1. OAK RIDGE NORTH IMPACT FEES

2. Overview 1.Introduction 2.Schedule/Process 3.Land Use Assumption 4.Capital Improvement Plan Water Wastewater 5.Impact Fees TIRZ Area Residential Area 6.Next Steps/Actions 7.Q&A

3. One Company. Unlimited Potential. Introduction

4. Introduction: Common Terms You Will Encounter 1.Land Use Assumptions (LUA) 2.Capital Improvement Plan (CIP) 3.Impact Fee 4.Service Unit or ESFC 5.Tax Increment Reinvestment Zone (TIRZ) 6.Tap Fee 7.Chapter 395 (Texas Local Government Code) 8.General Funds 9.Maintenance Funds 10.Bond Funds 11.Certificates of Obligation (C.O.) 12.Debt Service

5. Introduction – Purpose: Impact Fee Identify land use Identify/fund necessary water/sewer infrastructure Review CIP every 5 years based on 10-year outlook Minimize impact on existing users Assess new development in-lieu of existing users

6. Introduction – Service Unit “Service Unit” refers to an Equivalent Single Family Connection (ESFC) that consumes the amount of water requiring a standard 5/8” meter. For a development requiring a larger meter, a service unit equivalent is established based on its capacity compared to the 5/8” meter.

7. Schedule/Process 1.Identify Need – Impact Fee Update 2.City Council creates “Capital Improvement Advisory Committee” 3.City Council commissions engineer to perform an Impact Fee/CIP Study 4.City Council publishes notice of public hearing on “LUA & CIP” (30 day notification required) 5.Present results of Draft Impact Fee & CIP Study/Report to Advisory Committee 6.Advisory Committee offers comments/questions at least 7 days prior to public hearing 7.Public offers comments at the Public Hearing on LUA & CIP 8.Engineers revise Impact Fee & CIP Study/Report and present final report to City Council 9.City Council publishes notice for Public Hearing on proposed Impact Fees (30 day notification required) 10.Public offers comments at the Public Hearing on Impact Fees 11.City Council considers ordinance setting Impact Fees and implementation date 12.Impact Fees go into effect (12 months after adoption)

9. One Company. Unlimited Potential. Capital Improvement Plan

10. CIP – Water/Sewer System Projects

11. One Company. Unlimited Potential. Water Projects

13. Water Line Upsizing Along IH-45: From Paula Ln. to Pine Manor Dr.

14. ORN Commerce Park Waterline South From Hanna Road to 350 ft East of UPRR Track

15. I-45 Waterline Extension Phase II From Robinson Road to Wood Ridge Plaza

16. Water Well No. 4 East of Hanna Road & North of Robinson Road

17. ORN Commerce Park Waterline North From Hanna Road to 600 ft East of UPRR

18. Water Plant No. 2 East of Hanna Road & North of Robinson Road

19. Proposed Water Projects ProjectCost Impact Fee Study (1/2)$22,500 Waterline Upsizing$493,000 ORN Commerce Park Waterline Extension (South)$150,000 I-45 Waterline Extension (Phase 2)$214,000 Water Well No. 4$1,852,000 ORN Commerce Park Waterline Extension (North)$250,000 Water Plant No. 2 (GST, HT, BP, Piping, GenSet, Fence, Sitework, MCC) $2,271,000 Total Cost: $5,252,500

20. One Company. Unlimited Potential. Wastewater Projects

22. Gravity Sewer Trunkline Upsize

23. Robinson Road Lift Station Force Main From Maplewood to Lift Station

24. Robinson Road Lift Station

25. Proposed Wastewater Projects ProjectCost Impact Fee Study (1/2)$22,500 Wastewater Treatment Plant Capacity Purchase$3,000,000 Gravity Sewer Trunkline Upsize$950,000 Robinson Road Lift Station$1,000,000 Robinson Road Force Main$545,000 Total Cost: $5,517,500

26. One Company. Unlimited Potential. Impact Fees

27. Tap Fees vs. Impact Fees Tap fees are service fees for connecting private property to public water or wastewater facilities. This revenue covers the costs related to labor, parts, and materials. Impact fees are charged to new developments to offset the costs associated with an increased demand for water and wastewater services. This revenue helps to fund the expansion of water and sewer infrastructure to accommodate growth.

28. Maximum Recoverable Costs for Water Projects * Water projects serving the TIRZ *

29. Maximum Recoverable Costs for Wastewater Projects * Wastewater projects serving the TIRZ *

30. Maximum Impact Fees for TIRZ Water Projects

31. Maximum Impact Fees for TIRZ Wastewater Projects

32. Summary: Maximum Impact Fees Combined – TIRZ

34. Impact Fee – Area Affected Area 1 – City (Residential Area), ETJ (Outside of TIRZ): No Impact Fee Area 2 – TIRZ: Proposed Impact Fee

35. One Company. Unlimited Potential. Next Steps

36. Adopt IF Ordinance Implement IF Ordinance (12 months after adoption) City Council calls Public Hearing on Proposed IFs Receive comments City Council considers IF Ordinance Public Hearing on LUA/CIP Receive comments Revise IF/CIP Report

37. One Company. Unlimited Potential. Q & A

38. Contact Info Ed Shackleford, PE Matt Breazeale, PE Jeffrey Bishop, EIT 281-363-4039 eshackelford@jonescarter.com mbreazeale@jonescarter.com jbishop@jonescarter.com Joe Sherwin, PE, CFM Director of Public Works 281-292-4648 jsherwin@oakridgenorth.com Vicky Rudy, PCED City Manager 832-381-3306 vrudy@oakridgenorth.com Christopher L. Nichols City Attorney 713-275-7832 chris@nicholsfirm.com