Title
Consider and take action on an ordinance establishing a Capital Improvements Advisory Committee pursuant to Texas Local Government Code Chapter 395 and procedural rules for the review and consideration of land use assumptions, capital improvements plans, and capital recovery fees (Executive Director of Development Services)
Background:
Approval of this ordinance will establish a stand-alone Capital Improvements Advisory Committee (CIAC) to support the City’s review and update of capital recovery fees in accordance with Texas Local Government Code Chapter 395.
Chapter 395 authorizes municipalities to impose impact fees, referred to by the City as Capital Recovery Fees (CRFs), to help fund or recoup the costs of capital improvements or facility expansions needed to serve new development. These fees must be supported by adopted land use assumptions, a capital improvements plan, and an impact fee calculation prepared in accordance with the statutory process.
The City has historically used existing City committees, including the Planning and Zoning Commission and/or the Transportation and Infrastructure Committee, to serve as the CIAC during prior impact fee updates. This approach was permissible under the version of Chapter 395 in effect when the City began its last update process in 2023. Since that time, the Texas Legislature has amended Chapter 395 and related statutes in several material ways that affect the City’s next CRF update process.
The most direct change for this item is the amendment to the CIAC composition requirements. Under the prior law, a planning and zoning commission could serve as the advisory committee if it included at least one representative of the real estate, development, or building industry, or if one such representative was appointed as an ad hoc voting member. Senate Bill 1883, effective September 1, 2025, removed that language and increased the required industry representation from at least 40 percent to at least 50 percent ...
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