This article is intended to assure the provision of adequate public facilities to serve new development in the town by requiring each such development to pay its share of the costs of such improvements necessitated by and attributable to such new development.
For the purposes of this article, the following words have the meanings hereinafter designated:
Area-related facility
means 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 offsite or within or on the perimeter of the development site.
Capital improvement
means any of the following facilities with a life expectancy of three or more years that are owned and operated by or on behalf of the town:
(1) 
Water supply, treatment and distribution facilities; wastewater collection and treatment 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
means a plan contemplated by the article that identifies capital improvements or facility expansions for which impact fees may be assessed.
Facility expansion
means 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 or final plat approval or approved final plat
means the point at which the applicant has complied with all conditions of approval for any type of plat required by law to be filed with the applicable county, including but not limited to, a final plat, replat, amending plat and vacating plat, and the subject plat has been approved by the town.
Impact fee
means a charge or assessment imposed as set forth in this article against new development. The term does not include:
(1) 
Required dedications of land for public parks or payments in lieu thereof;
(2) 
Dedication of rights-of-way or easements or construction or dedication of on-site or off-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;
(3) 
Lot or acreage fees or pro-rata fees to be placed in trust funds for the purpose of reimbursing developers for oversizing or constructing water or sewer mains or lines; or
(4) 
Other pro-rata fees for reimbursement of water or sewer mains or lines extended by the town.
Land use assumptions
means a description of the service area and the projections of changes in land uses, densities, intensities, population and employment growth in the service area over at least a ten-year period and by the town, as may be amended from time to time, upon which the capital improvements plans are based.
New development
means 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, 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 town's subdivision regulations, the issuance of a building permit, or connection to the town's water or wastewater system, and which has not been exempted from these regulations by provisions herein or attached hereto. Installation of a larger water meter will constitute new development. Notwithstanding, roadway impact fees shall not be collected for any temporary modular building which is scheduled to be replaced with a permanent building.
Off-site
means a facility or expansion that is not a site-related facility, as defined herein.
Plat
means any type of plat required by law to be filed with the applicable county, including but not limited to, a final plat, replat, amending plat and vacating plat.
Property owner
means has the same meaning as the term "subdivider" in the town's subdivision regulations. Property owner includes the developer for the new development.
Recoup
means the imposition of an impact fee to reimburse the town for capital improvements which the town has previously oversized to serve new development.
Roadway facilities
means arterial or collector streets or roads that have been designated on the town's official roadway plan, together with all necessary appurtenances. The term includes, but is not limited to, the town's share of costs for roadways and associated improvements designated on the federal or state highway system, including but not limited to, local matching funds and costs related to utility line relocation and the establishment of curbs, gutters, sidewalks and drainage appurtenances. The term also includes, but is not limited to, interest in land, traffic lanes, intersection improvements, traffic-control devices and turn lanes associated with the roadway or street lighting.
Service area
means the area within the town and/or the town's extraterritorial jurisdiction, as identified in the land use assumptions, to be served by the capital improvements or facilities expansions specified in the capital improvements plan, except roadway facilities service area means any one of the individual services areas within the town's corporate boundaries as identified in the land use assumptions and the capital improvements plan.
Service unit
means the standardized measure of consumption, use, generation or discharge attributable to an individual unit of development, calculated in accordance with generally accepted engineering and/or planning standards, as indicated in the land use equivalency tables located in the study (hereinafter defined).
Single-family residential
means has the meaning given the term in the town's zoning regulations, as they exist or may be amended.
Site-related facility
means 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 roadway, water or wastewater facilities to serve the new development, and which is not included in the capital improvements plan and for which the property owner is solely responsible under subdivision or other applicable regulations or which is located at least partially on the plat which is being considered for impact fee assessment. 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 town's water or wastewater system, the cost of which has not been included in the town's impact fee capital improvements plan.
Study
means the "Water, Wastewater and Roadway Impact Fee Report" study, dated October 2016 and prepared by Freese & Nichols, Inc., on behalf of the town, a copy of which is located in the office of the Town Secretary and incorporated by reference herein, as may be amended from time to time.
