Roadway Impact Fee information

City Council is currently considering a roadway impact fee ordinance that is expected to take effect on Oct. 1, 2019.

Helpful links  About the proposal  Timeline 

Contact us  Download the draft ordinance

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. Water and wastewater impact fees have been successfully used to fund public water and wastewater improvements in the City of Round Rock since 1989.

In short, impact fees are a proven method to help growth pay for itself. More than 50 percent of cities in the Dallas-Fort Worth area have implemented a roadway impact fee. The cities of Taylor, Schertz, Cibolo, New Braunfels and Hutto have implemented a roadway impact fee in Central Texas, and Austin and Buda are currently conducting studies to potentially implement this fee.

Why is a roadway impact fee needed?

Round Rock needs more funding sources to meet increasing traffic demands. 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.

Helpful links

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.
Stakeholder Q&A #1 — Questions and answers from the June 15 stakeholder meeting
Stakeholder Q&A #2 — Questions and answers from the Aug. 7 stakeholder meeting with the Home Builders Association
Stakeholder Q&A #3 — Answers to questions asked via email by the Home Builders Association
Transportation Master Plan — City’s plan for infrastructure to accommodate expected growth
Current draft ordinance — The ordinance currently being considered by City Council

About the proposal

Council is currently considering a plan that would phase in the Roadway Impact Fee. Fees will be assessed at the date of platting and charged at the building permit application date.

The maximum fee the City could impose is $2,511 per base service unit. The proposal would assess 30 percent of that maximum for residential development and 20 percent of that maximum for non-residential development in 2019. The fee would increase to 60 percent for residential and 30 percent for non-residential by 2022.

No impact fees would be charged for properties platted on or before Oct. 1, 2019, with a building permit application dated on or before Sept. 30, 2020. This essentially provides a two-year grace period for projects currently in the development pipeline.

The language below is taken directly from the updated draft ordinance to explain how the fee would be phased in over time:

Effective Oct. 1, 2019 

For all property with a recorded plat dated on or before Oct. 1, 2019, the roadway impact fees will be assessed as set forth below, but  there will be no roadway impact fees charged for any building permit application dated on or before Oct. 1, 2020:  
Residential land uses  — $753 per service unit  
Non-residential land uses — $502 per service unit  

For all property with a recorded plat dated on or before Oct. 1, 2019, roadway impact fees assessed above will be charged for any building permit application dated after Oct. 1, 2020, as follows:  
Residential land uses  — $753 per service unit  
Non-residential land uses — $502 per service unit   

For all property with a recorded plat dated after Oct. 1, 2019, but before Oct. 1, 2021, roadway impact fees will be assessed at final plat recordation, and will be  charged  as follows:   
Residential land uses  —  $753 per service unit  
Non-residential land uses — $502 per service unit  

Effective Oct. 1, 2021 

For all property with a recorded plat dated on or after Oct. 1, 2021, but before Oct. 1, 2022, roadway impact fees will be assessed at final plat recordation, and will be charged as follows:   
Residential land uses  — $1,130 per service unit  
Non-residential land uses —  $628 per service unit  

Effective Oct. 1, 2022 

For all property with a recorded plat dated on or after Oct. 1, 2022, roadway impact fee will be assessed at final plat recordation, and will be assessed at final plat recordation, and charged as follows:   
Residential land uses  —  $1,507 per service unit  
Non-residential land uses — $753 per service unit   

Note: 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. Refer to section Sec. 42-505 (c) of the updated draft ordinance for the Land Use Vehicle-Mile Equivalency Table to see how the service units will be applied to other types of development.  

Process timeline to date

City of Round Rock began the process to explore Roadway Impact Fees as an additional funding source in January 2018: 
Jan. 11 — City Council  approved a contract  with Kimley-Horn & Associates, Inc. to evaluate, develop and create an implementation plan for roadway impact fees 
June 15 — First  stakeholder meeting 
June 20 — 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 — Second CIAC  public meeting 
July 26 — Public hearing held by City Council  
Aug. 7 — Second  stakeholder meeting and open house  for the public 
Aug. 15 — Third CIAC public meeting to review maximum fee; the board recommended implementation of impact fees to City Council 
Sept. 13 — Second public hearing and discussion held by City Council, including presentation of previous draft ordinance


Have input for the City Council and staff? Email impactfee@roundrocktexas.gov.