A maximum impact fee of $12,514 per living unit equivalent, or LUE, is now in effect following City Council approval Dec. 5.
The framework
Impact fees are a mechanism that enforces developers to pay for their impact on water and wastewater systems.
City councils throughout Texas can amend city policy to collect up to 100% of the impact fees. The fees are reviewed every five years under Chapter 395 of the Texas Local Government Code.
The city of Kyle will be charging developers building new developments the full amount allowed under state law to fund capital improvement projects attributed to growth. However, funds from current taxpayers will still contribute to the projects.
What you need to know
The maximum impact fee, which is nearly twice as much as it was in 2017, was approved by the Water and Wastewater Impact Fee Advisory Committee on Oct. 10 and was recommended by city staff.
By paying water and wastewater impact fees, developers help fund the cost of capital improvement projects, such as new water towers, drainage and wastewater infrastructure made necessary due to new developments.
According to agenda documents, the fees will apply to any new development in the city or the city’s extraterritorial jurisdiction.
City engineer Leon Barba emphasized that this will not impact existing homeowners or rent payers.
"It's just for new development," Barba said.
He also noted that a development's plat date and meter size are how the city bills impact fees.
The breakdown
The breakdown of the newly approved impact fees per LUE are as follows:
