Title
Conduct a Public Hearing to Consider/Discuss/Act on the Amendment of the Utility Impact Fee Ordinance as Part of the 2019 Impact Fee Update; and Accompanying Ordinance
Summary
COUNCIL GOAL: Operational Excellence
(2B: Balance Available Resources to Accommodate the Growth and Maintenance Needs of the City)
MEETING DATE: December 1, 2020
DEPARTMENT: Development Services - Planning Department
CONTACT: Jennifer Arnold, AICP, Planning Director
Aaron Bloxham, Planning Manager
Mitchell Corona, CNU-A, Planner I
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of an update to the Utility Impact Fee Ordinance, setting new fees and providing for a nine-month grace period.
ITEM SUMMARY:
• Staff is presenting the final recommendation for the amendment of the utility impact fees, as discussed further below.
• Potential utility impact fee amendments were first presented and discussed at a City Council Work Session on October 6, 2020. Feedback received from Council for the potential fee amendments and ordinance improvements was generally supportive.
• Chapter 395 of the Texas Local Government Code requires that a public hearing be held to consider the potential amendment of impact fees. As required by state law, a 30-day Legal Notice was posted in the McKinney Courier-Gazette. As well, the recommended fee amendments have been posted on the City's webpage for public review and comment.
Final Recommendation of Utility Impact Fees:
• A table depicting Staff’s recommendation can be seen in the attachment labeled “Proposed Utility Impact Fee Summary Tables.”
• Staff has also created a series of city comparison charts to illustrate how the current and recommended fee amounts compare to other cities in the region. These comparisons are included as an attachment to this Agenda Item and titled “City Comparisons - Utility Impact Fees” and “City Comparisons - Combined Impact Fees.”
Implementation of Final Fee Recommendations
• Staff recommends a 9-month grace period (based on date of building permit) starting from the date the ordinance becomes effective before the new fees be imposed.
BACKGROUND INFORMATION:
• Chapter 395 of the Texas Local Government Code mandates that impact fees be reviewed and updated at least every 5 years.
• Updating Impact Fees involves 3 parts (as required by state law):
• Land Use Assumptions
The updated Land Use Assumptions were considered by Capital Improvements Advisory Committee on August 27, 2019 and were approved by the City Council at the September 17, 2019 meeting.
• Capital Improvements Planning
Updates to the Capital Improvement Plan for Impact Fees were presented and discussed during a City Council Work Session on August 4 and September 1, 2020.
In a related item on tonight’s meeting agenda, Staff is seeking City Council approval for the amendment of the Capital Improvements Plan for Utility Impact Fees.
• Fee Setting / Adopting the Amended Ordinance
Proposed fee amendments for the 2019 Utility Impact Fee Update were first presented at a Work Session of the City Council on October 6, 2020.
Staff is currently seeking approval of the updated Utility Impact Fee Ordinance and associated fee amendments
BOARD OR COMMISSION RECOMMENDATION:
• The Capital Improvements Advisory Committee (CIAC) is required by state law to provide written comments to the City Council prior to Council action on the updated Impact Fee Ordinance for the 2019 Utility Impact Fee Update.
• On October 27, 2020, the Capital Improvements Advisory Committee considered and commented on the 2019 Utility Impact Fee Update. The approved minutes of the public hearing shall serve as the written comments.
• The Capital Improvements Advisory Committee was generally supportive of the update.