Good morning. Morning. Welcome to our very first capital improvement advisory committee meeting today, February 25th, 2026. And our first order of business is the swearing in of our brand new
members. So this concludes the swearing in of our members. Next up will be the election of our officers. So um now we will open up the floor for the nomination for a chairperson. I'd like to nominate CJ Johnson.
>> Excellent. >> For chair. >> Any other nominations? >> Excellent. Any further nominations from the floor? All right. Uh, seeing none, let's vote.
All those in favor of CJ Johnson as chair, say I. Okay. And we'll probably need to call the vote because um it's kind of official. >> Jacob Warman, how do you vote?
>> Joseph Snyder, how do you vote? >> Charles Edmonds, how do you vote? >> John Stevenson, how do you vote? >> Clarence Johnson, how do you vote? >> Caroline Crayons, how do you vote? >> I. Jim Tidwell, how do you vote?
>> Hi. >> Jeremy Reigns, how do you vote? >> Okay. >> Okay. Did you mark on your paper? >> 52. >> 52. Okay. And then all those in favor of
John Stevenson, how do you vote? Monica, go through the list again. Will you go through the names again? >> Jacob Foreman, how do you vote? >> Uh, oh, that's true. Fair enough. I was just
going through all the rules. All right. So, uh, CJ, you're now the chair. Congratulations. >> Thank you. >> Excellent. So, now we will vote for vice chair. Floor is open for nominations for vice chair. >> I'll nominate John Stevenson as vice
chair. Then let's call the vote. >> Jacob Warman, how do you vote? >> I. >> Joseph Snder, how do you vote? >> I. >> Charles Edmmonds Jr., how do you vote? I'm sorry.
>> John Stevenson, how do you vote? >> I. >> Clarence Johnson, how do you vote? >> Hi. >> Caroline Cran, how do you vote? >> I. >> And Jim Tidwell, how do you vote? >> Yes. >> So, it's seven
>> passes. Seven to zero. Excellent. So, now we have a chair and a vice chair. Congratulations to you both. All right, ended terms are effective immediately. So, now that we have all of our positions in order, uh let's do a quick
roll call so that we can put into record who is all in the room. Um Monica, if you'll do that as well. >> Jacob Wman, >> just say here. >> Here.
>> Joseph Snider, >> I know you're here. >> Here. Charles Emmens Jr. >> John Stevenson >> here. >> Clarence Johnson >> here. >> Carolyn Cray >> here. >> Jim Tidwell >> here.
>> Both the alternate and so um Jeremy Reigns >> here >> and Ty Lambert >> here. >> Thank you. >> Staff in attendance today we have our esteemed director DJ Herell. My name is Jennifer Roberts. I'm the assistant director of development
services uh over the program. We have Kamal Cruz with us. He is also an administrator of the program. We have Rebecca Hernandez who is a project assistant of the program. And then Monica Smith who's just briefly stepped away but she'll be right back. Uh she is our uh planning assistant with the
program. And then behind me is Doug Black. He is uh the city attorney assistant senior city attorney over the program. Next up is our ethics training and I'll turn it over to Doug.
>> Good morning, y'all. I heard some of you were only at 70% ethics, so we're going to try to up the game a little bit. Um, ethics are um dry, about as dry as my cough. So, that may be the only joke you get. Um, I'm the city assistant city
attorney. I've been doing um the legal on the this advisory commission since about 2013 or 14. Um, we've gone through some changes at the legislature. uh you some of you have been on this commission
already, some of you have not. Some of you may be wondering what you're going to what you're going to be doing here. Uh Jennifer will be explaining most of that and I'll be available for legalcolor commentary. But first, we're going to talk through the city's ethics code. Um and I trust that you all have
taken the open meetings act online. I may touch briefly on that again. We have a couple slides on that and then a couple slides on the um administration of this particular commission. Um, those of you who were on it before, um, you may be wondering where the rest of your partners are, your compatriots. We are
no longer, um, the same board as the plan commission, and that is because the Texas legislature made a change back in 2025. We had to adjust to. So, welcome. The city has an ethics code. It is codified in the city code. If you would
like to dig into it, here are the divi the numbers for it. uh we will be providing you with this um presentation that you can do a little bit of your own research if you want to. The bottom line is if you ever have a question um reach out to this through Jennifer or directly
to me and we'll help to answer it. Um this may come up in a second as we go through the um some of the things that may trigger you as a as a possible prohibition given your positions certainly in the real estate industry. um we will work through that uh
independently if we need to. So we we have established an ordinance and as you notice in the third bullet point down there it is it applies to uh boards and commission members. It uh supplements existing at least these four existing state laws on ethics. Not going to read
all that to you. City's ethics code is in this particular section. questions on how that reads, what it what it means for you, just making decisions not from a personal nature, but on on behalf of the of the city.
Your I will throw in an aside and at the very end I'm going to lay out a little bit of what your role is. your role is very um restricted by statute. So this is not a freethinking free movement type of board unfortunately for you. But it
also means we're very um efficient in how we work in how we operate. Here's the may not portion of this of the ethics code. I think um certainly most very important is number one accept or solicit uh you know things that might
look like benefits from out from the outside for your work here on this commission on this committee. Um disclosure of confidential information if we have any we would let you know. I don't know that we have any confidential information, but it uh you'll be learning some things about the inner
workings of the city and financing and for transportation and things like that that um you'll have to use your best judgment as to when your friends ask what's going on. You may not be you may not feel appropriate to to tell them and that you're certainly within your rights not to.
The last the bottom one, exchange in any exchange uh engage in exchange, purchase, sale of property, goods, services with it with the city. that is something if it comes up because of your real estate uh and other commercial backgrounds, we will talk through whether there's a knee issue and what we might need to do. We're not here to
prohibit your your business. In fact, the state legislature mandated that we have a certain number of um members from the real estate and commercial industry. So, we're going to deal with that if we have to. It comes up, we'll work through
it. you are not to turn around and be at the podium representing folks that may come and have any business before this commission. That rarely happens. Um but there is a time in our annual or our
updates that we do every five years when things could get a little bit um heated. Otherwise, you are that's really setting it impact fees which you'll learn more about here in a few minutes. questions on this slide.
Here's the definition of a substantial interest. Again, we will talk through if you have uh property interests or are representing folks that we need to help you with. when the legislature throws us curve
balls and we react our we have to see how the statute and our policies and our our ordinances come together. So this is new for us to have to deal with that. Any questions on that one? Again, we'll be sending this to you so you can have it as a resource.
So that was the ethics portion. Congratulations. Um let's talk real quick about the open meetings act. You've taken that. Um in this group uh we are four members for a quorum. We have seven members in the two alternates. Thank you all for being here. As we were saying before the
meeting, if any of the seven members uh indicate that they won't be able to attend, we will call on the alternates. Otherwise, you are welcome to attend, but you would be sitting in the audience um and not participating. That is so that we could continue a quorum and and
we have on our semiannual meetings. So this board only meets twice a year except for in the years when we are updating our plan. Uh if you aren't aware, we will be posting the agendas three business days before each meeting. That's another new state law change. It used to be 72 hours
for those of you who paid were keeping score at home. Uh and the agenda is fixed. So the items on the agenda are what we discuss. veering off the agenda um will be stopped after not too long. If it's tangentially
related to the discussion, it can go a little bit, but if it starts to really veer off, we're going to stop and go back to the agenda, talk about those things. The public may come to these meetings. They don't um except for once in a while. And so we're like I said, we're pretty efficient.
