Title
Consider an ordinance amending Chapter 42, Article V, Code of Ordinances (2018 Edition), regarding roadway impact fees. (Second Reading)
Body
Kimley-Horn and Associates Inc. has developed the 2018 Roadway Impact Fee Study and established a maximum fee that can be implemented under state law. The first reading of the ordinance adopting the maximum proposed roadway impact fee per service unit is tonight and the second reading is scheduled for March 14, 2019.
On January 24, 2019, Council held a public hearing and adopted the land use assumptions and capital improvement plan from the study. On February 18, 2019, Council held the final required public hearing on the maximum proposed roadway impact fee per service unit.
The amount of the maximum proposed roadway impact fee per service unit is as follows:
Service Area A: $2,678 / vehicle-mile
Service Area B: $2,933 / vehicle-mile
Service Area C: $2,511 / vehicle-mile
The City Council may implement a different fee than shown above, but the fee cannot exceed the maximum proposed fee allowed by law.
According to the 2017 Transportation Master Plan, over $1 billion in new roadway capacity is needed to accommodate future growth in the City of Round Rock. Impact Fees are a mechanism for funding the public infrastructure necessitated by new development. Impact fees are meant to recover the incremental cost of the impact of each new unit of development. In the case of Roadway Impact Fees, the infrastructure need is the increased capacity on arterial and collector roadways that serve the overall transportation system.
The 2018 Roadway Impact Fee Study determined the maximum impact fee per unit of new development chargeable in accordance with the enabling legislation, Chapter 395 of the Texas Local Government Code. The actual fee amount ultimately assessed is at the discretion of the Round Rock City Council, so long as it does not exceed the maximum assessable fee allowed by law. The study looks at a period of 10 years to project new growth and corresponding capacity needs, as required by state law. The study and corresponding maximum fees must be restudied at least every five years. However, the study can be updated at any time to accommodate significant changes in any of the key variables of the impact fee equation.
On February 6, 2019, the Capital Improvements Advisory Committee (CIAC) reviewed the maximum impact fee per unit of new development necessary to fund these improvements and provided the Committee’s findings for consideration by the City Council. That meeting was required by Chapter 395 of the Texas Local Government Code.