This article is adopted pursuant to the provisions of V.T.C.A., Local Government Code ch. 395, as well as under the authority of the state constitution, article XI, section 5. This article implements the city's policy to ensure the provision of adequate public facilities to serve new development within the city and in its extraterritorial jurisdiction by requiring each new development to pay its pro rata share of the costs of capital improvements necessitated by and attributable to such new development. The provisions of this article shall not be construed to limit the power of the city to utilize other methods authorized under state law or pursuant to other city powers to accomplish the purposes set forth in this section, either in substitution for or in conjunction with this article.
(1999 Code, sec. 70-36)
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Advisory committee.
The committee as designated by the city council to provide recommendations regarding the provisions of this article.
Assessment.
The determination of the amount of the maximum impact fee per service unit which can be imposed on new development pursuant to this article.
Capital improvement.
Either a water facility or a wastewater facility, with a life expectancy of three or more years, to be owned and operated by or on behalf of the city.
Credit.
The amount of the reduction of an impact fee due that is equal to the value of a water facility or a wastewater facility, as determined under this article or pursuant to administrative guidelines, provided by a property owner pursuant to a contract for capital improvements authorized in this article, consistent with the city's subdivision or other development regulations or requirements. Credit does not include a reduction in the amount of an impact fee due for payment of connection charges or for pro rata charges pursuant to article 22.04.
Facility expansion.
The expansion of the capacity of any existing water or wastewater improvement for the purpose of serving new development. The term does not include the repair, maintenance, modernization or expansion of an existing facility to better serve existing development.
Final plat approval or approval of a final plat.
The point at which the applicant has complied with all conditions of approval and the plat has been released for filing with the county clerk.
Impact fee.
Either a fee for water facilities or a fee for wastewater facilities imposed on new development by the city pursuant to this article in order to generate revenue to fund or recoup the costs of capital improvements or facility expansion necessitated by and attributable to such new development. Impact fees do not include a requirement for the dedication of rights-of-way or easements for such facilities, or a requirement for the construction of such improvements, imposed pursuant to the city's zoning or subdivision regulations. Impact fees also do not include payment of connection charges or pro rata charges imposed pursuant to article 22.04.
Impact fee capital improvements plan.
The adopted plan, as may be amended from time to time, either for wastewater improvements, which identifies the wastewater facilities or wastewater expansions and their associated costs, or for water improvements, which identifies the water facilities or water expansions and their associated costs, which are necessitated by and which are attributable to new development, for a period not to exceed ten years, which plan is incorporated by reference in this article and which is to be financed, in whole or in part, through the imposition of impact fees pursuant to this article. The impact fee capital improvements plan may include approximate dates for commencement of identified projects, which dates are advisory.
Land use assumptions.
A description of the service area and projections of changes in land uses, densities, intensities and population in the service area over at least a ten-year period which has been adopted by the city and upon which the impact fee capital improvements plan is based.
New development.
A project involving the construction, reconstruction, redevelopment, conversion, structural alteration, relocation or enlargement of any structure, or any use or extension of the use of land, any of which has the effect of increasing the requirements for capital improvements or facility expansions, measured by the number of service units to be generated by such activity, and which requires either the approval of a plat pursuant to the city's subdivision regulations, the issuance of a building permit, or connection to the city's water or wastewater system, and which has not been exempted from this article by provisions in this article or attached to this article.
Off-site.
Located entirely on property which is not included within the bounds of the plat being considered for impact fee assessment.
On-site.
Located at least partially on the plat which is being considered for impact fee assessment.
Plat.
Has the meaning given in the city's subdivision regulations. The term "plat" includes replat, exclusive of amending plats as defined under V.T.C.A., Local Government Code section 212.016.
Platting.
Has the meaning given in the city's subdivision regulations. Platting includes replatting.
Recoupment.
The imposition of an impact fee to reimburse the city for capital improvements which the city has previously oversized to serve new development.
Service area.
