Roadway Impact Fees

1. Roadway Impact FeesRoadway Impact Fees
Council Workshop #5Council Workshop #5
January 12, 2017January 12, 2017

2. Council ActionCouncil Action
Direction provided on October 27Direction provided on October 27thth
Approved on November 10Approved on November 10thth
Effective
Dates
Single Family
Fees
Year 1
Eff. 12/1/2016
$0 / SF
Year 2
Eff. 12/1/2017
$750 / SF
Year 3+
Eff. 12/1/2018
$1,500 / SF
* Table shows Single Family Fees Only
* Other Fees would Vary by Land Use / Business Type
Res: $375/VM
Non-Res: $80/VM
Res: $187.50/VM
Non-Res: $40/VM

3. Roadway Costs andRoadway Costs and
FeesFees
Construction Costs:Construction Costs:
Full Impact Fee List (City)Full Impact Fee List (City) = $289M= $289M
10-yr Needs10-yr Needs = $207M= $207M
Attributable 10-yr GrowthAttributable 10-yr Growth = $134M= $134M
Eligible (Max) Recovery 10-yrEligible (Max) Recovery 10-yr = $134M= $134M
10-yr “Collection” Amount:10-yr “Collection” Amount:
““Adopted” FeesAdopted” Fees = $12M (Fee is= $12M (Fee is
9% of the Attributable/Max)9% of the Attributable/Max)

4. Unfunded ProjectsUnfunded Projects
– Lincoln Ave - ReconstructionLincoln Ave - Reconstruction
– Luther St - ExtensionLuther St - Extension
– Royder Rd - RealignmentRoyder Rd - Realignment
– S. Dowling - RR CrossingS. Dowling - RR Crossing
– WS Phillips Pkwy – ExpansionWS Phillips Pkwy – Expansion
– Birkdale Dr – ExtensionBirkdale Dr – Extension
– TxDot Thoroughfares - ParticipationTxDot Thoroughfares - Participation

6. Fee ScheduleFee Schedule

7. Fee Land Use TableFee Land Use Table

8. 2015 CAC Funded2015 CAC Funded
ProjectsProjects
 $50M Total$50M Total
– Greens Prairie RdGreens Prairie Rd $4.7M$4.7M
– Greens Prairie TrGreens Prairie Tr $8.2M$8.2M
– Royder IRoyder I $4.9M$4.9M
– Rock Prairie W & ERock Prairie W & E $9.3M$9.3M
– Cain / Deacon RRCain / Deacon RR $3.8M$3.8M
– Holleman SHolleman S $10.3M$10.3M
– Capstone / BarronCapstone / Barron $5.6M$5.6M
– Holick, Park Pl, Anna, GladeHolick, Park Pl, Anna, Glade $2.1M$2.1M

9. Projected RoadwayProjected Roadway
NeedsNeeds
(2016)(2016)
 Exist + 10 Yr Growth NeedsExist + 10 Yr Growth Needs ~$ 207M~$ 207M
 Average annual capital outlayAverage annual capital outlay ~$ 6M~$ 6M
– Includes all capital projects and not just growthIncludes all capital projects and not just growth
related projectsrelated projects
 Options:Options:
– Additional fundingAdditional funding
– Do not fund all projects needed in the next 10-yrsDo not fund all projects needed in the next 10-yrs
 Limit GrowthLimit Growth
 Degraded Transportation Level of ServiceDegraded Transportation Level of Service
– CombinationCombination

10. Recommended FeesRecommended Fees
 Residential FeesResidential Fees ::
– $375 / Vehicle-Mile$375 / Vehicle-Mile
(Reduced 65% to 91% off the Maxes)(Reduced 65% to 91% off the Maxes)
– Equals $1500 per Single Family HouseEquals $1500 per Single Family House
 Non-Residential FeesNon-Residential Fees ::
– $80 / Vehicle-Mile$80 / Vehicle-Mile
(Further reduced to 93% to 98% off the Maxes)(Further reduced to 93% to 98% off the Maxes)
– Actual Fees Vary by Land Use/Business TypeActual Fees Vary by Land Use/Business Type
 Reminder W/WW Impact Fees were reducedReminder W/WW Impact Fees were reduced
to leave Reasonable Roadway Feesto leave Reasonable Roadway Fees

