This article is intended to assure the provision of adequate
public facilities to serve new or expanded development in the city
or its extraterritorial jurisdiction by requiring each such development
to pay its pro rata share of the costs of such improvements necessitated
by and attributable to such development.
(Ordinance 08-O-54, sec. 2, adopted 1/12/2009; 2009 Code, sec. 10.03.001; Ordinance 20-O-03 adopted 1/27/2020)
This article is adopted pursuant to Texas Local Government Code
chapter 395. 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 herein, either in substitution for or in conjunction
with this article.
(Ordinance 08-O-54, sec. 3, adopted 1/12/2009; 2009 Code, sec. 10.03.002; Ordinance 20-O-03 adopted 1/27/2020)
As used in this article, the following words and terms shall
have the meanings respectively ascribed:
The city’s planning and zoning commission.
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 or within or on the perimeter of the development
site.
The determination of the amount of the maximum impact fee
per service unit which can be imposed on new development pursuant
to this article.
A water or wastewater facility, with a life expectancy of
three (3) or more years, to be owned and operated by or on behalf
of the city.
The amount of the reduction of an impact fee due, determined
under this article or pursuant to administrative guidelines, that
is equal to the value of area-related facilities provided by a property
owner pursuant to the city’s subdivision or zoning regulations
or requirements. Credit does not include a reduction in the amount
of an impact fee due for payment of connection charges imposed pursuant
to other city ordinances or for pro rata charges imposed pursuant
to the city’s extension ordinances.
Has the meaning given the term in the city’s zoning
regulations.
A water or sewer facility expansion.
The point at which the applicant has complied with all conditions
of approval and the plat has been released for filing with the county,
whichever is appropriate.
A fee for water or wastewater facilities imposed on new or
expanded 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 imposed by city ordinances
or payment of pro rata charges imposed by city ordinances. Impact
fees do include the items allowable under Texas Local Government Code
section 395.012.
A water or wastewater capital improvements plan adopted or
revised pursuant to this article.
The projections of population and employment growth and associated
changes in land uses, densities and intensities adopted by the city,
as may be amended from time to time, upon which the capital improvements
plans are based.
A table converting water meters required by various land
uses to numbers of service units, as may be amended from time to time.
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 wastewater
system, and which has not been exempted from these regulations by
provisions herein or attached to the ordinance adopting this article.
Has the meaning given the term in the city’s subdivision
regulations. Plat includes replat.
Has the meaning given the term in the city’s subdivision
regulations. Platting includes replatting.
Has the meaning given the term in the city’s subdivision
regulations. Property owner includes the developer for the new development.
The imposition of an impact fee to reimburse the city for
capital improvements which the city has previously oversized to serve
new development.
The wastewater benefit area within the city and the city’s
extraterritorial jurisdiction, 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 capital improvements plan applicable to the service
area.
Either the average number of gallons of water consumed during an average day of the winter months by a new development that is equal to that used by a single-family dwelling unit at such time, or one (1) equivalent meter unit, which is the standardized measure of consumption of wastewater or water facilities equal to that consumed by a single-family dwelling unit utilizing a three-fourth-inch water meter, as indicated in the land use equivalency table (exhibit A) in section A22.001 of the fee schedule in appendix A of this code, and incorporated by reference herein, as may be amended from time to time, included in the impact fee capital improvements plan.
Has the meaning given the term in the city’s zoning
regulations.
An improvement or facility which is for the primary use or
benefit of a new development 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
fees capital improvements plan and for which the property owner is
solely responsible under subdivision or other applicable regulations.
Site-related facility includes that portion of an off-site water or
wastewater main, equivalent to a standard size water or wastewater
main, which is necessary to connect any new development with the city’s
water or wastewater system, the cost of which has not been included
in the city’s impact fee capital improvements plan.
Authorization to install a connection for connecting a new
development to the city’s wastewater system.
The adopted plan, as may be amended from time to time, which
identifies the wastewater facilities or wastewater 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 wastewater facilities fees pursuant to this article.
A wastewater interceptor or main, lift station or other facility
comprising an integral component of the city’s collection system
for wastewater. Wastewater facility includes land, easements or structures
associated with such facilities. Wastewater facility excludes that
portion of the wastewater 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.
The expansion of the capacity of any existing wastewater
improvement for the purpose of serving new development but does not
include the repair, maintenance, modernization or expansion of an
existing sewer facility to serve existing development.
