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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 0112.20262 r ,a�JZ*S6Piv ' � i � 7�.a.T.Z� I II�•"a-'.� �-T..��.�ICti�_•r iG i ii.� � ,ate Sl-yt!!7: ,•�� —'moo—a�r1•� :.�=i • ���r"� •\�!- - - EXHIBIT ,,:.-` Bridge Deck on Wyoming Springs Extension concret preperation Roadway Impact Fee Semi-Annual Report May 2026 ROUND RO 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. 2 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. 3 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 CR 1U \ r \ Y, � , S• 2 1 �.yy\ NaM 4 1 W4r Bmdlly _ n D 9j \ \ d` Ob Selden WA E� m � JS S A \a e CR 16&GsWs Sclrod Rd — r..-. p° z ,� Service Areas "" "d""^'°"d"` s •moo Implementation Phase 4 �"" —°�""""' •'�; 3 ;, and Future Phases ROUND ROU(TF- sA a �• U / Z e�F ®• r. August 2023 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. 4 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 5 • 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 6 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. � Y . I Bridge Deck on Wyoming Springs Extension concret application 7 Appendix B: Roadway Impact Fee Waivers, Offsets and Credits