The entire area within the corporate limits of the city within which impact fees for capital improvements or facility expansion will be collected for new development occurring within such area and within which fees so collected will be expended for those types of improvements or expansions identified in the type of impact fee capital improvements plan applicable to the service area.
Service unit.
A three-quarter-inch water meter, assumed to provide a yearly average of 405 gallons of water per day for consumption by one single-family dwelling unit, and which may be equated to consumption by other land uses, as established in the land use equivalency tables, attached to Ordinance No. 95-702 as exhibit B and incorporated by reference in this article, as may be amended from time to time.
Site-related facility.
An improvement or facility which is for the primary use or benefit of a new development or group of new developments and/or which is for the primary purpose of safe and adequate provision of water or wastewater facilities to serve the new development, and which is not included in the impact fee capital improvements plan, provision for which the property owner or group of owners is solely responsible under subdivision or other applicable regulations.
Utility connection.
Authorization to install a water meter for connecting a new development to the city's water system or to the city's wastewater system.
Wastewater facility.
An improvement for providing wastewater treatment or collection service, whether or not located within the service area, including, but not limited to, treatment plants, interceptors or mains, lift stations or other facilities included within and comprising an integral component of the city's treatment and collection system for wastewater. "Wastewater facility" includes land, easements or structures associated with such facilities. "Wastewater facility" excludes a water line or main which is constructed by a developer, the costs of which are reimbursed from charges paid by subsequent users of the facilities. "Wastewater facility" excludes a site-related facility.
Water facility.
An improvement for providing water supply, treatment and distribution service, whether or not located within the service area, including, but not limited to, water treatment and conveyance facilities, water interceptors or mains, pump stations, storage tanks or other facilities included within and comprising an integral component of the city's water treatment, storage or distribution system. "Water facility" includes land, easements or structures associated with such facilities. "Water facility" excludes a water line or main which is constructed by a developer, the costs of which are reimbursed from charges paid by subsequent users of the facilities. "Water facility" excludes site-related facilities.
Water meter.
A device owned by the city for measuring the flow of water to a development, whether for domestic or for irrigation purposes.
(1999 Code, sec. 70-37)
(a) 
The advisory committee shall consist of those persons appointed by the city council. If the committee does not include at least one representative of the real estate, development or building industry who is not an employee or official of a political subdivision or governmental entity, the city council shall appoint at least one such representative as an ad hoc voting member of the advisory committee. If any impact fee is to be applied in the extraterritorial jurisdiction of the city, a representative from that area shall be appointed by the city council.
(b) 
The advisory committee serves in an advisory capacity and is established to:
(1) 
Advise and assist the adoption of land use assumptions;
(2) 
Review the impact fee capital improvements plan and file written comments;
(3) 
Monitor and evaluate implementation of the impact fee capital improvements plan;
(4) 
File semiannual reports with respect to the progress of the impact fee capital improvements plan and report to the city council any perceived inequities in implementing the plan or imposing the impact fee; and
(5) 
Advise the city staff and council of the need to update or revise the land use assumptions, impact fee capital improvements plan and impact fee.
(c) 
All professional reports concerning the development and implementation of the impact fee capital improvements plan shall be made available to the advisory committee.
(d) 
The advisory committee shall elect a chairperson to preside at its meetings and a vice-chairperson to serve in his absence. All meetings of the committee shall be open to the public and posted at least 72 hours in advance. A majority of the membership of the committee shall constitute a quorum.
(1999 Code, sec. 70-38)
(a) 
The city shall update its land use assumptions and impact fee capital improvements plans at least every three years, commencing from the date of adoption of such plans, and shall recalculate the impact fees based thereon in accordance with the procedures set forth in V.T.C.A., Local Government Code ch. 395, or in any successor statute.
(b) 
The city may review its land use assumptions, impact fees, impact fee capital improvements plans and other factors, such as market conditions, more frequently than provided in subsection (a) of this section to determine whether the land use assumptions and impact fee capital improvements plans should be updated and the impact fee recalculated accordingly, or whether schedule 1, attached to Ordinance No. 95-702 and incorporated by reference in this article, should be changed.