Town Council
means the Town Council of the Town of Prosper, Texas.
Town or Prosper
means the Town of Prosper, Texas.
Utility connection
means authorization to install a water meter for connecting a new development to the town's water system or to the town's wastewater system.
Wastewater facility
means a wastewater interceptor or main, lift station or other facility or improvement used for providing wastewater collection and treatment included within the town's collection system for wastewater. Wastewater facility includes, but is not limited to, land, easements or structures associated with such facilities. Wastewater facility excludes a site-related facility.
Water facility
means a water interceptor or main, pump station, storage tank or other facility or improvement used for providing water supply, treatment and distribution service included within the town's water storage or distribution system. Water facility includes, but is not limited to, land, easements or structures associated with such facilities. Water facility excludes site-related facilities.
Water meter
means a device owned by the town for measuring the flow of water to a development, whether for domestic or for irrigation purposes.
(Ordinance 11-71, adopted 11/8/2011; Ordinance 14-57, adopted 8/26/2014; Ordinance 17-14, adopted 2/28/2017)
The provisions of this article regarding water and wastewater impact fees apply to all new development within the corporate boundaries of the town and its extraterritorial jurisdiction. The provisions of this article regarding roadway impact fees apply to all new development within the corporate boundaries of the town.
The previously land use assumptions have been reviewed, evaluated, updated and revised, and the Town Council finds that the land use assumptions set forth in the study are hereby and approved.
The previously capital improvements plan has been reviewed, evaluated, updated and revised, and the Town Council finds that the capital improvements plan set forth in the study is hereby and approved.
(Ordinance 11-71, adopted 11/8/2011)
The previously impact fees for roadways, water and wastewater have been reviewed, evaluated, updated and revised. The Town Council finds that:
(1) 
The impact fees for roadways set forth in exhibit A, "roadway impact fee schedule," attached to Ordinance 17-14 and incorporated for all purposes, are hereby and approved;
(2) 
The impact fees for water set forth in exhibit B, "water impact fee schedule," attached to Ordinance 17-14 and incorporated for all purposes, representing 50 percent of the total projected costs, are hereby and approved; and
(3) 
The impact fees for wastewater set forth in exhibit C, "wastewater impact fee schedule," attached to Ordinance 17-14 and incorporated for all purposes, representing 50 percent of the total projected costs, are hereby and approved.
(Ordinance 17-14, adopted 2/28/2017)
No final plat for new development shall be released for filing with the appropriate county, or in the cases for which no plat is submitted to the town, whether the property is located inside or outside the corporate boundaries of the town, no application for a utility connection shall be approved and/or no building permit and/or certificate of occupancy shall be issued, without assessment of an impact fee pursuant to this article. No building permit shall be issued, or in the cases for which no plat is submitted to the town, whether the property is located inside or outside the corporate boundaries of the town, no building permit and/or certificate of occupancy shall be issued and/or utility connection made, for new development, until the property owner has paid the impact fee imposed by and calculated herein or a contract for payment is approved by the town and executed by the parties.
(Ordinance 11-71, adopted 11/8/2011)
(a) 
The assessment of the impact fee for any new development shall be calculated and made at the time of final plat approval (as defined in § 10.02.002); however, for the sole purpose of phasing in the application of this article, final plats that have been approved by the town on or before February 28, 2017, pursuant to the town's subdivision regulations, or for a final plat deemed approved by the town on or before February 28, 2017, due to the town's failure to act, assessment for the new development to which the final plat applies shall be calculated and made in accordance with the impact fees existing on February 27, 2017.
(b) 
Following initial assessment of the impact fee for a new development pursuant to subsection (a), the amount of the impact fee per service unit for that development cannot be increased, unless the approved final plat expires or lapses under applicable ordinances or law or the owner proposes to change the approved development by the submission of a new development application or application to increase the number of service units, in which case the impact fee will be reassessed for increased meter size or additional meters or service units at the impact fee rate then in effect.
