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Impact Fee Study

Purpose
Necessity
Schedule
Documents

Chapter 395 of the The Texas Local Government Code allows cities to create one time "impact fees" focused on funding the infrastructure necessary to specifically accommodate new development or re-development, e.g. projects made necessary due to increases in demand.


Typical projects included in impact fee studies and fee collection include water sourcing, transmission, storage and distribution lines; wastewater (sewer) collection lines and treatment; widening of streets, installation of turn lanes and installation of traffic signals; and storm water drainage conveyance.


Without impact fees, cities must fund infrastructure improvements typically through more traditional ways such as bond issuance or pay as you go using tax or rate payer funding. The consideration for adopting impact fees is that growth in the form of new development should help pay its own way: “Growth Pays for Growth".


PURPOSE OF IMPACT FEES

  1. Allows recoupment of project costs already constructed which contains oversized or excess capacity
  2. Allows for implementation of key system improvements through large cohesive projects over piece-meal approach development-by-development
  3. Provides up front knowledge of the exact fee to be imposed at the time of development
  4. Fair assessment of charges based on impacts to each system (water, sewer, streets, drainage)
  5. Establishes rough proportionality for private investments based on their impact on the system
  6. Allows for pooling of funds by service areas to more efficiently plan for and construct needed improvements
  7. Allows for developer credits when private development installs infrastructure as part of their project


IMPACT FEES CANNOT PAY FOR:

  1. Upgrading, updating, expanding, or replacing existing capital improvements that serve existing development (where there is no new development)
  2. Repair, operation, or maintenance of existing or new facilities
  3. Cost of projects that are not included in the Impact Fee Capital Improvement Plan
  4. Administrative and operating costs of the impact fee program
  5. Debt service for projects that are not included in the Impact Fee Capital Improvement Plan


Planning

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Irving, TX 75060


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