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Commission hears update on impact‑fee law changes and local CIAC role
Summary
Staff briefed the board on recent Texas impact‑fee rule changes that limit fee increases to every three years, require independent audits, raise the governing‑body vote threshold to two‑thirds, extend public review periods and require more industry representation on advisory committees; staff said Montgomery has collected roughly $3 million to date and projects $6.5 million by next year.
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City staff updated the Planning & Zoning Commission on the capital improvements advisory committee's (CIAC) role and on new Texas impact‑fee law changes during the Aug. 4 meeting.
“'So to date, I think we've collected roughly $3,000,000 in impact fees,'” the staff presenter said, noting the city has assessed fees since the program began and could reach approximately $6.5 million by this time next year. Staff outlined five major rule changes: independent audits for any fee increase (performed by a different firm than the city's general audit), a requirement that fee adjustments occur no more often than every three years (next allowable increase: Aug. 2028), a governing‑body approval threshold of 0.667, extended public notice and review periods, and advisory‑committee composition requirements emphasizing industry representation.
Staff explained how collected impact‑fee revenues can be used both for direct capital project costs and to service debt issued to fund infrastructure, and emphasized the commission’s role in CIAC reviews — including examining project lists, costs and land‑use assumptions. Commissioners asked about the treatment of abandoned mains, potential annexations and the timing of future reviews; staff said annual, more cursory reviews will continue even though fee increases can only occur every three years.
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