(Ordinance 08-O-54, sec. 4, adopted 1/12/2009; 2009 Code, sec. 10.03.003; Ordinance 20-O-03 adopted 1/27/2020)
The provisions of this article apply to all development within
the corporate boundaries of the city and its extraterritorial jurisdiction
which lies within the service area for each category of capital improvement
for which a preliminary plat was approved on or after January 28,
2020. The collection of all fees under this article shall cease on
January 27, 2030.
(Ordinance 08-O-54, sec. 5, adopted 1/12/2009; 2009 Code, sec. 10.03.004; Ordinance 20-O-03 adopted 1/27/2020)
No final plat for new development shall be approved within the
service area without assessment of an impact fee pursuant to this
article. No final plat for single-family or duplex residential development
shall be approved, nor shall a building permit be issued or utility
connection be made for other types of new development, until the property
owner has paid the impact fee imposed by and calculated herein.
(Ordinance 08-O-54, sec. 6, adopted 1/12/2009; 2009 Code, sec. 10.03.005; Ordinance 20-O-03 adopted 1/27/2020)
(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 on record in the office of the city secretary
and are 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 table 1 in section A22.001 of the fee schedule in appendix A of this code 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).
(c)
Impact
fee schedules 1 and 2 may be amended from time to time utilizing the
amendment procedure set forth in this article.
(Ordinance 08-O-54, sec. 7, adopted 1/12/2009; 2009 Code, sec. 10.03.006; Ordinance 20-O-03 adopted 1/27/2020)
(b)
In
determining the number of service units, the following rules shall
apply:
(1)
Each new freestanding building requires a new water and wastewater connection, except as provided in subsection (2).
(2)
Where a site is redeveloped (clearance and reconstruction), no new
service units will be attributed to such redevelopment, provided that
the water and wastewater connection are of the same size as the development
previously occupying the site. If the water or wastewater connection
size is increased, the number of new service units will be based upon
the increase in capacity of the meter.
(3)
Existing buildings or land uses may be expanded using existing meter
service. No service units will be attributed to such development if
the water or wastewater connection size remains the same. If the water
or wastewater connection size is increased, the number of service
units will be based upon the increase in capacity of the meter.
(4)
In determining the number of service units for water or wastewater
impact fees, no service units will be attributed to irrigation meters.
(5)
If a new development does not require water or wastewater service,
or does not generate the need for water or wastewater service, no
service units will be attributable to the development.
(Ordinance 08-O-54, sec. 8, adopted 1/12/2009; 2009 Code, sec. 10.03.007; Ordinance 20-O-03 adopted 1/27/2020)
(a)
Assessment
of the impact fee for any new development shall be made as follows:
(1)
For a development submitted for approval pursuant to the city’s subdivision regulations following January 28, 2020, assessment shall be at the time of the issuance of a building permit and shall be the amount of the maximum impact fee per service unit then in effect, as set forth in table 1 in section A22.001 of the fee schedule in appendix A of this code.
(2)
For a new development which has received final plat approval prior to January 28, 2020, 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 table 1 in section A22.001 of the fee schedule in appendix A of this code.
(b)
Following initial assessment of the impact fee for a new development pursuant to subsection (a), the amount of the maximum 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 development application or application to increase meter size, in which case the impact fee will be reassessed for additional service units at the table 1 rate then in effect.
(c)
Following
the lapse or expiration of approval of a new development, a new assessment
shall be performed at the time a new application for such development
is filed.
(Ordinance 08-O-54, sec. 9, adopted 1/12/2009; 2009 Code, sec. 10.03.008; Ordinance 20-O-03 adopted 1/27/2020)
(a)
For
all other new developments, the impact fees due shall 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 the developer and the city has been executed
providing for a different time of payment. 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 table
1 then in effect, and previous payments of impact fees shall be credited
against the new fees due.
(b)
At
the time of application for a building permit or the utility connection
for all new developments, 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 for the service area using table 1 in section A22.001 of the fee schedule in appendix A of this code. The number of service units shall be determined according to section 9.02.007.
(c)
The
amount of each impact fee due for a new development shall not exceed
an amount computed by multiplying the maximum impact fee per service
unit under table 1 by the number of service units generated by the
development.
(d)
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 table 1 then in effect,
and such additional fee shall be collected either prior to or at the
time of issuance of a new building permit, or prior to or at the time
of enlargement of the connection to the city’s water or wastewater
system.