(c) 
If, at the time an update is required pursuant to subsection (a) of this section, the city council determines that no change to the land use assumptions, impact fee capital improvements plan or impact fee is needed, it may dispense with such update by following the procedures in V.T.C.A., Local Government Code section 395.0575.
(d) 
Schedule 2, attached to Ordinance No. 95-702 and incorporated in this article by reference, and the provisions of this article which do not entail changes to the land use assumptions, the impact fee capital improvements plan or schedule 1, may be amended from time to time by ordinance.
(1999 Code, sec. 70-39)
(a) 
The provisions of this article apply to all new development within the corporate boundaries of the city and its extraterritorial jurisdiction which lies within the service area for each category of capital improvement. The provisions of this article apply uniformly within each service area.
(b) 
No final plat for new development shall be approved within the service area without assessment and collection of an impact fee pursuant to this article, nor shall a building permit be issued or utility connection be made until the property owner has paid the impact fee imposed by and calculated in this article.
(c) 
Public uses and uses owned and operated by a nonprofit institution that constitute new development are subject to payment only of the minimum impact fee imposed under this article, pursuant to schedule 2 then in effect.
(1999 Code, sec. 70-40)
Assessment of the impact fee for any new development shall be made as follows:
(1) 
For a new development for which platting is required after the effective date of Ordinance No. 95-702, or for which replatting results in an increase in the number of service units, assessment shall be at the time of final plat approval, and shall be the amount of the maximum impact fee per service unit then in effect, as set forth in schedule 1. Collection of impact fees for all new service units shall be according to schedule 2.
(2) 
For any new development which was assessed under a prior impact fee ordinance, between June 12, 1990, and the effective date of Ordinance No. 95-702, the amount of the impact fee to be collected shall equal the amount assessed per service unit, as set forth in schedule 2 attached to Ordinance No. 95-702.
(3) 
For a new development which received final plat approval prior to June 12, 1990, and for which no replatting is necessary prior to issuance of a building permit, assessment shall be prior to or at the time that a building permit is issued or the time that utility connection is made, whichever occurs first, and shall be the amount of the maximum impact fee per service unit set forth in schedule 1. If the building permit subsequently expires or is revoked, a new assessment shall be required. Collection of impact fees shall be according to schedule 2.
(4) 
For single-family residential developments platted after September 1, 2001, the impact fees assessed shall be collected at the time of the issuance of building permits for land that is platted.
(5) 
For all other new developments, the impact fees due should be collected at the time of application for a building permit or at the time of application for utility connection, whichever occurs first, unless an agreement between a developer and the city has been executed providing for a different time of payment.
(6) 
For a new development which was assessed prior to the effective date of Ordinance No. 95-702, or following initial assessment of the impact fee for a new development pursuant to subsection (1) of this section, the amount of the maximum impact fee per service unit for that development cannot be increased unless the owner proposes to increase the number of service units for the new development, in which case the impact fee will be reassessed for such additional service units at the schedule 1 rate then in effect at the times prescribed by this section.
(7) 
If the building permit for which an impact fee has been paid has expired, and a new application is thereafter filed, the impact fees due shall be computed using schedule 2 then in effect, and previous payments of impact fees shall be credited against the new fees due.
(8) 
Whenever the property owner proposes to increase the number of service units for a development, the additional impact fees collected for such new service units shall be determined by using schedule 2 then in effect, and such additional fee shall be collected at times prescribed by this section.
(1999 Code, sec. 70-41)
(a) 
The maximum impact fee per service unit for each service area shall be computed by dividing the total costs of capital improvements in the service area identified in the impact fee capital improvements plan for that category of capital improvements by the total number of service units anticipated within the service area, based upon the land use assumptions for that service area. Maximum impact fees per service unit for each service area shall be established by category of capital improvements and shall be as set forth in schedule 1 attached to Ordinance No. 95-702 and made a part of this article by reference.
