Needville consultant presents impact-fee study showing maximums of $3,963 (water) and $4,932 (wastewater) per ESFC

Jeremy Davis of Kaluza, Inc. presented the City of Needville with an update to the Water & Wastewater Impact Fee Study, explaining the methodology for converting eligible capital costs into a per-connection fee. Davis said the study divides eligible CIP cost by new Equivalent Single-Family Connections to arrive at a per-ESFC charge and noted the statutory limits under Texas law that govern impact fees.

The study reported 1,291 existing connections in 2025 and a projection of 3,192 connections by 2035, yielding 1,901 new connections to be served between 2025 and 2035. Using those figures, the presentation computed a maximum water impact fee of $7,533,744 ÷ 1,901 = $3,963 per ESFC and a maximum wastewater impact fee of $9,375,994 ÷ 1,901 = $4,932 per ESFC. For context, the study materials list the current utility impact fees as Water = $453.33 per ESFC and Wastewater = $613.03 per ESFC.

Committee members asked questions during the presentation about preparing the city budget and infrastructure plans to accommodate future growth; those exchanges focused on the rationale for using maximum-fee calculations so Needville will be prepared if and when Council elects to adopt a higher fee schedule. The presentation materials and Davis's explanation were provided to the Committee for its advisory recommendations to City Council.