And obviously if uh just like at council, if the public asks about an item that's not on the agenda, it's not a discussion item. We'll take it as a question. Staff will research it, get back to the to the requester, and perhaps bring it forward to you again. This is not that kind of board. So I
don't expect that to happen. This is important. When staff emails to you, generally it will be to the chair only is what you the rest of you will see because you will have been blind copied on it. This is to prevent the
accidental um establishment of a quorum, what we call a walking quorum by replying all. We do not want you discussing any of this business outside of this meeting, this public space. Um so if you get an email from everyone, even if you don't see that you could
reply all, it's better not to. And usually what you'll be getting is, hey, let's here's here's the next meeting date. Can you come? But still, we don't want to open up anything to the um possibility of a walking forum. Um social gatherings, don't discuss city
business. If you all sometime somehow find yourself at a an event together, um just don't talk about it. Don't talk about your your time here or anything that we're discussing here at the CIA. Don't let criminal penalties scare you, but they're out there to prevent these kinds of things.
Okay. So here again, we've talked about this. This is our city ordinance that we established in 2025 as a result of the state legislature making changes. Four members in an alternate are representatives of the real estate, development or building industries. And
trust you know who you are and which which of these groups you fall in. Three members and one alternate are our general representatives. If we are missing a member of the real estate development or building industries, either alternate
could step in. So that is not a requirement that we have four members at the table, but the membership of the committee has to start that way. Any questions on that? This is dense. This is these are our
playing rules for this board. Really part C is what your role is and those five points. You will be advising the city council
after taking a vote um to accept a report which will be presented here later and that report is then forwarded to the city council basically with y'all's blessing on it. Over the years of this program, the staff has gotten very good at at
describing hitting the high points in C one through five. When we are updating the plan, we will have professional reports come in from our consultant. You'll be having those to review um and uh taking action on
those as well. That's that's the the off time when we'll be meeting more than twice a year. And we have adopted procedural rules for you. They're they're fairly simple. I believe Jennifer, you have a copy for everyone or we'll provide them by email. Either way, they're basic rules of
decorum for a committee. That's all I've got unless you have any questions on this. Great. Thank you. Now, let's have a real meeting. All right. So, next up, we will do the approval of the minutes from the April
30th, 2025 meeting. I sent out to everyone um those minutes and a link to the video. Since this is a brand new um kind of reassemblage of the CIA, most of you weren't there. So, hopefully you had a chance to look at it and um find the
minutes accurate. turn it over to the chair. >> I I will add if anyone is uncomfortable that was not at the last meeting in voting to approve the minutes, you may abstain and it does not affect the the adoption of the minutes. I believe two members were here um who could be the
vote to adopt the minutes. For those of you who don't don't feel comfortable doing it after having reviewed the meeting or the on the video. >> Just for clarity, are we accepting meeting minutes or approving? Just approving. I mean, just accepting formality. >> Excuse me. This This is just a reminder
for everyone when you speak to turn your microphones on. Um, if we don't do that, then no one's going to be able to hear you. Thank you. >> I'd like to get a motion, please. >> I'll move to approve the minutes from the prior meeting. >> Second. >> Can we call a vote?
All in favor? >> I All opposed extensions. One extension. >> So the motion carries. >> Motion carries.
and the the vote was uh six to zero with one abstension. All right, next up, staff comments. So, first I want to welcome you all again and thank you so much for volunteering for the capital improvements advisory committee. Um, it
has been a uh a long slog to get to here and readily admit it, but I really appreciate your patience as we um dodge and weave and address uh what came out of Austin over the last state legislature um establishing the new
committee and all of the administrative work that goes with that. So, thank you, thank you, thank you for being willing to participate um and to go through this with us. In this last period of time, we've had a couple of changes. Kamal Cruz joined the
program in December um all the way from New York City. So, uh he has been a great partner in this um and really helped to bring all this together. I certainly couldn't do it without him. I also want to recognize uh Rebecca
Hernandez and Monica Smith. They have been again amazing helpmates as well as we were all kind of learning how to do this for the first time. I was explaining before that when this was the city planning commission, pretty much everyone in the city plan commission just kind of paused for a moment and then suddenly became the capital
improvements advisory committee and it was really simple for us. We just walked in and took over. So needing to um kind of create all of the rules and all of the work that goes into prepping the room and everything else for y'all. Um this is new for us. So, please bear with
us. Um, but we certainly hope we'll shine for you if not today in future. Any questions for us before we move forward into the next portion of our meeting. All right, now for the fun part, transportation impact fees 101.
All right, so uh we're going to cover quite a lot of ground, but I'm not going to read every slide. We've provided this presentation to you and it will be recorded. So if you are just really itching to hear more, you can always play it back later or if you need something to go to sleep by. So our
agenda will be covering what are transportation impact fees, the legal grounding for those fees, the study itself, and that will become more important uh for us as we move into the next study update. If there are any exemptions, credits, discounts, and
appeals, spoiler alert, there are the timing and uh the impact fee project funding. Capital improvement advisory committee. What is your role in all of this? The semiannual report contents and then who would you contact if you have any questions and then if you actually
have any questions right now. So what are the fees? So they are a charge or an assessment by the city on developments to cover the costs associated with public transportation infrastructure improvements or expansions compelled by and attributed to new development. In short, this is a
fee that the city is allowed to leverage in areas where we have major infrastructure, roadway infrastructure improvements required and they are assessed based on the final plat which means the final plat sort of locks in which study is used to assess that base
fee and because within the study we determine our maximum fee and then we look at when the building permit was applied for. So when was that taken in? And that determines what kind of um the fee schedule that's actually levied on the building permit and it's all based
on a mathematical formula. I promise we will not go through that today, but there is a slide for later reading. So these are direct payments. So this comes directly from our development community to the city of Fort Worth and we use those revenues to fund eligible
projects. and an eligible project is um identified within our transportation impact fee study. So the 2022 transportation impact fee study includes maps and lists of the projects that the city can leverage these funds towards. And that's really important because if
it's not in the study, we're not able to leverage those fees in those areas or to those specific projects. And that's why these updates are really important because then we're able to add projects um as we annex land or um you know areas change.
So the impact fees are not exactions. They are each assessed exactions or rough proportionality and impact fees are assessed separately. And that's really important um because not every project in the city of Fort Worth um has an impact fee. It's only in areas where there's a need. Um,
running ahead, the impact fees are in chapter 395 of the Texas Local Government Code and exactions are in chapter 212. >> Can you I'm sorry. >> Yes, sir. >> Can Can you help us understand some of the terminology? You're talking about
rough proportionality and uh I forget what the other one was. >> Exactions or so. Um the exactions are again they're in chapter 212 of local government code and it's they're they're
infrastructure requirements required of a development or developer um because they because they're there. So if it wasn't for the fact that they wanted to build whatever it is they wanted to build there, we wouldn't need these infrastructure improvements. And that's the exaction and it's in the
immediate vicinity generally of that development. So, um, if a 20story office building arrived and they'll need a lot of water, so then they will improve the water supply line out in front of the building, that's because they need that for the building. So, if I put it in
transportation terms, which might be more helpful, um, if we build that 20story office building and they're going to increase the number of cars in the road by 25%, then they may need to build a new lane on the roadway in each direction. So that's the exaction
or um the transportation impact fee program that's about regional mobility. So we zoom out a bit further into our service areas and this fee is collected to approve regional mobility. So in order to get those cars to that new lane that was built out in front of that
development. Rough proportionality is where we look at um the development itself and determine whether or not what's being asked is proportionate to the project. So if it's a hot dog stand and we ask them to build a lane, that lane costs multiple times what that hot dog stand
would cost. So that would not be proportionate. So we're trying to make sure that what's being asked and we by um by virtue I mean that the state and then the city of Fort Worth is that whatever is asked via exaction is proportionate. um sort of u make sense
with what's being developed. >> I'll add roughly proportionate which is a legal term developed through case law. Um and some of you may be familiar with Flower Mound, Texas, very famous case out of Flower Mound in the years past. So um it's a we could do a presentation
on rough proportionality. It is not it doesn't really apply to capital improvements uh I mean sorry for transportation impact fees, but it does often get confused. So, if you'd like, we could put together a presentation on on the difference between rough proportionality um and the impact fees.