(e)
Notwithstanding
any provision of this article, the city may reduce or waive impact
fees for any service unit that would qualify as affordable housing
under 42 U.S.C. section 12745, as amended, once the service unit is
constructed. If affordable housing as defined by 42 U.S.C. section
12745, as amended, is not constructed, the city may reverse its decision
to waive or reduce the impact fee, and the city may assess an impact
fee at any time during the development approval or building process
or after the building process if an impact fee was not already assessed.
(Ordinance 08-O-54, sec. 10, adopted 1/12/2009; 2009 Code, sec. 10.03.009; Ordinance 20-O-03 adopted 1/27/2020)
(a)
A property owner who constructs an area-related facility pursuant to an improvements agreement approved by the city following October 27, 2008, may reduce impact fees due for the property for that category of capital improvement by the value of such improvement, as determined in subsection (c). The credit shall be associated with the plat of the property that is to be served by the capital improvement constructed.
(b)
The improvements agreement required by subsection (a) 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. A credit against impact fees is limited to that portion
of the cost of an area-related facility attributable to new development
within the service area and does not include that portion of the cost
of the main equivalent to the cost of a standard size water or wastewater
main.
(d)
A
credit associated with a plat shall be applied to reduce an impact
fee at the time of final plat approval, for single-family and duplex
residential developments. For all other developments, 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 and, thereafter, to all subsequently
issued building permits or utility connections, until the credit or
offset is exhausted.
(e)
Unused
credits or oversize costs which are not attributable to the new development
shall be reimbursed in accordance with procedures adopted by the city
manager.
(Ordinance 08-O-54, sec. 11, adopted 1/12/2009; 2009 Code, sec. 10.03.010; Ordinance 20-O-03 adopted 1/27/2020; Ordinance adopting 2023 Code)
(a)
The
city shall establish an account to which interest is allocated for
each service area for each type of capital facility for which an impact
fee is imposed pursuant to this article. Each impact fee collected
within the service area 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 9.02.012.
(c)
The city shall establish adequate financial and accounting controls to ensure that impact fees disbursed from the accounts are utilized solely for the purposes authorized in section 9.02.012. 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 (10) years from the date impact fees are deposited into the account.
(d)
The
city shall maintain and keep financial records for impact fees, which
shall show the source and disbursement of all fees collected in or
expended within each service area. The records of the account 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.
(Ordinance 08-O-54, sec. 12, adopted 1/12/2009; 2009 Code, sec. 10.03.011; Ordinance 20-O-03 adopted 1/27/2020)
(a)
The
impact fees collected for each service area pursuant to this article
may be used to finance or to recoup the costs of any capital improvements
or facility expansion identified in the applicable 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 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.
(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 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.
(Ordinance 08-O-54, sec. 13, adopted 1/12/2009; 2009 Code, sec. 10.03.012; Ordinance 20-O-03 adopted 1/27/2020)
(a)
The
property owner or applicant for new development may appeal the following
administrative decisions to the planning commission, subject to right
of appeal to the city council:
(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
thirty (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.
(Ordinance 08-O-54, sec. 14, adopted 1/12/2009; 2009 Code, sec. 10.03.013; Ordinance 20-O-03 adopted 1/27/2020)
(a)
Upon
application, 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
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 section 302.002, Texas Finance Code, or its successor
statute. The application for refund pursuant to this section shall
be submitted within sixty (60) days after the expiration of the ten-year
period for expenditure of the fee. An impact fee shall be considered
expended on a first-in, first-out basis.
(b)
An impact fee collected pursuant to this article shall also be considered expended if the total expenditures for capital improvements or facility expansion authorized in section 9.02.012 within the service area within ten (10) years following the date of payment exceed the total fees collected within the service area for such improvements or expansions during such period.
(c)
If a refund is due pursuant to subsections (a) and (b), the city shall divide the difference between the amount of expenditures and the amount of the fees collected by the total number of service units assumed within the service area 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.
(d)
Upon
completion of all the capital improvements or facility expansion identified
in the capital improvements plan for the service area, the city shall
recalculate the maximum impact fee per service unit using the actual
costs for the improvements or expansions. If the maximum impact fee
per service unit based on actual cost is less than the impact fee
per service unit paid, the city shall refund the difference, if such
difference exceeds the impact fee paid by more than ten (10) percent.
