(a) 
A current copy of the adopted land use assumptions, capital improvements plans and impact fee study shall be kept at the office of the town secretary and shall be the official documents used to administer the impact fee standards in this article.
(b) 
The land use assumptions, capital improvements plans and impact fee study for water, wastewater and roadway facilities may be amended from time to time, pursuant to section 10.03.006. Upon amendment, a copy of the updated land use assumptions, capital improvements plan or impact fee study shall be retained in the office of the town secretary upon the effective date of this article and thereafter shall become the official copy for purposes of administering the regulations in this article.
(Ordinance 2015-32, sec. 3, adopted 12/1/15)
This article is adopted pursuant to the provisions of Tex. Local Gov’t Code, chapter 395. This article implements a policy of the town to impose fees upon new development to pay the costs of constructing capital improvements and facility expansions necessary to serve new development.
(1998 Code, sec. 38.16)
For the purpose of this article the following definitions shall apply, unless the context clearly indicates or requires a different meaning:
Advisory committee.
A body of members appointed by the town council, composed of not less than five members, where no less than 40% of the membership shall be representative of the real estate, development, or building industries who are not employees or officials of a political subdivision or governmental entity. The planning and zoning commission may, with the approval of the town council, act as the advisory committee, provided that the commission includes 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. If no such representative is a member of the planning and zoning commission, the commission may act as the advisory committee if at least one such representative is appointed by the town council as an ad hoc voting member of the planning and zoning commission when it acts as the advisory committee. Where the terms of this article extend the application of the impact fee into the town’s extraterritorial jurisdiction, the membership of the advisory committee shall include a representative from that area.
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.
Any of the following facilities that have a life expectancy of three or more years and are owned and operated by or on behalf of a political subdivision:
(1) 
Water facilities, wastewater facilities, and stormwater, drainage, and flood control facilities, whether or not they are located within the service area; and
(2) 
Roadway facilities.
Capital improvements plan.
The adopted plan, as amended from time to time, that identifies water, wastewater or roadway capital improvements or facility expansions and their associated costs which are necessitated by and attributable to new development and will be financed in whole or in part through water, wastewater or roadway impact fees collected under this article.
Credit.
The amount of the reduction of an impact fee for fees, payments or charges for or construction of the same type of facility.
Facility expansion.
The expansion of the capacity of an existing facility that serves the same function as an otherwise necessary new capital improvement, in order that the existing facility may serve 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.
A charge or assessment imposed as set forth in this article against new development in order to generate revenue for funding or recouping the costs of capital improvements or facility expansions necessitated by and attributable to the new development. The term does not include:
(1) 
Dedication of land for public parks or payment in lieu of the dedication to serve park needs;
(2) 
Dedication of rights-of-way or easements or construction or dedication of on-site water distribution, wastewater collection or drainage facilities, or streets, sidewalks, or curbs if the dedication or construction is required by a valid ordinance and is necessitated by and attributable to the new development; or
(3) 
Lot or acreage fees to be placed in trust funds for the purpose of reimbursing developers for oversizing or constructing water or sewer mains or lines.
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 town and upon which the capital improvements plan is based.
New development.
The subdivision of land, 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 increases the number of service units.
Off-site.
Located entirely on property which is not included within the boundaries of a plat being considered for impact fee assessment.
Political subdivision.
A municipality, or a district or authority created under article III, section 52, or article XVI, section 59, of the state constitution.
Roadway facilities.
Arterial or collector streets or roads that have been designated on the town’s officially adopted roadway plan, together with all necessary appurtenances. The term does not include any roadways or associated improvements designated on the federal or state highway system, except to the extent that such roadways or associated improvements are to be paid for (in whole or in part) from town funds (local participation by the town). The term includes but is not limited to interests in land, traffic lanes, curbs, gutters, intersection improvements, traffic-control devices, turn lanes, drainage facilities associated with the roadway, and street lighting, for which the town be will obligated to pay.
Service area.