But as Jennifer said, the impact fees are for a region, and she'll describe the regions um and they're not directly related to that particular development, which is the rough proportionality is directly related to the development to a
particular development. Yes sir. Um what we can do afterwards is provide those to you and to the entire um commission. Yes sir. Oh okay. Right. Moving forward. So the legal background um as I mentioned before the
transportation impact fees are grounded in Texas Local Government Code Chapter 395. Um the title doesn't quite give it away, but it says financing capital improvements required by new developments in municipalities, counties, and certain other local governments. Translate that into the
transportation impact fees. There are also water and sewer impact fees included in that chapter. Now, for city code, um all of this lives in chapter 30, streets and sidewalks, article 8, transportation impact fees.
So, here are the state um legislative references. I won't read them all. Um, but we do it does that whole chapter covers impact fees of both types, transportation and water. And this kind of provides guidance on where to look for specific items. So such as, you
know, how are cities authorized to leverage the fee, what can be paid by the fee. This is really important because there are limitations of what can be paid with these fees and on this next slide, what cannot be paid by the fees. And this is something that's really important for us as a city is to
understand what the requirements are for this type of money. Um, previously I was asked, well, Jennifer, if you got a project and some of it fits in the you can pay for it category and some of it fits in the you can't pay for it category, what do you do? Well, we can do a few things. Um, many times we can
partner with our development community to cover that gap. And the city has other types of funding that has different limitations on it that can be used to fill in the gap. So sort of like a puzzle, we can use all these different types of funding to create the full picture.
So within the study, we have a capital improvements plan or we call a transportation improvement plan in the study and it describes the improvements that we plan to make and this is the projected improvements over the next 10 years. Now, for those who might be um
kind of watching what's happening in our master thoroughfare plan, the master thoroughfare plan horizon is 25 years. The impact fee program, we only look at a 10-year horizon. The reason for that is if we looked um besides state law says so. Um, but the big reason for it
is that if we were projecting a service unit or the amount that we charged over what we could possibly build in 25 years, that would be really hard to determine with inflation and it would also be really really large and it would be untenable to leverage. So the horizon is only 10 years.
We have a maximum fee per service unit. So this is the maximum that the city or sorry that the state would allow the city to leverage. Um the state law also determines when um the fee is to be assessed and to be collected. Um that's during the building permit is when
that's collected and um how we get our authority to do so. And then the refunds. So if the funding isn't spent within 10 years, it is to be refunded if unused. So the intent of the state and of the city is to collect these funds and to put them to good use.
So, the program itself was adopted by the city of Fort Worth in 2008. Um, and so we've had it for quite a long time. Really proud of it, almost on our 20-y year birthday. So, we're doing pretty good. And the article that established this program has been amended many times. Um, as recently as last year with
the uh legislative updates reestablishing our committee as it is now. So the study itself, the study update is required every five years. As I mentioned before, our timeline horizon is 10 years of growth and we establish
our service area boundaries. We identify all the eligible projects. So the map with a list of projects. We determine the total cost of infrastructure and then we establish the maximum accessessible fee for each service area. There's quite a lot of work here.
So, our service areas um as identified on the map, we have 28 service areas. Nine of them are no fee service areas and and they are um six miles max across. Now, I know six miles is not an area um but it is kind of the furthest
distance between the furthest out points and those service areas. So, some of them look a bit smaller and some of them are a bit bigger. So, the funds collected within a service area must be spent on projects within that service area. So money doesn't shift from the north side of town to the south or east to west. And that's really important
because we want to make sure that we are addressing the the challenges um for regional mobility in those areas. And just as a side note, so the ones that are gray um they are the ones that are no fee service area and that is because the infrastructure that was
contemplated within the master theapher plan has been built. So that's why they're gray. So there isn't a need for the transportation impact fee program in those service areas. Now I mentioned before that if something changes in those areas and we determine that there is a need they can be turned back on but
that would only be with a study update. So um that wouldn't be every six months that would be every five years. >> If I could inter interject something here you may be thinking well what about streets inside the gray areas that are
deteriorating falling apart. Impact fees are not allowed to be used for maintenance. That's a critical thing to know because people will ask why can't we use them and we it by or prohibited by the statute. It is to fund new capacity based on new growth.
>> Thank you, Doug. >> All right, so fee and no fee service areas. Um if you're in the service areas that are colorful on the map, then the fee applies and if not, it doesn't. And so for let's go through an example where we talk about maybe a project that is in
one of the colorful or fee bearing service areas. So we'll be looking at service area F. Um and this little snippet, this image actually comes from the study. And so that's one of the maps that's included. So if you really want to take a look um
you can take a look at service area F and you see that map and really really tiny and you can't see on the slide are the numbers of the projects and that goes back to other sheets that identify the cost estimates behind those projects. The blue squares those are the intersection improvements that are
contemplated within the study. And so this gives us sort of that visual of um what is eligible for impact fee funding. So this is based on the master thorapher plan and we can only include projects that increase roadway capacity. So again, um adding lanes or intersection
improvements that take an intersection from a four-way stop to a fully signalized intersection or adding dual lefts or dedicated rights, those kinds of things. Um now this funding program, it's not a commitment to build. Um this is something that we anticipate
building, you know, because we can't um we can't really drive collection. We can't force people to build in the city of Fort Worth and make them, you know, make this all happen. So, we're we're projecting this. This is our plan, but it isn't a commitment to build. The
eligible and projects include um recently completed projects with excess capacity, city capital projects where we can leverage these funds. Um and then projects that need to be completed by the MTP intersections and then bond projects completed with outstanding
debt. So we have a couple of places where we can leverage these funds. So schedule one is the term that we use for the maximum accessessible rate that the city can charge and that schedule one again is dictated by the state and the formulas therein and this is our
methodology. So we gather all the land uses and population projections. So we talk to COG, we look at our zoning maps. Um we work with our development community to see you know what's hot and what's not in the next 10 years. uh we account for the master thorough plan thoroughare plan requirements. Um TPW is
in the process of updating their MTP and so we'll be including that update in our next study update. Again, thinking about um a 10-year horizon and we remove the costs associated with existing development and growth after 10 years. So again, we're we're wanting to make
sure that we're just looking at this 10-year segment of time and then we calculate the maximum assessible fee. So, here are the schedule one rates for 2022 in our study. And so, these are this the maximum rate, the schedule one rate. Um, we don't charge schedule one.
We charge what's called schedule two, which is a percentage of schedule one. Um, you'll notice that these rates are different in each of the service areas. And that's because they have different needs. So, in some of the service areas, there are a lot of roadways that need to be built. Um, in other service areas,
not really. So, um, because of that, or they're mostly built out. So the service uh service unit changes depending on the service area. So for example, we've got highlighted a couple of low ones and a couple of high ones. So AA in far north for Worth, it's uh dark purple on the
map. You know, it has the lowest at $355 a service unit. And that's because by and large the majority of the MTP that's required in that area has been built. While if we look at M or Z, so M being over in Far East Fort Worth and Z in far
south Fort Worth, that rate is higher because there are much larger um MTP requirements. And I would say also for example like in M building a road in M is a little bit more challenging because there's a lot of uh creeks, rivers, and streams through there. So we're not just
building a road, we're building road and some major storm water infrastructure to support it. what what constitutes a service unit. >> So um a service unit as established by the state is an area that is no more
than six miles across. We um as we've contemplated where these pardon >> unit >> oh sorry service unit >> um so the let me move forward. So the service unit is here. This is the math behind the service unit. So we are well
actually we'll start here and then we'll get back to that. So this is how we calculate what that service unit is. We figure out the um the sum of the eligible costs in the service area. So the roadway cost and then the growth projected in the next 10 years and
that's how we come up with that cost per service unit. But a service unit is different depending on what the the use is. So in a residential situation it would be one house um or one dwelling. For a commercial unit or an industrial it would be the per a thousand square
feet. So the the unit of measure is dependent on the use of the property. But the service unit is dependent or is determined by this calculation. >> Does that map that we were looking at before incorporate any of the ETJ?