12. Area AArea A

13. Area BArea B
Area A

14. Area CArea C

15. Area DArea D

16. Comparison Cities’Comparison Cities’
Example DevelopmentsExample Developments

17. Other Fee OptionsOther Fee Options
OPTIONS
BY YEAR
Option 1
Recommended Option 2 Option 3
Year 1 $1,500 / SF $0 / SF $500 / SF
Year 2 $1,500 / SF $750 / SF $1,000 / SF
Year 3+ $1,500 / SF $1,500 / SF $1,000 / SF
* Table shows Single Family Fees Only
* Other Fees would Vary by Land Use / Business Type
Res: $375/VM
Non-Res: $80/VM
Res: $375/VM
Non-Res: $80/VM
Res: $247/VM
Non-Res: $80/VM

18. Discussion and DirectionDiscussion and Direction
to Staff for Ord Preparationto Staff for Ord Preparation
1.1. Adopt FeesAdopt Fees??
– Option 1 - Staff Recommended FeesOption 1 - Staff Recommended Fees
– Option 2 – Staff Recommended Phased ApproachOption 2 – Staff Recommended Phased Approach
– Option 3 – Reduced Residential FeeOption 3 – Reduced Residential Fee
– Consideration for Ongoing Implementation CostsConsideration for Ongoing Implementation Costs
2.2. Absolute Fee CapsAbsolute Fee Caps ??
– All or Specific Land UsesAll or Specific Land Uses
2.2. ExemptionsExemptions??
– Specific Land UsesSpecific Land Uses
2.2. Council DirectionCouncil Direction
– ConsensusConsensus

19. Presentation OverviewPresentation Overview
1.1. Roadway BackgroundRoadway Background
 Land Use AssumptionsLand Use Assumptions
 Capital Improvements PlanCapital Improvements Plan
– Maximum Calculated Fees w/ Detailed FinancialsMaximum Calculated Fees w/ Detailed Financials
2.2. Roadway Fees by Land UseRoadway Fees by Land Use
– Comparison Cities’ FeesComparison Cities’ Fees
– Staff Recommended FeesStaff Recommended Fees
3.3. Fee & Credit ExamplesFee & Credit Examples
4.4. IFAC Written CommentsIFAC Written Comments
5.5. Discussion & DirectionDiscussion & Direction

20. Roadway Needs (CIP)Roadway Needs (CIP)
 Full Build-Out T-Plan (City)Full Build-Out T-Plan (City) = $290M= $290M
 10-yr Needs10-yr Needs = $217M= $217M
 Attributable 10-yr GrowthAttributable 10-yr Growth = $143M= $143M (66%)(66%)
 Eligible Recovery 10-yrEligible Recovery 10-yr = $134M= $134M (94%)(94%)
 City will continue to look to new andCity will continue to look to new and
increased funding sources:increased funding sources:
– Council Directed Roadway Impact Fees beCouncil Directed Roadway Impact Fees be
studied and initiated this formal process as onestudied and initiated this formal process as one
sourcesource
– Otherwise, Roads will not be built, LOSOtherwise, Roads will not be built, LOS

21. Roadway Impact Fee – CIP

22. Maximum CalculatedMaximum Calculated
FeesFees
Roads ARoads A $4,244/SF House$4,244/SF House ($1,061/Veh-Mile)($1,061/Veh-Mile)
Roads BRoads B $4,288/SF House$4,288/SF House ($1,072/Veh-Mile)($1,072/Veh-Mile)
Roads CRoads C $10,224/SF House$10,224/SF House ($2,556/Veh-Mile)($2,556/Veh-Mile)
Roads DRoads D $16,148/SF House$16,148/SF House ($4,004/Veh-Mile)($4,004/Veh-Mile)

23. RecommendedRecommended
Roadway Impact FeesRoadway Impact Fees
 ““Flat” across all four areas for equityFlat” across all four areas for equity
 Residential Fees 15% of MaxResidential Fees 15% of Max (Area C)(Area C)
– $1500 Single Family House$1500 Single Family House
 Non-Residential Fees 3% of MaxNon-Residential Fees 3% of Max (Area C)(Area C)
– Actual Fees Vary by Land Use/Business TypeActual Fees Vary by Land Use/Business Type
 Staff believes the Market can bear theStaff believes the Market can bear the
Recommended FeesRecommended Fees
– Council could adjust the % in future if neededCouncil could adjust the % in future if needed