(c) 
Following the lapse or expiration of a final plat that has been approved or a final plat deemed approved due to the town's failure to act, pursuant to the town's subdivision regulations, a new assessment shall be performed at the time of new final plat approval in accordance with this article.
(a) 
The impact fees due on new development shall be collected at the time of application for a building permit or, in the cases for which no plat is submitted to the town, whether the property is located inside or outside the corporate boundaries of the town, at the time of application for building permit, utility connection or certificate of occupancy, whichever occurs first, unless an agreement between the developer and the town has been executed providing for a different time of payment.
(b) 
At the time of final plat approval, or the request for a utility connection for an area in the town's extraterritorial jurisdiction for which a final plat was not submitted to the town, for all new developments, the town shall compute the impact fees due for the new development in the following manner:
(1) 
The amount of each type of impact fee due (roadway, water, and/or wastewater) shall be determined by multiplying the number of each type of service units generated by the new development by the impact fee due for each type of service unit in the applicable service area set forth in exhibits A, B and/or C to § 10.02.006, respectively. The town shall determine the appropriate land use category set forth in exhibits A, B and/or C to § 10.02.006 for the computation of the impact fee.
(2) 
The amount of each impact fee due shall be reduced by any allowable credits for that category of capital improvements in the manner provided by this article.
(c) 
Whenever a property owner proposes to increase the number of service units for a new development, the additional impact fees collected for such new service units shall be determined by using the amount of impact fee per service unit in exhibits A, B and/or C to § 10.02.006, and such additional fee shall be collected at the time of issuance of a new building permit, or for an area in the town's extraterritorial jurisdiction for which a final plat was not required to be submitted to the town, prior to or at the time of enlargement of the connection to the town's water or wastewater system.
(d) 
The Town Manager, or his/her designee, may consider alternate service unit equivalencies as defined in exhibits A, B and/or C to § 10.02.006, as presented by the property owner or applicant. All data and appropriate technical support data, consistent with the methodological approach in effect with the town, shall be provided. The applicant bears full responsibility for the provision of such data at the time of fee determination. The town will make the final determination as to consideration of such data.
(Ordinance 17-14, adopted 2/28/2017)
(a) 
Any construction or contributions to or dedications of any area-related facility appearing in the capital improvements plan that is required to be constructed by a property owner as a condition of new development shall be credited against the impact fees otherwise due on that new development from the same category (roadway, water or wastewater) of impact fees assessed on the new development.
(b) 
All credits against impact fees shall be subject to the following limitations and shall be granted based on this article and any additional administrative guidelines that may be by the town.
(1) 
No credit shall be given for the dedication or construction of site-related facilities.
(2) 
No credit shall exceed an amount equal to the assessed impact fee.
(3) 
If a credit applicable to a final plat has not been exhausted within ten years from: (i) the acquisition of the first building permit issued; or, (ii) in the cases for which no plat is submitted to the town, whether the property is located inside or outside the corporate boundaries of the town, the acquisition of the first building permit issued, the acquisition of the first certificate of occupancy is issued or connection made after the effective date of the adoption of the applicable impact fees, whichever occurs first, or within such period as may otherwise be designated by contract, such credit shall lapse.
(4) 
In no event will the town reimburse the property owner or developer for a credit when no impact fees for the new development can be collected pursuant to town ordinance or for any amount exceeding the total impact fees due for the new development for the category of capital improvement, unless otherwise agreed to by the town.
(c) 
The available credit associated with new development 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 development, such credit shall be prorated equally among such lots, to be applied at the time of application of a building permit for each lot, against impact fees to be collected at the time the building permit is issued.
(2) 
For all other types of new development, including those involving mixed uses, the credit applicable to the new development shall be applied to the impact fee due at the time of approval.
(3) 
At its sole discretion, the town may authorize alternative credit agreements upon written agreement with the property owner in accordance with the town's administrative guidelines.
(a) 
The town 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. 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 only in the same manner as which the underlying funds may be used.
(c) 
The town shall establish adequate financial and accounting controls to ensure that impact fees disbursed from the accounts are utilized solely for authorized purposes.
(d) 
The town 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 town may establish a fee for copying services.
(a) 
The impact fees collected for each service area may be used to finance or to recoup the costs of any capital improvements or facility expansion identified in the capital improvements plan for the service area, including but not limited to 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). 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 town 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 public facilities or assets other than capital improvements or facility expansions identified in the capital improvements plan;
(2) 
Repair, operation or maintenance of existing or new capital improvements or facility expansion;
(3) 
Upgrade, update, expansion or replacement of existing capital improvements to provide better service to existing development; or
(4) 
Administrative and operating costs of the town.
(a) 
Upon application by an owner of property, any impact fee or portion thereof collected pursuant to this article shall be refunded as specified in this article if:
(1) 
Has not been expended within the service area within ten years from the date of payment;
(2) 
Existing facilities are available and service is denied; or
(3) 
The town has, after collecting the impact fee when service was not available, failed to commence construction within two years or service is not available within a reasonable period considering the type of improvement or expansion, but in no event later than five years from the date of payment.
(b) 
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 payment to the date of refund at the statutory rate as set forth in the V.T.C.A. Finance Code, § 302.002, or its successor statute. The application for refund pursuant to this article shall be submitted within 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.
(c) 
An impact fee collected pursuant to this article shall also be considered expended if the total expenditures for capital improvements or facility within the service area within ten years following the date of payment exceed the total fees collected within the service area for such improvements or expansions during such period.
(d) 
If a refund is due pursuant to subsections (a) and (b), the town 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.
(e) 
Upon completion of all the capital improvements or facility expansions identified in the capital improvements plan for the service area, the town shall recalculate the impact fee per service unit using the actual costs for the improvements or expansions. If the impact fee per service unit based on actual cost is less than the impact fee per service unit paid, the town shall refund the difference, if such difference exceeds the impact fee paid by more than ten percent. If the difference is less than ten percent, no refund shall be due. 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.
(a) 
The town shall update its land use assumptions and capital improvements plans at least every five years, commencing from the date of adoption of such plans, and shall recalculate the impact fees based thereon in accordance with the procedures set forth in V.T.C.A. Local Government Code, ch. 395 or in any successor statute.
(b) 
The town 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 plan should be updated and the impact fee recalculated accordingly, or whether any exhibits hereto should be changed.
(c) 
If, at the time an update is required pursuant to subsection (a), the Town Council determines that no change to the land use assumptions, capital improvements plan or impact fee is needed, it may dispense with such update by following the procedures in V.T.C.A. Local Government Code, § 395.0575, or its successor statute.
(d) 
In addition to the reviews required by this section, the town shall also conduct the reviews required by § 10.02.006.
(a) 
The town 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.
(Ordinance 11-71, adopted 11/8/2011)
Impact fees established by this article are additional and supplemental to, and not in substitution of, any other requirements imposed by the town 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 town's comprehensive plan, the capital improvements plan, the zoning ordinance, subdivision regulation and other town policies, ordinances, codes and resolutions by which the town seeks to ensure the provision of adequate public facilities in conjunction with the development of land.
(a) 
The property owner or applicant for a new development may appeal the following decisions to the Town Manager, or his/her designee:
(1) 
The applicability of an impact fee to the development;
(2) 
The amount of an impact fee due;
(3) 
The availability or amount of a discount against roadway impact fees; or
(4) 
The availability or amount of a refund.
(b) 
All appeals shall be taken with 30 days of notice of the administrative decision from which the appeal is taken.
(c) 
The burden of proof shall be on the appellant.
(d) 
The decision of the Town Manager, or his/her designee, may be appealed to the Town Council by filing a notice of appeal with the development services department within 30 days of the Town Manager, or his/her designees', 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.
(e) 
The Town Manager, or his/her designee, or the Town Council on appeal, shall review the evidence presented by the appellant and any reports by the development services department, and determine whether the impact fee regulations have been correctly applied to the availability of a discount or refund, or to the amount of an impact fee, discount or refund applied to the proposed development.
(Ordinance 17-14, adopted 2/28/2017)