Item #3

Impact Fee Advisory Committee – May 14, 2024

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CITY OF AUSTIN, TEXAS AUSTIN WATER SEMI-ANNUAL IMPACT FEE COLLECTIONS REPORT October 1, 2023 through March 31, 2024 City of Austin | Austin Water P.O. Box 1088 Austin, TX 78767 AustinWater.org Martin Tower, P.E., Managing Engineer, Austin Water Nam Nguyen, Financial Manager II, Austin Water May 14, 2024 Semi-Annual Impact Fee Collections Report for October 1, 2023 to March 31, 2024 MEMORANDUM To: From: Date: Subject: The Semi-Annual Impact Fee Collections Report as of March 31, 2024, is attached for your reference. The report is based on financial information reported in the City’s accounting system, ADV3, and in AMANDA, one of the City’s accounts receivable systems. Water fees collected during this six-month reporting period were $32,565 lower than the amount collected during the October through March reporting period a year prior; wastewater fees collected were $338,616 higher than those collected during the same period one year ago. Interest earnings for the six- month period equaled $726,832 significantly higher than prior periods due to high interest rates. The combined utility impact fees collected, plus interest, during the six-month period totaled $15,344,881. Of this total, $10,592,805 was for water and $4,752,077 was for wastewater. Total combined utility impact fees collected, plus interest, since the adoption of the current ordinance on June 20, 1990, through March 31, 2024, equal $493,513,761. Of this total, $334,252,623 was collected for water and $159,261,138 was collected for wastewater. As of March 31, 2024, the cash balances in the water and wastewater impact fee funds were $21,646,593 and $13,760,465 respectively, for a combined total of $35,407,057. Please let me know if you have any questions or need additional information. I can be reached at 512-972-0048. Cc: Shay Roalson, Director Joseph Gonzales, Assistant Director, Financial Services Christina Romero, Financial Manager III, Financial Services Frida Guo, Financial Manager II, Financial Services Marcia Brooks, Manager, AW Operations Dispatch Customer Service Center Teresa Lutes, P.E., Managing Engineer, Systems Planning Division Attachment: Semi-Annual Impact Fee Collections Report Semi-Annual Impact Fee Collections October 1, 2016 through March 31, 2017 Texas Local Government Code, Chapter 395, Section 395.058, requires that the Impact Fee Advisory Committee “file semiannual reports with respect to the progress of the capital improvements plan and report to the political subdivision any perceived inequities in implementing the plan or imposing the impact fee.” This report supports the committee by providing financial information about the collection of impact fees, and the value of fee waivers and exemptions. Waivers are granted for policy reasons or are negotiated by City Council; exemptions are allowed under legal code or statute. In this report waivers and exemptions are grouped into one “waivers/exemptions” category. Adjustments are also made in situations in which fees are not owed. Since adjustments are not comparable to waivers/exemptions and do not affect the reporting of fee collection data, adjustments are not included in this report. Impact fees are collected, waived/exempted, and adjusted by both Water and Wastewater.  Pages 1 and 2 (Charts 1 through 3) detail the impact fees collected by the Combined utility, Water, and Wastewater, detailing fee collection and interest earnings by fiscal year.  Page 3 (Charts 4 and 5) detail the total amount waived/exempted by the Water utility, and the value of waivers/exemptions by category. These charts report data on a semi- annual basis, with reporting periods spanning April 1 through September 30.  