revised land use assumptions and the city’s Capital Improvement Plan, which anticipates 3,923 new service connections over the next 10 years.

According to city documents, Montgomery expects to spend over $51 million on growth-related water and wastewater infrastructure in the next decade—over $26.9 million for water and over $24.1 million for sewer.

The newly adopted fees took effect following the council’s approval Sept. 9.