HomeMy WebLinkAboutIR 124 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-124
To the Mayor and Members of the City Council September 6, 2022
• Page 1 of 6
SUBJECT: 2022 TRANSPORTATION IMPACT FEE STUDY RESULTS AND
YAA ADOPTION TIMETABLE
1675
This report provides an overview of the status of the Transportation Impact Fee Study update, the
Transportation Improvements Plan (TIP), Maximum Assessable Rate (Schedule 1), an introduction
of the proposed Collection Rate Options (Schedule 2), and the updated timetable for City Council
adoption of the 2022 Transportation Impact Fee Study (2022 Study).
On September 21 , 2021 , the City Council approved a contract with Kimley-Horn and Associates,
Inc., (M&C 21-0697) to prepare the 2022 Study. The team has worked throughout the year with
staff from Development Services, TPW, Water, Planning & Data Analytics, and Finance to ensure
the work has been properly vetted by the city. The team has concluded the analysis and has
provided the City with the land use assumptions, 10-year growth projections, and the Maximum
Assessable Rate (Schedule 1) for 19 of the 21 existing Fee Service Areas.
The 2022 Study is currently available for public review on the City's Transportation Impact Fee
website (http://www.fortworthtexas.gov/impact-fees/transportation).
Per Texas Local Government Code, Chapter 395, transportation impact fees can be used for the
improvement of arterial streets included on the City's Master Thoroughfare Plan (MTP) that are
warranted for widening or other capacity improvements due to 10yr growth. Transportation impact
fees cannot be used for any other transportation improvements, operations, or maintenance.
Funding Expended on Transportation Impact Fee Eligible Arterials 2017 — 2022)
City Funds Bond funds, Pa GO, etc $129.6M 63%
Developer Funds $49.OM 24%
Transportation Impact Fees $28.2M 13%
TOTAL $206.8M 100%
Transportation Impact Fee Service Areas
It has been concluded that Service Areas L and W will become no-fee service areas with the
adoption of the 2022 Study. Based on the evaluation of the two service areas as no-fee service
areas, no growth projection, TIP, or Maximum Assessable Rates have been provided for these
service areas.
• Service Area L - The sole roadway project (1 st Street) is currently under construction at this
time. With the completion of this construction, the thoroughfare network within this Service
Area will have been expanded to the ultimate proposed configurations. Growth within this
service area has been traditionally low as evidenced by the collections within the Service
Area.
• Service Area W—Alta Mesa and Harris Parkway have been constructed. While Lakeside is
not in the ultimate configuration, the expansion of this roadway is not growth driven, which
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-124
To the Mayor and Members of the City Council September 6, 2022
Page 2 of 6
SUBJECT: 2022 TRANSPORTATION IMPACT FEE STUDY RESULTS AND
aVA ADOPTION TIMETABLE
1675
is a requirement for imposing and collecting transportation impact fees. Similar to Service
Areas R, P, and Q, the majority of the growth is due to redevelopment along existing, fully
constructed thoroughfares.
The 2022 Study also drew the ultimate boundaries of current and future services areas (maximum
six miles), based on the current city limits and the extent of the extraterritorial jurisdiction (ETJ).
This serves a dual purpose: planning for future growth and annexation. Please refer to the following
image.
2022 Service Area Boundary Map
N
BB
B
EE
C
SS HH H* G F w
J*
$ I* PI K* L* M
D
U R* P*
,T Q
W*
w x
UU
Y
VV Z XX
YY
ZZ
Service Areas shown with an asterisk* are the No-Fee Service Areas
Service Areas BB, EE, HH, SS, UU, VV, XX, YY, ZZ are future Service Areas
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-124
To the Mayor and Members of the City Council September 6, 2022
Page 3 of 6
SUBJECT: 2022 TRANSPORTATION IMPACT FEE STUDY RESULTS AND
aVA ADOPTION TIMETABLE
1675
Transportation Improvement Plan (TIP) Cost Estimate
The Transportation Improvement Plan (TIP) is estimated to cost approximately$3.15 billion. Of this
amount, $2.8 billion of the TIP costs are attributable to growth and are recoverable through the
Transportation Impact Fee Program. The construction cost increases, the inclusion of large
drainage facilities, and grade separated railroad crossings for consistency with the City's Adopted
Master Thoroughfare Plan, Stormwater Program Master Plan, and the Floodplain Management
Plan are responsible for the overall project cost increases within the service areas.
Transportation Impact Fee Maximum Assessable Rate (Schedule 1)
The Maximum Assessable Rates within the Fee Service Areas are an average of 37% higher than
the 2017 Study. Despite the cost increase, the growth projected within the majority of the Service
Areas in related to the cost of the projects is relatively consistent with the 2017 study projections
as the average difference is $795. Five (5) service areas have a reduced Schedule 1 in 2022 when
compared to the Schedule 1 in the 2017 Study. The reductions in the maximum rate is directly
related to the projected growth increases within the service areas available to recover the increased
costs. Similarly, the growth projections compared to the cost of projects in the highest five (5)
service areas shows a greater need per development unit. Please refer to the following table.
