November 12, 2020

Street Impact Free Update

Street Impact Fee Update

Street impact fees have been around since the 1980s, but cities in central Texas have only recently began adopting them.  Currently, Austin, Pflugerville, and Georgetown are all in the process of adopting street impact fees.  Here is a summary of where each of these cities are in the process.

Austin had their first reading on the fees last Thursday.  The city has 17 different service areas and is proposing to establish higher fees for suburban development on the edge of town.  The city is considering several exemptions and carve out for missing middle projects, affordable housing projects, and projects close to transit.  The HBA is meeting with council offices to discuss the collection rate, implementation dates, and reporting.  The council will likely adopt the fees before the end of the year.

Last Tuesday, Pflugerville held their first reading on the fees.  On a narrow vote, the council decided to move forward with adoption, but recognized that there may need to be some tweaks to the implementation date before they are finally adopted.  The current proposal would make the street impact fees in Pflugerville some of the highest fees in the state.  The HBA continues to educate the council on the impact these fees will have on affordability.  The city held an election in November and the final fees will likely be voted on by the newly installed council before the end of the year.

Georgetown is further behind in the adoption process than Austin and Pflugerville.  Currently, they are still doing stakeholder outreach and holding meetings with their fee advisory committee.  The committee met last Friday to discuss the proposed capital improvement plan and policy recommendations related to fee collection and implementation.  Those proposals will be taken into consideration before the ordinance is drafted and sent to council for approval.  Georgetown will likely adopt their fees sometime in the early spring.