(1) 
For water facilities and wastewater facilities: The entire area within the corporate limits of the town and its extraterritorial jurisdiction to be served by the capital improvements or facilities expansions specified in the capital improvements plan;
(2) 
For roadway facilities: Each individual area located within the corporate boundaries of the town and designated in the land use assumptions served by the roadway facilities designated in the capital improvements plan.
Service unit.
A standardized measure of consumption, use, generation, or discharge attributable to an individual unit of development calculated in accordance with generally accepted engineering or planning standards for a particular category of capital improvements or facility expansions. “Service unit” is defined in the capital improvements plan.
Wastewater facilities.
Improvements for providing wastewater collection and treatment, including, but not limited to, land or easements, treatment facilities, lift stations, and interceptors or mains. “Wastewater facilities” excludes sanitary sewer lines or mains which are constructed by developers, the costs of which are reimbursed from pro rata charges paid by developers or owners of property in other subdivisions as a condition of connection to or use of such facility.
Water facilities.
Improvements for providing water supply, treatment and distribution service, including, but not limited to, land or easements, water treatment facilities, water supply facilities, water distribution lines, water meters, water storage, and water pumps. “Water facilities” excludes water lines or mains which are constructed by developers, the costs of which are reimbursed from pro rata charges paid by developers or owners of property in other subdivisions as a condition of connection to or use of such facility.
(1998 Code, sec. 38.17)
Any person, firm or corporation violating any of the provisions of this article shall be deemed guilty of a misdemeanor and upon conviction be subject to a fine in accordance with the general provisions of the Code of Ordinances.
(1998 Code, sec. 38.99)
(a) 
The advisory committee serves in an advisory capacity and is established to:
(1) 
Advise and assist the town in adopting land use assumptions;
(2) 
Review the capital improvements plan and file written comments;
(3) 
Monitor and evaluate implementation of the capital improvements plan;
(4) 
File semiannual reports with respect to the progress of the capital improvements plan and report to the town council any perceived inequities in implementing the plan or imposing the impact fee; and
(5) 
Advise the town staff and council of the need to update or revise the land use assumptions, capital improvements plan, and impact fee.
(b) 
All professional reports concerning the development and implementation of the capital improvements plan shall be made available to the advisory committee.
(c) 
The advisory committee shall elect a chairperson to preside at its meetings and a vice-chairperson to serve in the chairperson’s 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.
(1998 Code, sec. 38.18)
The land use assumptions and capital improvements plan upon which impact fees are based shall be updated at least every five years. The first five-year period begins on the date the capital improvements plan is adopted. Alternatively, the town council may, pursuant to the provisions of Tex. Local Gov’t Code section 395.0575, or any successor statute thereto, make a determination that no such update is required.
(1998 Code, sec. 38.19)
(a) 
No building permit shall be granted for new development or new construction of any property nor shall any original water or sewer service connection be made or service commenced unless and until impact fees required by this article are assessed and collected or a contract providing for payment as approved by the town is entered into.
(b) 
For new development which is platted and received final plat approval in accordance with Tex. Local Gov’t Code chapter 212, subchapter A, or the town’s subdivision or platting procedures prior to the effective date of this article, impact fees may not be collected on any service unit for which a valid building permit is issued prior to May 6, 1999.
(c) 
For land platted and which receives final plat approval in accordance with Tex. Local Gov’t Code chapter 212, subchapter A, or the town’s subdivision or platting procedures after the effective date of this article, impact fees shall be assessed against such land and collected as required by section 10.03.008. No final plat for any such land or new development shall be approved without assessment of an impact fee as required by section 10.03.008, nor shall a building permit be issued or utility connection be made until the landowner has paid the impact fee.
(d) 
For land on which new development occurs or is proposed to occur without platting, no building permit shall be issued in connection with or utility connection made to such land unless and until the landowner has paid the impact fee as required by section 10.03.008.
