Impact Fee Program

Impact Fees

Impact Fees are one-time fees on new development or re-development. Impact Fees help offset new development's financial impact on the public water, wastewater, and roadway systems. The fees fund projects to extend, improve, and upgrade Water, Wastewater, and Roadway systems so the systems can serve new development. The amount of each fee is determined by development type and number/size of water meters. The City Council adopted Ordinance Number 5286 (PDF) adopting Water, Wastewater, and Roadway Impact Fees effective April 3, 2023.

Service Areas

Service areas determine areas of the community where Impact Fees are assessed. The Water and Wastewater Service Area (PDF) is the City Limits and the Extra-Territorial Jurisdiction, or ETJ. The Roadway Service Area (PDF) is the majority of City Limits.

Impact Fee Study

Impact Fees are governed by Texas Local Government Code Chapter 395. Chapter 395 outlines the process and methodology for Impact Fees. The amount of each fee reflects a percentage of anticipated costs to extend, improve, and upgrade Water, Wastewater, and Roadway infrastructure to serve new development. An Impact Fee Study must be conducted as part of the process, which includes appointing a Capital Improvements Advisory Committee, adoption of a 10-Year Capital Improvements Plan and Land Use Assumptions, and two Public Hearings. The Study is summarized in the Impact Fee Report (PDF).