 So our next order of business will be the transportation impact fee 101 presentation So here's our agenda for the presentation. So what we'll talk about first is what our transportation impact fees What's the purpose of them the legal background the standing for how the city of Fort Worth is able to levy those fees? The study itself which I've referred to already a couple of times to understand what that's about the exemptions credits discounts and then the appeals process the timing and the Impact fee project funding so how all of that works in the development process because there's that arc of the process Where does this fit in and then where you all fit in the capital improvement advisory committee? What what is your role what your statutory role as it comes to the program and then the semiannual report contents Which will be really helpful for the second presentation of the day And then of course the context for the program and then there'll be more time for questions at the end If we don't have any throughout the presentation So what are transportation impact fees? I'm not going to read the slide to you, but what I will tell you is this This is a charge that is levied by the city to improve regional mobility I don't actually want money. We want roads And so the way that we do that is that we can charge this fee when a project comes in for building permit and If the developer has built roads and donated right away for those roads They did get a discount on that But if they're unable to do that or unwilling to do that then we're able to collect the fee So that one fine day the city of Fort Worth can then build those roads So the purpose of this program primarily is to improve the capacity of Traffic on our roadways throughout the city of Fort Worth And there's a mathematical formula I forgot to mention that part So these are direct payments You know that are submitted directly to the city of Fort Worth through a cella And then we turn those around and we invest in our capital projects And we also have an opportunity and it's something that we do quite often is we enter into public private partnerships with our Development partners. So because the development comes in they typically need to do some kind of infrastructure Improvement so maybe build a couple lanes of a road or put in a signal We know that there is more to be done there And if there is money in the impact fee program Then we are able to enter into one of these partnerships with them and give them some money to build more than what their Required scope of work is so if they're to build one signal Maybe we're able to get them to build two or if they're building two lanes Maybe we build four and so this is an opportunity for us to leverage this money to again increase regional mobility build roads That's the main purpose build roads All right. Oh and very important to note the transportation impact fees are not the same as Exactions are rough proportionality. They're covered into entirely different chapters in the local government code Many times they are spoken about interchangeably, but they are very different programs But because there's always a bud When a developer does come in and build roads that are on in the impact fee program that are that are their Exaction and they're also on the study then we're able to give them credit So in a way they kind of get a two-fer so not only are they doing what they need to do But then they also are able to get a discount on the impact fees owed All right, so the legal standing which are kind of just alluded to there Transportation impact fees can be found in Texas local government code 395, which has a very long title But we'll just call them impact fees. There's two different types of impact fees covered in their Transportation and water impact fees, but this is only transportation impact fees that we're talking about today And the transportation impact fees is the sole purpose of this capital improvement advisory committee And then of course the code of the city of Fort Worth Takes that chapter a little bit further and adds some detail to it and how we apply and collect our transportation impact fees in chapter 30 Article 8 so here's some detail from the Texas local government code and how Kind of the special sections that this is how we can levy the fee These are the things that we can actually spend the fees on so I mentioned construction But it's also we couldn't spend that money on surveying and engineering as it relates to those wider sections You know again for the city to bear more of the burden of that cost we can also buy right-of-way with that and Some other items the one thing we cannot pay for is staff time So that would be staff time as it relates to project management So if the city of Fort Worth is actually building that road section, we can't pay staff to work on that project And then also for inspection, which is also staff time Yes, sir. He's ahead of me. Oh So this is what they can't be used for so as Doug mentioned And it's very important about the maintenance because we get that question a lot. Oh, there's some potholes can we use it? No, I really wish I could But no that the local government code 395 specifically restricts the funds for additional capacity This also trips us up sometimes when we have a road that's a two-lane asphalt road And what we would want to build there by our design guidelines is a four-lane concrete road The impact fees can only be used to pay for two lanes of concrete because that's the additional capacity There's already two lanes of asphalt in place So even though turning those asphalt into concrete benefits everyone the local government code specifically says I can only use the impact Fees or the city can only use those impact fees to increase capacity and that also trips us up from time to time Let's see here. Mm-hmm So all more of this is all again about how we are able to You know improve capacity and again, we're looking at future demand So the impact fee program and the underlying or the underpinning Guide for us is the master thoroughfare plan where we have projected out Where we can project out 20 to 25 years of what is the need of the city of Fort Worth as we project the population and so again, we're looking at Future points in time. How do we accommodate that and how do we build our network to suit all the people who? Rightfully so are making their way to the city of Fort Worth local government code further Discusses and kind of confines and defines our maximum fee per service unit when we can collect those fees giving us the authority to to collect them and It also talks about who doesn't have to pay impact fees And so