Montgomery is considering a 17% increase in its impact fees for new developments, with a public hearing scheduled for Aug. 26. Projected growth and a looming state deadline are driving the proposed change, which would alter how often cities can revise these fees.
During the meeting on July 22, the Montgomery City Council decided to schedule a public hearing for August 26 at 6 p.m. to discuss the potential increase in impact fees for new development.
These one-time fees help municipalities finance infrastructure developments—such as water and wastewater systems—without imposing the entire cost on taxpayers.
City Engineer Chris Roznovsky explained that the proposed increase is a result of a state-mandated review, which updates development assumptions based on recent growth trends, land-use changes, and infrastructure costs. If approved, the maximum impact fee for each single-family home connection would increase by about 17%.
Montgomery anticipates 3,923 new utility connections in the coming decade, with approximately 45% currently in active development. The city is set to allocate over $51 million towards infrastructure aimed at supporting growth, with $26 million designated for enhancements to the water system and $24 million earmarked for wastewater facilities. The raised fees will help finance the expansion of water and sewer lines, upgrades to plants, and enhancements to well capacity.
“This increase is indicative of the timing and scale of forthcoming projects,” Roznovsky stated. “The objective is to equitably allocate expenses among developers and current residents.”
It is crucial to note that impact fees are designated solely to expand system capacity, rather than for the maintenance or replacement of current infrastructure. “For instance, if you swap out a water tank for another of the same size, that won’t qualify,” Roznovsky pointed out.
The effort to revise fees is underway as the September 1 deadline approaches, marking the implementation of a new state law—Senate Bill 1883. The legislation prolongs the evaluation period for local impact fees from two years to three, marking this as the city’s final chance to adjust fees according to the existing timetable.
“This is the final opportunity for cities such as Montgomery to take action,” stated City Attorney Alan Petrov. “Any delay would extend the timeline considerably.”
Mayor Sara Countryman emphasized that the suggested rate is the highest permissible under state regulations and reflects a broader trend among rapidly expanding cities that are striving to manage development.
“Many cities have lagged in progress due to the failure to implement impact fees,” Countryman stated.
The city anticipates funding the outstanding infrastructure expenses through utility revenues, user fees, and reimbursements from developers.
The upcoming public hearing is scheduled to take place at Montgomery City Hall, located at 101 Old Plantersville Road. The City Council is poised to vote on the adoption of the new impact fee rates right after the hearing concludes.
Residents and developers are invited to participate and share their insights on the potential impact of the proposed fee structure on future growth and affordability in Montgomery.