>> No. >> Will you go back to that? So, I have a question specifically about >> AA. >> For you guys who don't know me, I live up north. I'm one of the forgotten stepchildren. Um, so that area is surrounded by ETJ
and then the donut is Hasllett, but there's a lot of new construction and growth that's going on up there in the ETJ. So, how do we evaluate that? Or is this later in the presentation? But when we're going to have to um annex these
places through either development agreements or requests that now there's additional burden that's put on us because they're not always fully complete when they get brought on board. Like there's more lane miles that need to be done, things like that. That does that mess up the math or do we have to
restudy it when there's annexation? >> So, we restudy it every five years. Yes, sir. >> What you'll notice on that map, as you're absolutely right, that is the Fort Worth city limits today. Well, as of 2022,
um when this map was frozen in as part of the report, we're a very spread out city land area-wise. Um it's pretty shocking actually to see how how big we are. Um but by statute this group uh
impact fees sorry transportation impact fees cannot be assessed in the ETJ. If you are reading through the statute water can be and water actually on their committee must have one representative from the ETJ. Doesn't say where in the ETJ but they have at least one. But um
this group will not this group is only city limits and we have in our ordinance our ordinances developing the program we have the opportunity to and in the statute itself to do mid um
I'd say small changes like in between the five-year studies we could do micro studies and make amendments to particular service areas. We don't we haven't done that yet. But we've given ourselves the opportunity to add in those annexations prior to the five-year,
but we haven't we haven't done it. We haven't begun to do that yet. And I don't know that we will. So, right now, if someone starts uh annexing in um in between the five years, they are not paying the impact fees until we bring them in through the study. And this is the process that can get a little bit
contentious as I was mentioning earlier uh when the it comes down to the assessment and the collection rates of the impact fees. So um as our ET as our city limits expand through annexations, this map won't expand until we do our next 5-year update.
>> So any of those changes that can be in between the five-year periods, are they administrative or do they have to be amended through this comm this uh committee here? The annexation can take place upstairs at city council, but we would have to go through we cannot do it administratively. We would have to go
through a a I would call it a micro study for that service area and the entire service area would have to be recalculated, which is okay because it doesn't affect the rest of the dominoes. Um it's service area specific, but we haven't done started doing that yet. >> The areas that include a PID come into
play at all? >> Yes. >> Yes, they they do. Um and I'll add some context to what Doug was saying. So while it might be a micro study, we would still need to go through the entire process. So there would be, you know, two sets of of public hearings and
um I think two council votes and you know and then lots of going around and and uh socializing the uh the study with all of the interested parties. So neighborhood groups, HOAs, etc. So while the the study or the update itself might be small, the work to to lift that and
to add an into the study is the same as if we were updating the entire study itself. And that's one of the um challenges that we faced in kind of contemplating that. How would that work in that fiveyear cycle >> to be if you're interested in 395? The
legislature has has uh dedicated a lot of ink to how we uh establish and then reestablish our fee. They spend a lot of time doing that and a lot less time telling us how we do what we can do with the fee. It's very procedural driven.
That's why I say you don't have a whole lot of free free leeway in this in this commission. >> Right back to the math. Um so this would be our maximum assessable rates. So what the state contemplates as the maximum that we could we could spend. So in our
example um we've got one single family home. So that is our single service unit. We've multiplied it or by the the service unit cost and um and so we get to a charge of $14,420 per house.
But our council said, you know, I don't want to charge the maximum. I would like to charge a percentage of that. And that is schedule two. So this is our actual collection rate. So in the case of residential developments, we charge 60% of the maximum and that will be the rate
um through May of this year. Starting June 1st, it'll be at 65% of that maximum rate. For non-residential uses, it's 40% of schedule one. And that aligns with our economic development goals. So when I take the 14,400 and
multiply it by 60%, then it's $8,652 per house. So, how would you do that math? Uh, it's actually um not a lot of fun. So, we have an estimator for that. If you go to our website, and the link is there on the page, there's a there's a button,
and when you click that button, you download our estimator. It's an Excel spreadsheet, and in it, you put in when the final plat was approved or when you think it will be approved. If you're just estimating, kind of figure out what those costs might be. when the building permit was accepted. Again, if you're estimating, you am I submitting it this
month, next month, throw that date in there. And then the service area and then you'll also put in like what are your uses? You can plant it with a very narrow lots and very small houses that are not required to have garages as an example
and they have less setbacks so on so forth. And um if if we if we assess them at the same rate kind of defeating the principle of affordable housing because the rest of the design is is headed in
that direction. So we might need to take a look at that. >> Yes sir, we will do. Thank you. >> So moving into our exemptions, uh we have quite a few exemptions in there. Um many of them established by the state. So public school districts are exempt
from paying impact fees um which is in support of our ISDs. Um open enrollment charter schools and private schools are also exempt through our neighborhood empowerment zone or NEZ program those projects are exempt. And then change of use permits for previously occupied
space um that those are also exempt. Now this does not include tenant finishouts. So what this is referring to is a shell. So many times you'll see very large multi-million square foot properties, the shell is built first and then there's that first finish out where the actual use of a portion of that space is
determined or the whole space is determined and that's um when the the impact fees are charged there. But if that space was then to redevelop then there would not be um an impact fee charged. >> Yes sir. >> Question >> on the um exempt items that are listed
here. Are they still subject to rough proportionality? >> Yes, sir. >> Okay, >> very good question. We get asked that by the ISDS a lot. So, for the credits, so we there's a portion of uh the state law and our city ordinance that talks about
credits against transportation impact fees because the numbers that we're talking about are quite large and we're going to give credit for rideofway that's been dedicated for our MTP. So this is a thank you for helping us with our regional mobility. So credits given for the ride ofway for improvements um
or funds towards construction of MTP roadways and any other transportation improvement supplying additional capacity and those credits are good for 10 years. The credit for the exaction this is where it's captured. Um, and what's
really interesting is that we want to make sure that, um, you know, that we capture that credit and we call it the coupon because we want to thank our developers and our development community for helping us build that roadway infrastructure because without them, we
couldn't build as much as we have today. And we recognize that and this is one way of u making sure that they have benefit of the work that they've done. And these snippets here, um, they're kind of wordy, but it it talks about, you know, when we can give that credit,
um, how that credit is given, and, you know, it's important that, you know, that we work with our development community to to maximize the credit that's available to them. >> So, here's where ref proportionality and
exactions and impact fees do cross. If they're required to build it and it is on our is on our plan on the roadway in our plan or this plan for this group, then we can provide credit for that construction cost and or theorway cost.
It doesn't absolve them from paying impact fees, but the credit helps >> to offset that. That's why we call it the coupon. So there's no cash value. It's like a coupon for Burger King. You can't use it for McDonald's. It's that kind of thing, right? So things that we cannot give
credit for. So right away are infrastructure required solely for the new development. Um and then roadways on the MTP but not on the transportation improvement plan. Um so that's important. So it has to be within the study. So we're really trying to make sure that we kind of um stay in
alignment with the study as it was contemplated in 2022. >> Just a little color. The very first the first bullet if you go back. >> Yes sir. infrastructure required solely for the new development. Think of that as within the development, the internal
roads that that service the neighborhoods as opposed to the external roads that the majority of traffic will travel to either if they live there or to go past. That that's the difference there. I'm sorry, Jennifer, can you go back to the previous uh sir
>> question on that roadways on the M MTP and not in the TIFF or turf study? >> How would that happen other than a timing issue on a modification to the MTP that maybe wasn't studied as part of
the transportation impact fee? I'm I'm I'm just struggling with that one because generally when you get to the master infrastructure um u you know the the master transportation plan that is pretty inclusive based on a
20-year planning. >> Yes, sir. >> So, how would that I'm just curious how that would happen. >> So, right now TPW is updating the MTP and they're going to be making changes and those changes will go into effect um before we do our next study update.
