Item Coversheet


CITY OF KYLE, TEXAS

Infrastructure Cost Recovery

Meeting Date: 10/18/2016
Date time:
7:00 PM

Subject/Recommendation:

(Second Reading) An ordinance of the City of Kyle, Texas, amending the City of Kyle, Tx Code of Ordinances; amending Article II. Water and Waste Water System Generally Section 50-29, to add an exception to recover construction costs of utility lines. ~ James R. Earp, Assistant City Manager

Other Information:

Every new developer that begins a new project in Kyle is responsible for extending utilities to serve their development. Up until now, the City has allowed development to connect to lines built by other developers or the City, or a partnership of both, without having a way to collect the pro rata share of the infrastructure that the latter development requires to use. This results in earlier developers having a higher barrier to entry, than projects that follow and can benefit from the utility work that another developer was required to provide, sometimes at the additional expense of the City Utility. This ordinance is meant as an equalizer, allowing an evening of the playing field and equally placing the roughly proportional cost of utility extensions on all new development, not just the market leaders as is the practice today.

Legal Notes:

Reviewed by Legal 9/14/16.

Budget Information:

This Ordinance will allow the City to recover capital investments when new development occurs that up to this point have been only "sunk" costs.



ATTACHMENTS:
Description
Draft Ordinance