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Development Impact Fees
Impact Fees
An impact fee under Texas State law is defined as a charge or assessment imposed against a new development in order to generate revenue for funding, or recouping the costs of capital improvements or facility expansions necessitated by and attributable to the new development. Impact fees includes amortized charges, lump-sum charges, capital recovery fees, contributions in aid of construction, and any other fees that function as described by this definition.
Current impact fees are managed by the Capital Impact Fee Advisory Board, which advises and assists City Council in adopting and updating land use assumptions, capital improvement plans, and impact fees.
Updated Impact Fee Schedule Adopted
Chapter 395 of the Texas Local Government Code specifies provisions for administering impact fees. Impact fees are utilized to finance capital improvements required by new development and redevelopment. State law requires municipalities that collect impact fees to adopt a capital improvement plan (separate from the plan associated with the bond) and update its impact fee rate every five years. The last capital improvement plan and impact fee rate were adopted in 2012. When the last update was due in 2017, an update to the Comprehensive Plan was on the horizon and the city had experienced limited growth. Therefore, City Council approved a resolution (R17-487) to not update the Capital Improvements Plan and impact fee rate as procedurally allowed by state law.
On Tuesday, July 23, 2024, following a public hearing, City Council adopted Ordinance No. 2024-812 to amend the land use assumptions, capital improvement plans and impact fee ordinance. The proposed roadway impact fee rate will follow one service area maximum impact fee per service unit of $1,059 per vehicle mile, which will be the rate citywide. The water impact fee for a 1" meter is $4,489 per service unit and the wastewater impact fee is $1,686 per service unit. Water and wastewater fees for single family detached and townhouses shall be reduced by 40%. See links below for complete ordinance and exhibits.
IMPACT FEE REPORT
Exhibit 1 - Roadway Impact Fee Report
Exhibit 2 - Water and Wastewater Impact Fee Report