(1998 Code, sec. 38.20)
(a) 
For new development which is platted and received final plat approval in accordance with Tex. Local Gov’t Code chapter 212, subchapter A, or the town’s subdivision or platting procedures prior to the effective date of this article, no impact fees shall be collected on any service unit for which a valid building permit is issued before May 5, 1999. Impact fees shall be assessed and collected for all other service units subject to such a plat at the time of the issuance of the building permit or upon the filing of an application for connection of an individual water or wastewater meter to the town’s water or wastewater system in order to serve the development, whichever first occurs.
(b) 
For land platted and which received final plat approval in accordance with Tex. Local Gov’t Code chapter 212, subchapter A, or the town’s subdivision or platting procedures after the effective date of this article, impact fees shall be assessed against such land at the time the plat of the land receives final plat approval. Except as provided in subsection (e), and where water and wastewater capacity is available, impact fees shall be collected for a development on occurrence of the following events:
(1) 
For land inside the town’s corporate limits, on issuance of a building permit.
(2) 
For land located outside the town’s corporate boundaries, or for land where the town lacks authority to issue building permits, upon filing of an application for connection of an individual water or wastewater meter to the town’s water or wastewater system in order to serve the development.
(c) 
For land on which new development occurs or is proposed to occur without platting, impact fees shall be assessed against such land at the time of the issuance of a building permit or other development permit, and impact fees shall be collected at the time of the issuance of a building permit.
(d) 
After assessment of the impact fees attributable to the new development or execution of an agreement for payment of impact fees, additional impact fees or increases in fees shall not be assessed against the tract unless the number of service units to be developed on the tract increases. Should the number of service units be increased, impact fees shall be increased in an amount equal to the then-current impact fee per service unit multiplied by the number of additional service units.
(e) 
Except for roadway facilities, impact fees may be assessed but not collected in areas where service is not available unless:
(1) 
The collection is made to pay for a capital improvement or facility expansion identified in the capital improvements plan and the town commits to commence construction of necessary facilities identified in the capital improvements plan within two years and to have service available in a reasonable time not exceeding five years; or
(2) 
The town agrees in writing to permit the owner of a new development to construct or finance the required capital improvements or facility expansions and agrees:
(A) 
That the costs incurred or funds advanced will be credited against the impact fees otherwise due from the new development; or
(B) 
To reimburse the owner for such costs from impact fees paid from other new developments that will use such capital improvements or facility expansions, which fees shall be collected and reimbursed to the owner at the time the other new development records its plat; or
(3) 
The owner voluntarily requests that the town reserve capacity to serve future development and the town and the owner enter into a valid written agreement.
(f) 
Where the town and an owner have entered into an agreement in writing as described in subsection (e)(2)(B) above, the town may use impact fees paid from other new developments that will use the capital improvements or facility expansions as described in this section to reimburse the owner for the ratable portion of such capital improvements or facility expansions attributable to such other new developments, and such fees shall be collected and reimbursed to the owner at the time the other new development records its plat.
(g) 
The owner of the property for which there is a recorded plat may enter into a written agreement with the town providing for the time and method of payment of impact fees, which agreement shall prevail over any contrary provision of this article.
(h) 
The amount of the impact fees to be assessed against a new development for each category of capital improvement by water meter type and size or by vehicle mile shall be as set forth in schedule 1, as established by section 10.03.015 of this article. The amount of the impact fees which are to be collected from a new development for each category of capital improvement shall be determined by multiplying the impact fee per service unit using schedule 2, as established by section 10.03.015 of this article, by the number of service units generated by the development, using the land use equivalency table, as established by section 10.03.016 of this article.
(1998 Code, sec. 38.21)
(a) 
Maximum impact fees per service unit for each service area shall be established by category of capital improvements. The maximum impact fee per service unit for each service area for each category of capital improvement shall be computed in the following manner:
(1) 
Calculate the total projected costs of capital improvements necessitated by and attributable to new development in the service area identified in the impact fee capital improvements plan for each category of capital improvements;
(2) 
From such amount, subtract a credit equal to 50% of such total projected costs; and
(3) 
Divide the resultant amount by the total number of service units anticipated within the service area, based upon the land use assumptions for that service area.
