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Lubbock council hears work session on impact-fee program, how fees have funded recent roadway projects

2159710 · January 29, 2025
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Summary

City staff reviewed how Lubbock collects and uses impact fees, including that state law (Texas Local Government Code Chapter 395) limits fees to capacity projects and allows capturing up to 50% of eligible costs; the city currently charges 25% for roadways and 0% for water/wastewater.

City staff reviewed the City of Lubbock’s impact-fee program during a Jan. 28 work session, explaining how the fees are calculated, the service areas they apply to, and examples of recent projects paid partially with impact fees.

City Engineer John Turpin and City Manager (Mister Atkinson) told the council that impact fees were authorized by Chapter 395 of the Texas Local Government Code and that the city may capture up to 50% of the cost of eligible capacity projects; Lubbock has set roadway fees at 25% and water and wastewater fees at 0 percent. Turpin said impact fees apply only to new development and are collected at building permit issuance.

The presentation explained the methodology: capacity and master plans (roadway, water, wastewater) identify projects and an assumed 10-year “build-out” sets the maximum fee. Roadway service areas are divided into zones (eight areas labeled A–H); water and wastewater service areas are citywide. Staff said fees may be used only for capacity-related engineering, design and construction and not for maintenance or routine upgrades to existing facilities.

Turpin and the city manager described how collected fees have been used to leverage other funding. Examples given: $2,870,000 of impact fees from service area F contributed to the Upland (66th to 82nd) project; East 19th Street was a $3 million project that used $1 million in impact fees collected from the developer Laprino; and a South Quaker project had $4.3 million in developer-built infrastructure that generated impact-fee credits for that developer. City staff said those projects and partnerships — including MPO, county, stormwater and other funds — helped deliver roughly $26 million in roadway improvements without relying solely on general-fund dollars.

Council members asked about eligible uses (capacity increases such as adding lanes or paving dirt arterials), definitions of “arterial” roads, why some areas (notably far-south Area E) show little fee collection, and how developer agreements (historically a 70/30 split of costs) interact with the impact-fee program. Staff said developer agreements predate the impact-fee program; under those agreements a developer may pay 70% and request the city pay 30%, and impact fees can now supply the city’s share where permitted.

Councilman Collins emphasized that the program shifts more of the cost of growth to new development at the city’s edge and helps limit tax pressure on long-term residents inside the loop. Staff confirmed that areas inside the loop (G and H) are largely built out and that, by statute, impact fees can be spent only where there is a capacity need.

Staff said the city began collecting impact fees in 2021 and that presentation slides would be emailed to council members after the meeting.

The work session did not include a formal vote; staff took questions and discussed next steps for project planning and developer agreements.