“This could have a strong economic impact on our ability to provide water and sewer in the future based on these particular fees that the city so desperately needs,” Mayor Duke Coon said during the June 25 workshop meeting.
The details
The study will evaluate potential fees for new development that help fund water, sewer and roadway infrastructure projects necessitated by growth, said Eddie Haas, a planner with Freese and Nichols. Fees would apply to new projects that have not yet pulled permits by the time fees are adopted, which is potentially in 2027.
“This is a one-time charge assessed to all new developments for a portion of [the] cost related to specific capital improvements,” Haas said. “The more demand that a new development puts on the system, the higher the fee.”
The process includes evaluating a 10-year growth forecast, updating capital improvement plans and conducting a credit analysis to determine a maximum fee, Haas said. The council will have discretion over how much of that maximum to implement.
As part of the study, the city will also form a Capital Improvements Advisory Committee composed of at least 50% real estate or development industry professionals, and that cannot be made up of members from the Planning and Zoning Commission, per recent legislative changes, Haas said.
Diving in deeper
Freese and Nichols estimated the study will take up to 20 months due to added public hearing and notice requirements. They will also provide benchmarking data comparing fees in cities like Baytown and New Braunfels, which currently charge between $4,100 and $31,000 for single-family homes, Haas said.
Council members discussed concerns over the study’s cost, but city staff and council member Marsha Porter said the need for the study outweighs the half-million dollar price tag.
“With our water study projecting up to 2 million in population in 25 years, the return on investment could be very quick,” Porter said. “This is for future development, because I don't see anybody on this council going to go raise property taxes, so impact fees sort of offset the growth.”
Deputy City Administrator Nancy Mikeska said Conroe is about 60% built out. Haas said the fees could still apply to remaining undeveloped land, redevelopment and future phases of already-approved subdivisions not yet constructed.
Coon said this is about future-proofing the city of Conroe.
“We have to be bold,” Coon said. “This is about stabilizing our situation 10 to 20 years from now so we don’t end up where we are today.”
What's next
Freese and Nichols will begin collecting data and engaging with stakeholders in the coming months.
The city will adopt land use assumptions and capital plans before setting any fees. The city will also have to host two public meetings before adoption, Haas said.
