R-2025-319 - 12/4/2025 RESOLUTION NO. R-2025-319
WHEREAS, Section 395.058 of the Texas Local Government Code ("the Act") requires the
Capital Improvement Advisory Committee ("CIAC") to report to the City Council the progress of the
capital improvements plan and any perceived inequities in implementing the plan or imposing the
impact fee; and
WHEREAS, the CIAC is also required to advise the Council of the need to update the land use
assumptions, capital improvements plan and impact fees; and
WHEREAS, the CIAC has submitted a Roadway Impact Fee Semi-Annual Report; and
WHEREAS, the City Council has reviewed the attached Report and has determined same to be
in compliance with the Act,Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,TEXAS,
That the Roadway Impact Fee Semi-Annual Report submitted by the CIAC, attached hereto as
Exhibit"A," and incorporated herein, is hereby approved.
The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was
open to the public as required by law at all times during which this Resolution and the subject matter
hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act,
Chapter 551,Texas Government Code, as amended.
RESOLVED this 4th day of December, 2025.
CRAIC$(5RGAP, Mayor
City of Pound R ck, Texas
ATTEST:
ANK FRANKLIN, City Clerk
0112.20252;4928-1677-1963
EXHIBIT
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Beam Setting on Old Settlers Boulevard Extension looking Southwest towards Red Bud Road,
June 2025
RoadwayImpact Fee
Semi-Annual Report
October 2025
ROUND ROCK TEXAS
1.
SUMMARY
The Texas Local Government Code Section 395.058 requires the Capital
Improvement Advisory Committee (CIAC) to report to the political subdivision the
progress of the capital improvements plan and any perceived inequities in
implementing the plan or imposing the Roadway Impact Fee. Included herein is the
semi-annual report for the reporting period of April 1, 2025, to September 30,
2025, which represents the second half of the City's annual Fiscal Year. The report
consists of assessing the implementation of the Roadway Impact Fee, Impact Fee
collection and the administrative review process now underway.
The Texas Local Government Code also requires the CIAC to advise the City on
updating the land use assumptions, capital improvements plan and Roadway
Impact Fees. The City of Round Rock Roadway Impact Fee Study was first adopted
by the City Council in March 2019, and the City of Round Rock Roadway Impact Fee
Study was formally updated in November 2023. The Roadway Impact Fee includes
phased adoption that include collection of fees beginning in January 2021 with
multiple phases of implementation. Phase 1 for all plats recorded prior to January
1, 2022, Phase 2 for plats recorded between January 1, 2022 to December 31, 2023,
and Phase 3 for plats recorded between January 1, 2024 to December 31, 2024. A
new Phase 4 was added with implementation beginning on January 1, 2025.
Per Chapter 395.052, the land use assumptions and capital improvement plan are
required to be updated every five years. On November 2, 2023, the City Council
adopted the City of Round Rock 2023 Roadway Impact Fee Study Update (2023
Update) satisfying the required update. In this update Service Area B was split into
two Service Areas B and D. The 2023 Update also included updating the trip
generation data to the latest edition of the ITE Trip Generation Manual, 11th
edition, which made minor changes to the calculation of fees based on trip
generation and trip length per land use category and added additional land use
categories to the calculation. The largest change was splitting the base fee for
Service Area A into its own category starting in 2025.
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Introduction
The Roadway Impact Fee was first adopted in March 2019,with the required update to the capital
improvement plan and use land assumptions adopted in November 2023, with the purpose of
providing a more reliable funding source for planned transportation capital projects. In
November 2024, minor study updates were approved by City Council which only modified the
map and clarified the limits of certain projects, but did not affect the capital improvement plan
or land use assumptions.
The largest change surrounding the implementation of the Roadway Impact Study was the
creation of the Public Works Department in August 2024, which merged the Utilities and
Environmental Department and Transportation Department. This has worked to strengthen the
collaboration between departments in the provision of our essential municipal services. The
capital improvement program for the Roadway Impact Study is now administered under the
Public Works—Transportation Division.
Roadway Impact Fee Adoption
For Phase 1, Phase 2 and Phase 3,final adoption of the Roadway Impact Fee occurred on March
14, 2019.The Roadway Impact Fee was adopted with a maximum fee per service unit of$2,511,
which represents the lowest calculated rate across three service areas. With the base service
unit, the adoption also limited collection of fees to a percentage of the adopted unit cost over
three phases of implementation.
Phase 4 of the Roadway Impact Fee splits the maximum fee per service unit between Service
Area A with a maximum fee of$5,740 and Service Areas B,C and D with a maximum fee of$3,818.
