This article is intended to assure the provision of adequate public facilities to serve new development in the city by requiring each development to pay its pro rata share of the costs of such improvement necessitated by and attributable to such new development.
(2005 Code, sec. 16.2.01)
This article is adopted pursuant to chapter 395 of the Texas Local Government Code. The provisions of this article shall not be construed to limit the power of the city to utilize other methods authorized under state law to accomplish the purposes set forth herein, either in substitution for or in conjunction with the provisions of this article. The city may promulgate guidelines by resolution or otherwise to implement and administer this article.
(2005 Code, sec. 16.2.02)
(a) 
In this article:
Advisory committee.
The city’s duly appointed planning and zoning commission.
Area-related facility.
A capital improvement or facility expansion which is designated in the impact fee capital improvements plan and which is not a site-related facility. “Area-related facility” may include a capital improvement which is located off-site, within, or on the perimeter of the development site.
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 roadway facility, a water facility or a sanitary sewer facility, with a life expectancy of three (3) 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 for fees, payments or charges for the same type of capital improvements for which the fee has been assessed.
Facilities expansion.
Either a roadway expansion, a water facility expansion or a sanitary sewer facility expansion.
Fee schedule.
The schedule of impact fees adopted pursuant to this article, as from time to time amended, contained in appendix B to this article.
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 sent for filing to the county clerk.
Impact fee.
A fee for either roadway facilities, water facilities or sanitary sewer facilities, imposed on new development by the city pursuant to this article in order to fund or recoup the costs of capital improvements or facilities expansions necessitated by and attributable to such new development. Impact fees do not include the dedication of rights-of-way or easements for such facilities, or the construction of such improvements. Impact fees also do not include charges imposed pursuant to article 10.02 of this code such as pro rata charges or acreage charges for sanitary sewer improvements, front footage charges for sanitary sewer and water lines, or funds deposited in escrow for the construction of roadway improvements.
Impact fee capital improvements plan.
Either a roadway improvements plan, a water improvements plan or a sanitary sewer improvements plan adopted or revised pursuant to this article.
Land use assumptions.
The projections of population and employment growth and associated changes in land uses, densities and intensities in the city, upon which the impact fee capital improvements plans are based, contained in appendix A to this article.
New development.
A project involving the construction, reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of any structure, or any use or extension of land, 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 and filing with Tarrant County of a plat pursuant to the city’s subdivision regulations, the issuance of a building permit, or connection to the city’s water or sanitary sewer system.
Offset.
The amount of the reduction of an impact fee designated to fairly reflect the value of area-related facilities or other roadway facilities, pursuant to rules herein established, provided by a developer pursuant to the city’s subdivision regulations or requirements.
Recoupment.
The imposition of an impact fee to reimburse the city for capital improvements which the city has previously oversized to serve new development.
Residential unit equivalent (RUE).
A single unit of service as defined by continuous duty maximum flow rate in gallons per minute for a 3/4" water meter. The sanitary sewer “residential unit equivalent” is an estimate at 66 percent for the normally expected sewer flow relationship to water’s RUE.
Roadway facility.
An improvement or appurtenance to a roadway which includes, but is not limited to: design, rights-of-way, whether conveyed by deed or easement; intersection improvements; traffic-control devices; turn lanes; drainage facilities associated with the roadway; street lighting or curbs, and also including any improvement or appurtenance to an intersection with a roadway officially enumerated in the federal or state highway system. The term “roadway facility” excludes those improvements or appurtenances to a roadway which are site-related facilities.
Roadway improvements plan.
The adopted plan, as may be amended from time to time, which identifies the roadway facilities or roadway expansions and their costs for each roadway benefit area, which are necessitated by and which are attributable to new development, for a period not to exceed ten (10) years, which are to be financed in whole or in part through the imposition of roadway facilities fees pursuant to this article.
Service area.
Either a roadway benefit area, a water benefit area or a sanitary sewer benefit area within which impact fees for capital improvements or facilities expansions 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 capital improvements plan applicable to the service. The service area shall mean the entire city.
Service unit.
The applicable standard unit of measure shown on the conversion table in the impact fees capital improvements plan which can be converted either to a vehicle mile in p.m. peak hour or three-fourths inch (3/4") water meter equivalents, which serves as the standardized measure of consumption, use or generation attributable to the new unit of development.
