San Antonio Raises Water Impact Fees on Developers

Increased charges to help offset the cost of capital improvements for public services

In a move to better manage capital improvements related to water and sewer services, the San Antonio City Council has unanimously voted to increase impact fee rates for future residential developments. The new rates, which are due to take effect in July 2024, will apply to all developers planning to build new homes within city limits. The raised fees are part of an effort to offset the cost of capital improvements that accommodate new development.

Understanding the Background

The decision to review the impact fees came after city staffers identified a need for the city’s land use assumption and capital improvement plans within the territory of the San Antonio Water System (SAWS) to be updated. The current regulations follow a state law requirement stipulating that city or county governments must reassess their one-time impact fees every five years. This ensures the fees help local utilities offset costs from necessary capital improvements spurred by new development.

These fees consider a variety of factors, including anticipated population growth. Current predictions estimate that the population of the SAWS service area will escalate from 2 million to 2.5 million by 2033. Revenues from the impact fees are crucial to support long-range water utility initiatives, such as water storage and recovery operations.

New Fee Rates

At present, combined water and sewer connection impact fees for an average single-family home in San Antonio range from $5,902 to $8,548. The newly voted upon rates, however, will see the water and sewer impact fee for a similar home range from $7,343 to $11,528, depending on the size and location of the property. This represents an average increase of 23%. In particular, developers in northwest San Antonio will be hit with the largest rate hike at 35% for each new service connection, owing to the higher elevations in this part of SAWS’ service area.

The new impact fees have been formulated aided by the input of SAWS’ Capital Improvement Advisory Committee, which includes representatives from the local development community. Once finalized, these suggestions were passed by the SAWS board and recommended for council approval.

Ideal for Sustainable Urban Growth

The increased rates aim to not only aid in funding the expansion of SAWS’ infrastructure but also encourage sustainable urban growth. Developers will now be incentivized to deliver residential projects that are efficient in their usage of water and sewer services, leading to a better optimization of these vital resources. The revised impact fees have positioned San Antonio for a future of smart, sustainable growth, where development and resource management go hand in hand.

This anticipatory approach ensures that SAWS has the necessary funds to adapt its services to accommodate growing demand, and simultaneously helps promote responsible and strategic development within the city. In view of a projected rise in population, such measures are essential for the assurance of maintaining consistent high-quality water and sewer services for all residents.