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2013 Update of Water and Wastewater Impact Fees <br />5.0 IDENTIFIED MAJOR CAPITAL IMPROVEMENT PLAN AND COSTS <br />Due to very limited excess capacity or additional capacity needed in certain locations by the end <br />of the 10 -year planning horizon, the City has identified a series of needed capital improvements <br />for almost every facility type, except wastewater treatment. Incremental capacity improvements <br />to water supply, treatment, pumping, storage and transmission in the next ten years are <br />expected to total about $64 million. Capacity additions for wastewater pumping and interceptors <br />are expected to total almost $20 million over the next ten years. <br />Specific projects that accomplish these service capacity goals are identified in Table 5 and 6 for <br />water and wastewater, respectively, along with their cost, capacity, unit cost, and allocation of <br />existing and projected demand to these facilities. The projects listed as future facilities <br />comprise the 10 -year growth- related CI that will underlie the ultimate impact fee calculation. <br />Chapter 395 recognizes that a new unit of growth will likely connect to existing excess capacity, <br />but at the same time, also induce the need for new future facilities that add capacity. To <br />acknowledge, this weighted cost of capital is calculated using the relative number of LUEs <br />assigned to existing versus new capacity to calculate a weighted capital cost of service for a <br />new (LUE) unit of growth. <br />As indicated at the bottom of Tables 5 & 6, the total unit capital cost is estimated at $2,710 per <br />LUE for water and $3,734 per LUE for wastewater, totaling $6,444 per LUE for combined water <br />and wastewater service. <br />It should be emphasized that the amounts shown in Tables 5 and 6 reflect the weighted unit <br />cost of capital, but these are not the calculated maximum impact fees. In the next report <br />Section 6.0, this weighted unit cost of capital is then adjusted to maximum impact fee amounts <br />based on consideration of the different ways (rates versus fees) that a new customer will pay for <br />these capital costs. <br />City of San Marcos, Texas 10 <br />