Sanitary sewer facility.
An improvement for providing sanitary sewer service, including, but not limited to, land or easements, treatment facilities, lift stations, or interceptor mains, but excluding sanitary sewer lines or mains which are constructed by developers, the costs of which are reimbursed from pro rata charges paid by subsequent users of the facilities, and excluding also site-related facilities.
Sanitary sewer facility expansion.
The expansion of the capacity of any existing sanitary sewer improvement for the purpose of serving new development, but does not include the repair, maintenance, modernization, or expansion of an existing sanitary sewer facility to serve existing development.
Sanitary sewer improvements plan.
The adopted plan, as may be amended from time to time, which identifies the sanitary sewer facilities or sanitary sewer expansions and their associated costs which are necessitated by and which are attributable to new development, for a period not to exceed ten (10) years, and which are to be financed in whole or in part through the imposition of sanitary sewer facilities fees pursuant to this article.
Single-family residential lot.
A lot platted to accommodate a single-family dwelling unit, as authorized under the city’s zoning regulations.
Site-related facility.
An improvement or facility which is for the primary use or benefit of a new development and/or for the primary purpose of safe and adequate provision of roadway, water or sanitary sewer facilities to serve the new development, and which is not included in the impact fee capital improvements plan and for which the developer or property owner is solely responsible under subdivision and other applicable regulations.
Water facility.
An improvement for providing water service, including, but not limited to, land or easements, water treatment facilities, water supply facilities or water distribution lines, but excluding water lines or mains which are constructed by developers, the costs of which are reimbursed from pro rata charges paid by subsequent users of the facilities and also excluding site-related facilities.
Water facility expansion.
The expansion of the capacity of any existing water facility for the purpose of serving new development, but not including the repair, maintenance, modernization, or expansion of an existing water facility to serve existing development.
Water improvement plan.
The adopted plan, as may be amended from time to time, 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 (10) years, and which are to be finished in whole or in part through the imposition of water facilities fees pursuant to this article.
(b) 
The definitions contained in this section are cumulative of and shall be read in conjunction with the terms and definitions thereof contained in chapter 395 of the Texas Local Government Code.
(2005 Code, sec. 16.2.03)
The provisions of this article apply uniformly to all new development within the city, which shall be deemed a single service area.
(2005 Code, sec. 16.2.04)
No application for new development shall be approved within the city without the assessment of an impact fee pursuant to this article, and no building permit shall be issued unless the applicant has paid the impact fee.
(2005 Code, sec. 16.2.05)
(a) 
The land use assumptions for the city are contained in appendix A to this article, which is incorporated herein by reference.
(b) 
The land use assumptions for the city shall be updated as required by chapter 395 of the Local Government Code.
(c) 
Amendments to the land use assumptions shall incorporate projections of change in land uses, densities, intensities and population therein over at least a ten (10) year period.
(2005 Code, sec. 16.2.06)
(a) 
The maximum impact fee per service unit shall be computed by dividing the total costs of capital improvements necessitated by and attributable to new development 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 shall be established by category of capital improvements and shall be as set forth in the fee schedule.
(b) 
The impact fee per service unit which is to be paid by each new development shall be that established by this article, and shall be an amount less than or equal to the maximum impact fee per service unit established in subsection (a) hereof.
(c) 
The fee schedule may be amended from time to time utilizing the amendment procedure set forth in chapter 395 of the Local Government Code.
(2005 Code, sec. 16.2.07)
(a) 
The approval of any new development shall include as a condition the assessment of the impact fee applicable to such development.
(b) 
Assessment of the impact fee for any new development shall be made as follows:
(1) 
For a development which is submitted for approval pursuant to the city’s subdivision regulations following the effective date of this article, 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 the fee schedule, as computed by the procedures set forth in section 10.03.007(a) hereof. The city may provide the subdivider with a copy of the fee schedule prior to final plat approval, but such shall not constitute assessment within the meaning of this article.
(2) 
For a development which has received final plat approval prior to the effective date of this article and for which no replatting is necessary prior to issuance of a building permit, assessment shall be on the effective date of this article, and shall be the amount of the maximum impact fee per service unit set forth in the fee schedule.