school districts and charter schools are exempt from impact fee payments. So that's again something too that we Kind of a benefit as we work with you of those who educate our children and I guess one final thing which isn't really a problem, but if we don't spend the money within 10 years We have to give it back. Don't worry. I'm working on that We are definitely going to spend the money before it expires within 10 years Okay, so chapter 30 article 8. This is within the city of Fort Worth's code So the transportation impact fee program is a fairly young program It was adopted by the city of Fort Worth in 2008. So 15 years old quite young And you know, we have modeled it directly after local government code 395 intentionally so that we have that that state law underpinning our program and of course our ordinance has been amended many times in those 15 years Most recently last year with the adopter no actually most recently this year in April where we Adjusted some of the collection rates for our service areas All right, so this is the impact fee study itself By law we are required to update the impact fee study every five years We can do it earlier than that, but five years is the outer limit again We're forecasting growth our master thoroughfare plan projects that growth out 20 to 25 years What we're looking at specifically in the impact fee study is a 10-year projection This establishes our service area boundary. So the city of Fort Worth is carved up into 26 service areas, which I will get to in a second What's really important about the study is it establishes our maximum accessible rate So this is the maximum we could charge if we charge that rate, which we don't but it sets up that that far out maximum So misspoke it's 28 service areas So there's 28 service areas within the city nine of them are no fee service areas And what that means to you and me is that the regional mobility need for those service areas has been met So the master thoroughfare plan in those zones has been built So in all those other areas it hasn't been so you can see you know what inside the loop It's all gray except for Panther Island and those canals But in that area there there's actually only two projects the white settlement bridge and the white settlement intersection But all around kind of the outside of the loop. There are regional mobility needs and that's where this money goes The funds collected in a service area stays in that service area So it isn't a fee that's collected maybe in the north side of town and used in the south There is actually that service area boundary limits where we can spend it. So if it's Collected there it's spent there. So This slide has a lot of letters on it Suffice to say those in color are the fee collecting ones and those that are gray are no fee And so if we are in a gray zone what we're looking for here is actually redevelopment So this is a bonus in a way when we have new developers come into the city of Fort Worth and they look to redevelop a site They will not be they will not be charged or levied impact fees And so this is a way and again for us to encourage that redevelopment of some of our areas of town So this is a image of a map from the Traffic impact fee study. So this is specifically service area. That's tiny F. There it is And so what's interesting about this map is that you can see on it what where the projects are So the little bubbles are the actual named projects within the program We've got the blue squares. Those are intersections And then the segments that are a color other than black then those are the segments where we've got Projects planned for those zones and it within the impact fee study We actually do a cost estimate for those Roadways so that we can understand. What is that need? What is the dollar valuation of that need? All right. So how are the fight fees calculated? We are not gonna go through the math Exactly. Don't worry. So again the study sets our maximum accessible rate And the way that we do that is we gather pieces of information to create that number So we gather all the land use and population projection So we do a lot of work with cog to get those data sets also looking at our future land use plan Just you know, what are we projecting as the use throughout the city of Fort Worth? Then we develop a tenure impact fee transportation improvement plan Basically a subset of the master thoroughfare plan if the master thoroughfare plan is out 25 years And we're only trying to project out ten years What do we think it's going to be needed in the big plan in the next ten years only and Then we remove costs associated with existing development and growth after ten years So again, not looking out beyond ten years just within that ten year time frame And so we calculate that maximum per service area and this is what that maximum fee per service area Which is per vehicle mile in each of our service areas. So in some of our service areas They are due to become no fee service areas Either in the next cycle or the next one after that So we're looking at some of our lower cost ones. So like a a at the very top end of the city of Fort Worth You know that one is a very low Service unit, which means it's mostly built out another low one is D and F So again, those will likely become no fee service areas in the near future The ones where the max fee per service unit is quite high. Those are areas with the most demand And so you're looking at areas like Z or M. You have these areas with a lot of need All right, again, no numbers here exactly just some kind of rough calculations So the maximum fee per service area is determined. It's the sum of the eligible traffic costs over the growth So it's what do we think is going to grow in the next ten years over what we need in the next ten years And that's how we get our maximum service unit And at the bottom there is a calculation of what that would look like All right scheduled to so lots people talk about schedule one schedule two now is a percentage of schedule one Schedule two is our collection, right? This is established by council because As a policy we don't want the development community to bear the full brunt of the expansion And this is to help our economic growth and there's lots of good reasons to do that And so council has established what those collection rates will be so I mentioned that on June 1st The collection rate was established for residential properties It would be 50% of that maximum rate and then for non-residential developments It's 40% of that scheduled one rate now if you look I've highlighted 50% there And then there's lots of words after that. Let me explain We wanted to get to