Roadway Impact Fee information

Impact fees are a mechanism for funding the public infrastructure necessitated by new development. In Texas, the legislature has allowed their use for water, wastewater, roadway and drainage facilities. Since 1989, they have been used to fund public water and wastewater improvements in the City of Round Rock.

Impact fees are meant to recover the incremental cost of the impact of each new unit of development creating new infrastructure needs. In the case of roadway impact fees, the infrastructure need is the increased capacity on arterial and collector roadways that serve the overall transportation system.

The City hired Kimley-Horn to conduct the 2018 Roadway Impact Fee Study to determine the maximum impact fee per unit of new development chargeable as allowed by the state law. This determination is not a recommendation; the actual fee amount ultimately assessed is at the discretion of the Round Rock City Council, so long as it does not exceed the maximum assessable fee allowed by law. The study looks at a period of 10 years to project new growth and corresponding capacity needs, as required by state law. The study and corresponding maximum fees must be re-studied at least every five years. However, the study can be updated at any time to accommodate significant changes in any of the key variables of the impact fee equation.

A draft Roadway Impact Fee Ordinance was presented to the City Council on Sept. 13. 

Public Process

  • On Jan. 11, 2018, the City Council approved a contract with Kimley-Horn & Associates, Inc. to evaluate, develop and create an implementation plan for roadway impact fees
  • City officials and Kimley-Horn conducted a study to identify the fee per unit of new development necessary to fund these improvements in accordance with state law.
  • First stakeholder meeting held June 15
  • The Capital Improvements Advisory Committee (CIAC) met June 20 to review information that will be used in calculating the maximum fee that can be considered by state law.
  • Second CIAC public meeting held at 6:30 p.m. July 18
  • Public hearing held by City Council on Thursday, July 26
  • Second stakeholder meeting held from 2 to 5 p.m. Aug. 7; an open house for the public was held from 5 to 7 p.m. Aug. 7
  • The CIAC held a third public meeting on Aug. 15 to review the maximum fee, and recommended the City Council implement impact fees to address transportation needs in Round Rock 
  • Second public hearing and discussion held by City Council on Thursday, Sept. 13