(c) 
Following assessment of the impact fee pursuant to subsection (b), the amount of the impact fee per service unit for that development cannot be increased, unless the owner proposes to change the approved development by the submission of a new application for final plat approval, in which case new assessment shall occur at the fee schedule rate then in effect.
(d) 
Following the lapse or expiration of approval for a plat, a new assessment must be performed at the time a new application for such development is filed.
(e) 
An application for an amending plat made pursuant to Texas Local Government Code, section 212.016 and article 10.02 of this code is not subject to reassessment for an impact fee.
(2005 Code, sec. 16.2.08)
(a) 
The impact fees due for a development shall be assessed and collected in accordance with chapter 395 of the Texas Local Government Code.
(b) 
Following a request for a building permit or a connection to the city’s water or sanitary sewer system, the city shall compute the impact fees due for the new development in the following manner:
(1) 
The amount of each impact fee due shall be determined by multiplying the number of service units generated by the new development by the impact fee due per service unit using the fee schedule. The number of service units shall be determined by using the conversion table contained in the impact fee capital improvements plan.
(2) 
The amount of each impact fee due shall be reduced by any allowable offsets or credits for that category of capital improvements, in the manner provided in section 10.03.011 hereof.
(3) 
The total amount of the impact fees due for the new development shall be calculated and attached to the development application or request for connection as a condition of approval.
(c) 
The amount of each impact fee due for a new development shall not exceed an amount computed by multiplying the fee assessed per service unit pursuant to section 10.03.007 by the number of service units generated by the development.
(d) 
If the building permit for which an impact fee has been paid has expired, and a new application is thereafter filed, the impact fee due shall be computed using the fee schedule then in effect, with credits for previous payment of fees being applied against the new fees due.
(e) 
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 the fee schedule then in effect.
(f) 
In its sole discretion, the city may permit the developer or property owner, upon written application, to pay impact fees for all or a portion of single-family residential lots at the time of final plat recording for such development, in the amounts provided in subsection (b) of this section.
(2005 Code, sec. 16.2.09)
(a) 
For any new development which has received final plat approval prior to February 19, 1990, in accordance with Texas Local Government Code, chapter 212, or pursuant to article 10.02 of this code, or for which an application for final plat approval has been made prior to the effective date of this article, the city may assess, but shall not collect, any impact fee as herein defined, on any service unit for which a valid building permit is issued within one (1) year subsequent to the effective date of this article.
(b) 
If the building permit which is obtained within the period provided for in subsection (a) subsequently expires, and no new application is made and approved within such period, the new development shall be subject to the payment of an impact fee.
(2005 Code, sec. 16.2.10)
(a) 
The city shall offset the reasonable value of any area-related facilities pursuant to the rules established in this section and which have been dedicated to and have been received after final acceptance by the city on or after February 19, 1985, including the value of rights-of-way for roadways or capital improvements constructed pursuant to an agreement with the city, against the amount of the impact fee due for that category of capital improvement.
(b) 
The city shall credit pro rata charges which have been paid for area-related facilities pursuant to article 10.02 of this code prior to the effective date of this article, and during the one (1) year period following adoption of this article, during which impact fees established herein may not be collected for certain new developments pursuant to section 10.03.010, against the amount of an impact fee due for that category of capital improvement.
(c) 
All offsets and credits against impact fees shall be subject to the following limitations and shall be granted based on this article and additional standards promulgated by the city, which may be adopted as administrative guidelines.
(1) 
No offset or credit shall be given for the dedication or construction of site-related facilities.
(2) 
The unit costs used to calculate the offsets shall not exceed those assumed for the capital improvements included in the impact fees capital improvements plan for the category of facility for which the impact fee is imposed.
(3) 
No offsets shall be given for roadway facilities which are not identified within the applicable impact fees capital improvements plan, except that offsets may be given for the value of dedicated rights-of-way or the value of constructed capital improvements for roadways designated in the city’s thoroughfare development plan, built to city standards and finally accepted by the city. Offsets may only be given for dedications or construction made and finally accepted after February 19, 1985.
