CITY OF McKINNEY, TEXAS - File #: 23-0003M

Date	Ver.	Action By	Action	Result	Action Details	Meeting Details	Video
5/23/2023	1	Capital Improvements Advisory Committee	Approved	Pass	Action details	Meeting details	Not available

Title

Conduct a Public Hearing to Consider/Discuss/Act on the Semiannual Report with Respect to the Progress of the Capital Improvements Plan for Roadway and Utility Impact Fees

Summary

COUNCIL GOAL: Operational Excellence

(2B: Balance Available Resources to Accommodate the Growth and Maintenance Needs of the City)

MEETING DATE: May 23, 2023

DEPARTMENT: Development Services - Planning Department

CONTACT: Aaron Bloxham, Principal Planner

Jennifer Arnold, AICP, Director of Planning

APPROVAL PROCESS: The recommendation and minutes from the Capital Improvements Advisory Committee meeting will be forwarded to the City Council on June 20, 2023.

STAFF RECOMMENDATION: Staff recommends filing the semiannual report with respect to the progress of the Capital Improvements Plan for roadway and utility impact fees.

ITEM SUMMARY: Staff is presenting the 2023 mid-year semiannual report on the progress of the Capital Improvements Plan for roadway and utility impact fees as required by Chapter 395 of the Texas Local Government Code. Staff has established a schedule of presenting the semiannual report at the mid-point of the fiscal year as well as at the end of the fiscal year (the fiscal year being October to September). The 2022 end-of-year report was presented at the Capital Improvements Advisory Committee meeting on December 13, 2022 and accepted by City Council on January 3, 2023.

The Planning and Zoning Commission, along with an appointed ETJ representative, act as the Capital Improvements Advisory Committee for the City of McKinney. Per state law, the committee serves in an advisory capacity and is established to:

(1) Advise and assist the political subdivision in adopting land use assumptions;

(2) Review the capital improvements plan and file written comments;

(3) Monitor and evaluate implementation of the capital improvements plan;

(4) File semiannual reports with respect to the progress of the capital improvements plan and report to the political subdivision any perceived inequities in implementing the plan or imposing the impact fee; and

(5) Advise the political subdivision of the need to update or revise the land use assumptions, capital improvements plan and impact fee.

Semiannual Report

The Capital Improvements Plan used for this semiannual report was adopted on December 1, 2020 as part of the 2019 Impact Fee Update. The semiannual report is required to report the progress of the Capital Improvements Plan and report any perceived inequities in the implementation of the CIP. The Capital Improvements Advisory Committee meeting report from the public hearing, its attachments and meeting minutes will be filed by City Council as the semiannual report.

The City of McKinney’s semiannual report includes a summary of the total roadway and utility impact fee funds collected, transferred, and available for capital improvement projects. It also lists ongoing capital improvement projects partially funded by impact fee revenue.

Construction Costs and Consumer Price Index

As part of the semiannual report, Staff has included a review of regional construction costs and the national Consumer Price Index.

From March 2022 to March 2023, the Construction Cost Index in the Dallas area increased 4.3%. Since the time of adoption of the CIP for Impact Fees (December 2020), the Construction Cost Index in the Dallas area increased 26.7% (Source: Construction Cost Index at www.enr.com).

From March 2022 to March 2023, the Dallas-Fort Worth-Arlington area Consumer Price Index (CPI) increased 5.0%. During the same period, the core CPI, which excludes volatile food and energy prices, increased 5.6% (Source: US Department of Labor, Bureau of Labor Statistics). According to the Bureau of labor statistics, this has been the smallest 12-month increase for all items since May 2021.

Roadway Impact Fees Fund Activity (MY 22-23)

Zone	Beginning LTD Balance	YTD Revenues	YTD Project Transfers / Refunds	Balance (including interest) LTD	Allocated to Future Projects	Available Funds LTD
A	$0	$0	$0	$0	$0	$0
B	$47,809	$0	$0	$47,809	$0	$47,809
C	$505,048	$85,196	$0	$590,244	$0	$590,244
D	$4,822,038	$1,730,792	$0	$6,552,830	$0	$6,552,830
E	$1,358,999	$1,632,973	$0	$2,991,972	$0	$2,991,972
F	$0	$0	$0	$0	$0	$0
G	$31,110	$102,769	$0	$133,879	$0	$133,879
H	$437,145	$63,304	$0	$500,449	$0	$500,449
I	$1,032,666	$1,480,009	$0	$2,512,675	$0	$2,512,675
J	$648,589	$267,136	$0	$915,725	$0	$915,725
K	$1,609,962	$286,048	($500,000)	$1,396,010	$0	$1,396,010
L	$515,972	$0	$0	$515,972	$0	$515,972
M	$0	$0	$0	$0	$0	$0
TOTAL	$11,009,336	$5,648,227	($500,000)	$16,157,563	$0	$16,157,563

• Totals as of 3/31/2023

• YTD - Year to Date (includes funds for the fiscal year which is October 2022 to September 2023)

• LTD - Live to Date (includes balance funds from previous years)

• Allocated funds may exceed balance funds in cases where future fee revenue will fund a specific project

• As of October 1, 2013, interest earned on Roadway Impact Fee revenues is deposited directly into the Street Construction Fund.

