The Pilot Point Council members had a lengthy discussion about impact fees, weighing the pros and cons of charging 100% at the Aug. 27 council meeting.
Pete Kelly, a transportation engineer with Kimley-Horn, recapped a July presentation on Land Use Assumptions, the Capital Improvement Plan and Maximum Assessable Fees for the roadway, water and wastewater 2026 impact fee study.
“As a reminder, one of the requirements of state law is that impact fees must be administered within a service area,” Kelly said.
At the July meeting, Kelly explained that the city now has two service areas, divided north and south by FM 1385, to account for annexations that happened within the last five years.
“Any funds collected in a service area may only be spent in that service area for projects around the Capital Improvement Plan,” Kelly said.
In Service Area 1, there are 88 roadway projects with a total Capital Improvement Plan Cost of over $268 million, and in Service Area 2 there are 26 roadway projects totaling over $165 million.
The water CIP over the next 10 years includes a water treatment plant, elevated storage tanks and water line projects.
Wastewater CIP includes a wastewater treatment plant, lift stations and wastewater lines.
The maximum fees that can be collected for Roadway Service Area 1 are $3,252 per vehicle mile and $2,196 for Service Area 2.
The maximum fee per service unit for water is $6,809 and for wastewater it is $14,137.
The Capital Improvements Advisory Committee’s recommendation was to collect 100% for everything except for wastewater for single-family and for nonresidential for roadway.
For wastewater for single-family homes, the CIAC “recommendation is to begin collecting at 55% of the maximum fee and then an annual escalation of 5% up to 65% over three years,” Kelly said.
The reason is the high cost of wastewater impact fees for single-family homes.
“The recommendation for multi-family uses for all three impact fees is to collect at 100%,” Kelly said.
For nonresidential roadway impact fees, the CIAC recommended collecting “at 60% and [escalating] 5% per year over three years,” Kelly said, to remain competitive with neighboring cities.
The council approved the “land use assumptions, capital improvement plans, and maximum fees for the 2026 roadway, water and wastewater impact fee update” presented, then directed staff on the percentages.
“I don't want to ask current residents to pay for the new development, residential developments; I don't think that's right,” council member Ray Dane said, with a few fellow council members sharing similar sentiments. “I do think if we want to grow as a city, we have to have commercial development, and I don't mind giving some incentive for that.”
The council reached a consensus on charging 100% on wastewater for single-family homes in a 6-1 vote.
Council member Brian Murrell voted no.
“You want to give the business an incentive to come in, but you don't want to give people an incentive to come in to support the business,” Murrell said.
It was another 6-1 vote for the 60%, 65%, and 70% escalators for nonresidential roadway service areas, with Mike Wilson voting no.
“I'm for 100% across the board,” he said.
Also in the meeting, Chief of Police Angela Mathews swore in two new officers, officer Ernesto Balderas and officer Kaylee Rusnak.
Council reviewed several potential logos for the Main Street Program Logo rebrand.
They expressed their dissatisfaction with the logos presented and requested starting over.
Council also approved the creation of the Heritage Ridge Public Improvement District.
