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1. Why are impact fees necessary?

New residential, commercial, or industrial development can increase water consumption and wastewater volume significantly. The increased demand may require the creation of greater storage capacity, additional pumping capability, or expanded treatment facilities.

2. Are impact fees “new fees”?

No. Highland Village has collected impact fees for many years. Senate Bill 336, passed by the Texas Legislature in 1987, authorized cities to use impact fees as a source of funding. The bill specifies what expenditures are qualified to receive impact fee funding and sets forth a formula for calculating the maximum allowable rate.

In 2001, the Highland Village City Council adopted Ordinance No. 01-862, updating the authorization to assess impact fees in the City’s water and wastewater service area and establishing guidelines to ensure the fees are collected and disbursed fairly and within the law.

3. Why did the City of Highland Village Council decide to collect impact fees?

Before these fees were authorized, the costs associated with expanding Highland Village’s department facilities were borne by all of the customers. Now, through the use of impact fees, the developers who create the additional demand are paying a larger share of the cost of meeting that demand. This has helped reduce rate increases that all customers must pay and helps ensure that those who place additional demand on the water and wastewater system help pay the costs required to meet that demand.

4. Do only Highland Village residents pay impact fees?

No. Impact fees are charged to all customers who connect to Highland Village’s water or wastewater system within the water or wastewater service area as defined by Highland Village’s Certificate of Convenience and Necessity (CCN) (a permit issued by the commission which authorizes and obligates a retail public utility to furnish, make available, render, or extend continuous and adequate retail water or wastewater utility service to a specified geographic area). This includes all residences and businesses located within Highland Village’s City limits.

5. Must I pay impact fees for irrigation meters?

Irrigation meters must pay the water impact fee, but the wastewater impact fee does not apply.

6. Are there impact fee charges on fire lines?

No, impact fees are not charged on fire lines.

7. How can I give my input before a change is adopted in the impact fees?

State law requires that a public meeting be held before the City Council adopts any change in the impact fees. The City Council has the authority to adopt any fee rate that does not exceed the maximum allowable rate determined by the Impact Fee Update. The Highland Village City Council adopted a rate lower than the maximum allowable rate.

8. What is the difference between an impact fee and a tap fee?

An impact fee is charged to new development to offset new or increased demands on existing water and wastewater systems. Impact fees are used to fund expansion on the water and wastewater systems. A tap fee is a service fee that is charged for connecting the public water or wastewater main to the private plumbing.