This article is adopted pursuant to the provisions of V.T.C.A., Local Government Code § 395.001 et seq., as amended, as well as under the authority of article XI, section 5, of the Texas Constitution. This article implements a policy of the city to impose fees on each new development project to pay the costs of constructing capital improvements and facility expansions necessary to serve new development.

(Ord. No. 2005-11-01, § 1, 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002)

For purposes of this article, the following definitions apply:

Advisory committee means the members of the planning and zoning commission and the representatives appointed by the city council as required by the enabling legislation for this ordinance.

Assessment means the determination of the amount of the maximum impact fee which can be imposed on new development pursuant to this article.

Capital improvement means any of the following facilities that have a life expectancy of three or more years and are owned and operated by or on behalf of the city:

1.

Water supply and distribution facilities; wastewater collection facilities; and stormwater, drainage, flood control facilities as they relate to the construction of roadway facilities, whether or not they are located within the service area; and

2.

Roadway facilities.

Capital improvements plan means a plan that identifies capital improvements or facility expansions for which impact fees may be assessed, as adopted by the city from time to time.

City means the City of Allen, Collin County, Texas.

Credit means the amount of the reduction of an impact fee for fees, payments or charges for or construction of the same type of facility.

Facility expansion means the expansion of capacity of an existing facility that serves the same function as an otherwise necessary new capital improvement, in order that the existing facility may serve new development. The term "facility" does not include the repair, maintenance, modernization, or expansion of an existing facility to better serve existing development.

Final plat approval or approval of a final plat means the point at which the applicant has complied with all the conditions of approval and the plat has been released for filing with the county clerk.

Impact fee study means that certain study titled "Water, Wastewater, and Roadway Impact Fee Update 2022—2032" prepared by Birkhoff, Hendricks & Carter, the official copy of which is on file in the office of the city secretary and incorporated into this article by reference.

Impact fees means a charge or assessment imposed against new development in order to generate revenue for funding or recovering the costs of capital improvements or facility expansions necessitated by and attributable to new development. The term "impact fees" includes amortized charges, lump sum charges, capital recovery fees, contributions in aid of construction, and any other fee that functions as described by this definition. The term "impact fees" does not include:

1.

Required dedications of land for public parks or payments made in lieu thereof;

2.

Dedication of rights-of-way or easements, or the construction or dedication of on-site or off-site water distribution, wastewater collection or drainage facilities, or streets, sidewalks, or curbs if the dedication or construction is required by a valid ordinance and is necessitated by and attributable to the new development;

3.

Lot or acreage fees or pro rata fees to be placed in trust funds for the purpose of reimbursing developers for constructing or oversizing water or sewer mains or lines; or

4.

Other pro rata fees for reimbursement of water or sewer mains or lines extended by the city.

Land use assumptions means a description of the service area and projections of changes in land uses, densities, intensities, and population in the service area over at least a ten-year period which has been adopted by the city and upon which the capital improvements plan is based.

New development means the subdivision of land, the construction, reconstruction, redevelopment, conversion, structural alteration, relocation, or enlargement of a structure; or any use or extension of the use of land; any of which increases the number of service units.

Off-site means located entirely on property which is not included within the bounds of the plat being considered for impact fee assessment.

On-site means located at least partially on the plat which is being considered for impact fee assessment.

Roadway facilities means those streets and roadways, together with interests in land, traffic lanes, curbs, gutters, intersection improvements, traffic control devices, turn lanes, drainage facilities associated with the roadway, street lighting, and all other necessary appurtenances, designated as capital improvements in the Impact Fee Study. The term also includes the city's share of costs for roadways and associated improvements designated on the federal or Texas highway system, including local matching funds and costs related to utility line relocation and the establishment of curbs, gutters, sidewalks, drainage appurtenances, and rights-of-way.

Service area means:

1.

With respect to water supply, treatment and distribution facilities, wastewater collection and treatment, the entire area within the corporate limits of the city and its extraterritorial jurisdiction to be served by the capital improvements and facilities expansions specified in the capital improvements plan;

2.

With respect to roadway facilities, each individual service area designated in the capital improvements plan served by the roadway facilities designated in the capital improvements plan. The service area is limited to an area within the corporate boundaries and shall not exceed six miles.

Service unit means, for purposes of determining an impact fee assessment, the applicable standard units of measure shown in the footnotes of Schedules A and B and derived from the impact fee study.

Sanitary sewer facility means an improvement for providing wastewater collection, including, but not limited to, land or easements, lift stations, or interceptor mains. Sanitary sewer facility excludes lines or mains which are reimbursed from pro rata charges paid by developers or owners of property in other subdivisions as a condition of connection to or use of such facility.