(b) 
The impact fee per service unit which is to be paid by each new development within a service area shall be that established in schedule 2, attached to Ordinance No. 95-702 and made a part of this article by reference, as may be amended from time to time, and shall be an amount less than or equal to the maximum impact fee per service unit established in subsection (a) of this section.
(c) 
Impact fee schedules 1 and 2 may be amended from time to time.
(1999 Code, sec. 70-42)
(a) 
The number of service units for a new development shall be determined by using the land use equivalency table attached to Ordinance No. 95-702 and incorporated in this article by reference as exhibit B.
(b) 
In determining the number of service units, the following rules shall apply:
(1) 
Each new freestanding building requires a new water meter.
(2) 
Existing buildings or land uses may be expanded using existing meter service. No service units will be attributed to such development if the water meter size remains the same. If the meter size is increased, the number of service units will be based upon the increase in capacity of the meter.
(3) 
In determining the number of service units for wastewater impact fees, no service units will be attributed to irrigation meters.
(4) 
If a new development does not require a water meter for water or wastewater service, or does not generate the need for water or wastewater service, no service units will be attributable to the development.
(1999 Code, sec. 70-43)
(a) 
Impact fees due for the new development shall be determined by multiplying the number of service units generated by the new development by the impact fee due per service unit using schedule 2. The number of service units shall be determined according to section 23.02.008.
(b) 
The determination of impact fees shall be reduced by any allowable credits for the category of capital improvements as provided by section 23.02.010.
(c) 
The total amount of impact fees due shall be attached to the subdivision application, or, if to be paid at some later date, to the request for other permit or connection.
(1999 Code, sec. 70-44)
(a) 
A property owner who constructs a water facility or a wastewater facility pursuant to an agreement authorized under section 23.02.015 may reduce impact fees due for the property for that category of capital improvement by the amount determined under subsection (c) of this section. The credit shall be associated with the plats of the property that will be served by the capital improvement constructed.
(b) 
The improvements agreement executed pursuant to section 23.02.015 may provide for participation by the city in the costs of the capital improvement to be constructed by the property owner, as provided in the city's subdivision regulations. The amount of any credit shall be reduced by the amount of the city's participation.
(c) 
The amount of a credit shall be determined pursuant to rules established in this section or pursuant to administrative guidelines promulgated by the city. The following rules shall apply:
(1) 
No credits shall be given for capital improvements which are not identified within the applicable impact fees impact fee [sic] capital improvements plan, unless otherwise agreed to by the city.
(2) 
The costs used to calculate the credits shall not exceed those assumed for the capital improvements included in the impact fees impact fee [sic] capital improvements plan.
(3) 
No credits shall be given for the dedication or construction of site-related facilities.
(4) 
No credit for construction of any facility shall exceed the total amount of impact fees due from the development for the same category of improvements.
(d) 
A credit associated with a plat shall be applied to reduce impact fees due at the time of final plat approval, for single-family residential developments. For all other developments and for credits acquired after final plat approval, the credit shall be applied to reduce an impact fee at the time of application for the first building permit or at the time of application for the first utility connection for the property, whichever first occurs, and thereafter to all subsequently issued building permits or utility connections, until the credit or offset is exhausted; provided, however, that a different application of credits may be provided by agreement authorized under section 23.02.015.
(1999 Code, sec. 70-45)
(a) 
All impact fees collected shall be deposited in interest-bearing accounts clearly identifying the category of capital improvements or facility expansions within the service area for which the fee is adopted.
(b) 
Interest earned shall be credited to the amount [account] and shall be subject to the same restrictions on expenditures as the funds generating such interest.
(c) 
Impact fees and the interest earned thereon may be used to finance or to recoup the costs of any capital improvements or facility expansion identified in the applicable impact fee capital improvements plan for the service area, including, but not limited to, the construction contract price, surveying and engineering fees, and land acquisition costs (including land purchases, court awards and costs, attorney's fees and expert witness fees). Impact fees and interest earned thereon may also be used to pay the principal sum and interest and other finance costs on bonds, notes or other obligations issued by or on behalf of the city to finance such capital improvements or facility expansion.