SA 2017 2022 $ %
Schedule 1 Schedule 1 Difference Difference
A $2,025 $1,642 -$383 -19%
AA $205 $355 $150 73%
B $3,316 $3,308 -$8 0%
C $1,144 $1,781 $637 56%
D $463 $834 $371 80%
E $3,449 $2,927 -$522 -15%
F $675 $743 $68 10%
G $1,799 $2,055 $256 14%
M $3,164 $6,367 $3,203 101%
N $845 $2,742 $1,897 224%
O $1,492 $3,556 $2,064 138%
PI $2,894 $2,756 -$138 -5%
S $1,826 $4,605 $2,779 152%
T $3,457 $3,727 $270 8%
U $3,269 $2,542 -$727 -22%
V $1,356 $4,416 $3,060 226%
X $3,806 $3,294 -$512 -13%
Y $2,348 $2,588 $240 10%
Z $3,706 $6,101 $2,395 65%
Average $2,170 $2,965 $795 37%
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-124
To the Mayor and Members of the City Council September 6, 2022
Page 4 of 6
SUBJECT: 2022 TRANSPORTATION IMPACT FEE STUDY RESULTS AND
aVA ADOPTION TIMETABLE
1675
Additionally, discounts and other incentives were reviewed and discussed with the Mobility:
Infrastructure Transportation Committee. Changes will be captured in an ordinance to be presented
for council consideration in October.
Transportation Impact Fee Collection Rate (Schedule 2) Considerations
While gathering input from stakeholder groups in February and March, staff presented several
considerations that would be reviewed in conjunction with the 2022 Study Update.
• Remove Smoothing Across Service Areas — The current Collection Rates have been set at
a flat rate across Service Areas. The rate has historically been based on the initial
Collection Rate set in 2008.
• Collection Rate as a percentage of Schedule 1 — This is reflective of the 2010 Blue Ribbon
Task Force Recommendation to Council.
• Maintaining two land use categories of Residential and Non-Residential
• Maintaining the current policy of a 25% reduction for Non-Residential Projects
Based on the feedback from the stakeholder groups, staff has compiled a series of options for
Council to consider.
Staff is presenting the following Collection Rate options to the stakeholder groups between August
and September to provide feedback for Council before Adoption of the Study and Proposed Rates
in October.
Residential Collection Rate Options:
Option % of SFR SFR MF MF
Schedule 1 Average Unca tured Average Unca tured
1 50% $6,353 $6,600 $3,834 $3,579
2 65% $8,885 $4,784 $4,907 $2,506
3 80% $10,936 $2,734 $5,981 $1 ,432
4 100% $13,670 $0 $7,413 $0
* Based on a per-unit rate
Non-Residential Collection Rate Options:
Option % of Shopping Shopping Light Light
Schedule 1 Center Center Industrial Industrial
Average Unca tured Average Unca tured
1 25% $392,432 $1 ,030,869 $909,951 $2,390,329
2 40% $598,605 $824,696 $1 ,388,016 $1 ,912,263
3 55% $804,779 $618,522 $1 ,866,082 $1 ,434,197
4 75% $1 ,069,718 $353,583 $2,503,503 $796,776
* Based on a 50,000 sq. ft. shopping center and a 300,000 sq. ft. Industrial building
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-124
To the Mayor and Members of the City Council September 6, 2022
Page 5 of 6
SUBJECT: 2022 TRANSPORTATION IMPACT FEE STUDY RESULTS AND
aVA ADOPTION TIMETABLE
1675
Transportation Impact Fee Study Outreach
City staff provided briefings on the updated land use assumptions, Transportation Improvements
Plan, and maximum assessable rates to the following stakeholder groups: The Capital
Improvements Advisory Committee for Transportation Impact Fees (CIAC), the Development
Advisory Committee (DAC), and the Mobility: Infrastructure and Transportation Committee (MITC).
Beginning in August, the briefings to stakeholders have included collection rate options. Staff have
meet with the North Fort Worth Neighborhood Alliance and is due to meet with the Greater Fort
Worth Association of Realtors, Greater Fort Worth Builders Association, and the Real Estate
Council, Northwest Fort Worth Neighborhood Alliance, and the Chapel Creek Neighborhood
Association and again with the DAC and CIAC.
Capital Improvement Advisory Committee
The CIAC, is the City Plan Commissioners, who serve a dual role. On July 27, CIAC unanimously
endorsed the 2022 Study and had no suggested changes to the updated land use assumptions,
capital improvements plan, or maximum assessable fees. The CIAC considered the Collection Rate
Options at their August 24, 2022 meeting. The CIAC concurred with the recommendation from Staff
with a 7-1 vote:
• Residential Collection Rate Option 3 (80% of the Maximum)
• Non-Residential Collection Rate Option 3 (55% of the Maximum)
Staff is preparing development examples to demonstrate the impact of Option 3 in different service
areas to share with CIAC and City Council. Staff will review options for potential fee increase
phasing in service areas where the fee increase is substantial.
2022 Transportation Impact Fee Study Timetable
Study Item Date
Community Meetings with various stakeholders July - Sept
CIAC Recommendation on Collection Rate (Sch. 2) 8/24
Council Mobility: Infrastructure and Transportation Committee 9/13
Council Public Hearing 9/27
Council Adoption of Study, Max Fee (Sch. 1), Collection Rate 10/25
Sch. 2 and Ordinance
Council Adoption of Collection Rate (Sch. 2) (if not done on 10/25) 11/8
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-124
To the Mayor and Members of the City Council September 6, 2022
Page 6 of 6
SUBJECT: 2022 TRANSPORTATION IMPACT FEE STUDY RESULTS AND
aVA ADOPTION TIMETABLE
1675
Staff is targeting January 1 , 2023, to implement the new Maximum Assessable Rate (Schedule 1)
and Collection Rate (Schedule 2). While additional legal notice as to the Schedule 2 effective date
is not required, staff would like to provide as much notice to the developer community as is possible
of the effective date and rates to be collected.
If you have any questions comments or concerns please contact DJ Harrell at
Dalton.Harrel l(a)fortworthtexas.gov or 817-392-8032.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS