Council directs staff to adopt updated impact fees; consultants recommended maximum allowable rates

Prosper’s Town Council held a public hearing Aug. 12 on proposed updates to its impact‑fee program for water, wastewater and roadways and, after hearing consultant testimony and committee recommendations, directed staff to move forward with the maximum allowable rates under the draft study.

Friese & Nichols consultants presented the technical update required at least every five years. Edwin (Eddie) Haas of Friese Nichols summarized the program and said the update calculates the cost per service unit for new development and uses those unit costs to set a fee. “An impact fee is a one time charge to new development for infrastructure capacity that is consumed by development application,” Haas said during the presentation.

Andrea Meyer, the consultant who led the water and wastewater technical work, told the council that the combined current water and wastewater fee for a standard single‑family service unit is $6,643; the maximum allowable fee calculated under the updated project lists and cost assumptions would be $14,390 per service unit before policy credits. The consultants used a 50% credit for the draft maximum (the standard alternative to a financial credit analysis), which yields proposed fees of about $5,969 for water and $8,421 for wastewater per service unit after applying the 50% policy credit.

On the roadway side, the update used vehicle‑mile service units and the town’s official thoroughfare plan to identify eligible arterial and collector projects. The draft showed cost per vehicle‑mile and applied the same 50% policy credit to arrive at maximum collectable amounts by service area; consultants explained that state law limits road service areas and what may be included.

The Capital Improvements Advisory Committee (the joint advisory body that reviewed the technical work) voted unanimously to recommend adoption of the land‑use assumptions, the CIP and the consultants’ calculations and recommended collecting the maximum allowable fees.

During council discussion, staff and the consultants noted a change in state law effective Sept. 1: if council sets a collection rate lower than the maximum, that lower rate will become the legal ceiling for up to three years; also new audit and notice requirements will apply in future updates. The Dallas Builders Association’s written comment—asking for a 50% ceiling and a two‑year phase in—was entered into the record by the mayor during the hearing.

After discussion, council members directed staff to return at the next meeting with an ordinance implementing the maximum allowable fee amounts described in the August 12 study and the related map and CIP updates. Council members discussed that the town may still offer fee waivers or economic‑development incentives on a case‑by‑case basis, but the ceiling would be the maximum set by ordinance.

What happens next: staff will prepare ordinance language and public‑notice materials reflecting the council’s direction; consultants and staff said the town must also comply with new notice and audit provisions in state law for future updates.

Speakers included Dan (town staff introducing the item), Edwin Haas and Andrea Meyer (Friese & Nichols consultants), members of the Capital Improvements Advisory Committee and multiple council members.