McKinney advisory committee forwards semiannual impact-fee report to City Council

McKINNEY, Texas — The City of McKinney’s Capital Improvements Advisory Committee approved and filed a semiannual report on the roadway and utility impact-fee capital improvements plan during its May 27 meeting and voted unanimously to forward the report to City Council for action on June 17, 2025.

The report, required by Chapter 395 of the Texas Local Government Code, summarizes boundaries for roadway and utility service areas, lists active projects where impact fees have been allocated, and provides updated account balances for collected fees and expenditures. Aaron, a city staff member who presented the report, said the review fulfills the semiannual reporting mandate and looks for any perceived inequities in fee application. "We are required by Chapter 395 of the Texas Local Government Code to report on the capital improvements plan and progress that we've made during the year," Aaron said.

The advisory committee packet included maps of 13 roadway service areas (labeled A through M) and one utility service area that covers citywide water and wastewater needs. According to the presentation, the roadway impact-fee account started the reporting period with about $6,000,000, realized roughly $6,000,000 in additional revenue, had approximately $53,000 in refunds, and had an ending balance near $12,000,000. The utility impact-fee account began with about $4,000,000, collected roughly $5,860,000 during the period, and held about $9,800,000 at the time of the report.

Aaron highlighted active and recent projects funded in whole or in part with impact fees, including the Stonebridge Boulevard extension beyond U.S. 380 toward FM 1461, the Wilma's Road construction, State Highway 5 improvements (in coordination with TxDOT), a trunk sewer extension along Stonebridge Road, the Honey Creek sewer extension, and master-plan water line extensions along Harry McCaleb Drive and Airport Drive. "Staff recommends filing of the capital improvements plan with respect to the progress of the capital improvements plan," Aaron said.

A committee member asked why expenditures in the current reporting period appeared low relative to the balances and recent collections. Aaron replied that spending is driven by project schedules and that larger expenditures typically appear nearer project completion; the timing, he said, explains the mid-year low spending totals.

The item had a public hearing; no members of the public signed up to speak. Commissioner Wilson moved to close the public hearing and approve the item; Commissioner Woodard seconded. The motion passed 7 to 0, and the committee forwarded the report to City Council for its June 17 meeting.

Earlier in the meeting the committee approved the minutes of its Dec. 10, 2024, regular meeting by a 7-to-0 vote. The committee adjourned at 5:45 p.m. after a motion from committee member Buettner, seconded by Commissioner Jesse Bullard.

The semiannual filing does not itself approve or authorize new projects; it is an informational and compliance report on impact-fee collections, allocations and the status of eligible capital projects. The committee will transmit its recommendation and minutes to City Council for final action on the plan filing on June 17, 2025.