Page 4 (Charts 6 and 7) are similar to Charts 4 and 5 but report the information regarding waivers/exemptions granted by the Wastewater utility.  Page 5 (Charts 8 and 9) report Capital Recovery Fee Collections by month for the current and prior fiscal year for Water and Wastewater.  Page 6 (Chart 10) Fee Waivers by month and by type for the current fiscal year.  Page 7 (Chart 11) Affordable Housing Waivers by Development with units by fiscal year  Page 8: Impact Fee Collections Summary inception to date with current six-month period. Semi-Annual Impact Fee Collections Report October 1, 2023 through March 31, 2024 Chart 1: Combined Utility Impact Fee Collections and Waivers e u n e v e R e u n e v e R $48,000,000 $44,000,000 $40,000,000 $36,000,000 $32,000,000 $28,000,000 $24,000,000 $20,000,000 $16,000,000 $12,000,000 $8,000,000 $4,000,000 $0 $32,000,000 $28,000,000 $24,000,000 $20,000,000 $16,000,000 $12,000,000 $8,000,000 $4,000,000 $0 Source Interest Earned FY2020 FY 2021 FY 2022 $467,583 $99,165 $268,007 FY 2023 $1,063,626 FYTD 2024 $726,833 Impact Fees $37,621,547 $44,175,852 $38,673,729 $29,599,264 $14,618,050 Waivers $3,923,002 $3,227,467 $3,794,683 $2,862,383 $1,734,850 Impact Fee % Change year over year 17.4% -12.5% -23.5% -50.6% Chart 2: Water Impact Fee Collections and Waivers Source FY2020 FY 2021 FY 2022 FY 2023 FYTD 2024 Interest Earned $361,991 $71,034 $180,122 $606,623 $429,559 Impact Fees $26,787,601 $30,513,872 $26,643,961 $20,678,266 $10,163,247 $2,856,615 $2,335,810 $2,641,835 $1,700,882 $1,099,456 Waivers 1 Semi-Annual Impact Fee Collections Report October 1, 2023 through March 31, 2024 Chart 3: Wastewater Impact Fee Collections and Waivers Source Interest Earned FY2020 FY 2021 FY 2022 FY 2023 FYTD 2024 $105,591 $28,131 $87,884 $457,002 $297,272 Impact Fees $10,833,946 $13,661,980 $12,029,767 $8,920,998 $4,454,802 Waivers $1,066,387 $891,657 $1,152,848 $1,161,501 $635,394 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 e u n e v e R 2 Semi-Annual Impact Fee Collections Report October 1, 2023 through March 31, 2024 Chart 4: Water Impact Fees and Waivers/Exemptions Sep - 20 Mar - 21 Sep - 21 Mar - 22 Sep - 22 Mar - 23 Sep - 23 Mar - 24 $736,688 $823,263 $1,512,548 $1,342,444 $1,299,391 $1,201,696 $499,185 $1,099,456 $13,156,003 $9,761,647 $20,752,225 $11,285,432 $15,358,529 $10,195,812 $10,482,454 $10,163,247 $13,892,690 $10,584,910 $22,264,773 $12,627,876 $16,657,921 $11,397,508 $10,981,639 $11,262,703 5.3% 7.8% 6.8% 10.6% 7.8% 10.5% 4.5% 9.8% Chart 5: Water Impact Fee Waivers/Exemptions by Type Waivers/Exemptions Water Impact Fees Total Fees and Waivers/Exemptions Waivers as % of Fees & Waivers $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 t n u o m A l a t o T d e v a W i t n u o m A Waiver/Exemption Type Affordable Housing Council Developer Agreements Sep - 20 Mar - 21 Sep - 21 Mar - 22 $305,938 $212,300 $478,038 $98,700 $790,948 $305,100 $771,794 $304,650 Government Other Waivers Total Waivers/ Exemptions Affordable Housing Units Maximum exempted units $86,250 $736,688 94 1500 $146,025 $823,263 118 1500 $359,900 $1,512,548 226 1500 $164,200 $1,342,444 165 1500 3 Sep - 22 $804,241 $202,600 $12,000 $280,550 $1,299,391 187 1500 Mar - 23 $877,446 $37,600 $253,700 $1,201,696 220 1500 Sep - 23 $347,835 $2,250 $135,450 $499,185 335 1500 Mar - 24 $446,206 $395,000 $246,350 $1,099,456 100 1500 $132,200 $100,500 $56,600 $101,800 $32,950 $13,650 $11,900 Semi-Annual Impact Fee Collections Report October 1, 2023 through March 31, 2024 Chart 6: Wastewater Impact Fees and Waivers/Exemptions Sep - 20 Mar - 21 Sep - 21 Mar - 22 Mar - 23 Sep - 23 Mar - 24 $224,813 $211,781 $679,876 $760,338 $818,719 $342,782 $635,394 Sep - 22 $392,510 $5,564,673 $4,204,895 $9,457,085 $5,000,807 $7,028,961 $4,116,187 $4,804,812 $4,454,803 $5,789,485 $4,416,676 $10,136,961 $5,761,145 $7,421,471 $4,934,906 $5,147,594 $5,090,197 3.9% 4.8% 6.7% 13.2% 5.3% 16.6% 6.7% 12.5% Chart 7: Wastewater Impact Fee Waivers/Exemptions by Type Waivers/Exemptions WW Impact Fees Total Fees and Waivers/Exemptions Waivers as % of Fees & Waivers $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 t n u o m A l a t o T d e v a W i t n u o m A Waiver/Exemption Type Sep - 20 Mar - 21 Sep - 21 Mar - 22 $108,213 $77,800 $27,200 $11,600 $224,813 $109,531 $17,200 $36,450 $48,600 $211,781 $449,426 $37,600 $21,200 $171,650 $679,876 $446,238 $156,950 $79,250 $77,900 $760,338 Sep - 22 $162,710 $112,500 $0 $117,300 $392,510 Mar - 23 $470,919 $202,200 $22,200 $123,400 $818,719 Sep - 23 $198,532 $59,300 $6,400 $78,550 $342,782 Mar - 24 $238,944 $264,450 $3,200 $128,800 $635,394 Affordable Housing Council Developer Agreements Government Other Waivers Total Waivers/ Exemptions 4 Semi-Annual Impact Fee Collections Report October 1, 2023 through March 31, 2024 Capital Recovery Fee Collections Chart 8: Water CRF Collections by Month Oct $1.97 $1.85 Nov 1.18 1.26 Dec 1.57 1.72 Jan 1.62 1.88 Mar 1.68 2.05 Apr May Jun Jul Aug Sep FYTD 2024 - 2.05 - 1.35 - 2.06 - 1.90 - 1.61 - 1.85 $10.59 $21.28 Feb 2.57 1.69 Chart 9: Wastewater CRF Collections by Month Oct $.96 $.77 Nov .61 .52 Dec .71 .72 Jan .63 .69 Feb 1.14 .76 Mar .72 .84 Apr May Jun Aug Sep FYTD 2024 - - - - - .95 .66 .89 - 1.03 .70 $4.75 $9.38 Jul .85 5 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Water FY'24 Actual FY'23 Actual Wastewater FY'24 Actual FY'23 Actual ) $ ( s r a l l o D f o s n o i l l i M ) $ ( s r a l l o D f o s n o i l l i M Semi-Annual Impact Fee Collections Report October 1, 2023 through March 31, 2024 Chart 10: Fee Waivers by Month 800 700 600 500 400 300 200 100 ) $ ( s r a l l o D f o s d n a s u o h T Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep FYTD 2024 Affordable Housing (*) Council Developer Government Other Waivers Total $22.5 $85.3 $.0 $232.5 $22.5 $.0 $55.0 $55.5 $.0 $36.0 $79.2 $260.0 - $317.8 $110.8 $67.6 - $.0 $.0 $15.1 - $39.0 $151.2 $43.2 $93.6 $33.8 $14.4 - - - - - - - - - - - - - - - - - - - - - $685.2 $659.5 $15.1 $375.2 $146.7 $406.2 $153.7 $447.4 $223.8 $357.1 $.0 $.0 $.0 $.0 $.0 $.0 $1,734.9 Note: Combined water and wastewaters fee waivers Definitions: Affordable Housing: May not exempt more than 1,500 service units of affordable housing constructed each fiscal year from the requirement to pay impact fees. Service units of affordable housing within the development known as Robert Mueller Municipal Airport development. *Year-to-date, the total service units waived is 100. These units are primarily located in El Prado at Estancia, Goodnight Ranch and Mueller developments Annexation: Water and Wastewater impact fee may not be collected on a water connection that is annexed for full purposes by the City. fees. Council Developer Agreements: This is for Council agreements/ordinances specifying the waiver of impact Government: Includes a) school waivers not required to pay impact fees imposed under this chapter. Senate Bill 883; b) State of Texas connections for a state owned building or property that is entirely occupied by a state agency c) community gardens that are city supported may not be assessed an impact fee. Other: Includes a)Fire protection may not be collected for a connection that is used to provide capacity only; b) Duplex 13-3A-10 (F) 6 Semi-Annual Impact Fee Collections Report October 1, 2023 through March 31, 2024 City of Austin, Texas Austin Water Summary of Affordable Housing Waivers by Development October 1, 2023 through March 31, 2024 Type of Waiver/Exemption Affordable Housing $ 446,206 238,944 $ 685,150 Water Wastewater $ Combined Total TOTAL $ 446,206 $ 238,944 $ 685,150 Affordable Housing by Development Development Name Development Address Cowman Way St Johns Ave 6000 Cowman Way 1500 E St Johns Ave 1127 Tillery Street 7051 Meadow Lake Boulevard Tillery 4-Acre Project Meadow Lake Subdivision David Weekly Homes - Goodnight Ranch PUD Cowman Way Mueller Redevelopment:The Muskin Company- Section 11- 30 Single Family Scenic Point - Phase II AISD Loyola Lane 810 Lydia Street (ADU) Circulo De Amistad Paul Teresa Saldana St 7204/7208 Boyle Dr Loyola Lane 810 Lydia Street 6301 Circulo De Amistad 1204 Paul Teresa Saldana St TOTAL Fees Waived $ $ $ $ $ $ $ $ $ $ $ $ 165,600 126,000 126,000 126,000 55,000 42,750 15,400 14,400 7,200 5,500 1,300 685,150 Service Units Waived 23 18 18 18 8 6 2 2 1 5 1 100 $ (*) Service units waived for these addresses are on the water permits Chart 11: Combined Utility Affordable Housing waivers $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Affordable Housing Affordable Housing units Maximum allowable units 331 1500 FY 2020 $1,838,902 FY 2021 FY 2022 $1,827,942 $2,184,983 FY 2023 $1,894,733 FYTD 2024 $685,150 352 1500 335 1500 100 1500 344 1500 7 Semi-Annual Impact Fee Collections Report October 1, 2023 through March 31, 2024 City of Austin, Texas Austin Water Impact Fee Collections Summary Austin Water Description Water Wastewater Total SIX MONTHS ENDED: October 1, 2023 through March 31, 2024 Total Dollar Value of Taps & Connections Impact Fee Waivers/Exemptions Net Impact Fees Collected $ 11,262,703 (1,099,456) 10,163,247 $ 10,798,641 (635,394) 10,163,247 $ 22,061,344 (1,734,850) 20,326,494 Interest Earnings $ 429,558 $ 297,273 $ 726,832 Total Impact Fees Collected $ 10,592,805 $ 10,460,520 $ 21,053,325 INCEPTION TO DATE: June 20, 1990 – March 31, 2024 Total Impact Fees collected by the City of Austin since the adoption of the current Impact Fee Ordinance from June 1990 (19900607-F) to-date are shown below. Total Impact Fees Collected $ 327,133,325 7,119,298 334,252,623 $ 155,214,613 4,046,526 159,261,138 $ 482,347,938 11,165,824 493,513,761 (231,040,662) (35,506,672) $ (46,801,328) 742,632 21,646,593 (95,358,520) (18,995,655) $ (31,784,345) 637,847 13,760,465 (326,399,182) (54,502,327) $ (78,585,673) 1,380,478 35,407,057 Impact Fee Cash Balances Impact Fees Collected Interest Earnings Used for Debt Defeasance Used for CIP* Used for Debt Service** Other Adjustments*** FY 1992 thru 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2002* thru 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2007** thru 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Application of Impact Fee Funds for Debt Defeasance by Fiscal Year Application of Impact Fee Funds for Capital Projects by Fiscal Year Application of Impact Fee Funds for Debt Service by Fiscal Year (108,568,766) $ (31,000,000) - (43,600,000) (35,750,684) (12,121,212) $ (231,040,662) (51,149,098) $ (9,000,000) - (16,400,000) (10,930,634) (7,878,788) $ (95,358,520) (159,717,864) $ (40,000,000) - (60,000,000) (46,681,318) (20,000,000) $ (326,399,182) $ (35,506,672) - - - - - $ (35,506,672) $ (18,995,655) - - - - - $ (18,995,655) $ (54,502,327) - - - - - $ (54,502,327) $ (46,801,328) - - - - - $ (46,801,328) $ (31,784,345) - - - - - $ (31,784,345) $ (78,585,673) - - - - - $ (78,585,673) TOTAL TOTAL TOTAL 8 * AW restricted the use of collected Impact Fees for defeasance of outstanding revenue bonds until FY 2002, at which time the AW's policy changed to allow Impact Fees to be used to fund certain major plant capacity improvements. ** In FY 2007, management decided to use Impact Fee collections to pay debt service. *** Includes transfers in for Fairway Ridge, Circle C, refunds and other miscellaneous adjustments.