Table 1 shows the phasing and percentage of fees collected over the implementation period.
Table 1: Impact Fee Implementation Phasing
Phase Residential Rate Non-Residential Implementation Period
(%of Service Rate(%of (based on date of Final Plat recordation)
Unit) Service Unit
Grace Period No Fee No Fee Building permit before January 1,2021
Phase 1 30% 20% Final Plat before January 1,2022
Phase 2 45% 25% Final Plat before January 1,2024
Phase 3 60% 30% Final Plat on or after January 1,2025
Phase 4 new max fee 60% 30% Final Plat on or after January 1,2025
The Roadway Impact Fee is assessed at the recorded plat and collected at the time of building
permit issuance.
Roadway Impact Fee Collection
Roadways Impact Fees are collected,and revenue deposited into accounts for each of the service
areas identified in the Roadway Impact Fee Study.The Revenue collected to date is presented in
Table 2.Those services areas are identified in Figure 1.
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Table 2: RIF Collections April 1,2025,to September 30,2025
Service Area PreviousRevenue Total Revenue
April '25 to September `25
Service Area A $2,806,186.80 $129,972.60 $2,936,159.40
Service Area B $6,825,523.37 $310,770.53 $7,136,293.90
Service Area C $3,919,868.36 $397,600.80 $4,317,469.16
Service Area D $1,424,300.66 $188,661.33 $1,612,961.99
Collections to Date $14,975,879.19 $1,027,005.26 $16,002,884.45
* Collections in Service Area D began in January 2024.
Service Area C,generally south of E. Palm Valley(US 79) and Round Rock Avenue (R.M. 620), had
the most revenue in the reporting period.This marks the first reporting period that Service Area
B did not have the most revenue.
Figure 1: RIF Service Areas
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Implementation Phase 4
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This reporting period included over 150 non-residential building permits and temporary
construction permits that were for re-models of existing facilities, tenant finish buildouts, or
change in tenants that did not include additional square footage. These changes did not trigger
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a change in the ITE Land Use Code, resulting in no Roadway Impact Fee collection with the
building permit.
On January 1,2024, Phase 3 of fee implementation went into effect.Any Final Plat recorded after
this date will be subject to an increase in the percentage of Service Unit calculated for the
Roadway Impact fee. Residential rates will increase from 45%to 60% and Non-Residential rates
will increase from 25% to 30% of maximum fee per service unit of $2,511. Phase 4 with the
increase maximum per service unit and split of Service A and Services Areas B, C and D rate
structure will go into effect on January 1, 2025.
Roadway Impact Fee Distribution
Distribution of the RIF collected to Capital Improvement Plan projects began in the Fourth
Quarter of 2021, the first quarter of the FY2022 budget year. Table 3 illustrates the distribution
and available balance for Roadway Impact Fee revenue.
Table 3: RIF Revenue Distribution and Available Balance
Transferred for Road CO Debt Service Payments
Service Area A: $316,131.00
Service Area B: $4,373,444.00
Service Area C: $1,810,425.00
Service Area D: new in 2024
Total: $6,500,000.00
Available Balance
Service Area A: $2,884,555.53
Service Area B: $3,157386.78
Service Area C: $2,718,364.27
Service Area D: $1,612,961.99
Total: $10,373,268.57
In FY2024, $2.5 million in Roadway Impact Fee Revenue was used in CO Debt Service Payments,
bringing total revenue expenditure to $6.5 million to date. There were no expenditures of
Roadway Impact Revenue in FY 2025. Prior distributions have been allocated to projects in
Service Area B,that were moved to the new Service Area D with the split in 2023 Update, no new
projects have been initiated in Service Area D.
Appendix A includes the Service Area Boundaries and specific projects eligible for funding with
Roadway Impact Fee revenue.