Water facility means an improvement for providing water supply, treatment and distribution services, including, but not limited to, land or easements water treatment facilities, water supply facilities, or water distribution lines. Water facility excludes water lines or mains which are constructed by developers, the costs of which are reimbursed from pro rata charges paid by developers or owners of property in other subdivisions as a condition of connection to or use of such facility.

(Ord. No. 2005-11-01, § 1, 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002; Ord. No. 3501-7-17, § 1, 7-25-2018; Ord. No. 3928-7-22, § 1.A, 7-12-2022)

1.

The capital improvements advisory committee (advisory committee) shall consist of the planning and zoning commission. If the commission does not include at least one representative of the real estate, development or building industry who is not an employee or official of a political subdivision or governmental entity, the city council shall appoint at least one such representative as an ad hoc member of the advisory committee. If any impact fee is to be applied in the extraterritorial jurisdiction of the city, a representative from the area shall be appointed by the city council.

2.

The advisory committee serves in an advisory capacity and is established to:

a.

Advise and assist the adoption of land use assumptions;

b.

Review the capital improvements plan and file written comments;

c.

Monitor and evaluate implementation of the capital improvements plan;

d.

File semi-annual reports with respect to the progress of the capital improvements plan and report to the city council any perceived inequities in implementing the plan or imposing the impact fees; and

e.

Advise the city staff and council of the need to update or revise the land use assumptions, capital improvements plan and impact fee.

3.

All professional reports concerning the development and implementation of the capital improvements plan shall be made available to the advisory committee.

4.

The advisory committee shall elect a chairperson to preside at its meetings and a vice-chairperson to serve in the chairperson's absence.

5.

The land use assumptions and capital improvements plan shall be updated at least every five years. Alternatively, the city council may, pursuant to the provisions of the V.T.C.A., Local Government Code § 395.0575, make a determination that no such update is necessary.

(Ord. No. 2005-11-01, § 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002)

1.

Water and sewer impact fees shall be assessed for new development at the time final plats for single-family residential are released for recordation and due and payable at the time a building permit is issued, or for land platted outside the corporate limits, at the time an application is filed for an individual meter connection to the water or wastewater system. Water and sewer impact fees for other than single-family residential shall be assessed at any time and shall be due and payable prior to connection to the city's water or sanitary sewer. Irrigation meters in single-family residential are additional service units and will be assessed and fees collected at time of connection to the city's water or sanitary sewer. Roadway impact fees shall be assessed for new development at the time final plats are released for recordation and due and payable at the time a building permit is issued.

2.

Additional impact fees or increases in impact fees shall not be assessed for property described in an approved final plat unless the number of service units to be developed on the property increases or unless a building permit is issued on or after the first anniversary of the increase in the impact fee rate. Such additional and/or increase in impact fees shall be calculated pursuant to section 11.05.4.

3.

Except for roadway facilities, impact fees may be assessed but not collected for property where service is not available unless:

a.

The city commits to commence construction of necessary facilities identified in the capital improvements plan within two years and have service available in five years; or

b.

The city agrees in writing to permit the owner of the property to construct or finance the capital improvement or facility expansion and agrees that the costs incurred or funds advanced will either:

i.

Be credited against the impact fees otherwise due from new development; or

ii.

Reimburse the owner for such costs from impact fees paid from other new developments that will use such capital improvements of facility expansions, in which case fees shall be reimbursed to the owner at the time collected as other new development plats are recorded; or

iii.

The owner voluntarily requests that the city reserve capacity to serve future development and enters into a valid written agreement.

4.

The owner of property for which there is a recorded plat may enter into an agreement with the city providing for the time and method of payment of impact fees, which agreement shall prevail over the provisions of this article.

(Ord. No. 2005-11-01, § 1, 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002; Ord. No. 3501-7-17, § 2, 7-25-2018)

1.

The water and wastewater impact fee for each development shall be determined by the size of the meter(s) to be purchased for the subject development as set forth in Schedule A as follows:

Schedule A.

Water and Sewer Impact Fees by Meter Size

*Water impact fees based on living unit equivalent equal to $3,137.90

**Wastewater impact fees based on living unit equivalent equal to $1,989.69

2.

The roadway impact fee for each development shall be determined by multiplying:

a.

The amount of the impact fee set forth in Schedule B, below, for the applicable service area in which the development is located as shown on Map 11.05, by

b.

The number of development units proposed by the development.

Schedule B.

Roadway Impact Fee by Land Use and Service Area

¹ GFA = Gross floor area (applies to ALL roofed areas including free-standing canopies and all areas of all floors/levels within the building)

⁶ Based on impact fee of $563.50/service unit for Service Area 1, $312.00/service unit for Service Area 2, and $284.00/service unit for Service Area 3

*This table reflects individual land uses within each category. For land uses not included in the table above, an applicant may provide supporting documentation for the use of a similar land use or an alternative service unit calculation

3.

