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Consultants outline impact-fee basics and legal constraints for McKinney update
Summary
Kimley Horn consultant Pete Kelly told McKinney’s CIAC that impact fees are one-time charges for new development and that Chapter 395 of the Texas Local Government Code limits uses, requires five-year updates and imposes new public-notice and audit steps the city must follow.
Pete Kelly, a consultant with Kimley Horn, told the Capital Improvements Advisory Committee that impact fees are “a 1 time fee, assessed to new developments, so they're not recurring fees.” He said the fees exist to recover infrastructure costs required to serve new development and that state law (Chapter 395 of the Texas Local Government Code) constrains what those fees may fund.
Kelly outlined permissible uses — construction, land acquisition, debt service and related study costs — and said fees may not pay for maintenance or upgrades to serve existing development. He said consultants and staff will produce land-use assumptions, capital improvement plans and maximum-fee calculations, and that the committee’s primary deliverable is written comments to City Council before a public hearing.
