City attorney Alan Petrov said 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.
What this means
The proposed change follows a state-required review that updates assumptions based on growth, land use and infrastructure costs, Roznovsky said.
If approved, the maximum assessable impact fee per single-family connection would rise about 17%, Roznovsky said.
Roznovsky said Montgomery projects 3,923 new connections over the next 10 years, with 45% already in active development.
“Between the additional connections, the timing of the projects and the cost of the projects, it is approximately an increase of about 17%,” Roznovsky said.
He said the fees support projects such as water and sewer line expansions, plant upgrades, and increased well capacity. These costs are shared by developers instead of being set entirely by taxpayers.
Why it matters
Montgomery expects to spend over $51 million on growth-related water and wastewater infrastructure—over $26 million for water and over $24 million for sewer—in the next decade, Roznovsky said. The remainder can be covered by user fees, utility debt and developer reimbursements.
“You’re only allowed to capture the cost of increasing capacity,” Roznovsky said. “For example, replacing a water tank with one of the same size doesn’t qualify.”
City leaders said the proposed rate is based on the maximum allowed under state law, and similar cities are also turning to impact fees to manage growth.
“This is how a lot of cities have gotten behind because they didn't [have them],” Mayor Sara Countryman said.
What’s next
The public hearing will be held Aug. 26 at 6 p.m. at City Hall, 101 Old Plantersville Road. Council may vote on adopting the new fees after the hearing.