Except as provided in subsection 4, below, the impact fees to be collected with respect to property described in an approved final plat shall be calculated based on the rate of the impact fees in effect at the time the approved final plat is released for recording.

4.

The number of service units with respect to a property shall be recalculated upon the change in land use and/or replatting of the property. If the change in land use and/or replatting of the property results in an increase in the number of service units with respect to the property, the impact fees to be collected with respect to each service unit relating to development of the property shall be calculated as follows:

a.

The rate of the impact fees per service unit in effect prior to the change in land use and/or replatting of the property shall apply with respect to the number of service units relating to the property prior to the change in land use and/or replatting; and

b.

The rate of the impact fees per service unit in effect at the time of the change in land use and/or replatting of the property shall apply with respect to the number of service units exceeding those determined pursuant to paragraph (a), above.

5.

The total amount of unpaid impact fees shall be attached to the request for permit or connection.

6.

The rate of impact fees per service unit in effect prior to July 12, 2022, shall apply with respect to a valid building permit issued prior to July 12, 2023, for construction of a building on a lot for which a subdivision plat was approved prior to July 12, 2022, in accordance with applicable provisions of the ALDC, state law, and/or prior applicable city ordinances.

(Ord. No. 2005-11-01, § 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002; Ord. No. 3501-7-17, § 3, 7-25-2018; Ord. No. 3928-7-22, § 1.B, 7-12-2022)

Editor's note— Ord. No. 3928-7-22, § 1.B, adopted July 12, 2002, amended the title of § 11.05 to read as herein set out. The former § 11.05 title pertained to calculation of impact fees.

State Law reference— Maximum fee per service unit, V.T.C.A., Local Government Code § 395.015.

1.

Any construction of, contributions to, or dedications of any facility appearing on the capital improvements plan which is required by the city to be constructed by the owner as a condition of development shall be credited against the impact fees otherwise due from the development. Credit for impact fees due an owner in one category of impact fees may not be used to offset impact fees in another category.

2.

As an alternative to the foregoing, the city and owner may enter into an agreement providing that, in addition to the credit, owner will be reimbursed for all or a portion of the costs of such facilities from impact fees received from other new developments that will use such capital improvements of facility expansions.

3.

An owner shall be entitled to a credit against any category of impact fee provided in any written agreement between the city and the owner.

4.

No credit for construction of any facility shall exceed the total amount of impact fees due from the development for the same category of improvements.

(Ord. No. 2005-11-01, § 1, 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002)

1.

All impact fees collected shall be deposited in interest-bearing accounts clearly identifying the category of capital improvements or facility expansions within the service area for which the fee is adopted.

2.

Interest earned will be credited to the account and is subject to the same restrictions on expenditures as the funds generating such interest.

3.

Impact fees and the interest earned thereon may be expended only for the purposes for which such fees were imposed as shown in the capital improvements plan.

4.

The records of the accounts into which impact fees are deposited shall be open for public inspection and copying during ordinary business hours.

(Ord. No. 2005-11-01, § 1, 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002)

State Law reference— Accounting for fees and interest, V.T.C.A., Local Government Code § 395.024.

1.

On the request of an owner of property on which an impact fee has been paid, impact fees shall be refunded if existing facilities are available and service is denied, or if the city failed to commence construction of facilities required for service within two years of payment of the fee, or if construction is not complete within a reasonable time considering the type of capital improvements or facility expansion to be constructed, but not in any event more than five years from date of payment of the fee.

a.

Any impact fee funds not expended within ten years after payment shall be refunded.

b.

Refunds shall bear interest calculated from the date of collection to the date of refund at the statutory rate set forth in V.T.C.A., Finance Code § 302.002, or its successor statutes.

c.

All refunds will be made to the owner of record at the time the refund is paid. If, however, the impact fees were paid by another political subdivision or governmental entity, payment shall be made to the political subdivision or governmental entity.

2.

The owner of the property on which the impact fee was paid, or another political subdivision or governmental entity that paid the impact fee, has standing to sue for a refund under this section.

(Ord. No. 2005-11-01, § 1, 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002)

State Law reference— Refunds, V.T.C.A., Local Government Code § 395.025.

Upon written application of the owner of property upon which impact fees were assessed, the city council shall consider appeals to the interpretations of or errors in the application of the impact fee regulations or schedules used to calculate the fees or credits.

(Ord. No. 2005-11-01, § 1, 11-1-2001; Ord. No. 2070-6-02, § 1, 6-25-2002; Ord. No. 2112-11-02, 11-26-2002)