If the difference is less than ten (10) percent, no refund shall be
due. The refund to the record owner shall be calculated by multiplying
such difference by the number of service units for the development
for which the fee was paid, and interest due shall be calculated upon
that amount.
(e)
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 or wastewater connections
to serve the development have not been installed.
(Ordinance 08-O-54, sec. 15, adopted 1/12/2009; 2009 Code, sec. 10.03.014; Ordinance 20-O-03 adopted 1/27/2020)
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 (6) months of such
expiration, the city shall, upon written application, rebate the amount
of the impact fee to the record owner of the property for which the
impact fee was paid. If no application for rebate pursuant to this
section has been filed within this period, no rebate shall become
due.
(Ordinance 08-O-54, sec. 16, adopted 1/12/2009; 2009 Code, sec. 10.03.015; Ordinance 20-O-03 adopted 1/27/2020)
(a)
The
city shall update its land use assumptions and capital improvements
plans at least every three (3) 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 Texas Local
Government Code chapter 395 or in any successor statute.
(b)
The city may review its land use assumptions, impact fees, capital improvements plans and other factors such as market conditions more frequently than provided in subsection (a) to determine whether the land use assumptions and capital improvements plans should be updated and the impact fee recalculated accordingly, and whether table 1 in section A22.001 of the fee schedule in appendix A of this code should be changed.
(c)
If, at the time an update is required pursuant to subsection (a), the city council determines that no change to the land use assumptions, capital improvements plans or impact fee is needed, it may dispense with such update by following the procedures in Texas Local Government Code section 395.0575.
(Ordinance 08-O-54, sec. 17, adopted 1/12/2009; 2009 Code, sec. 10.03.016; Ordinance 20-O-03 adopted 1/27/2020)
(a)
The
city may finance capital improvements or facility expansion designated
in the capital improvements plan through the issuance of bonds, through
the formation of public utility districts or other assessment districts,
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 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 a part of impact fees due for a new development
pursuant to duly adopted criteria.
(Ordinance 08-O-54, sec. 18, adopted 1/12/2009; 2009 Code, sec. 10.03.017; Ordinance 20-O-03 adopted 1/27/2020)
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 the city’s comprehensive
land use plan, the 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.
(Ordinance 08-O-54, sec. 19, adopted 1/12/2009; 2009 Code, sec. 10.03.018; Ordinance 20-O-03 adopted 1/27/2020)
(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 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 duty to commence within sixty (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 9.02.013.
(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, when regarded as a
whole, result in confiscation of the property.
(c)
If
the city council grants a variance in the amount of the impact fee
due 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.
(Ordinance 08-O-54, sec. 20, adopted 1/12/2009; 2009 Code, sec. 10.03.019; Ordinance 20-O-03 adopted 1/27/2020)
Any building permit application which was duly accepted for
filing prior to October 27, 2008, and which is subsequently granted
shall be exempt from the assessment and payment of an impact fee,
unless such application thereafter expires.
(Ordinance 08-O-54, sec. 21, adopted 1/12/2009; 2009 Code, sec. 10.03.020; Ordinance 20-O-03 adopted 1/27/2020)
(a)
There
is hereby established a water and wastewater benefit area, constituting
the city and its extraterritorial jurisdiction.
(Ordinance 08-O-54, sec. 22, adopted 1/12/2009; 2009 Code, sec. 10.03.021; Ordinance 20-O-03 adopted 1/27/2020)
The water and wastewater capital improvements plan may be amended from time to time pursuant to the procedures in section 9.02.016.
(Ordinance 08-O-54, sec. 23, adopted 1/12/2009; 2009 Code, sec. 10.03.022; Ordinance 20-O-03 adopted 1/27/2020)
(a)
The
land use assumptions shown in the most current impact fee study for
water and wastewater impact fees, which is on record in the office
of the city secretary, are hereby adopted and incorporated into this
article by reference, as if set forth in full.
(Ordinance 08-O-54, sec. 24, adopted 1/12/2009; 2009 Code, sec. 10.03.023; Ordinance 20-O-03 adopted 1/27/2020)
If any existing development within the benefit area presently utilizes a septic tank or an individual waste disposal system and the property owner requests to be connected to the city’s wastewater system, the customer shall pay the fee prescribed by section 9.02.009 to connect to such system.
(Ordinance 08-O-54, sec. 25, adopted 1/12/2009; 2009 Code, sec. 10.03.024; Ordinance 20-O-03 adopted 1/27/2020)
