Roadway Impact Fee

The City Council approved a Roadway Impact Fee Ordinance that takes effect on Jan. 1, 2020. The ordinance was unanimously approved by the City Council on March 14, 2019. Learn about the fee adoption process here.

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.

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.

About the adopted fee

The maximum fee the City could impose is $2,511 per base service unit. (This study includes the methodology used to calculate the fee.) The adopted fee will assess 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.

No impact fees would be charged for building permits issued before Jan. 1, 2021. This essentially provides a two-year grace period for projects currently in the development pipeline. The fee is proposed to be phased in over time according to when the project’s final plat is issued by City of Round Rock:

Phase 1: 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 

Phase 2: 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   

Phase 3: 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 

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.

This chart shows the schedule above in a tabular format.

Project Specific Fee Calculation and Fee Credit

 
Fee Calculation

In most cases the Roadway Impact Fee will replace the Traffic Impact Analysis in development projects. When a new development, or redevelopment of property that increases density to an existing use is permitted, a Roadway Impact Fee will be assessed. To calculate the Roadway Impact Fee for a proposed development use the following worksheet.

Fee Offset
The Roadway Impact Fee may be offset based on transportation system improvements provided by the development under certain circumstances. To be eligible for offsets certain criteria must be met:
  1. The improvement must be made to the transportation projects listed in Appendix A of the Study;
  2. 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
  3. The offset follows the Administrative Guidelines and Procedures.

To apply for a Fee Offset use the following worksheet.

Appeals and Relief
Appeals and Relief from the Roadway Impact Fee may only be approved by City Council. Those procedures are outlined in the RIF Ordinance.

Have questions? Email impactfee@roundrocktexas.gov.