(b) 
As an alternative to the 50% credit referenced in subsection (a)(2), the town may incorporate within the capital improvements plan, for any category of capital improvements, a discount against the total costs of capital improvements, in the amount of that portion of ad valorem tax and utility service revenues, if any, including the payment of debt, to be generated by new service units during the period the capital improvements plan is in effect, including the payment of debt associated with the capital improvements in the plan.
(c) 
The impact fee per service unit which is to be paid by each new development within a service area shall be that established by ordinance of the town council, as such 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).
(d) 
The determination of impact fees shall be reduced by any allowable credits for the category of capital improvements as provided by section 10.03.011.
(e) 
The total amount of unpaid impact fees shall be attached to the development application, or, if to be paid at some later date, to the request for other permit or connection.
(f) 
Replatting shall not require recalculation of impact fees unless the number of service units is increased. If a proposed development increases the number of service units, the impact fee shall be recalculated as provided as provided for herein.
(1998 Code, sec. 38.22)
(a) 
Impact fees shall be imposed and calculated for the alteration, expansion, or replacement of a building or dwelling unit or the construction of an accessory building if the alteration, expansion, or replacement of the building or dwelling or the construction of an accessory building results in a land use determined to increase the number of dwelling units, increase the usable square footage (or other type of service unit measure), change the land use so as to constitute a different impact fee land use category, or increase the size of the utility meter(s). Such fees shall be calculated as follows:
(1) 
The impact fees shall be the amounts due under the applicable rate for the land use or meter size category resulting from the alteration, expansion, or replacement, less the impact fee that would be imposed under the applicable impact fee rate for the land use or meter size category prior to alteration, expansion, or replacement. In determining the impact fee which would have been in place for the land use category prior to alteration, expansion, or replacement, the use of land during the previous three years which provided the highest impact upon the town’s capital improvements shall be utilized.
(2) 
The roadway impact fee for any accessory building shall be that applicable under the rate for the land use of the primary structure.
(b) 
The following shall be exempted from payment of impact fees:
(1) 
Alteration, expansion, or replacement of an existing dwelling unit which does not increase the number of families which such dwelling unit is arranged, designed, or intended to accommodate for the purpose of providing living quarters.
(2) 
The alteration or expansion of an accessory building or structure which will not create additional dwelling units or will not increase the usable square footage space (or other service unit measure) associated with the principal building or of the land or will not change the utility meter size.
(3) 
The replacement of a dwelling unit or a building with a new dwelling unit or building of the same size and use, and same utility meter size, which will not increase the square footage associated therewith; provided that the replacement of the dwelling unit or building which has been destroyed, moved, or otherwise rendered uninhabitable must be replaced within three years of the date it was destroyed, moved, or otherwise rendered uninhabitable in order to be exempt from payment of impact fees.
(1998 Code, sec. 38.23)
(a) 
Any construction of, contributions to, or dedications of any facility by a developer appearing on the capital improvements plan which is required by the town to be constructed as a condition of development shall be credited against the impact fees otherwise due for the same category of impact fees otherwise due from the development.
(b) 
The amount of each credit for required dedication or construction of a facility on the capital improvements plan shall be calculated by multiplying the value of the facility assessed for the capital improvements plan by a fraction, the numerator of which is the impact fee per service unit due for the new development computed using schedule 2 as established by section 10.03.015 of this article, and the denominator of which is the maximum impact fee per service unit computed using schedule 1 as established by section 10.03.015 of this article.
(c) 
As an alternative to the foregoing, the town and the owner may enter into an agreement providing that, in addition to the credit, the owner will be reimbursed for all or a portion of the costs of such facilities from impact fees as received from other new developments that will use such capital improvements or facility expansions.
(d) 
An owner shall be entitled to a credit against any category of impact fee as provided in any written agreement between the town and the owner.
(e) 
No credit for construction of any facility shall exceed the total amount of impact fees due from the development for the same category of improvement.
