What are impact fees?
Impact fees are a mechanism for funding public infrastructure that is necessitated by new development. Impact fees are meant to recover the incremental cost of the impact of each new unit of development that creates new infrastructure needs.
The Transportation Master Plan adopted in October 2017 estimates $1.2 billion in new infrastructure is needed to accommodate Round Rock’s ultimate population of 250,000. Impact fees will help address the need for increased capacity on arterial and collector roadways that serve the overall transportation system as Round Rock continues to grow.
About the adopted fee
The maximum fee the City can impose is $2,511 per base service unit. (This study includes the methodology used to calculate the fee.) The adopted fee assesses 30 percent of that maximum for residential development and 20 percent of that maximum for non-residential development with a final plat issued before Jan. 1, 2022. The fee will increase to 60 percent for residential and 30 percent for non-residential for final plat dates after Jan. 1, 2024.
A service unit is based on a formula that includes the number of cars that pass along a road during peak-traffic hour, the road’s length in miles and other factors. Service units for each type of development are predetermined and based on national standards for calculating traffic impacts. By multiplying the rate by the service units for a proposed development, the developer is left with a total fee that must be paid to recover some of the cost of road work their development will necessitate. The impact fee for a single family residence would be $3,209 at the 30 percent rate. The fee would be different for a commercial businesses, depending on their traffic generation and service units.
A service unit is different than a Living Unit Equivalent (LUE), the basis for utility impact fees. A single family home is roughly four service units.
Final plat issued before
Jan. 1, 2022
For all property with a final plat issued before Jan. 1, 2022, roadway impact fees will be assessed as follows, with the fee due on the building permit application date:
- Residential land uses — $753 per service unit
- Non-residential land uses — $502 per service unit
Final plat issued between
Jan. 1, 2022 and Dec. 31, 2023
For all property with a final plat issued on or after Jan. 1, 2022 and before Dec. 31, 2023, roadway impact fees will be assessed as follows, with the fee due on the building permit application date:
- Residential land uses — $1,130 per service unit
- Non-residential land uses — $628 per service unit
Final plat issued after
Jan. 1, 2024
For all property with a recorded plat dated after Jan. 1, 2024, roadway impact fees will be assessed as follows, with the fee due on the building permit application date:
- Residential land uses — $1,507 per service unit
- Non-residential land uses — $753 per service unit
How to Calculate Fees and Fee Offsets
- The improvement must be made to the transportation projects listed in Appendix A of the Study;
- The improvements must have been made since time of adoption of the Roadway Impact Fee Study since credits were provided based on existing facilities in the overall fee calculation; and
- The offset follows the Administrative Guidelines and Procedures.
To apply for a Fee Offset use the following worksheet.
Appeals and Relief
Roadway Impact Fee background
The ordinance was unanimously approved by the City Council on March 14, 2019.
The City held a public input process for a previous proposal for roadway impact fees, followed by a new timeline for the fee that was adopted. Learn more below.
- Dec. 6, 2018 — City Council approval of resolution to set a Public Hearing for Jan. 24, 2019, to consider the Land Use Assumptions and Capital Improvements Plan (CIP) related to Roadway Impact Fees
- Jan. 9, 2019 — Capital Improvements Advisory Committee (CIAC) review of Land Use Assumptions and CIP used in calculating the maximum fee. Presentation file
- Jan. 17, 2019 — CIAC comments due to City Council
- Jan. 24, 2019 — City Council holds public hearing and votes on acceptance of Land Use Assumptions and Capital Improvements Plan
- Feb. 6, 2019 — CIAC meeting to review proposed Roadway Impact Fees and Study
- Feb. 12, 2019 — City Council work session discussion. Presentation file
- Feb. 15, 2019 — CIAC comments due to City Council
- Feb. 28, 2019 — City Council holds Public Hearing and First Reading vote on Roadway Impact Fee ordinance
- March 14, 2019 — City Council vote on Second Reading of Roadway Impact Fee ordinance
City of Round Rock began the process to explore Roadway Impact Fees as an additional funding source in January 2018. Here is the timeline for the previous impact fee proposal.
- Jan. 11, 2018 — City Council approved a contract with Kimley-Horn & Associates, Inc. to evaluate, develop and create an implementation plan for roadway impact fees
- June 15, 2018 — First stakeholder meeting
June 20, 2018 — The Capital Improvements Advisory Committee (CIAC) met to review information that will be used in calculating the maximum fee that can be considered by state law.
- July 18, 2018 — Second CIAC public meeting
- July 26, 2018 — Public hearing held by City Council
- Aug. 7, 2018 — Second stakeholder meeting and open house for the public
- Aug. 15, 2018 — Third CIAC public meeting to review maximum fee; the board recommended implementation of impact fees to City Council
- Sept. 13, 2018 — Second public hearing and discussion held by City Council, including presentation of previous draft ordinance
Kimley-Horn & Associates study — Includes methodology used to calculate fee, land use assumptions, and capital improvements plan (CIP). Note: This document was updated November 2018 based on stakeholder comments.
Revised Implementation Chart
Stakeholder Q&A #1 — Questions and answers from the June 15, 2018, stakeholder meeting
Stakeholder Q&A #2 — Questions and answers from the Aug. 7, 2018, stakeholder meeting with the Home Builders Association
Stakeholder Q&A #3 — Answers to questions asked via email by the Home Builders Association
Combined Stakeholder Q&A — Combines the three documents above
Transportation Master Plan — City’s plan for infrastructure to accommodate expected growth