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Council hears timeline and legal risks for impact-fee update; consultant recommends 6—6-month process

2716035 · March 20, 2025
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Summary

Friesen Nichols presented a six-to-nine month technical and administrative plan to update Lago Vista's impact-fee program and warned that pending state legislation could change notice and advisory-committee rules.

Lago Vista City Council members heard a detailed briefing on the process, timeline and legal considerations for updating the city's impact-fee program, which sets developer contributions for roads, water and wastewater infrastructure.

Eddie Haas, a consultant with Friesen Nichols, told council the state law (Texas Local Government Code, Chapter 395) prescribes a deliberate technical and administrative process. Key technical tasks include updating 10-year land-use assumptions, identifying the capital improvement program (CIP) projects required to serve projected growth, updating project cost estimates and calculating a cost per service unit. The update requires public involvement through a Capital Improvements Advisory Committee (CIAC) and a public hearing process with advance notice and report publication.

Haas said the technical work could be shortened if the city can reuse recently completed studies: the water and wastewater master plans and parts of the land-use work from the comprehensive plan. He estimated the full update would realistically take about six to nine months because of the technical analyses, CIAC review and the statutory noticing and public hearing period.

Haas also warned council about two bills then under consideration in the Texas Senate that could affect the schedule and content of the update. Proposed changes include longer public-notice periods, additional majority-vote requirements and altered CIAC composition (potentially requiring a higher share of development-industry representatives). Haas said the proposed legislation could add new compliance steps, but the bills provided a 90-day grandfathering period; staff and consultants recommended beginning the update promptly to avoid tighter future restrictions.

Council members asked questions about the CIAC composition and the opportunity to leverage recent master-plan work. Staff said funds collected in the impact-fee program may be used to pay for the update study. Council directed staff to bring back a scope and cost estimate for the project and to place the item on a forthcoming agenda for decision on next steps.

Ending: Council directed city staff to return with a proposed scope and cost estimate so the update can be scheduled and budgeted; consultants advised starting promptly to preserve flexibility if state legislation changes timing or rules.