(4) 
No credit shall be given for roadway facilities which are not identified within the applicable impact fees capital improvements plan, except that credit may be given for money deposits (other than impact fees) paid to the city toward the costs of rights-of-way or the costs of constructing capital improvements for eligible roadways designated in the city’s thoroughfare development plan built to city standards and finally accepted by the city. Credit may only be given for rights-of-way acquired or construction completed and finally accepted after February 19, 1985.
(5) 
Offsets or credits given for new developments which have received final plat approval prior to the effective date of this article, or offsets or credits acquired for new developments during the one (1) year period specified in section 10.03.010 hereof, shall be reduced by subtracting an amount equal to the impact fees which would have been due for the number of existing service units using the fee schedule.
(6) 
If an offset or credit applicable to a plat has not been exhausted within ten (10) years from the date of the acquisition of the first building permit issued or connection made after the effective date of this article or within such period as may be otherwise designated by contract, such offset or credit shall lapse.
(7) 
In no event will the city reimburse the property owner or developer for an offset or credit when no impact fees for the new development can be collected pursuant to this article or for any amount exceeding the total impact fees due for the development for that category of capital improvement, unless otherwise agreed to by the city.
(d) 
An applicant for new development must apply for an offset or credit against impact fees due for the development either at the time of application for final plat approval or (1) if for a roadway facility fee, at the time of building permit application, and (2) for water and sewer fees, at the time of connection, unless the city agrees to a different time. The applicant shall file a petition for offsets or credits with the city on a form provided by the city for such purpose. The city must provide the applicant with a decision in writing on the offset or credit request, including the reasons for the decision. The decision shall specify the maximum value of the offset or credit which may be applied against an impact fee, which amount and the date of the determination shall be associated with the plat for the new development.
(e) 
The available offset or credit associated with the plat shall be applied against an impact fee in the following manner:
(1) 
For single-family residential lots in a new development consisting only of single-family residential lots which have received final plat approval, such offset or credit shall be prorated equally among such lots and shall remain applicable to such lots, to be applied at the time of filing and acceptance of an application for a building permit or connection, as appropriate against impact fees due.
(2) 
For all other types of new development, including those involving mixed uses, which have received final plat approval, the offset or credit applicable to the plat shall be applied to the impact fee due at the time of issuance of the first building permit or connection to which the offset or credit is applicable, and thereafter to all subsequently issued building permits or connections, until the offset or credit has been exhausted.
(3) 
At its sole discretion, the city may authorize alternative credit or offset agreements upon petition by the owner in accordance with guidelines therefor promulgated by the city.
(2005 Code, sec. 16.2.11)
(a) 
The city shall establish an account to which interest is allocated for each category of capital facility for which an impact fee is imposed pursuant to this article. Each impact fee collected shall be deposited in such account.
(b) 
Interest earned on the account into which the impact fees are deposited shall be considered funds of the account and shall be used solely for the purposes authorized in section 10.03.013 hereof.
(c) 
The city shall establish adequate financial and accounting controls to ensure that impact fees disbursed from the account are utilized solely for the purposes authorized in section 10.03.013 hereof. 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 any fee paid shall be expended within a reasonable period of time, but not to exceed ten (10) years from the date the fee is deposited into the account.
(d) 
The city shall maintain financial records for impact fees, which shall show the source and disbursement of all fees. The records of the account into which impact fees are deposited shall be open for public inspection and copying during ordinary business hours.
(2005 Code, sec. 16.2.12)
(a) 
The impact fees collected pursuant to this article may be used to finance or to recoup the costs of any capital improvements or facilities expansions identified in the impact fee capital improvements plan, including the construction contract price, surveying and engineering fees, land acquisition costs (including land purchases, court awards and costs, attorney’s fees, and expert witness fees), and the fees actually paid or contracted to be paid to an independent qualified engineer or financial consultant preparing or updating the impact fee capital improvements plan who is not an employee of the political subdivision. Impact fees may also be used to pay the principal 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 facilities expansions.
(b) 
Impact fees collected pursuant to this article 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 facilities expansions;
(3) 
Upgrading, expanding or replacing existing capital improvements to serve existing development in order to meet stricter safety, efficiency, environmental or regulatory standards;
(4) 
Upgrading, expanding or replacing 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;
(5) 
Administrative and operating costs of the city; or
(6) 
Any other expense, the payment of which is prohibited by chapter 395 of the Local Government Code.
