Lubbock council amends impact-fee ordinance, sets roadway-impact fee and collection rate to zero after public debate

LUBBOCK, Texas — After extended public comment from developers, small-business owners, builders and residents, the City Council voted Aug. 12 to amend the proposed roadway impact-fee ordinance and set the maximum roadway fee and the collection rate to $0.

What the council decided: Councilmember Tim Glasheen proposed the amendment to cap the maximum roadway impact fee for each service area at zero and to set the collection percentage at zero. After discussion and a roll-call, the motion passed 4'to'3. The council then approved the ordinance as amended.

Why it mattered: The impact-fee study the city completed earlier in the year recommended higher maximum fees to reflect updated cost models. Proponents of raising the fees argued the study reflected real construction costs and that impact fees are a predictable source of funding for certain roadway projects. Opponents said the fees act as an up-front, regressive cost on new homebuyers, small businesses and developers that can deter local development and make housing less affordable.

Public testimony: Dozens of speakers took the podium during the citizen-comment portion and at the public hearing for the item. Representatives of home builders and the Lubbock Chamber urged lowering or eliminating fees; developers and restaurants said impact fees can equal a large share of first-year rent or start-up costs. Speaking in favor of removing the fees, Matt McClendon said, "Set impact fees at 0." Other speakers urged the council to rely on road bonds and other funding mechanisms rather than the impact-fee tool.

Council debate: Councilmembers split. Supporters of the amendment said Lubbock historically relied on bonds and developer agreements to fund major roads and that impact fees have produced modest revenue so far and can impose a heavy upfront cost that discourages growth. Opponents warned that eliminating the fee removes a dedicated funding mechanism the council can use in service areas and asked staff to ensure alternatives exist to finance planned projects.

Implementation note: Council and staff discussed that impact-fee proceeds already collected would remain committed to identified projects; staff also reviewed projects where fee revenues have been earmarked. Councilmembers asked for further staff follow-up on the practical implications for bond projects, budget timing and current project commitments.

Quote: "Impact fees are not sustainable or a fair solution for Lubbock," said one commenter at the podium. "Set impact fees at 0," said Matt McClendon during his remarks.

Outcome and next steps: The ordinance as amended passed on Aug. 12; staff will update project funding tables and report any technical changes required to implement the council's direction. Because the item was handled during the council meeting and amended on first consideration, staff said they would return with conforming ordinance language and implementation steps for council review.