Fair Oaks Ranch staff and officials are in the process of updating the city’s water and wastewater impact fees, which require developers to pay for each living unit equivalent, or LUE, connected to city utilities.

What’s happening?

In 2024, city staff hired the engineering firm Freese and Nichols Inc. to update the city’s Land Use Assumptions, Capital Improvement Plans and to calculate the maximum allowed impact fees.

On July 17, City Council approved the first reading of a resolution to increase city impact fees.

According to the report, the current impact fees are $8,670 per water LUE and $6,068 per wastewater LUE.


Freese and Nichols Inc. representatives stated that, based on growth projections and impact fee eligible project cost estimates, the maximum allowable 2025 impact fees are calculated to be $21,013 per water LUE and $9,943 per wastewater LUE.

For the 10-year planning window, from 2025-35, used for impact fee calculation, the report includes the following projections:
  • Growth of 713 new water connections and 398 wastewater connections
  • Growth of 758 water LUEs and 412 wastewater LUEs
  • Increase in average daily water demand from 1.63 million to 1.98 million gallons per day
  • Increase in average wastewater flow from 0.32 million to 0.38 million gallons per day
  • Total water system impact fee eligible project costs of $31,856,390
  • Total wastewater system impact fee eligible project costs of $8,200,882
What it means

Upon final approval, fees will take effect for all new developments that undergo the plating process following the full approval of the resolution.

Developers who have already recorded plats will pay the impact fees established during the time of project consideration.


Public Works Director Grant Watanabe said current projects are locked into the current rate, but if those projects are approved to include additional plats, they could be subject to paying the updated impact fees.