Title
Discussion regarding Roadway Impact Fee updates to land use assumptions, capital improvements and the impact fee.
Summary
At the July 14, 2026 City Council meeting a Public Hearing was conducted on the update to the Roadway Impact Fee Ordinance. During the conversation several questions came from City Council about growth rates, timing of growth, and the policy of how to best utilize impact fees.
The City has contracted with Kimley-Horn & Associates to conduct an update to the Roadway Impact Fee Ordinance. These fees are governed by the Local Government Code, Section 395. This section of the code limits an increase to these fees to every three years. The City has also contracted with Pattillo Brown & Hill to conduct an independent financial audit of the fund to comply with the new requirements of Section 395.059.
Roadway Impact Fees are determined based on land use, growth, and capital improvements of each of the identified service areas. Pflugerville is divided into three service areas that meet the provisions required by state law for impact fees. Service area A, includes generally the area located north and west of the intersection of Pflugerville Parkway and SH130. Service Area B is generally the area south and west of the intersection of Pflugerville Parkway and SH130. Service Area C includes area within the city limits east of SH130.
The Roadway Impact Fee Study established a maximum rate that could be collected per service area and would be applicable to new development or redevelopment that generates an increase in trips from existing uses. The maximum assessable fee per vehicle being proposed with the 2026 Update is as follows:
Service Area A: Maximum Assessable Fee per Vehicle Mile = $4,390 (previously $1,590)
Service Area B: Maximum Assessable Fee per Vehicle Mile = $2,009 (previously $2,916)
Service Area C: Maximum Assessable Fee per Vehicle Mile = $6,812 (previously $3,156)
This update was presented to the Advisory Committee (CIAC) on February 2, 2026 and March 2, 2026.
On Tuesday, July 14, 2026 City Council conducted a public hearing of the Capital Improvement Plan, Land Use Assumptions, and Growth that were used to calculate the maximum Roadway Impact Fee allowed by Local Government Code Section 395.
During this conversation there were several questions raised about the growth piece of the calculations with respect to the growth rates utilized and the timing of that growth.
As noted in the study and during the public hearing, “Impact fees are a mathematical calculation that determines a maximum impact fee equivalent to the cost of growth, allowing growth to pay for itself."
The Impact Fee determination is required to be based on the projected growth and corresponding capacity needs in a 10-year window. The growth projections for residential and non-residential areas were based on the City of Pflugerville’s 2023 Water and Wastewater Master Plan projections and the Capital Area Metropolitan Planning Organization (CAMPO) 2050 Travel Demand Model. At the time of the plan production the City of Pflugerville 2025 Water and Wastewater Master plans were underway, but growth assumptions were not ready for use. The report indicates:
For this roadway impact fee update, growth inputs were developed using a multi-step approach based on regional travel modeling and local development data. Population, household, and employment growth by sector were derived from the CAMPO 2050 Travel Demand Model for 2025-2035 planning horizon and allocated to each service area to estimate future travel demand from new development. Model-based growth assumptions were then compared with recent water and wastewater permitting activity and reviewed with City staff and stakeholders to confirm consistency with observed trends, planned projects, and local development expectations.
The report provides two tables to show the existing conditions and the growth of the city by service area. Table 1 summarizes the residential and employment conditions existing in 2025.
Statute 395.053 provides 120 days for the governing body to adopt and amend the plan, thus the technical deadline was July 6. The clock started on March 6, 2026 because that is the date the report was received. Under 395.071, if a time limit for a duty is missed, any person who paid an impact fee has the right to present a written request stating the nature of the unperformed duty and requesting that it be performed within 60 days of the request.
Nest Steps:
August 11th - 1st reading of the Ordinance
August 25th - 2nd reading of the Ordinance
This item is supported by the Mobility infrastructure and Connectivity pillar of the Strategic Plan.
Prior City Council Action
On February 25, 2020, City Council approved the supplement to the Transportation Master Plan professional engineering services to prepare a Roadway Impact Fee Study.
On May 12, 2020, City Council approved the Service Area - Option 1 for use in the Roadway Impact Fee Study.
On July 28, 2020, City Council discussed the land use and growth assumptions related to the Roadway Impact Fee Study.
On January 11, 2022, City Council approved a resolution to set a public hearing to consider Chapter 152, Subchapter B, Roadway Impact Fee Ordinance Amendments
On February 10, 2022, City Council approved first reading of amendments to Chapter 152, Subchapter B, Roadway Impact Fee Ordinance for the 2022 Update.
On March 8, 2022, City Council approved second reading of amendments to Chapter 152, Subchapter B, Roadway Impact Fee Ordinance for the 2022 Update.
On September 26, 2023 City Council approved a Resolution establishing Roadway Impact Fee Guidelines to assist with the implementation of Chapter 152, Subchapter B, Roadway Impact Fees.
On October 10, 2023 City Council approved second reading of amendments to Chapter 152, Subchapter B, Roadway Impact Fee Ordinance for the 2023 Update.
On October 8, 2024 City Council approved an amendment to the City's Code of Ordinances Chapter 152, Subchapter B, Roadway Impact Fee Fees, to include provisions for newly annexed areas.
On November 26, 2024 City Council approved second reading of amendments to Chapter 152, Subchapter B, Roadway Impact Fee Ordinance for the 2022 Update.
On May 12, 2026 City Council approved a resolution setting a public hearing for July 14, 2026 to discuss Roadway Impact Fee Ordinance update for 2026.
On July 14, 2026 City Council had a public hearing to discuss Roadway Impact Fee Ordinance update for 2026.
Deadline for City Council Action
Action is requested on July 28, 2026 to provide the clear direction needed stay on target with first reading of the ordinance on August 11, 2026.
Funding Expected: Revenue __ Expenditure __ N/A _X_
Budgeted Item: Yes __ No __ N/A _X_
Budget Source: General Fund
Budgeted Amount: 136,000
Amount: __N/A____
1295 Form Required? Yes __ No _X_
Legal Review Required: N/A _X_ Required __ Date Completed: ___________
Supporting documents attached:
Pflugerville Roadway Impact Fees 2025 Study
Recommended Action:
Discuss Only