ROUND ROCK, Texas (KXAN) — Developers may soon have to pay new fees when they set out to build in Round Rock.
The City Council will vote Thursday on an ordinance to adopt roadway impact fees, which would allow the city to collect money up front and then spend it later on road improvements.
Round Rock city leaders began considering this proposal to create more funding to deal with growth and how that’s affecting traffic. The city’s most recent master transportation plan identified the need for $1.2 billion in new road capacity to accommodate growth during the next 20 years.
“Implementing roadway impact fees on new development provides yet another funding tool that will allow Round Rock to tackle traffic issues in the coming years and allow growth to help pay for growth,” Sara Bustilloz, a city spokesperson, wrote in a statement sent to KXAN.
If the ordinance is approved this week, the roadway impact fees would not be charged for building permits issued before Jan. 1, 2021, providing a two-year grace period for projects and development currently in the works.
The City Council is currently planning to phase in the roadway impact fees over a period of years. The fees would be assessed at the date of platting and charged at building permit application date, according to information released by the city.
City leaders said the maximum fee they would impose is $2,511 per base service unit, which a news release stated is “based on a formula that includes the number of cars that pass along a road during peak-traffic hour, the road’s length in miles and other factors.”
The release further explained: “Service units for each type of development are predetermined and based on national standards for calculating traffic impacts. By multiplying the rate by the service units for a proposed development, the developer is left with a total fee that must be paid to recover some of the cost of road work their development will necessitate. The impact fee for a single family residence would be $3,209 at the 30 percent rate. The fee would be different for a commercial businesses, depending on their traffic generation and service units.”
City leaders said other central Texas communities like Taylor, Schertz, New Braunfels and Hutto have already implemented roadway impact fees. Austin and Buda are looking into implementing fees of their own.