(f) 
The town council may, upon petition of the property owner, give credit for dedication or construction of a capital improvement which is not identified within the applicable capital improvements plan, if the council finds that such improvement supplies capacity to new developments other than the development paying the impact fee and provisions for credit are incorporated in an agreement for capital improvements pursuant to section 10.03.016.
(1998 Code, sec. 38.24)
(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 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 spent only for the purposes for which such fees were imposed as shown in the capital improvements plan.
(d) 
The records of the accounts into which impact fees are deposited shall be open for public inspection and copying during ordinary business hours.
(1998 Code, sec. 38.25)
(a) 
A property owner or applicant for new development may appeal the following decisions to the town 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; or
(5) 
The amount of a refund due, if any.
(b) 
The burden of proof shall be on the applicant to demonstrate that the amount of the fee or the amount of the offset or credit was not calculated according to the applicable schedule or impact fees or the guidelines established for determining offsets and credits.
(c) 
The applicant must file a notice of appeal with the town secretary within 30 days following the decision. If the notice of appeal is accompanied by a bond or other sufficient surety satisfactory to the town 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.
(1998 Code, sec. 38.26)
(a) 
On the request of an owner of property on which an impact fee has been paid, impact fees shall be refunded if existing facilities are available and service is denied, or if the town failed to commence construction of facilities required for service within two years of payment of the fee or if such construction is not completed within a reasonable time but not in any event in more than five years from the date of payment of the fee.
(b) 
Upon completion of capital improvements or facility expansions identified in the 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 town shall refund the difference if such difference exceeds the impact fee paid by more than 10%.
(c) 
Any impact fee funds not expended within ten years after payment shall be refunded.
(d) 
Refunds shall bear interest calculated from the date of collection to the date of refund at the statutory rate set forth in V.T.C.A., Local Government Code, section 395.025, or its successor statute.
(e) 
All refunds shall be made to the record owner of the property at the time the refund is paid. However, if the impact fees were paid by another political subdivision or governmental entity, payment shall be made to the political subdivision or governmental entity.
(f) 
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 article.
(1998 Code, sec. 38.27)
(a) 
Table 1, as may be amended from time to time, shall state the amount of the water and wastewater impact fees per service units associated with a unit of development for water and wastewater which shall be assessed against a new development.
(b) 
Table 2, as may be amended from time to time, shall state the amount of the road impact fees per service units associated with a unit of development for roads which shall be assessed against a new development
(c) 
A current copy of the adopted tables 1 and 2 shall be kept in the office of the town secretary and shall be the documents used to administer the impact fee standards in this article. Upon amendment of table 1 or 2, a copy of each amended schedule shall be retained in the office of the town secretary upon the effective date of the amendatory ordinance and thereafter shall become the official copy for purposes of administering the regulations in this article for water, wastewater, and roadway impact fees.
(Ordinance 2015-32, sec. 4, adopted 12/1/15)
(a) 
The property owner for 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 town, by entering into a capital improvements agreement with the town prior to the issuance of any building permit or utility connection for the development.
(b) 
(1) 
The capital improvements 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. The town and the property owner may agree that the costs incurred or funds advanced will be:
(A) 
Credited against the impact fees otherwise due from the new development; or
(B) 
Reimbursed to the owner from impact fees paid from other new developments that will use the capital improvements or facility expansions, or from other funding sources.
(2) 
In the event the town elects to reimburse an owner for the dedication, construction or financing of a capital improvement or facility expansion designated in the capital improvements plan, the terms of reimbursement shall be incorporated in the agreement required by subsection (a). Reimbursement agreements shall further be based on the availability of town funds from all sources including current and projected impact fee fund accounts.
(1998 Code, sec. 38.30)
Under a duly adopted development agreement the town council may, for the purpose of promoting economic development within or near the town, forgo its entitlement to assess and/or collect some or all of the impact fees for lots or units that would otherwise become subject to assessment and/or collection under this article.
(Ordinance 2017-10 adopted 6/6/17)