(d) 
Impact fees and interest earned thereon shall not be used to pay for any of the following expenses:
(1) 
Construction, acquisition or expansion of capital improvements or assets other than those identified in the applicable impact fee capital improvements plan;
(2) 
Repair, operation or maintenance of existing or new capital improvements or facility expansion;
(3) 
Upgrade, expansion or replacement of existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards;
(4) 
Upgrade, expansion or replacement of existing capital improvements to provide better service to existing development; provided, however, that impact fees may be used to pay the costs of upgrading, expanding or replacing existing capital improvements in order to meet the need for new capital improvements generated by new development; or
(5) 
Administrative and operating costs of the city.
(e) 
The city shall establish adequate financial and accounting controls to ensure that impact fees and interest earned thereon which are disbursed from the accounts established in this article are utilized solely for the purposes authorized in this section. Disbursement of funds shall be authorized by the city at such times as are reasonably necessary to carry out the purposes and intent of this article; provided, however, that funds shall be expended within a reasonable period of time, but not to exceed ten years from the date impact fees are deposited into the account.
(f) 
The city shall maintain financial records for impact fees collected, which will show the source and disbursement of all fees collected and/or expended within each service area. The records of the accounts into which impact fees are deposited shall be open for public inspection and copying during ordinary business hours. The city may establish a fee for copying services.
(1999 Code, sec. 70-46)
(a) 
Upon application, any impact fee or portion thereof collected pursuant to this article, which has not been expended as authorized in this article within ten years from the date of payment, shall be refunded to the record owner of the property for which the impact fee was paid or, if the impact fee was paid by another governmental entity, to such governmental entity, together with interest calculated from the date of collection to the date of refund at the statutory rate as set forth in V.T.C.A., Finance Code section 302.002, or its successor statute. An impact fee shall be considered expended on a first-in, first-out basis.
(b) 
Upon completion of capital improvements or facility expansions identified in the impact fee capital improvements plan, the impact fee shall be recalculated utilizing actual costs. If the impact fee based on actual cost is less than the impact fee paid, the city shall refund the difference if such difference exceeds the impact fee paid by more than ten percent. If the difference is less than ten percent, no refund shall be due.
(c) 
If a refund is due pursuant to this section, the refund to the record owner shall be calculated by multiplying the refund due per service unit by the number of service units for the development for which the fee was paid, and interest due shall be calculated upon that amount.
(d) 
If a tract of land for which an impact fee has been paid is replatted, resulting in a reduction in the number of service units, and the new impact fee to be collected is less than that paid, the city shall refund the difference, provided that water meters to serve the development have not been installed.
(e) 
The owner of the property on which an impact fee has been paid or another political subdivision or governmental entity that paid the impact fee has standing to sue for a refund under this section.
(f) 
If the building permit for a new development for which an impact fee has been paid has expired, no utility connections for that category of capital improvements have been made to the development, and a modified or new application has not been filed within six months of such expiration, the city shall, upon written application, rebate the amount of the impact fee paid at the time of building permit to the record owner of the property for which the impact fee was paid. If no application for rebate pursuant to this subsection has been filed within this period, no rebate shall become due.
(1999 Code, sec. 70-47)
(a) 
The property owner or applicant for new development may appeal the following administrative decisions to the city council:
(1) 
The applicability of an impact fee to the development;
(2) 
The amount of the impact fee due;
(3) 
The denial of or the amount of a credit;
(4) 
The application of a credit against an impact fee due; or
(5) 
The amount of a refund due, if any.
(b) 
The burden of proof shall be on the appellant to demonstrate that the amount of the fee or the amount of the credit was not calculated according to the applicable schedule of impact fees or the guidelines established for determining credits.
(c) 
The appellant must file a written notice of appeal with the city within 30 days following the decision. If the notice of appeal is accompanied by a payment or other security satisfactory to the city attorney in an amount equal to the original determination of the impact fee due, the development application may be processed while the appeal is pending.
