R-2026-143 - 5/28/2026 RESOLUTION NO. R-2026-143
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 28th day of May, 2026.
CRAJ6 MOAN, Mayor
City of RoutdRock,Texas
ATTEST:
AN FRANKLIN, City Clerk
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EXHIBIT
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Roadway Impact Fee
Semi-Annual Report
May 2026
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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 October 1, 2025, to March 31, 2026, which represents the first 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 largest change was splitting the base fee for Service Area A into its
own category starting in 2025. The next update to the Study is required by November
2028.
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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.
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.
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. A majority of this revenue was generated by the first
commercial and residential building permits associated with the District Development.
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Table 2: RIF Collections April 1,2025, to September 30, 2025
Service Area Previous Revenue
Aril '25 to Se tember`25 Total Revenue
Service Area A $2,936,159.40 $96,267.48 $3,032,426.88
Service Area B $7,136,293.90 $305,468.73 $7,441,762.63
Service Area C $4,336,724.36 $1,358,974.53 $5,695,698.89
Service Area D $1,612,961.99 $183,069.07 $1,796,031.06
Collections to Date $16,022,139.65 $1,943,779.81 $17,965,919.46
* Collections in Service Area D began in January 2024.
Figure 1: RIF Service Areas
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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 a change in the ITE Land Use
Code, resulting in no Roadway Impact Fee collection with the building permit.
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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: $410,535.00
Service Area B: $5,362,202.00
Service Area C: $2,509,791.00
Service Area D: $717,472.00
Total: $9,000,000.00
Available Balance
Service Area A: $2,621,891.88
Service Area B: $2,0279560.63
Service Area C: $3,185907.89
Service Area D: $1,078559.06
Total: $8,965,919.46
In FY2026, $2.5 million in Roadway Impact Fee Revenue has been used in CO Debt Service Payments,
bringing total revenue expenditure to $9.0 million to date. 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
• 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
• RM 620 Improvements (A-31 & C-1) design for TxDOT improvements
• Service Area B
• 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
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• North Mays Street Widening (69 & B13) design and ROW
• 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 2(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 & construction
• 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. That
project started construction in Late 2025.
Recent State Legislation (395.059 of the TLGC) requires the reporting of all waived and offset fees in
future Independent Financial Audits of RIF revenue. In previous reporting periods approved Offset
Agreements have been reported. Another class of waived/offset fees apply to government agencies.
The City of Round Rock, Williamson County and Round Rock Independent School District have had
Roadway Impact Fees waived for two specific reasons. First, Texas Local Government Code Section
395.22 exempted Public School Districts from paying impact fees.Second,the City of Round Rock and
Williamson County provide non-RIF revenue to CIP projects within the City limits. Rather than charge
ourselves Roadway Impact Fees, Building Permits with potential fees due and provided an offset from
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non-Roadway Impact Fee contribution to the projects. Appendix B was created to start documenting
offsets to Roadway Impact Fees.
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 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 B:
Roadway Impact Fee Waivers, Offsets and Credits