Council debates waiving $415,575 in SAWS impact fees for failing Timberwood septic system

City staff and SAWS laid out a policy question about whether City Council should waive wastewater impact fees for the Villas at Timberwood, a 75‑unit community currently served by a failing communal septic system located over the Edwards Aquifer contributing zone. Staff said the estimated project cost is about $2.8 million; Bexar County has directed $2 million in federal ARPA funds to the project and the waiver requested from SAWS would total $415,575 (the presentation set the fee at $5,541 per equivalent dwelling unit, with wastewater treatment fees of $110.05 and collection fees of $4,436 per EDU resulting in $415,575 for 75 units).

Councilwoman Spears and others framed the request as urgent because ARPA funds must be spent by year‑end and because TCEQ has documented permit violations and cited public‑health risks. Spears said residents have borne high out‑of‑pocket maintenance and litigation costs, and described the neighborhood’s condition as an imminent public‑health concern. Other councilmembers pushed back, saying the county should cover the expense and warning against setting broad precedent for waivers while the city seeks a rate increase. Staff noted alternatives: a five‑year payment plan (about $92–$100 per home per month with modest interest), earlier annexation by petition (default annexation is scheduled for 2032), or applying policy changes through the CIAC impact‑fee study scheduled to start in 2027.

Legal counsel clarified that under chapter 395 of the Texas Local Government Code and SAWS regulations the Villas’ conversion to SAWS service qualifies as new development and therefore triggers impact fees; the settlement amount between the HOA and developer was described as confidential and not disclosed in the briefing. Mayor Jones stated he did not support using a city waiver for this case and urged the county to cover the balance or for councilmembers to use carry‑forward funds if they wished to help.