Developers about to dig their shovels into San Antonio soil just hit a financial snag. The city council has slapped on new water impact fees that will make connecting to the city's waterworks pricier from July 1. Everybody from the council chambers to developers have given the nod to this change, which is set to hike the costs by an average of 23% according to the San Antonio Water System's latest plan—a strategy unanimously green-lit by the city council this Thursday.
The fee bump-up is no small change. Previously, the steepest price tagged on developers was $8,548, but under the fresh framework, they might have to cough up as much as $11,528. That's just for the privilege of tapping into the water and wastewater grid in areas that are a tough nut to crack when it comes to supply. Even on the flatter, less developed Southwest Side, what used to be a $5,902 minimum has jumped to $7,343. But despite the sting on their wallets, developers aren't kicking up a fuss. In fact, according to the San Antonio Report, they’ve been unusually supportive of the hikes.
Getting into the nitty-gritty, these fees are one-time charges imposed on new projects as they hook up to the system—think of it as a cover charge to enter the club of city utilities. This cash infusion is earmarked for expanding the system and other upgrades, so the existing residents don’t foot the bill for the city’s growth. And grow it must, with SAWS needing to support over 161,000 new water units and nearly 148,000 wastewater units over the next decade.
SUWS itself last tinkered with these fees in 2019, a move required by state law every five years. The revenue is earmarked for programs such as the Aquifer Storage and Recovery operation and desalination efforts—an essential cash injection for SAWS' various growth-related endeavors. "Under these impact fees, growth will pay for itself," SAWS President and CEO Robert Puente pitched to the council, as reported by the San Antonio Report. Echoing this sentiment, developers serving on SAWS' Capital Improvements Advisory Committee have vocalized their backing after initial worries were smoothed over. Committee chair Susan Wright put it simply: "When developers agree to charge themselves those kinds of increases — and they do so with passion — I think that that speaks volumes."
Meanwhile, Councilwoman Phyllis Viagran and other council members are keen on safeguarding affordable housing projects from the ripple effect of these increased fees. The city's CFO Ben Gorzell pointed out that relief still exists, with waivers available for such developments, historic rehabs and business ventures. It’s a tightrope balance between funding expansion and keeping San Antonio homes affordable—a challenge the city is now set to navigate.
