New Impact Fees In Effect On October 1, 2022
The Midlothian City Council approved an ordinance and updated fee schedule for city impact fees that goes into effect for new developments on October 1, 2022.
Authorized by the State of Texas, impact fees allow municipalities to assess developers and builders a one-time charge in order to finance additional infrastructure necessitated by new residential and commercial developments. In this way, the cost burden of future growth is shared by the new developments.
The city’s Capital Improvements Advisory Committee recommended the fee update based on the 2022 Impact Fee Study, which projected needs for water, wastewater, and roadway facilities for the next 10 years. Among other things, the study evaluated land use assumptions, including population projections and employment growth. Additionally, Midlothian City Council held a workshop and public hearing to consider the study and recommendations to update impact fees. City impact fees were last updated in 2018 for roads and in 2016 for roads, water and wastewater. A copy of the study may be viewed on the City of Midlothian’s website. https://www.midlothian.tx.us/DocumentCenter/View/13613/Adopted-Water-Wastewater-and-Roadway-Impact-Fee-Study-2022-PDF
Impact Fees Help Improve Infrastructure
For developments platted on or after October 1, 2022, the new roadway impact fee rate is $972 per service unit equivalency for both residential and non-residential uses. This is an increase of $186 from the current rate of $786 for all Service Areas except Service Area No. 5 where no roadway projects are identified. Impact fees for water and wastewater vary depending on meter size, but overall new water and wastewater impact fee rates will increase to $5,642 and $4,436 per equivalency service unit, respectively. Developments platted prior to the effective date, will be assessed on the previous fee schedule for one year, with the new rates going into effect on October 1, 2023.
According to Mayor Richard Reno, “It is the responsibility of City Council to govern the timing, location, intensity, and quality of community growth. Impact fees allow for infrastructure to keep pace with new development without being a financial drain on existing residents.”
To view the approved ordinance and the new Water, Wastewater, and Roadway Impact Fee Study, visit https://www.midlothian.tx.us/225/Impact-Fees.