Utility Impact Fees Fund Activity (MY 22-23)

Utility Impact Fee Account	Beginning LTD Balance	Fees Collected YTD	Transfers out to Projects	Allocated to Future Projects	Available Funds LTD
Water	$5,162,299	$2,573,087	$0	$0	$7,735,386
Wastewater	$3,360,338	$1,692,350	$0	$0	$5,052,688
Total	$8,522,637	$4,265,438	$0	$0	$12,788,074

• Totals as of 3/31/2023

• “Water and Wastewater Fees Collected YTD” include fees collected within the Trinity Falls

Municipal Utility District

• YTD - Year to Date (includes funds for the fiscal year which is October 2022 to September 2023)

• LTD - Live to Date (includes balance funds from previous years)

• Allocated funds may exceed balance funds in cases where future fee revenue will fund future projects.

CIP PROJECT STATUS (FY 2022-2023)

The CIP Roadway and Utility Projects List is included as an attachment to this report and lists Capital Improvement Program roadway and utility projects for which impact fee funds have been allocated and/or spent during this fiscal year.

SUMMARY OF PREVIOUS FISCAL YEARS

Roadway Impact Fees Fund Activity (EOY 21-22)

Zone	Beginning LTD Balance	YTD Revenues	YTD Project Transfers / Refunds	Balance (including interest) LTD	Allocated to Future Projects	Available Funds LTD
A	$0	$0	$0	$0	$0	$0
B	$0	$47,809	$0	$47,809	$0	$47,809
C	$751,990	$403,058	($650,000)	$505,048	$0	$505,048
D	$291,446	$4,830,592	($300,000)	$4,822,038	$0	$4,822,038
E	$248,719	$1,310,280	($200,000)	$1,358,999	$0	$1,358,999
F	$0	$0	$0	$0	$0	$0
G	$60,061	$21,049	($50,000)	$31,110	$0	$31,110
H	$462,163	$421,055	($446,072)	$437,145	$0	$431,445
I	$753,920	$978,746	($700,000)	$1,032,666	$0	$1,027,681
J	$1,429,389	$457,979	($1,238,779)	$648,589	$0	$648,589
K	$2,586,903	$1,099,687	($2,076,628)	$1,609,962	($500,000)	$1,109,962
L	$54,932	$511,040	($50,000)	$515,972	$0	$515,972
M	$0	$0	$0	$0	$0	$0
TOTAL	$6,639,521	$10,081,295	($5,711,479)	$11,009,336	($500,000)	$10,509,336

• Totals as of 9/30/2022

• YTD - Year to Date (includes funds for the fiscal year which is October 2021 to September 2022)

• LTD - Live to Date (includes balance funds from previous years)

• Allocated funds may exceed balance funds in cases where future fee revenue will fund a specific project

• As of October 1, 2013, interest earned on Roadway Impact Fee revenues is deposited directly into the Street Construction Fund.

Utility Impact Fees Fund Activity (EOY 21-22)

Utility Impact Fee Account	Beginning LTD Balance	Fees Collected YTD	Transfers out to Projects	Allocated to Future Projects	Available Funds LTD
Water	$3,274,854	$5,006,039	($3,118,594)	$0	$5,162,299
Wastewater	$972,670	$3,368,480	($980,813)	$0	$3,360,338
Total	$4,247,524	$8,374,519	($4,099,407)	$0	$8,522,637

• Totals as of 9/30/2022

• “Water and Wastewater Fees Collected YTD” include fees collected within the Trinity Falls

Municipal Utility District

• YTD - Year to Date (includes funds for the fiscal year which is October 2021 to September 2022)

• LTD - Live to Date (includes balance funds from previous years)

• Allocated funds may exceed balance funds in cases where future fee revenue will fund future projects.

Roadway Impact Fees Fund Activity (EOY 20-21)

Zone	Beginning LTD Balance	YTD Revenues	YTD Project Transfers / Refunds	Balance (including interest) LTD	Allocated to Future Projects	Available Funds LTD
A	$0	$0	$0	$0	$0	$0
B	$0	$0	$0	$0	$0	$0
C	$2,266,059	$789,899	($2,200,000)	$855,958	($650,000)	$205,958
D	$419,568	$771,877	($900,000)	$291,446	$0	$291,446
E	$1,720,075	$28,644	($1,500,000)	$248,719	($200,000)	$48,719
F	$0	$0	$0	$0	$0	$0
G	$290,963	$69,098	($300,000)	$60,061	$0	$60,061
H	$508,991	$503,172	($550,000)	$462,163	$0	$462,163
I	$1,085,940	$491,416	($823,437)	$633,943	$0	$633,943
J	$2,662,962	$538,677	($1,772,250)	$1,401,639	($1,000,000)	$401,639
K	$2,635,806	$351,096	($400,000)	$2,586,903	($700,000)	$1,886,903
L	$54,932	$0	$0	$54,932	($50,000)	$4,932
M	$0	$0	$0	$0	$0	$0
TOTAL	$11,645,295	$3,543,880	($8,445,687)	$6,595,762	($2,600,000)	$3,995,762