24. Recommended FeesRecommended Fees
% of Max Fees by Area% of Max Fees by Area
Service
Areas
Recommended
Residential
$375/VM
Recommended
Non-Residential
$80/VM
A 35% 7.5%
B 35% 7.5%
C 15% 3%
D 9% 2%

25. Roadway Fees by Land UseRoadway Fees by Land Use

26. Comparison Cities forComparison Cities for
Roadway Impact FeesRoadway Impact Fees
 DentonDenton
 MansfieldMansfield
 FriscoFrisco
 Fort WorthFort Worth
 New BraunfelsNew Braunfels

27. Comparison CitiesComparison Cities
Roadway Impact FeesRoadway Impact Fees
City Max Fee Unit*
($/Vehicle Mile)
Adopted
Residential
($/Vehicle Mile)
Adopted Non-
Residential
($/Vehicle Mile)
College Station
(Recommended)
$2,182 / VM $375 / VM
($1,500 SF Home)
$80 / VM
New Braunfels $1,056 / VM $375 / VM
($1,875 SF Home)
$102 / VM
Denton $2,002 / VM $408.16 / VM
($2,000 SF Home)
$306.12 / VM
Mansfield $904 / VM $550 / VM
($2,200 SF Home)
$300 / VM
Frisco $1,060 / VM $636 / VM
($3,816 SF Home)
$636 / VM
Fort Worth $1,866 / VM $500 / VM
($3,000 SF Home)
$375 / VM
* Average Max Fee Unit

28. Fees & CreditsFees & Credits
 Developments receive credit towardDevelopments receive credit toward
Roadway Impact Fees for construction ofRoadway Impact Fees for construction of
Major Collectors and aboveMajor Collectors and above
 System Improvements receive creditSystem Improvements receive credit
(Public – i.e. Major Collector, Signal, etc.)(Public – i.e. Major Collector, Signal, etc.)
 Site Improvements doSite Improvements do notnot receive creditreceive credit
(Private – i.e. Driveways, DW Decel Lanes, etc.)(Private – i.e. Driveways, DW Decel Lanes, etc.)
 May not owe any feeMay not owe any fee
 Lowe’s / Lakeway Dr ExampleLowe’s / Lakeway Dr Example

29. IFAC Written CommentsIFAC Written Comments
 Provided in Council PacketProvided in Council Packet
 IFAC RepresentativeIFAC Representative
– Commissioner Jerome RektorikCommissioner Jerome Rektorik

30. Impact Fee Calculations
LUE = Living Unit Equivalent (connection for a single family home)
Eligible CIP Cost = 10-year capital cost (2016 – 2026)
Rate Credit = Chapter 395 requirements: reduce the eligible CIP cost
by 50% [or] perform a credit analysis to determine the percent of
utility bill used for growth CIP
Service Unit Growth = Derived from land use assumptions for 10-year
growth in LUEs
Eligible CIP Cost – Rate Credit
Impact Fee Per LUE =
Service Unit Growth
Impact Fee Equation:

31. MaximumMaximum
CalculatedCalculated
FeesFees
WaterWater $2,917/SF House$2,917/SF House $500/SF House$500/SF House
SewerSewer $5,519/SF House$5,519/SF House $3,000/SF House$3,000/SF House
Roads ARoads A $4,244/SF House$4,244/SF House $1,500/SF House$1,500/SF House
Roads BRoads B $4,288/SF House$4,288/SF House $1,500/SF House$1,500/SF House
Roads CRoads C $10,224/SF House$10,224/SF House $1,500/SF House$1,500/SF House
Roads DRoads D $16,148/SF House$16,148/SF House $1,500/SF House$1,500/SF House
TotalsTotals $12K-$24K/SF House $5K/SF House$12K-$24K/SF House $5K/SF House
StaffStaff
RecommendedRecommended
FeesFees

32. Maximum RoadwayMaximum Roadway
Example Impact FeesExample Impact Fees

34. Real World Example 1Real World Example 1
Land Use Intensity/Units Impact Fee
Free Standing Discount
Superstore
114,768 ft2
$433,823.04
Shopping Center 29,760 ft2
$88,052.40
High-Turnover Sit-Down
Restaurant
19,600 ft2
$98,931.00
Gasoline/Service Station 18 Fueling Positions $32,535.00
Total $653,341.44
Constructed 2-lanes
and made intersection
improvements
100% Credit

