Freese and Nichols is leading a development impact fee study for the town of Westlake after council members took action during an Oct. 21 meeting.

The gist

Westlake Town Council approved a $118,000 contract with the Fort Worth-based consulting firm. The action comes nearly two months after Westlake council approved a contract with Freese and Nichols for development of a water master plan.

The study will consider implementation of impact fees on new development to help fund the town’s water, wastewater and roadway infrastructure, according to the Oct. 21 meeting agenda.

Freese and Nichols is expected to begin the study in January and will take nine months to complete, according to the agenda. Upon completion of the study, two public hearings will be held, and council will consider adoption of an impact fee ordinance.


If council members decided to move forward with an impact fee ordinance, they can also determine when the fees will start to be collected, Public Works Director Cheryl Taylor said.

Explained

Impact fees are one-time charges levied to new developments and redevelopment projects, according to the Texas Municipal Code. The fees generate revenue for funding capital improvement costs necessary due to new development.

“An impact fee is a charge or assessment to new development that generates revenue for funding or recouping costs of capital improvements or facility expansions that are necessitated by new development,” Taylor said.


Impact fees can be implemented on development projects during the platting process, said Andrew Franko, water/wastewater master planning engineer for Freese and Nichols. Existing residents who don't change the their water meter sizes or land-use type would not be impacted by the fees, he said.

Several development projects are underway in Westlake, including Entrada and the Deloitte University expansion. The town does not currently levy impact fees for new development or redevelopment projects.

The details

The plan’s development will follow four steps:
  • Project kickoff and data collection
  • Water and wastewater impact fee analysis
  • Roadway impact fee development and analysis
  • Impact fee report development and public meetings
Impact fees are calculated based on land use assumptions, expected population growth and expenditures necessary to support that growth, according to the agenda. The study will determine maximum allowable impact fees that can be charged for water, wastewater and road use based on the town’s capital improvement program.


During the study, consultants will project future growth and land use for the town between 2025-2035, Franko said.

“We’re going to basically convert all that growth into water demands, wastewater flows and vehicle miles traveled,” he said.

Westlake is projected to reach a population of about 7,000 by 2040, while its daytime population is expected to reach more than 40,000 in the same year, according to the town’s website. The city's population was estimated at over 1,900 in 2023.