So there will be a period of time where there'll be a mismatch. >> Okay. So it's a timing issue 100%. >> Yes, sir. >> Okay. Thank you. >> And so as Doug was talking about is we've got the kind of where do exactions and impact fees intersect? So when the
exaction or the rough proportionality um includes impact fee eligible rideway, roadways or signals, then the city must give impact fee credit. And that's our goal. It's again it's the thank you. It's we really appreciate you building this infrastructure for us and improving our regional mobility.
>> What this also demonstrates is that the impact fees are not directly tied to the infrastructure being adjacent to a built to a um to a development. rough proportionality is much more uh closely
tied to adjacency and impact fees are um um service area wide. >> Thank you, Doug. So discounts because what we're talking about are usually very large dollar amounts. So we have different discounts. We have four. So we have one that's called the adequate
public facilities discount. So that is when the roadways um that take on 75% of the peak hour traffic are built out to its ultimate MTP cross-section. So if it was contemplated for it to be six lanes, three in either direction and that's what's been built or even that's what
the developer is building then they'll be eligible for the adequate public facilities discount. We have an extraordinary investment discount. So that would be for developments that are indeed extraordinary and we'll have more details in a second. We have a mixeduse multimodal development discount. So this
is where we're looking at trip capture within a development and then a small business discount so we can help our small business owners. >> What's what's considered to be a small business? >> Let me move ahead. I want to get to that. So in this fourth slide I'll cover
it. Um so I'll I'll get to it in one moment. So the adequate public facilities discount as I mentioned 50% reduction on the collection rate. So not even that maximum rate. So, as I mentioned, for commercial properties, we collect 40% of the max. So, we go from 100% to 40% of the max, and then we
would cut that in half again. So, we'd only be charging 20% of that maximum rate for um those properties if they um qualify for the adequate public facilities discount. Next up is our mixeduse multimodal development discount and it is again
about trip capture and that is a um a variable p percentage based on how much of the how many trips are captured within that development. So uh Trinity Lakes is one of those that's right adjacent to a light rail station. And so in their traffic impact assessments,
they uh discuss and contemplate capturing those trips within the development where they're not cars being used, but rather um folks are going to live, work, and play through um through light rail, through transit, through buses, and those trips are captured within the development.
Then our extraordinary investment discount. This is a variable discount as well from 25 to 50% reduction of the bless you of the adopted schedule 2 or that collection rate and these are the criteria for that. So $25 million in capital capital investment excluding
land cost. So again very extraordinary uh 20 or 75 new permanent jobs at twice minimum wage. And so that's you know the really important developments that come to us. And as you uh as that development maybe spends you know 10 million more or
has 75 more new jobs let's say it's 150 new jobs and that percentage increases. So as we as they um become more extraordinary they get more discounts >> is that on those discounts that's a eitheror or an all of the above.
>> All of the above. >> So you have to meet all three criteria just for clarity. Okay. >> Yes sir. Then we have the small business discount to get to your question, chair. Um it is a so that's a 25% reduction and these are the criteria. So they're an
independently owned entity with um a Fort Worth business address. We're looking for homegrown and they're not a subsidiary or a franchisee of a chain with more than five franchises with the annual revenue of 25 million or less for the most recent 12-month period with 25
employees or less and in business for at least a year prior to applying for the discount. And when they apply for this, they will um certify or attest to many of these criteria. All right. So appeals
Um, as you u have probably kind of thought about already, there's probably folks who want to have a good discussion about the impact fees before they pay them. And so they come to us with an appeal for those fees. Um, they must be submitted in writing. An email is acceptable within 30 days of levying the fees. So that would be at the point when
they submit their building permit and the fee is actually put on their building permit. At that point, they have 30 days to appeal. Um, sometimes we get those appeals earlier than that. Uh, we will entertain them. Um, but the the time clock hasn't really started until they actually submit their building permit. But of course, we want to
provide as much transparency and information as possible. >> Let me add another timing issue. When they submit their final plat is when we um assess make the maximum accessessible and as written on the plat. They also know their percentage of
the collection rate. So the fees the maximum that we would charge them is known at platting. The amount we're going to collect from them is variable and does step um and that is at building permit time. So in if they were wanted
to appeal the imposition of the impact fee between platting and building permit we would allow that. >> So what can be appealed the land use designation? We there is some confusion around this point. So the land use isn't necessarily the zoning, it's the it trip
generation land use. So um you know a commercial location could be a restaurant, it could be a doughnut shop, it could be a hair salon. And each of those businesses have a different trip trip generation profile um in the IT trip generation manual. So we don't
consider it just commercial, it's a type of commercial and the vehicles um generated by that type of use. Um, also if there are discounts applicable, sometimes, you know, we we miss one and so it's wonderful when our customers are able to come back to us and say, "Hey, can you double check that I'm not
eligible for this." So, we appreciate um being reminded or our eye drawn to that. And then um they appeal based on credit available. So, if they are um if the developer team is thinking, oh, we might have some credits, can we talk about that now and maybe get that in the works? So, what's required for that
appeal? Depending on what you're appealing, we would want uh maybe a trip generation study, um information about similar developments, um anything about your um your traffic distribution, maybe other sites uh for this particular
development that we could, you know, look at, measure and understand. And there's multiple appeal levels. So, first would be to the director, then to our city manager's office, and then with final appeal to city council. >> Excuse me. Sir, >> do you find what percentage of
developers are appealing these things? >> Is there a large percentage or small percentage? >> Um, yeah, it I would say it's a small percentage. Um, and typically it's for our larger developments. Uh, for the
smaller developments, it's pretty straightforward. >> Okay. And what levels are they getting to? I'm assuming they're not going beyond the director. Sometimes they go to our city manager's office. >> Okay. And are you seeing that they're winning these appeals or no?