(1999 Code, sec. 70-48)
(a) 
Any person who has paid an impact fee or an owner of land upon which an impact fee has been paid may petition the city council to determine whether any duty required by this article has not been performed within the time so prescribed. The petition shall be in writing and shall state the nature of the unperformed duty and request that the duty be performed within 60 days of the request. If the city council determines that the duty is required pursuant to his article and is late in being performed, it shall cause the duty to commence within 60 days of the date of the request and to continue until completion. This subsection is not applicable to matters which may be appealed pursuant to section 23.02.013.
(b) 
The city council may grant a variance from any requirement of this article, upon written request by a developer or owner of property subject to this article, following a public hearing, and only upon finding that a strict application of such requirement would result in confiscation of the property when regarded as a whole.
(c) 
The city council may waive all or a portion of impact fees due, upon written request by a developer or owner of property subject to this article, following a public hearing, upon finding that such waiver substantially furthers the city's goals of promoting economic development as may be set forth in the city's goals, policies and regulations. The city council also may waive all or a portion of impact fees due, upon written request by a public entity or the owner of a nonprofit institution, following a public hearing, if the establishment of such use within the city is consistent with the community's general welfare, the payment of the fee substantially inhibits the establishment of the proposed use in the community, and the establishment of the use outweighs the detriment to the city from loss of impact fee revenues. In granting such waiver, the city council shall make findings relating to such purposes and shall take into consideration the extent to which other incentives and waivers have been granted the development pursuant to then-existing laws and regulations.
(1999 Code, sec. 70-49)
(a) 
An owner of a new development may construct or finance a capital improvement or facility expansion designated in the capital improvements plan, if required or authorized by the city, by entering into an agreement with the city prior to the issuance of any building permit for the development. The agreement shall be on a form approved by the city, and shall identify the estimated costs of the improvement or expansion, and include a schedule for initiation and completion of the improvement or expansion, a requirement that the improvement be designed and completed to city standards, and such other terms and conditions as deemed necessary by the city. The agreement shall provide for the method to be used to determine the amount of the credit to be given against impact fees due for the development, and may provide for a method of assigning credits to individual lots or tracts which is different from that required pursuant to section 23.02.010(d). The agreement also may provide the time of collection of impact fees, which varies from the provisions of section 23.02.006.
(b) 
If the city elects to reimburse an owner for the dedication, construction or financing of a capital improvement or facility expansion designated in the impact fee capital improvements plan, the terms of reimbursement shall be incorporated in the agreement required by this section.
(1999 Code, sec. 70-50)
(a) 
The city may finance capital improvements or facility expansion designated in the impact fee capital improvements plan through the issuance of bonds, or through any other authorized mechanism, in such manner and subject to such limitations as may be provided by law, in addition to the use of impact fees.
(b) 
Except as otherwise provided in this article, the assessment and collection of an impact fee shall be additional and supplemental to, and not in substitution of, any other tax, fee, charge or assessment which is lawfully imposed on and due against the property.
(1999 Code, sec. 70-51)
Impact fees established by this article are additional and supplemental to, and not in substitution of, any other requirements imposed by the city on the development of land or the issuance of building permits or certificates of occupancy. Such fee is intended to be consistent with and to further the policies of city's comprehensive land use plan, the impact fee capital improvements plan, the zoning ordinance, subdivision regulations and other city policies, ordinances and resolutions by which the city seeks to ensure the provision of adequate public facilities in conjunction with the development of land.
(1999 Code, sec. 70-52)
The following schedules and exhibits, attached to Ordinance No. 95-702, are adopted in this section and made a part of this article as if fully set forth:
(1) 
Schedule 1: Impact Fee Assessment Schedule.
(2) 
Schedule 2: Impact Fee Collection Schedule.
(3) 
Exhibit A: Land Use Assumptions.
(4) 
Exhibit B: Service Area Maps.
(5) 
Exhibit C: Impact Fee Capital Improvements Plans.
(1999 Code, sec. 70-53)