fit 65% of the schedule one for residential properties But doing that in one jump Seemed Just very challenging to bear for the development community. And so what we've done is we've basically taken a step approach So it's 50% now June 1st next year it'll go to 55% then 60% the following June 1st and then 65% So we will get there, but not just not one one big step. And so that was the compromise that was reached last year So how do we estimate the impact fees? There's a spreadsheet for that. It's available on the website if you're curious about it I welcome you to go and tinker around with it if you break it Let me know because we're not supposed to be able to break it So I need to go and fix that so please feel free to click that link And and tinker around with it But what that is what that's used for is to provide transparency for the program So this is available to to anyone to the development community. So to our owners to our engineers And so that they can estimate what their impact fees will be and they don't need to rely on staff to provide them that number it is here for them to kind of Determine sort of as they're developing their property. What is the right mix for what? Their financial situation can bear All right exemptions. So now that I've mentioned how expensive it all is everybody's super excited about exemptions So our exemptions we have our public schools that are an exemption open enrollment charter schools are also an exemption Properties that are in our neighborhood empowerment zones. Those are also exempt And then what we also do with our impact-free program is change of use permits for previously occupied space They are also exempt. So for example, if there was a warehouse the first finish out You know, so it's just a shell. Nobody knows what's inside it yet The first time it's built out that would incur impact fees because now we know what's going in there Let's say five years later that tenant moves out and someone else moves in that second tenant wouldn't be charged transportation impact fees So again working on that redevelopment angle for the city of Fort Worth credits Credit towards impact fees are given for as I mentioned before the dedication of right of way for MTP roads And this is typically associated with the final plat where that's recorded and that right-of-way is officially dedicated to the city of Fort Worth improvements towards our MTP roadways and You know, again, this is either done through the engineering process I'm as a part of our development process arc or through a future improvement agreement And or other improvements supplying additional capacity or excess capacity that what is there today? Want to build roads want capacity. That's what we're that's what we're looking for and the credits are good for 10 years So we'll create a credit agreement To capture this for our development community so that when they come in they hand us the big publisher clearing house coupon That says I now have two million dollars with a credit Please don't charge me impact fees for the next 20 permits that I pull So I really actually wish it was a big coupon like that. I think it'd be more fun But it's actually a very boring document either way. It's their coupon Here is all the legalese behind that coupon skip this So what do we not give credit for? We don't give credit for right-of-way or infrastructure that is solely for that development So if you think of a subdivision the big road outside, you know the big four and six lane road with The the median and the trees and the sidewalks. That's what we get credit for But the interior roads inside that development. We don't give credit for those roadways so what we can do is We don't give credit for roadways on the m2p that are not in the impact fees study unless We agree so staff agrees with the developer that it provides value and it provides capacity for more than just their development So there have been cases when we've been able to do that And again, you know happy to do that Next slide. All right, so here is that that area where exactions and transportation impact fees overlap So again, the exaction is part of chapter 212 where the city says you thank you so much for building the city of Fort Worth because you're adding this brand-new office building here with I don't know 400 jobs and be a whole bunch of cars we need some You're going to put in a signal and this is all determined by the traffic impact assessment If part of that scope is on the master thoroughfare plan or it's in the transportation improvement plan Then we can give you credit we give that developer credit for that effort and that work and that's that green spot in between All right Other discounts, so this is where the city is championing specific types of activities or developments So we have four of them right now So our adequate public facilities discount or our AP FD. We really lack acronyms It's a 50% reduction on the schedule to rate which as I mentioned before like if it's non-residential It's already 40% right so this would take it down to 20% schedule one so a 50% reduction on the schedule to rate if the majority of the traffic comes off of a road that's already built So if you've already got a road that sat outside your development and all your traffic's going there Then we'll say that you have adequate public facilities and will reduce your contribution Another discount is our mixed-use multimodal development discount. So this is trying to Encourage trip capture. So development near rail stations Bicycle paths and and things of that nature. So really This is sort of our green discount if you will and it ranges between 10 and 25 percent Depending on the trip capture that's indicated in their traffic impact assessment The extraordinary investment discount This is one where we've sort of linked up with economic development where we are trying to give Those extraordinary investments that get tax abatement Agreements with economic development going to give them an additional perk. So something else to say Thank you so much for choosing Fort Worth as your home So this reduction is 25 to 50 percent And that is based on their their investment in the city of Fort Worth So 25 million dollars and their creation of 75 new jobs at at least twice the current minimum wage plus benefits So, you know, these are good-paying jobs and if they provide more than that then the percentage increase can go up to 50 percent And last but not least our small business discount. We keep talking large This one's for our small our small developments that are coming to the city of Fort Worth So this is a 25 percent reduction of the schedule to this is usually for