>> Um I would say 2575. Sometimes it's a misunderstanding of of the law and the ordinance and it gives us an opportunity to clarify and even to update information on our website to
make it more clear. um because usually if there's a misunderstanding, it's on our part um for not making our guidance as as clear as possible. Um we've been accused sometimes of city speak and so sometimes we need to take our language and actually turn it into the language of our development community. So um
sometimes it's that um other times it's maybe um having some education around the IT trip generation manual versus our zoning uses because there's also building code uses. So we have a lot of different um uses in the development arc
and so we want to clarify you know which portion that we're talking about. So a lot of times it's a conversation and a discussion um that turns into understanding but other times it does end up going to our city manager's office but a lot of times those discussions are still with the director and we try to almost do the director and
the CMO step at the same time so that you know policy-wise we're in alignment. >> Thank you. I would add the city of Fort Worth in my experience and it's been 15 or actually more than more years now is
always open to discussion and when reasonable we'll compromise. So I I believe that's been the approach taken. It's not a hard andf fast. It is hard and fast rules at the beginning, but if the discussion goes through some misunderstandings perhaps or uh the
reasonleness of the request, I think um reasonable compromise is often what the goal has been >> and it always helps when you have a trip generation study in your pocket. So timing so the impact fees are assessed at the time of final plat. So
this locks in uh which maximum accessessible rates are going to be applied to the development and then they're collected when the building permit is um accepted. So that's when the collection rate is actually applied. This is the process. It looks kind of
scary. Um the green part is the impact fee process. So in this kind of uh very highlevel travel through the development process at the city of Fort Worth, I wanted to highlight in orange where the exaction happens. So we talked about the
exaption or the roughly proportionate work in the immediate vicinity of the project. The green boxes are the part where we're looking at regional mobility and how we accommodate that. So what do we use them for? We expand the scope of developerled or public
infrastructure projects. Um, so in an example here, the development is due to build the west side of a roadway. The impact piece could be used to build the east side. So we enter into a public private partnership and um, which is normally called a 3P or a triple P, but
at the city of Fort Worth and in our city speak, we call that a CFA with city participation. Um, and we'd love to enter into those because that gives us a chance to partner with our development community um, to build large swaths of the city of Fort Worth's regional mobility infrastructure. And of course
the fund that project has got to be named within the study. Um so as again um and Timberland's one of those projects you have a chance to if it's named in the study the improvements add capacity it's a part of the MTP we stay within our service area
and if there's a roadway that is kind of on the border of two service areas then we'll do a 50/50 split between those two service areas. Um and things that are ineligible and this is really important. The state law codifies this is staff time is not included in that. So uh
review project management or inspection um or on-site private improvements are not eligible for funding. So what is your role in all of this? So, the capital improvement advisory committee was established to advise and
assist um in our adopting of our land use assumptions, to review our transportation improvement program, to monitor how we apply and implement um and levy the funds. You receive your semiannual report to see how well we're
doing and um you can advise on the need to update those land uses. Um, you know, just as you know, Charles had recommended that we take a look at, you know, affordable housing and how that's impacted. This is exactly what this forum is meant for. Um, we do have two
capital improvement advisory committees. There's one for the transportation impact fees, y'all. And then we have the water and sewer impact fees. So, they're a separate committee. So, as Doug mentioned, seven members, two alternates, and you guys were appointed at large by council. Um, so
you're not from a specific uh council district, but you're um from all over the city, which is great. A really uh varied perspective. And at least 50% of the committee meets the criteria of being of the real estate development or building industries. We'll meet twice a year. Our next meeting, we anticipate
that happening in May. And um then we'll probably be meeting a few times after that um this year, but not on like a regular monthly cadence, but as needed when we update the study. So if we take a quick trip through your semiannual report and Kamal will go
through a much deeper dive in a second. Um the aim of the semiannual report is to give you all an overview of the program where we are uh what's the collections how we allocated those funds. Um we talk about um and we will include in it the recommendation that
the CIA will make today to council to um hopefully approve the contents of that report. And then once that's done, council will take final action and um it will be accepted. >> That approval of and acceptance of the report is your is one of your statutory
requirements to do. Um her slide coupled back was a lot nicer than the one I put up which was just the law but it was boiled down. But that is the action you'll take this afternoon or hopefully not this afternoon this morning. Um >> I'll talk a bit faster. >> We're actually we're doing pretty well.
Um, but we knew you needed this background and it's actually good for even me to understand how how it's all happening. But most of what Jennifer just told you is what staff does. Um, your your role as CIA is coming up next with the presentation of the semiannual
report and and review of that. And this is where you're going to get all the numbers and the dollars and the it's it's a kind of a fun report to hear and that'll be your next but that is your um that will then be your role as chair to call for a vote on that. So beyond that, who do you call? Um, if
you have any questions at all, feel free to reach out any of the team members. So myself, Jennifer Roberts, Kamal Cruz, Rebecca Hernandez, or Monica Smith. And then for general inquiries, we have a TRIF phone number. Um, I can't tell you how I got it, but I did. And we also
have a TRIF at fortworth.gov email address for any kind of general inquiries. Again, if you have legal questions on the ethics or the your representation, reach out to Jennifer or Kamal and they'll reach out to me and we'll all talk about it.
>> So, that was a very lengthy presentation. Do y'all have any additional questions? And >> I think you did a great job, Jennifer. Thank you. >> Thank you. All right. Next up in our agenda, you will stop hearing from me and I will turn it over to Kumal to go
over the semiannual report. Good morning everyone. >> Good morning. Not sure this is tall enough for me, but hopefully it'll pick it up. I'll speak louder. So again, good morning. I'm Kamal Cruz. I am a senior capital projects officer
here with development services and I also function as the transportation impact fee, um administrator with Jennifer Robert. So um today I'm going to go over the actual semiannual report with you. The report itself is uh for
the period from April of 2025 through September of 2025. The reports uh you know we we basically provide these uh progress reports in in alignment with um state local government code 395 and uh
we base this on the city's fiscal year and we break that into the two parts here. So we have you know city's fiscal year um of course is October through to the end of September. So we have our first segment which is from October
through March and then a second se segment which is April through the end of September. So that's what we are currently uh presenting to you on for uh 2025. And so as Jennifer covered earlier the study itself the transportation impact fee study itself occurs once every five
years. So we are currently within the 2022 uh transportation impact fee study. uh and those uh as was discussed earlier, the maximum accessible rate for those are included in schedule one which was approved by city council in October of
22. Um the collection rates were then approved which was schedule two which was approved in uh November of of 2022 as well. And we covered this all already, but just kind of reiterating again for non-residential commercial, we
are currently have a collection rate of 40%. Uh, and for residential, this is the one that's that that changes over time. We are currently as of June 1st of 2025, we have a 60% collection rate and that
increases 5% or has increased 5% each year up to uh 65% which it will be as of June 1st of 2026 >> and then it will stop with the 5% increase uh based on what is currently
approved. That's correct. >> Okay. But that I'm sorry that could be extend I mean that that can change it just it's based on when the city accepts the new report when the city council accepts the new report and the recommendations that
we make at that time. >> So the collection rate as currently identified you know that has been approved by city council. So that would be an action that we would have to then take back if there were an effort. But um Jennifer, do you wanna So it can
really only change every five years. So this is good through 2027. >> All right. >> Let Jennifer. So to clarify, um so Joe, you're correct. Council can take that action, but based on legislative changes in
2025. In order for the fee to change, a U financial impact assessment has to be undertaken by the city to do that. So previously council could change that um you know quite quickly and now um we've added kind of a lead time to that. So
where um maybe you know it could have happened in two months time now it would take about a year to change those fees because we would need to advertise for retain a consultant to undertake the the fiscal impact assessment and um and then we could change the rates once we had
the result of that. But the bottom line is it can change. >> Yes sir. Okay. It can >> and it can it can continue to increase or it can decrease depending on the results of impact studies and the um the
impact fee study and the financial study that you're discussing. >> So So my question was simply the 5% increase that was supposed to stop in June of 2025. >> Yes sir. and it does stop then. And that step to change um was approved by
council in November of 2022. So that stepping all happened at that one point in time. Council contemplated then the um annual change of just the residential collection rate. Um I think what Joe and correct me if I was if I'm wrong, you were saying that council could actually
have changed that um you know the steps if they wanted to or or extend the steps and they can do but that's a separate council action and based on state law changes what would have to happen before that is the financial impact assessment. >> Absolutely. I think I'm clear. Thank you.
>> Okay. Thank you. >> And just uh putting a put a pin in this particular slide here. Um the collection rates in a few service areas which is um a D and F and PI are actually 100% of schedule one. >> Can I ask DJ a question because I see
him over there laughing at at what I'm about to ask. So when this changed a few years ago, I think you were doing the road show trying to get everybody on board and explaining why we were doing doing all this with the change um at the state
level. Does that mean that we have to do a fiscal impact analysis on whether or not asking for more of the money that we've already dee deemed that we need, which we're not taking enough of to begin with, is going to help or
hurt us? Is that what that means? Like if we ask for 20% more, is that going to make less development occur? Is that part of the study? Or is it just do we really need the money and we're just upcharging you because we feel like it? That's what they're working on, >> right? I you know I think the intent of
the audit is to just make sure that we're using the money wisely right and we're appropriating appropriating it in the way that is approved by state law. >> How much money have we given back that aged out after 10 years that you're aware of? >> We haven't given any.
>> So would it be feasible to say that we could use more? I think the real challenge is and you I think you're right on it, right? The fact that we don't collect 100% puts uh the program at a disadvantage because like think
about 40 cent on a dollar, right? It takes a dollar to build this signal light. Well, if you give me 40 cent, I can just sit it in the bank until I collect enough to build that signal. However, >> the signal cost a$125. >> That's right. Right. And so we're
getting further and further behind. A few years ago, we presented to city council that we were about $3.1 billion in the hole with regard to our ultimate buildout per the then study of what our capital improvement should be. And so
every day that we collect less than 100% right and I'm not suggesting that we go to 100% but I mean just for the sake of this conversation every day that we don't collect that 100% we get further and further behind on our ultimate need as a city.
