Corpus Christi, Texas

Alternative Financing Study for Wastewater and Drainage
   

For the City of Corpus Christi, Duncan Associates explored alternative methods for securing developer participation in the cost of expanding the wastewater collection system and the storm water drainage system to accommodate the demands of growth. The City has used “acreage fees” since 1981 to reimburse developers for the cost of oversizing wastewater lines beyond what is needed to serve their projects. Developers are reimbursed on a “first-come, first-served” basis as long as funding is available. The fees amount to about $300 per unit, and are proving inadequate to reimburse developers. Our

recommendation was that the City update the wastewater acreage fee for force mains, trunk mains and lift station reimbursements. Fee revenue should be held and reimbursements made from the trunk main component of the wastewater fund. At some future date, when capital facility plans are available, the City should consider phasing out the acreage fee in favor of a wastewater impact fee. For stormwater, we recommended that the City consider a stormwater utility fee.