Delray Beach adopts new water, wastewater, and stormwater impact fees

Delray Beach adopts new water, wastewater, and stormwater impact feesThe City Commission has voted to implement new impact fees on new development and expansions to fund public facilities, with water utility fees set at 50% of the levels recommended by a recent justification study.

Ordinance 34-26 establishes impact fees based on a justification study by DTA, applying to new developments and expansions over 1,000 square feet.

Water utility impact fees were approved at 50% of the study's recommended levels, while stormwater fees will be based on a lot's impervious square footage.

The new fee schedule includes a 50% discount for historic properties and affordable housing projects.

The fees will go into effect on January 1, 2027, to allow time for a required 90-day public notice and software updates.

The Commission also approved Resolution 125-26, establishing the budget and assessment rates for the city's stormwater utility system.

The Delray Beach City Commission formally adopted Ordinance 34-26 on August 18, 2026, establishing new municipal impact fees to fund capital infrastructure, including water, wastewater, and stormwater facilities. The fees, which will go into effect on January 1, 2027, apply to new developments and building expansions exceeding 1,000 square feet. The ordinance's adoption follows a justification study conducted by DTA. By state law, the collected impact fees are restricted to funding capital expenditures, equipment, and facilities identified in the study. They cannot be used to cure existing deficiencies or cover ongoing operational costs. During the hearing, staff noted that the city opted to set the water and sewer utility impact fees at 50% of the levels recommended in the DTA study, citing previous staff discomfort with the higher proposed rates. Stormwater management fees will be calculated based on the square footage of impervious surface on a given lot. The approved fee structure also features a 50% discount for historic properties and affordable housing developments. The affordable housing discount is restricted to units serving very low, low, or moderate-income households, intentionally excluding standard workforce housing from the reduction. The delayed January 1, 2027 effective date was selected by the Commission to provide a buffer for the statutorily required 90-day public notice and to allow city staff adequate time to program the new fee calculations into their permitting software. In a separate but related infrastructure funding action, the Commission also unanimously approved Resolution 125-26, which establishes the budget and assessment rates for the city's stormwater utility system without further discussion due to the late hour of the meeting.