>> Do you know offhand when we increase this how much development we missed out on? How many people didn't develop with us because we raised the rates? I I don't know if we could qualify that, but um I mean it's it's a good question.
I think at times when we set the rate lower, it was because we didn't want to like originally back in '08 and Doug may remember this, right? And and Joe Schneider is here, he may even remember this um that, you know, we didn't want to set the rate too high because we were
going through or trying to come out of a recession, right? And so we didn't want to deter development. And so council's always tried to keep a balance between not running development off but making sure that we have growth paying for growth, right? And so I mean it's it's
been something that's been the subject of conversation in the council chambers since I've been here at the city. And I don't know that um you know we're there right with growth paying for growth and I don't know that we'll get there but I think the goal of groups like yours right and you know staff is to try to
just manage that growth with adequate roadways as we go. >> So I alluded to things getting hot and spicy every now and again. It is at the 5-year update and uh but I wasn't here in 2008. I've been here a long time but
not then. Um, so but but TJ's right. The the city council makes the political decision as to how much to collect. The this body has the opportunity to recommend a collection rate. The study
that the consultants will present to you in the next year or so um as we prepare for the 27 update uh will recommend maximum accessible rates and the city council has no problem with establishing a maximum assessable of 100%. It's how much we collect and that's the political
part of it and your role is to make a recommendation as to that. Um which is really the only time I've ever not seen a consensus with this group. Um and oftentimes there is but there's good spirited discussion. What should we recommend to the city council for a collection rate? Um and then the city
council takes that during the public hearing cycle. That is one of the issues that comes up and that is what draws out if not the public let's say the development the development public and then those folks that you know will make the case that too much impact fees will
uh and the election if the collection rate's too high then it would styy development and growth in the city. And so those are the um political decisions that are really not in your hands. Yours are to make the recommendation based on what you feel is right going forward. So has anybody done a study like with other
adjacent cities in the area that are collecting 100% and at what success rate these guys are developing as opposed to Fort Worth? We haven't done that study um at this time, but we have talked to our consultants and um and next time we'll
bring to you a slide that compares impact fee rates of the city of Fort Worth versus sort of other cities um locally and uh further a field in Texas. there are um I want to say trophy club but there's a couple that collect 100% but they're smaller and um and so their
needs are smaller and I I think that's something that we need to sort of recognize as as we are trying to compare apples to apples that when you're comparing Fort Worth to um you know let's say McKenna you know they're they're two different characters sizes
um you know that kind of thing you Dallas doesn't have an impact fee program they would be probably the most logical group to compare us to but um they don't have the program. Uh, but Austin does. So, we have, you know, other kind of sister cities to to compare us to, and we'll bring that to you next time. >> Thank you.
>> If I could just make a quick comment. Um, one of the reasons that I wanted to be on this committee is I think it's very important. Um, city council has set out five goals. There are five priorities.
The first priority is responsible development and increasing development. Um to Jacob's question, um I would say that there are a lot more things besides impact fees that affect development. I mean financing is important as an
example. And so it may be really hard to find something that's funible that we can say, well, this is exactly why this is happening or exactly why it's not happening. But we I think the consultants will give us a pretty good
idea of based on their experience. And then back to Joe's comment, um it's I can see where it's going to be a balancing act. actually
um where we can reach a manageable level of development, responsible development and encourage developers. But I saw just to give you one more data point. I saw in a real estate publication just
recently that some commercial developers feel and even some residential developers feel that 25% of their cost of developing in the city of Fort Worth is attributable
to city requirements and that would probably include impact fees. So, I think we have to keep that in mind as we do this analysis. It's a startling figure, but it's um
it's it's on the street. I can tell you that people feel that way. Thank you. >> Commissioners, can I add one other thing? Um and because we've had that conversation, too, about what portion of development costs are related to city
fees inclusive of transportation impact fees. So, a a number of years ago, probably 2017 was the last time, but we did it, we've done it three times since we've had this program, we did a development cost and occupation study, um that basically laid out like uh the
the development in Fort Worth and how much of the cost related to development is related to city fees. So to answer that exact question, I mean 2017 is a little outdated, but we can provide it to you guys as well because at the time there was that feeling by uh residential
and commercial developers and um you know honestly it it it just wasn't it wasn't true. Um it basically uh lays out and it also this study also compared us to other areas. So when you talk about looking at transportation impact fees in
other areas. So we took a prototypical development, you know, around the city in different places around the city and compared it to other cities. So if you developed this product in Oklahoma City, what would the fees be compared to this product developing in Fort Worth? So we
did that, you know, like so we had comparable cities for uh commercial, you know, that we compete for industrial like Oklahoma City, Atlanta, right? San Antonio, Houston, Dallas, right? So that was for commercial. And then for residential, we looked at Flower Mount,
Arlington, right? Some of the the places that we compete for residential development. And so, you know, at, you know, at the time it showed that city of Fort Worth was right at the mean for, you know, development cost, right? Uh but it also showed the proportion of
development costs uh related to fees and permitting was was very minimal compared to you know everything else that you know you look into that goes into development you know and then I think the other bonus that we had was our land costs
were were quite lower to you know the comparable cities as well. Okay, before we move on, um I'll just note that um what we are here talking about the semianual progress report is actually you have a copy of it directly
next to you or or if you don't, please let us know and we'll get it to you. Um but again this is for the reporting period from uh April of 2025 through uh through uh September of 25. And so just
for this uh discussion for this for this committee meeting uh we actually laid it out in the presentation and so we're stepping through the the details um with you all. Uh so first off we are going to jump into uh some of the things that have happened over the this uh reporting
period. Uh so during this time frame there has been uh seven fullpurpose annexations that have occurred. Um talking okay so we've had uh seven full purpose
annexations over the over the period. Um now that brings us to a new total of 28 annexations uh for about uh 2500 acres that have been annexed um you know since uh adoption of the 2022 uh TRIF study or transportation impact
fee study. Uh and as you can see here the land uses range from residential to institutional uh onto commercial. So something else that that occurred um not this um actually during the previous
uh reporting period there was an audit that was completed on June 13th of 2025 of the transportation impact fee program. Um and there were certain recommendations that came out of out of that audit. Uh and initially there was uh the recommendations were intended to
be uh addressed by uh December 31st of 2025. However, that was uh extended to June of 2026 partially uh in due to the fact that there was an absence in my my position uh and I arrived here in uh
December of 2025. And so staff are currently working to address these various uh recommendations which we're going to step through right now. So recommendation uh 1A from the study was uh to work with our transportation
and public works uh department and our chief financial officer uh to use the transportation impact fees to pay allowable eligible project costs uh which could be the retroactive expenses um and also spent expenses going
forward. Um so progress to to to date on this front um includes that we've worked with uh our TPW folks, our friends uh in addition to our financial management services FMS group. Um and we are and
there have been some changes to processes that have um in particular our capital expenditures and improvement policy that have prioritized the expending of the transportation impact fee funds uh first because it is the
most uh restrictive of funds as was mentioned earlier in this presentation. These funds have a time frame on them that we have to utilize them of 10 years before they would have to be essentially given back to the the the people who who assess were assessed those particular
fees. Uh so with that the internal process has been updated to make sure that those funds are now being um expended first before uh we um charge to bonds or other sources.
Recommendation 1B. Uh the recommendation was that we would have a formal process in place to implement and track the aging of the transportation impact fees themselves. Um so to to date we have not um had to return any of these any of
these funds. Um but as you'll see later, we are um we have collected a good amount of of fees that we need to to to allocate and get expended and out the door and we want to make sure that we are expending these in a timely fashion.
