New Braunfels | February

PAVING THE WAY for growth The 2019 Roadway Impact Fee Study calculated the 10-year land use growth projections. Impact fees will go toward funding capital improvement projects made necessary by new development. Cost of capital improvements

2020

2021

2022

2023

March 1, 2023 The roadway impact fee

Nov. 14, 2022 New Braunfels City Council

Oct. 24, 2022 City sta moves forward with the maximum assessable fee to address transportation needs and have development pay for the impact of development.

Feb. 1, 2023 The new water and wastewater maximum allowable impact fee goes into eect for new developments with nal plat approval on and after Feb. 1 or for which platting is not required.

Nov. 14, 2022 New Braunfels City Council approves charging developers 100% of the maximum allowable impact fee for roadways.

goes into eect for new developments with nal plat approval on and after March 1 or for which platting is not required.

approves charging developers 100% of the maximum allowable impact fee for water and wastewater.

Property taxes $151.7 M

Impact fees $90.6 M

$242.3 M

Improving water infrastructure As part of the 2021 Water and Waste- water Master Plan update, CIPs were developed for NBU to serve projected growth through 2045. The recom- mended impact fee-eligible improve- ments will provide the required capacity to meet projected water demands and wastewater infrastruc- ture through 2032, according to NBU. NBU worked with consultant Fre- ese and Nichols to calculate water and wastewater fees by looking at land available and projected development over the next decade. The new maximum allowable fees will go into eect for new approved developments on and after Feb. 1 or for which platting is not required. Only utility improvements that serve future growth are eligible for impact fee collection, according to NBU. “Our board made the decision to have growth pay for growth where it could. I will say that even charging the impact fee, you’re still not pull- ing in every project cost,” Schriewer said. “And some of that growth falls onto the ratepayers, but if you’re not having growth pay for growth, then that is going to fall onto your existing ratepayers. So our board has taken the stance that they feel like growth should pay for growth where it can.” NBU has over $800 million in water

Association of Realtors, said a healthy market has closer to six months of inventory, which indicates a housing shortage in New Braunfels. Ryan said real estate agents are worried the increase will worsen the housing aordability crisis in New Braunfels and that developers will pass the cost along to homebuyers. “We don’t really love using these impact fees to fund things,” Ryan said. “I mean, there is a cost for all of these things, more water, more sewer. All of these things are denitely being impacted by this inux of people. But we feel like there must be a better way and that it can really have a huge impact on the aordability of the area.” Jordan Matney, assistant city man- ager of New Braunfels, said it is hard to predict if development will slow down with the increase in fees due to the upward trend of growth in the area. “I think that it’s important to make sure that development pays for itself,” Matney said. “I don’t think that should be a burden on our existing taxpayers. ... With the growth that we’ve seen, with the number of permits that we see every single year, I would be sur- prised if [development slowing down] were to happen.” Jonathan Packer, president of the Greater New Braunfels Chamber of Commerce, said there are several

and wastewater projects that impact fees could partially fund in the next 10 years, which includes the $113 million Guadalupe-Blanco River Authority Mid-Basin Water Supply Project. The project is intended to meet the projected water needs of the growing population along the I-35 and SH 130 corridors. The project is designed to employ a combination of surface water, groundwater, o-channel stor- age, and aquifer storage and recovery to eciently manage a new regional water supply, according to GBRA. “We’re purchasing water from GBRA, but we have to build infrastruc- ture to get that water,” Schriewer said. “So that is a big portion of the water impact fee is that infrastructure to get that water to NBU, and that water is the source of new growth.” Schriewer said through the process, NBU sta met with developers to receive feedback. Real estate realities The New Braunfels housing market has been competitive. As of December, the median price for a home in New Braunfels was $380,253, an over 11% increase from 2021. The local housing market has an average of 3 1/2 months of housing inventory, but Stephanie Ryan, the board president of the Four Rivers

Impact fee breakdown CURRENT COLLECTED FEE Residential

Nonresidential 25% 50% Non-residential 100% 100%

FUTURE COLLECTED FEE Residential

SOURCE: CITY OF NEW BRAUNFELS COMMUNITY IMPACT

factors in the economy that could slowdown development. “I think the cost of doing business is very clearly a factor for whether proj- ects can work in a community, and whether it’s ination or the current interest rate environment, projects are just having a more dicult time gaining momentum,” Packer said. “I’m sympathetic to the public sector; they need to ensure that they’re simulta- neously planning strategically for the future and being fair to existing resi- dents. So I think time will tell; [impact fees are] denitely an important fac- tor, but it’s also not the only factor.”

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NEW BRAUNFELS EDITION • FEBRUARY 2023