Capital Improvements advisory committee elects Mr. Franco as chair; El Paso Water reports $24.6M in impact fees and major CIP work underway

Mr. Franco was elected chair of the Capital Improvements Advisory Committee and David Moreno, District 4, was re‑confirmed as vice chair before the committee received El Paso Water’s semi‑annual impact fee report covering Sept. 1–Feb. 28, 2026.

Gustavo Ortale, fiscal operations manager for El Paso Water, told the committee the utility’s impact fee program covers 199 subdivisions: 139 recorded and 60 still in process. "So far as of February 28th, 2026, we have a total of 199 subdivisions. 139 of those are recorded. 60 of those are in process," Ortale said. He reported $24.6 million in impact fee collections life‑to‑date and about $1.6 million collected during the current reporting period, with most recent activity on the city’s east side.

Ortale highlighted capital investments underway: he said El Paso Water’s water capital improvement program shows roughly $163 million identified across projects (a $26 million increase since the prior report) and pointed to the Pure Water Center, budgeted at $173 million, as one of the largest water projects. He reported approximately $24 million was invested in the Pure Water Center during the reporting period and that roughly $49 million had been invested on it life‑to‑date (the presenter corrected a mid‑sentence figure during the briefing).

On the wastewater side, Ortale said the utility lists about $182 million in project budgets and that the Bustamante expansion — budgeted at about $105 million — accounted for the bulk of recent activity, with about $46 million invested in the current reporting period.

Committee members pressed staff on funding gaps between long‑range CIP authorizations (roughly $1.2 billion shown in planning materials) and available impact fee revenue. Ortale said El Paso Water routinely issues bonds and uses commercial paper to fund projects as construction proceeds, and that costs are ultimately recovered through utility rates. "We do issue bonds," he said, describing a staggered approach to financing multi‑year projects and noting annual bond issuances and short‑term instruments help bridge timing differences.

Members also asked operational questions: staff said impact fees are typically assessed when building permits are pulled and that property owners are charged at connection or permit time; interest earned on idle impact fee balances varies with market rates (Ortale said it has been around 5% recently) and is reported in the exhibits that accompany the collections report.

The committee asked about specific developments. Planning/inspections staff identified Vinton (Vista) Norte Estates as a phased northeast development north of Highway 54 near the railroad and airport land and said some phases are already occupied. Staff clarified El Paso Water’s service boundary: the utility serves to its defined impact fee area boundary; areas farther east that fall in Horizon MUD or south in the Lower Valley Water District are not served by El Paso Water.

On a policy timeline, staff said land‑use assumptions and fee reassessments occur about every five years and that the next reassessment is likely in 2028 or 2029, after which any recommended rate changes would go to the city council.

After discussion the committee unanimously approved a motion to accept the El Paso Water presentation and to authorize filing the semi‑annual reports as required by state statute. The committee also approved minutes from the Nov. 6, 2025 meeting and adjourned.

What happens next: staff said the next formal reassessment of impact fees is expected in the 2028–2029 cycle and any rate or boundary changes would be routed to city council for final action.