Note: Fiscal Year Totals as of September 30, 2021

Utility Impact Fees Fund Activity (EOY 20-21)

Utility Impact Fee Account	Beginning LTD Balance	Fees Collected YTD	Transfers out to Projects	Allocated to Future Projects	Available Funds LTD
Water	$4,803,243	$2,171,612	($3,700,000)	$0	$3,274,854
Wastewater	$664,031	$308,639	$0	$0	$972,670
Total	$5,467,274	$2,480,251	($3,700,000)	$0	$4,247,524

Note: Fiscal Year Totals as of September 30, 2021

Roadway Impact Fees Fund Activity (FY 19-20)

Zone	Beginning LTD Balance	YTD Revenues	YTD Project Transfers / Refunds	Balance (including interest) LTD	Allocated to Future Projects	Available Funds LTD
A	$0	$0	$0	$0	$0	$0
B	$0	$0	$0	$0	$0	$0
C	$1,784,813	$481,245	$0	$2,266,059	($2,000,000)	$266,059
D	$131,981	$287,587	$0	$419,568	($100,000)	$319,568
E	$129,689	$1,590,386	$0	$1,720,075	($1,500,000)	$220,075
F	$0	$0	$0	$0	$0	$0
G	$448,086	$142,048	($300,000)	$290,134	($200,000)	$90,134
H	$293,933	$192,120	$3,083	$489,135	($450,000)	$39,135
I	$5,189,968	$595,972	($4,700,000)	$1,085,940	($500,000)	$585,940
J	$2,179,356	$2,483,606	($2,000,000)	$2,662,962	($500,000)	$2,162,962
K	$779,111	$2,206,695	($350,000)	$2,635,806	$0	$2,635,806
L	$5,532	$49,400	$0	$54,932	$0	$54,932
M	$0	$0	$0	$0	$0	$0
TOTAL	$10,942,468	$8,029,060	($7,346,917)	$11,624,611	($5,250,000)	$6,374,611

Note: Fiscal Year Totals as of September 30, 2020

Utility Impact Fees Fund Activity (FY 19-20)

Utility Impact Fee Account	Beginning LTD Balance	Fees Collected YTD	Transfers out to Projects	Allocated to Future Projects	Available Funds LTD
Water	$4,545,014	$2,486,506	($2,235,000)	($4,200,000)	$596,520
Wastewater	$1,368,844	$295,187	($1,000,000)	$0	$664,031
Total	$5,913,858	$2,781,693	($3,235,000)	($4,200,000)	$1,260,550

Note: Fiscal Year Totals as of September 30, 2020

Roadway Impact Fees Fund Activity (FY18-19)

Zone	Beginning LTD Balance	YTD Revenues	YTD Project Transfers / Refunds	Balance (including interest) LTD	Allocated to Future Projects	Available Funds LTD
A	$0	$0	$0	$0	$0	$0
B	$0	$0	$0	$0	$0	$0
C	$1,393,412	$391,401	$0	$1,784,813	$0	$1,784,813
D	$1,031,171	$100,810	($1,000,000)	$131,981	$0	$131,981
E	$238,160	$54,198	($162,669)	$129,689	$0	$129,689
F	$0	$0	$0	$0	$0	$0
G	$959,670	$188,416	($700,000)	$448,086	($300,000)	$148,086
H	$582,457	$211,475	($500,000)	$293,933	$0	$293,933
I	$5,722,023	$743,643	($1,276,408)	$5,189,258	($4,700,000)	$489,258
J	$1,270,480	$781,584	$127,293	$2,179,356	$0	$2,179,356
K	$251,465	$527,646	$0	$779,111	($350,000)	$429,111
L	$1	$5,531	$0	$5,532	$0	$5,532
M	$0	$0	$0	$0	$0	$0
TOTAL	$11,448,838	$3,004,705	($3,511,784)	$10,941,759	($5,350,000)	$5,591,759

Note: Fiscal Year Totals as of September 30, 2019

Utility Impact Fees Fund Activity (FY18-19)

Utility Impact Fee Account	Beginning LTD Balance	Fees Collected YTD	Transfers out to Projects	Allocated to Future Projects	Available Funds LTD
Water	$7,760,359	$2,584,655	($5,800,000)	($3,200,000)	$1,345,014
Wastewater	$2,525,868	$292,976	($1,450,000)	($1,200,000)	$168,844
Total	$10,286,227	$2,877,631	($7,250,000)	($4,400,000)	$1,513,858

Note: Fiscal Year Totals as of September 30, 2019