MAGNOLIA'S water timetable
However, around five months later, in May 2022, the city of Magnolia raised its impact fees per sin- gle-family connection—from $4,800 total to $7,400 total—to fund water infrastructure, Community Impact reported. Impact fees are one-time fees col- lected to fund a new water user’s share of the city’s water or wastewater capacity. Pausing development Kurzy said the city was preparing for a month before bringing the ordinance to City Council on Dec. 13 to enact a temporary development mora- torium. The ordinance was adopted Dec. 21 and is expected to be in place for 120 days, although City Council can extend it. “The moratorium had been mentioned probably two or three months in advance and only because we had seen that there were other places that had mora- toriums,” Kurzy said. “We’re just trying to make sure that the City Council knew that they wouldn’t be the first one to enact a moratorium.” In Central Texas, the city of Dripping Springs enacted a temporary development moratorium in November 2021 due to reaching its wastewater capac- ity. The moratorium lasted through September 2022. In an email, the city of Dripping Springs said offi- cials are aware of the need for additional capacity and have been trying to obtain that capacity. During the moratorium period in Dripping Springs, two permits were denied, according to the city. Under Magnolia’s moratorium, there have been eight permit requests, City Administrator Don Doer- ing said in a Jan. 26 interview. Doering said no exceptions or waivers had been issued under the moratorium as of Jan. 26. Mean- while, developments such as Heritage Green and master-planned community Audubon are trying to move forward. “The good news is we got enough work done out in front of it that we think we’re good for the things we have opening in the near future,” Steve Gib- son—co-owner and partner of Shadyside Land Co., which owns Heritage Green—said in an interview. “The things that have a little longer lead time will be dependent on Magnolia getting their work done and hopefully bringing additional capacity online.” Sam Yager III, executive vice president of Sam Yager Inc. and developer of Audubon, said in an interview that some construction is able to continue in Audubon, which is expected to bring 4,000-5,000 homes to Magnolia in the next 12-15 years, Commu- nity Impact previously reported. “And we are working with the city of Magnolia to try and assist them in any way possible to try and help them with their water and sewer concerns,” Yager said. Audubon is working on its own well, anticipating getting it online in May, according to documents provided by the Audubon Management District. Kana said the city had no choice but to enact the moratorium. “There’s absolutely no way we could honestly continue to pretend the water was there and sell it like it was there only to have people discover it’s not really there,” Kana said. “So while it was hard to come to the realization [about] where we were, I really don’t think the city had a choice at that point.”
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wastewater per day. Around 11,000 new connections are expected to be needed from new developments over the next five years, Kurzy said. As the city grows, its demand for water is also projected to grow. By 2050, the city of Magnolia is projected to have 8,912 residents and use 1,949 acre-feet of water per year, according to the Texas Water Development Board. In comparison, in 2021 the city used 645 acre-feet of water, according to the TWDB. One acre-foot of water is equivalent to 325,851 gallons. “To prepare for future water needs, cities should participate in the regional water planning process to identify, evaluate and recommend water manage- ment strategies and projects to meet their identified water needs,” TWDB Chief Communications Officer Lauren Munguia said via email. “It is also import- ant that utilities manage and maintain their current assets to maximize the lifespan of the infrastructure.” Magnolia Mayor Todd Kana said the city has sold $20 million-$22 million of certificates of obliga- tion—a way to borrow money—to fund water well projects that will increase its water capacity, allow- ing new development to begin again. Magnolia’s history with water Before being hired by the city, AEI Engineering did an analysis of the city’s water capacity in May 2021 and anticipated around 200 connections per month coming online for the next five years, Kurzy said. Once the company was officially hired in September 2021, Kurzy said the company immediately identi- fied the diminishing water connections. “When we came on, the first thing I said is, ‘You guys don’t have enough water. There’s just not enough there,’” Kurzy said. “Now luckily, they were running less than that because we would have run out of water [in] early December [2022] or before.” Kurzy said when he began working for Magnolia, the city was adding around 50 connections a month before it ramped up to 100 connections a month. “So it would have been a lot worse had they got- ten what the developers actually expected to build,” Kurzy said. As the Magnolia area has grown, the city has sought to fund water and wastewater infrastruc- ture and revise utility rates to continue serving its population. Shortly after hiring AEI, the city settled with a group of local churches over a dispute regarding water fees in December 2021, Community Impact reported. The dispute was centered around water rates because in spring 2018, the city of Magno- lia created an institutional category that applied to tax-exempt, nonprofit or government entities, moving them from the commercial water rate with local businesses to an institutional water rate that was higher. Through this new category, local church leaders said they saw water bills increase by 300%, according to previous reporting. Kana maintains the point of the institutional rate was to be equitable, not to raise money for water infrastructure such as new wells. “That was solely to make sure the rights were spread equitably amongst all the users,” Kana said.
Magnolia has struggled to maintain water capacity since this summer amid rapid development, but the city plans to complete two new wells later this year.
2021
May
AEI Engineering provides an analysis of the city’s water system, which anticipated 200 connections per month coming online for the next 5 years.
September
The city begins to work with AEI Engineering for city engineering services, authorizing the company to begin working on Well No. 7.
2022
May 10
Council raises impact fees—which fund a new user’s share of water capacity— from $4,800 total to $7,400 total.
Aug. 8-Sept. 9
As water capacity decreases, the city implements Stage 3 drought restrictions, which are lifted Sept. 9. Council approves the Magnolia 4A Economic Development Corp.’s temporary water system project for the city’s east side. Nov. 29
Oct. 13
The city enacts Stage 2 drought restrictions.
Dec. 13
With the city’s water capacity diminishing, a temporary development moratorium goes into place Dec. 16-25.
Dec. 21
Council votes to enact a temporary development moratorium for 120 days.
2023
Jan. 10
Feb. 14 Council awards a contract to Weisinger Inc. to build Well No. 8 for $2.89 million. City Council approves a utility development and escrow agreement with Magnolia East 149 LLC for a $6.29 million water supply plant. The well under construction in the Audubon development is anticipated to come online. May
Jan. 17
The temporary water system on the east side of the city comes online. The temporary development moratorium reaches 120 days; it can be extended by City Council.
April 20
Aug.
Well No. 7 is anticipated to come online.
Dec.
Well No. 8 is slated to come online.
2024 and beyond: The city plans to build two wells a year as needed.
SOURCES: CITY OF MAGNOLIA, AUDUBON MANAGEMENT DISTRICT/ COMMUNITY IMPACT
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