Project which received the transfer for road certificate of obligation debt for service payments are:
• Service Area A
• Wyoming Springs Road (New Construction) (A-26) design
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• Deep Wood Drive (New Construction) (A-29) ROW preservation
• Chisholm Trail Widening North (A-16- & A-17) design and ROW
• Eagles Nest (A-15, B-11 & B-12) design
• Service Area B (will be split into new Service Area D as funding occurs)
• University Boulevard (Widening) (B-4) construction
• University Boulevard (Widening) (B-8 & D-2) construction
• CR 112 Widening (B-25 & B-26) design & ROW
• Kenney Fort Boulevard 4 (New Construction) (B-41) construction
• Eagles Nest (A-15, B-11 & B-12) design
• Kenney Fort Boulevard 5 & 6 (B-27, B-28, D-7 & D-8) design
• US 79 (Palm Valley) (B-46 & C-6) design
• Service Area C
• Gattis School Segment 3 (Widening) (C-21) design and ROW
• Gattis School Segment 6 (Widening) (C-21) design and ROW
• Kenney Fort Boulevard Segments 2 & 3 (New Construction) (C-10) construction
• Red Bud South (Widening) (C-11 to C-19) design and ROW
• McNeil (C-7) construction
• Gattis School Road Segments 4 & 5 (C-21) design
• Greenlawn Boulevard (C-24) design
• US 79 (Palm Valley) (B-46 & C-6) design
• Service Area D
• University Boulevard (Widening) (B-8 & D-2) construction
• CR 112 Widening (Averyn Nelson Parkway) (D-4) design & ROW
• Kenney Fort Boulevard 5 & 6 (B-27, B-28, D-7 & D-8) design
• Old Settlers Extension (New Construction) (D-25) design & ROW
• Red Bud North (Widening) (D-17, D-18, D-19 & D-20) design & ROW
Impact Fee Offsets and Service Area Matters
The intent of the Roadway Impact Fee process is to capture revenue for a predictable
implementation of the future arterial network identified in the Transportation Master Plan. Part
of the success of that implementation is in the fact contributions by the development community
are captured in Offset Agreements and Consent/Development Agreements.An Offset Agreement
was approved with Gulf RC Venture, LLC, for the future improvements to Joe DiMaggio, west of
Kenny Fort Boulevard to E. Palm Valley Boulevard (U.S. 79) in the amount of $1,735,428. The
Offset Agreement was based on the Engineer's estimate to complete the roadway that will be
completed as part of The Center at Palm Valley development at the northeast corner of the future
Joe DiMaggio and E. Palm Valley.
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As in other reporting periods, an Impact Fee Study update that has no impacts to the Land Use
Assumptions or Methodology for Roadway Impact Fee Calculation, may be adopted on an as
needed basis outside of the overall study update required at a minimum of every five years from
the date of initial adoption or update. There are no changes proposed during this reporting
period. Staff began work on amendments based on the Briggs Tract Annexation, Zoning and
Future Land Use Amendments, however, the legislative changes to the Roadway Impact Fee
enabling legislation and updates to the ITE Trip Generation Report have required further analysis
that may bring about a complete study update sooner than anticipated.
Conclusion and Recommendation
No significant issues have been identified with Roadway Impact Fee implementation.The Building
Inspection, Finance and Public Works-Transportation Division provided excellent coordination in
operating the program. The required five-year review of the Roadway Impact Fee Ordinance is
required by State Law to be completed by November 2028 but may be completed sooner based
on significant changes and growth in the community. While updates to the Fee Study could occur
at any time, staff will continue to attempt to coordinate those with the Semi-Annual Reporting
process when annexations into the City Limits occur.
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Appendix A:
10-Year Roadway Impact Fee Capital Improvements Plan
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Mayor Councilmembers City Manager
Crag Mcfrg:.in Michelle Ly Brooks Bennett
Rene Flores
Melissa Fleming
ROUND ROCK TEXAS Mayor Pro-Tem Frank Ortega City Attorney
PLANNING AND DEVELOPMENT SERVICES Kri>tin Steven: Hilda Montgomery Stephanie L Sandre
November 5, 2025
Mayor Morgan
Mayor Pro-Tem Stevens
Councilmember Ly
Councilmember Flores
Councilmember Fleming
Councilmember Ortega
Councilmember Montgomery
RE: Capital Improvements Advisory Committee — Semi-Annual Meeting
Dear Mayor Morgan and Council Members:
The Capital Improvements Advisory Committee met on November 5, 2025, to consider
and approve the semi-annual report to the City Council with respect to the progress of
the Capital Improvements Plan and identification of any perceived inequities in the
Impact Fees. The findings are addressed in Chapter 395.058(c) of the Texas Local
Government Code.
After discussion, the Committee found no perceived inequities in implementing the plan
or imposing the Roadway Impact Fee. Therefore, a motion was made to approve and
forward the report from the Public Works Department — Transportation Division to the
City Council, with updated city comparison data.
Sincerely,
Casey Clawson, Chairman
Capital Improvements Advisory Committee
CITY OF ROUND ROCK PLANNING AND DEVELOPMENT SERVICES•301 W Bagdad Round Rock Texas 78664
Planrnng a-tcl Development 512.218.5428• Building Inspect ons 51 218.5550•roundrocktexas.gov