Eagle Pass adopts cost-based subdivision development fees to align with state guidance

The Eagle Pass City Council approved an ordinance April 7 to revise subdivision development fees, replacing a valuation-based 3% inspection levy with a cost-based fee schedule intended to align local practice with 2023 state guidance.

City staff said the prior 3% valuation approach could produce outsized fees on large public-improvement projects — for example, a past residential development with roughly $1.3 million in public improvements could have triggered nearly $39,000 in inspection fees under the old calculation. The new section (23-13.2) establishes standardized flat fees, plan review rates and inspection charges that staff say better reflect actual costs and improve transparency for developers.

“State guidance required cities to move to cost-based, not value-based fees,” a staff presenter told the council, adding that the change should lower upfront development costs and reduce barriers to new projects while keeping the city within statutory requirements.

Council members asked about retroactive effects on projects handled since 2023 and staff said the city could work with the city attorney to analyze prior collections and prepare a plan as needed. The council approved the ordinance by motion and voice vote.

The ordinance authorizes a single place in city code for development fees and includes a variance fee and plan review structure. Staff said they will continue refining hourly and inspection rates and compare them with peer cities.

The council vote adopts the first round of proposed fee changes; staff indicated further adjustments could follow after additional analysis.