35. Real World Example 2Real World Example 2
Developer constructed 2
lane divided facility. Paid no
Impact Fee.
Developer constructed
4 lane divided facility.
Paid no Impact Fee.
1
Developer constructed
roundabouts. Paid no Impact
Fee.
City participation

36. Maximum CalculatedMaximum Calculated
FeesFees
 Land Use AssumptionsLand Use Assumptions (adopted)(adopted)
 Capital Improvement PlanCapital Improvement Plan (adopted)(adopted)
 Detailed Financial AnalysisDetailed Financial Analysis
– Financing CostsFinancing Costs
– Interest EarningsInterest Earnings
– CreditsCredits
 W/WW – Utility RatesW/WW – Utility Rates
 Roadway – Ad Valorem TaxesRoadway – Ad Valorem Taxes

37. 50% W/WW50% W/WW
Example Impact FeesExample Impact Fees

38. IFACs Discussion & Q/AIFACs Discussion & Q/A
 Dr. James Gaines, TAMU Real Estate OfficeDr. James Gaines, TAMU Real Estate Office
 Richard Weatherly, Freese and NicholsRichard Weatherly, Freese and Nichols
 Jeff Whitaker, Kimley HornJeff Whitaker, Kimley Horn
 City StaffCity Staff

39. IFACs’ CommentsIFACs’ Comments
RecordedRecorded
on Staff Recommended Feeson Staff Recommended Fees
 Water/Wastewater IFACWater/Wastewater IFAC
– WaterWater $500/SF House$500/SF House
– WastewaterWastewater $3,000/SF House$3,000/SF House
 Roadway IFACRoadway IFAC
– RoadsRoads $1,500/SF House$1,500/SF House

40. Other CitiesOther Cities
 2012 Duncan National I.F. Study2012 Duncan National I.F. Study
– 28 States with Impact Fees, 271 jurisdictions28 States with Impact Fees, 271 jurisdictions
– 2012 National Averages per Single Family2012 National Averages per Single Family
 Roads $3,228Roads $3,228
 Water $3,863Water $3,863
 Sanitary $3,725Sanitary $3,725
– 8 Texas Cities averages lower than National8 Texas Cities averages lower than National
 2014 KHA Metroplex Survey2014 KHA Metroplex Survey
– 35 Metroplex Cities with Roadway Impact Fees35 Metroplex Cities with Roadway Impact Fees
– Average Roadway IF per Single Family ~$2,200Average Roadway IF per Single Family ~$2,200

41. Prior CS Impact FeePrior CS Impact Fee
StudiesStudies
 2010 Roadway Impact Fees2010 Roadway Impact Fees
– Based on Average $3,000 per SF HouseBased on Average $3,000 per SF House
– If adopted in 2012, fees ~ $7.0 MIf adopted in 2012, fees ~ $7.0 M
 2011 Citywide Utility Impact Fees2011 Citywide Utility Impact Fees
– Based on Water $1,480 per SF HouseBased on Water $1,480 per SF House
– Based on Sanitary $1,578 per SF HouseBased on Sanitary $1,578 per SF House
– If adopted in 2012, fees ~ $7.7 MIf adopted in 2012, fees ~ $7.7 M

42. Projected Wastewater NeedsProjected Wastewater Needs
(2016)(2016)
 Exist + 10 Yr Growth CIP Needs ~$ 154MExist + 10 Yr Growth CIP Needs ~$ 154M
 Average annual capital outlayAverage annual capital outlay ~$ 4M~$ 4M
– Includes all capital projects and not just growthIncludes all capital projects and not just growth
related projectsrelated projects
 Options:Options:
– Rate increasesRate increases
– Impact feesImpact fees
– Do not fund all projects needed in the next 10-yrsDo not fund all projects needed in the next 10-yrs
 This option would Limit GrowthThis option would Limit Growth
– CombinationCombination

43. Projected Water NeedsProjected Water Needs
(2016)(2016)
 Exist + 10 Yr Growth CIP Needs ~$ 49MExist + 10 Yr Growth CIP Needs ~$ 49M
 Average annual capital outlayAverage annual capital outlay ~$ 6M~$ 6M
– Includes all capital projects and not just growthIncludes all capital projects and not just growth
related projectsrelated projects
 Options:Options:
– Rate IncreasesRate Increases
– Impact FeesImpact Fees
– Do not fund all projects needed in the next 10-yrsDo not fund all projects needed in the next 10-yrs
 This option would Limit GrowthThis option would Limit Growth
– Some CombinationSome Combination