(2005 Code, sec. 16.2.13)
(a) 
The property owner or applicant for new development may appeal the following 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 availability or the amount of an offset or credit;
(4) 
The application of an offset or credit against an impact fee due;
(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 offset or credit was not calculated according to the applicable schedule of impact fees or the guidelines established for determining offsets and credits.
(c) 
The appellant must file a notice of appeal with the city secretary within thirty (30) days following the decision. If the notice of appeal is accompanied by a bond or other sufficient surety 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.
(2005 Code, sec. 16.2.14)
(a) 
Any impact fee or portion thereof collected pursuant to this article which has not been expended within the service area within ten (10) years from the date of payment shall be refunded, upon application, pursuant to the provisions therefor contained in chapter 395 of the Texas Local Government Code. Interest shall be calculated from the date of collection to the date of refund at the statutory rate as set forth in V.T.C.A., Local Government Code, section 395.025 or any successor statute.
(b) 
If a refund is due pursuant to subsection (a), the city shall prorate the same by dividing the difference between the amount of expenditures and the amount of the fees collected by the total number of service units assumed for the period to determine the refund due per service unit. 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.
(c) 
If the building permit for a new development for which an impact fee has been paid has expired, and a modified or new application has not been filed within six (6) months of such expiration, the city shall, upon written application, refund the amount of the impact fee to the applicant.
(2005 Code, sec. 16.2.15)
(a) 
The city shall update its land use assumptions and impact fees capital improvements plans and shall recalculate its impact fees not less than once every three years in accordance with the procedures set forth in chapter 395 of the Texas Local Government Code.
(b) 
The city may review its land use assumptions, impact fee capital improvements plans, and other factors such as market conditions more frequently than provided in subsection (a) hereof to determine whether the land use assumptions and impact fee capital improvements plans should be updated and the impact fee recalculated accordingly, or whether the fee schedule collection rates should be increased, decreased, or otherwise changed.
(2005 Code, sec. 16.2.16)
The advisory committee shall perform the functions provided in chapter 395 of the Texas Local Government Code, and such other functions as the city council may assign consistent therewith.
(2005 Code, sec. 16.2.17)
(a) 
An owner of a new development may construct or finance a capital improvement or facility expansion designated in the impact fee 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 in a form approved by the city, and shall identify the estimated cost of the improvement or expansion, the schedule for initiation and completion of the improvement or expansion, a requirement that the improvement be designated 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 offset to be given against impact fees due for the development.
(b) 
In the event that 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 subsection [(a) of this section.]
(2005 Code, sec. 16.2.18)
(a) 
The city may finance capital improvements or facilities expansions designated in the impact fee capital improvements plan through the issuance of bonds, through the formation of public improvement districts or other assessment districts, or through any other authorized mechanism, is such manner and subject to such limitations as may be provided by law, in addition to the use of impact fees.
(b) 
Except as herein otherwise provided, 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.
(c) 
The city may pay all or part of impact fees due for a new development taking into account available offsets and credits pursuant to duly adopted criteria.
(2005 Code, sec. 16.2.19)
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 issuance of building permits or certificates of occupancy. Such fees are intended to be consistent with and to further the policies of the city comprehensive 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.
(2005 Code, sec. 16.2.20)
(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 prescribed by law. The petition shall be in writing and shall state the nature of the unperformed duty and request that the act be performed within sixty (60) days of the request. If the city council determines that the duty is required pursuant to this article and is late in being performed, it shall cause the performance of the duty to commence within sixty (60) days of the date of the request and to continue until completion.
(b) 
The city council may grant a variance or waiver 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 a finding that a strict application of such requirement would, when regarded as a whole, result in confiscation of the property.
(c) 
The city council may grant a waiver from any requirement of this article on other grounds, as may be set forth in administrative guidelines.
(d) 
If the city council grants a variance or waiver to the amount of the impact fee for a new development under this section, it shall cause to be appropriated from other city funds the amount of the reduction in the impact fee to the account for the service area in which the property is located.
(2005 Code, sec. 16.2.21)
Any building permit application which was duly accepted for filing prior to the effective date of this article, and which is subsequently granted, shall be exempt from the assessment and payment of an impact fee, unless such application thereafter expires.
(2005 Code, sec. 16.2.22)