To: Mark R. Hafner, City Manager
From: Alonzo Liñán, Director of Public Works
Subject:
Title
Consider an ordinance replacing the 2015 Impact Fee Study with the 2021 Impact Fee Study that establishes new maximum service unit (SU) rates for Water, Wastewater and Roadway Impact Fees.
Action Requested:
Approve an ordinance replacing the 2015 Impact Fee Study with the 2021 Impact Fee Study and establishing a service unit collection rate at 50% of the allowable state maximum for all categories.
Background:
Local Government Code, Chapter 395.052 requires that “A political subdivision imposing an impact fee shall update the land use assumptions and capital improvements plan at least every five years”. The code also requires that a Capital Improvements Advisory Committee (CIAC) be established with the duty to monitor the program, review bi-annual reports of activity and to recommend changes to the land use assumptions and capital projects.
The current program was last updated in 2015 and the current update effort was started in 2020. The final proposed update (Exhibit A) to the Impact Fee Program was paced to coincide with the results of the Future Land Use Plan (FLUP), Master Thoroughfare Plan, and the Water and Wastewater Master Plan updates.
Based on the assumed growth rate of 1.55% per year (it was 3.2% in the 2015 Study), the cost of the necessary public water, wastewater, and roadway infrastructure to support the anticipated growth was determined. Those costs were then refined to reflect what is likely to be needed in the next 10 years. Finally, the consultant was able to determine from this list of needs, their associated costs and the next 10-year need, the maximum assessment per service unit allowable under state law. The information below represents the maximum allowable assessment.
Maximum Assessment:
Impact Fee Category Maximum Assessment per SU
Water $6,539
Wastewater $2,764
Roadway: North $1,748
Roadway: South $1,998
As the requisite public hearings were held on this maximum rate, it falls to the city council to consider the recommendations of the CIAC and to determine a final assessment rate.
The City Council, after having discussed this item at the October 4th work session, reached a consensus of assessing 50% of the state allowable maximum for all categories. The information below represents the recommended assessment.
Recommended Assessment:
Impact Fee Category Collection Rate per SU % of Maximum Assessment Rate
Water $3,269.50 50%
Wastewater $1,382 50%
Roadway: North $874 50%
Roadway: South $999 50%
Financial Impact:
N/A
Citizen Input/Board Review:
A public hearing was held on the September 20, 2022 City Council meeting. 8 comments were received during and after the 30-day public hearing advertisement via the Fort Worth Star-Telegram and through the email portal the city provided.
At their Regular Meeting held on May 24, 2022, the Capital Improvements Advisory Committee unanimously approved the proposed Impact Fee Study as presented. The notable recommendations supported by the CIAC and forwarded to the city council are:
• Replacement of the Impact Fee Study Program Document with the 2021 version
• Adjust the Projected Growth Rate from 3.2% to 1.55%
• Redefine the roadway service areas while keeping the water & wastewater the same
• Redefine the land uses as needed to reflect the FLUP categories
• Develop new Impact Fee Capital Improvement Plans for each service area
• Establish the Impact Fee Rates at 100% of the allowable state maximum
Legal Review:
The City Attorney has reviewed and approved this item.
Alternatives:
City Council has the following alternatives:
- Approve as submitted
- Approve with changes
- Denial
Council Action:
Staff recommends that the City Council approve this item as presented.