the finish out So it's not for new build These are genuinely for our our new and growing small businesses are our bakeries our salons that kind of thing that are Kind of growing in our spaces in our shell spaces. So this will be an independently owned entity It's a Fort Worth address. It's very important to us They're not going to be a subsidiary or a franchisee that this goal of this is not to support mcdonald's You know, we're trying to go for homegrown and have avenue annual revenues of 2.5 million dollars are less So again, trying to make sure they're small for the most recent 12 month period And of course they will be validating this information for us Okay, so appeals we get a couple of these every now and again Largely in part to you know, maybe providing additional detail, which maybe wasn't considered at the time that the fee was levied So the the appeal must be submitted in writing within 30 days of the fee being levied So that is at the building permit stage and what can be appealed is their land you so, you know, maybe we've determined that It's a salon. We've called it a hair salon. It's actually a dog salon And so we maybe have picked the wrong Selection in the estimator for them so we can work that out You know, maybe they want us to take another look at the discounts And maybe they want us to reconsider what credits are available for them There's some information that's required for that appeal and the first appeal would just go to staff because it would just be a conversation I mean if that doesn't work out they appeal to the director then the city manager's office And then finally there could be an appeal to city council And I will say it very rarely gets that far so because we do try to work it out as best we can so timing The impact fees are assessed at the time of the final plat and what that does is that locks in their maximum accessible rate That is where their study Is established so which study that they're under And then they're collected when the building permit application is accepted, which is not necessarily approved That means they've submitted everything that we need and it's all in order. That's when we say, okay This point. This is the collection rate. Um, for example, when our collection rates went up on june 1st we had a flood of Building permits come in that last week of may Because we're going to do this And so we appreciate that and so what so what staff did was they worked overtime Um, you know to make sure that anything that was submitted that we were able to determine whether or not it was You know accepted before that june 1st date so that you know if If our development partners did that hard work and got it in that we were able to lock them in at that Earlier collection rate and so i'm sure before the next increase that will happen again So this is a very rough process map for the process For the development process arc. It is way more detailed than this so Please don't take this as the word The green boxes are where the impact fee program kicks in So this is where we're we're assessing and we're capturing credits And we are doing our level best to Make sure that we are applying our impact fees in accordance with state and local law And that and we've done our level best to explain What's going on in those processes the other Areas so this is you know the beginning of the process zoning plating engineering You know the final plat but once that final plat is recorded And the development team is able to now move into getting building permits. That's where we kick in If you have any questions, please feel free to stop. There's a lot going on here All right, so what do we use them for again? We expand the scope of any of development project project that's out there Oh, we get so through our public private partnerships And then we're also able to fund named projects within the impact fee study and in the service area So again, most importantly the money that's collected in the service area stays in that service area I think I said that got ahead of myself. So why are y'all here? I'm being subjected to this very long presentation So the role of the ciac as identified in the local government code 395 is that you will advise and assist In adopting the land use assumptions So all of those assumptions come to you first for recommendation before it goes to city council You review the transportation improvement program. So the maps you do that first then it goes to council You monitor and evaluate the implementation of the transportation improvement plan You receive semiannual reports, which you will hear in a second and it's a much shorter presentation um, and then you'll advise The need to update the land use assumptions the transportation improvement plan the fee if there's anything that's You all are aware of or that we've brought to your attention that needs to be raised up to council This is what this body will do is you'll make that recommendation Um, and then we have as I mentioned before two ciac's one for transportation and one for water Fortunately, we just have to do the transportation ones here So who is the ciac? So as you walked in here today, you were the city planning commission and now you were the capital improvement advisory committee This is allowed by local government code 395 and so we very much appreciate you while doing that for us And it's and of course you're all private citizens Which is wonderful and it gives us this perspective to the program that we as staff don't have and we really appreciate that exterior Look at what we're doing And we typically meet twice a year for each of the semiannual reports. It gets a bit more exciting and more frequent During the year where we do an actual study update because we'll be bringing to you Kind of hot off the presses status updates on where we are in that process So we'll bring to you, you know, oh, we discovered this and oh this happened Then we want to make sure that you all stay very well informed Okay, semiannual report. What does it contain? The ins and the outs in short so the revenue and the expenditures in the program I won't go into detail here. I've got that other presentation But at the end of it, we'll be asking you to make a recommendation to approve the semiannual report as presented And what was given to you in your packets For more information about the transportation impact fee program, please check out our online resources at www.fortworthtexas.gov forward slash impact dash fees forward slash transportation If you have any questions, please feel free to contact our general inquiries line at 817-392-8743 Or contact us at trif at fortworth texas.gov Thank you for watching