Impact Fee Study
Chapter 395 of the The Texas Local Government Code allows cities to create one time "impact fees" focused on funding the infrastructure necessary to specifically accommodate new development or re-development, e.g. projects made necessary due to increases in demand.
Typical projects included in impact fee studies and fee collection include water sourcing, transmission, storage and distribution lines; wastewater (sewer) collection lines and treatment; widening of streets, installation of turn lanes and installation of traffic signals; and storm water drainage conveyance.
Without impact fees, cities must fund infrastructure improvements typically through more traditional ways such as bond issuance or pay as you go using tax or rate payer funding. The consideration for adopting impact fees is that growth in the form of new development should help pay its own way: “Growth Pays for Growth".
PURPOSE OF IMPACT FEES
- Allows recoupment of project costs already constructed which contains oversized or excess capacity
- Allows for implementation of key system improvements through large cohesive projects over piece-meal approach development-by-development
- Provides up front knowledge of the exact fee to be imposed at the time of development
- Fair assessment of charges based on impacts to each system (water, sewer, streets, drainage)
- Establishes rough proportionality for private investments based on their impact on the system
- Allows for pooling of funds by service areas to more efficiently plan for and construct needed improvements
- Allows for developer credits when private development installs infrastructure as part of their project
IMPACT FEES CANNOT PAY FOR:
- Upgrading, updating, expanding, or replacing existing capital improvements that serve existing development (where there is no new development)
- Repair, operation, or maintenance of existing or new facilities
- Cost of projects that are not included in the Impact Fee Capital Improvement Plan
- Administrative and operating costs of the impact fee program
- Debt service for projects that are not included in the Impact Fee Capital Improvement Plan
Without impact fees, the city's traditional sources of funding must pay for growth. Existing and future rate/tax payers pay for the costs of all capital facilities. With impact fees tied to a capital improvement plan, new development and re-development share in part of this responsibility. Impact fees help alleviate the burden on existing rate/tax payers for new facilities or new infrastructure that serve new growth.
Historically, Irving has chosen not to implement impact fees on development. However, the ever increasing cost of construction requires that the city consider alternative methods of funding these needed improvements so that the city can continue to grow and thrive.
Tentative Advisory Committee Meeting Schedule
|Meeting #1||Thursday, Nov 17, 2022||Impact Fee 101, and |
Land use assumptions introduction
|Meeting #2||Tuesday, Jan. 10, 2023||Land use assumptions|
|Meeting #3||Tuesday, April 18, 2023||Capital improvement programs for water/wastewater, traffic, drainage|
|Meeting #4||Tuesday, Sept. 12, 2023||Maximum allowable impact fees|
All meetings to be held at Irving City Hall, 825 W. Irving Blvd., in the First Floor Council Conference Room at 6 p.m., unless otherwise stated on the posted agenda for the meeting.
Additional meetings may be scheduled by the committee or requested by the consultant as needed.
Tentative Public Hearing Schedule
|Public Hearing #1||June 2023||Discussion at City Council meeting|
|Public Hearing #2||October 2023||Discussion at City Council meeting|
825 W. Irving Blvd.
Irving, TX 75060
Phone: (972) 721-2424
Fax: (972) 721-2422
Monday through Friday
8 a.m. to 5 p.m.