NEW BRAUNFELS UTILITIES POLICY
WITH RESPECT TO CAPITAL RECOVERY FEES
ARTICLE I
GENERAL PROVISIONS
Section 1.01 General Policy Statement
Economic growth is stimulated when water and wastewater facilities are available for new development at reasonable cost, and such economic growth expands the ratepayer base. It is the policy of NBU to establish a comprehensive system, consistent with state law and the ordinances of the City of New Braunfels (the “City”), to assure that the costs of capital improvements and facility expansions made by NBU on account of new development are fairly distributed between the owner of the new development and the ratepayers. The City has heretofore passed and adopted Ordinance No. 2000-48 (the “Ordinance”) authorizing the collection of water and wastewater capital recovery fees and directing New Braunfels Utilities (“NBU”) to establish a policy with respect to implementation of the Ordinance. This policy shall replace all previous policies with respect to capital recovery fees charged for lots with final plats dated after the effective date of this policy.
NBU is authorized to adopt this policy by the Water and Wastewater Capital Recovery Fees Ordinance. NBU has been directed in such Ordinance to implement and administer the provisions of that Ordinance consistent with Section 395.00 1 et seq. Local Government Code, Vernon’s Texas Codes Annotated (the “Act”).
Words and terms used in this policy statement shall have the same meaning and definition as contained in Section 395.00 1 Local Government Code, Vernon’s Texas Codes Annotated.
As applied and used in this policy statement, the following words and terms shall be used and shall have the meaning and definition set forth opposite each such term:
(1) Assessment - The determination of the amount of the maximum capital recovery fee per service unit which can be imposed on new development pursuant to the Ordinance.
(2) Capital Improvements Plan (CIP) - Plan which identifies water and wastewater capital improvements or facility expansions pursuant to which capital recovery fees may be assessed and collected.
(3) Capital Recovery Fee - Refers to water or wastewater impact fees as defined in the Act imposed upon new development, calculated based upon the costs of facilities in proportion to development creating the need for such facilities.
(4) Existing Development - All development within the service area which has a water or wastewater tap, whether on the New Braunfels Utilities’ system or other centralized water or sewer system, as of the date of the adoption of the ordinance.
(5) Facility Expansion - The expansion of the capacity of an existing facility which serves the same function as an otherwise necessary new capital improvement in order that the existing facility may serve new development. Facility expansion does not include the repair, maintenance, modernization, or expansion of an existing facility to better serve existing development.
(6) Final Subdivision Plat - The map, drawing or chart on which is provided a developer’s plan of a subdivision, and which has received final approval by the Planning and Zoning Commission or City Council and which is recorded with the office of the County Clerk.
(7) Fire Line Tap - The unmetered connection of a privately owned water line to a City water line to provide water for a qualified fire protection system.
(8) Land Use Assumptions - Projections of changes in land uses, densities, intensities, and population therein over at least a 10-year period, adopted by the City, as may be amended from time to time, upon which the capital improvement plan is based.
(9) Living Unit Equivalent (LUE) - Basis for establishing equivalency among and within various customer classes based upon the relationship of the continuous duty maximum flow rate in gallons per minute for a water meter of a given size and type compared to the continuous duty maximum flow rate in gallons per minute, using American Water Works Association C700-C703 standards. LUEs for water meters are reflected on Schedule 1 attached to this policy.
(10) Service Area - Area shown on the service area maps maintained in the City’s planning department or such areas as contractually defined to be served by the water and wastewater capital improvements or facilities expansions specified in the capital improvements plan applicable to the service area.
(11) Service Unit - Standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards for a particular category of capital improvements or facility expansions, expressed in living units equivalent.
(12) Tap - The joining on public property by any mechanical means of a new water or wastewater line to an existing City water or wastewater pipeline.
(13) Wastewater Service Connection - The connection of a wastewater service line to the City wastewater line to serve a single customer.
(14) Water Service Connection - The connection of a water service line to the City water line and the installation of a water meter to provide a metered water source to a single customer.
(15) Wholesale Customers - Water or wastewater customers of the NBU which purchase utility service at wholesale rates for resale to their retail customers.
Section 1.04 Capital Recovery Fees as Conditions of Development Approval
As set out in the Ordinance, no new development shall be approved without assessment of capital recovery fees pursuant to the Ordinance and this policy.