So uh we uh would like to uh in to develop a formal uh standard operating procedure as we call it a SOP in city speak uh to be able to to track that. So we're currently uh working on that as as well. So recommendation 1C.
So this was uh for the actual report itself and the intention for this was to was so that we actually reported out not only on the the quantities that were allocated but
also spent and out the door. So and and actually have that broken down. Now in previous in previous years we um we would you know when funding was allocated to a project you know we consider that is basically spent and out
and on its way out the door. But for full transparency we want to make sure that we identify it on every step of the process um as it's appropriated as it's encumbered and and eventually when it's fully um expended. And so we anticipate being able to have that for you all in
the next semiannual report which you actually won't have to wait that long for. Um so because and I'll just kind of circle back on this point. Um you know this reporting period is through the end of September and we would typically uh
have had this meeting here within a few months following that reporting period here. Um, but we have another one coming up for the period that ends in March. So, we'll likely be having a meeting with you all in the April May time frame
as well. Uh, so this will all still be fresh in your minds. Okay, I won't spend too much time on this because I feel like we've addressed some of this um already, but um in the 89th Texas Legislature. Uh it passed two
bills that impacted our our particular program. Uh that was Senate Bill SB883 which added a requirement for a financial audit that had to be completed. Um so there are some requirements here that you know added
120 days to overall public comment period. Uh it also changed the composition of the um of the advisory committee because as you all are aware and we mentioned earlier that we used to be able to utilize the city plan commission uh but we can no longer do
that. Um and then there was also some uh amendments to the the membership and the representation thereof. In addition to that, there was uh Senate Bill 840 which which clarified that the city cannot apply an impact fee on land where
the building has been converted to mixeduse or multif family residential. And this aligns with the city's uh existing program. Um but the ordinance text needs to be amended to highlight this particular feature. So to comply with these uh these new
changes, we adopted a uh MNC MNC 25-0768 uh that contains some of the amendments to address these particular um these changes. Uh this established new criteria for the capital improvement advisory committee. Uh and I also you
know amended uh chapter 2 article one in general uh regarding the the character makeup of the boards. So this is what the action that actually made those required changes. >> So now the fun part. >> I'll step in for just a second. An M andC for those of you unfamiliar is the
mayor and council communication. It is the cover memo that is com um staff direct staff rights and is the agenda item. that particular M andC that was referenced contained an ordinance that the council adopted uh which I
referenced in my presentation um which established the positions and did a bunch of other things to comply with state law to make the changes but MNC is commonly used as a terminology uh here among staff as the uh the way we communicate with with the city council
and the action that they'll take. >> Thank you Doug. Okay, program collections, the the fun part, the money. So, we have some little uh abbreviations that we like to use. Uh CIR, so this is our collections
and interest less refunds. So, we're going to use that periodically throughout this this presentation. Uh so, just try to try to remember that. I'll try to, you know, spell it all out again um you know, as we go through the presentation. Um but the the CIR the
collections uh for this particular reporting period across all of the service areas total to $21.9 million. Uh that brings our grand total through the beginning of the program to September 30th of 2025 up to $265.3
million in collections. And here we can see how those are actually dispersed across the the the service areas, you know, with our highest uh service area uh being se with uh 42.64
million that have been collected to to date. >> Hey Kamal, real quick, uh yes, I noticed there's two no fee service areas that are listed on here where fees are collected, L and W. Can you help explain that?
So Jennifer, do you want to take this from the history perspective? >> Yes. So L and W were fee bearing service areas and with our 22 study, they became no fee service areas. So this is reflecting the collection over the life
of the program. So it was previously and now it no longer is collecting. That's a good point. We'll um indicate that on future slides. >> Perfect. And this just goes to show the the effectiveness of the the process that we have in place where you know
once we do reach that critical mass of of roadway infrastructure uh in completing the MTP roadways uh then we will you know flip the switch in the study and no longer charge the people to uh to build the roadways in that area.
So this is just an an overall view. uh we have a this mapping to to show um the areas that uh collect the various amounts. So over the the time period from the beginning of the study in in 2008 um you know there are a number of service areas that have collected well
over $12 million that includes AB CDE E Y and and Z. Now, here's a breakdown that we have uh of the collections over this most recent uh reporting period from April through September of 2025. As you can see, the
area that has that has um accumulated the the the greatest um collections uh is service area Z with $4.5 million that has been collected during that reporting period.
Okay, now moving on to allocations. We have yet another acronym for you. We call the fund allocations inclusi inclusive of reconciliations. We call that the FAR F.
And so um so the total FAR total uh fund allocations to date is 163.4 4 million that have been allocated. And again, you can see in a similar fashion, uh the same the same uh service
areas that were designated for the highest number of quantity of collections are also the ones with the highest uh allocations. So, here's some of the specifics about the allocations that occurred uh during the reporting period. We've had a number
of of projects that have uh occurred. But in addition to that, there's been uh if we look at um the the second one down that is entitled project funding allocation to expend legacy transportation impact fees. Um this is
in an effort to make best use of our funds. We we coordinated internally to find where we could utilize these funds based on you know uh eligible expenses. Uh and we took um took this to council
to basically reallocate the funds into uh various city projects. >> I had a quick question. >> Yes, please. So on that second on the fund allocation inclusive of
reconciliation FAR on the reporting N and C it appears that it applies to all count or five 6 8 10 and 11 how how's that I thought it was just for one particular area when we
allocate funds >> so that MNC covered all those areas so a c a single mayor and council communication can include a multitude of projects and um and multiple service areas. So in in the case of that item,
the service areas were in ANZ, but those service areas don't align with our council districts. So one service area can overlap multiple council districts. So that's why we've got the two letters and then a lot of numbers after it is that it's the overlap >> of the um
>> Thank you. >> areas. And and to further kind of expound upon that, you know, there were actions that were taken in this single M andC that were in multiple service areas. So you see, oops, excuse me. Um,
so you see both N and Z identified here. Um, but the the funds that were reallocated or allocated as a part of this action all stayed within the same service area. You see here that um for particular uh service area N, I have
identified that there was approximately $600,000 that was actually reallocated that was moved from one project into another to make best use of of the funds. So the funds are still staying within the areas that they were originally identified in accordance with
state legislation. >> How do how do we have overlap for some of the council districts that don't touch these service areas? Are they from old maps? I'm just trying to understand in particular my own district 10 is not in any of those service areas.
>> So our council districts the maps um have changed. So changed four years ago now. So we went, you know, from 9 to 11. Um, and as those maps change, th those maps are drawn, um, without any concern to the impact view program because it's,
you know, one of so many programs in the city that, um, kind of have geographical representation like our neighborhood empowerment zones and things like that. So they are they are independent of one another and so as one changes, the other does not. Um, >> so council district 10 is in multiple or
is covered by multiple service areas. >> Right. But on the map, 10 is only covered by A, B, C, and D. I'm looking at the map today. >> N is far east and Z is at the bottom of of Fort Worth. So, I'm just trying to
understand how that district is involved in those two service areas and funds. I mean, for all of us to understand. >> Thank you. You've discovered a typo for us. Thank you very much. Okay. We'll we'll correct that. >> And I have the same question on the bottom one. how U and T could be affecting all council districts unless
I'm misunderstanding something about that. >> So, uh if I can say something quickly, I I I do believe that um you know within this M andC that actually occurred that there were some other actions that that took place and then this is more so a designation of the council districts
that were impacted by that um M andC in totality. So in future we can distill it down to just the ones that are impacted by by this particular action. >> Well, I mean it's if we understand it that way in the future that makes sense. That way it's easy to cover because you know you have the certain um things that
are going through. It's easy to pull the data in. It's all these other districts. But the important part for us is the service area. >> Correct. We don't really need to be concerned with council districts other than asking these nagging questions that we're asking right now. >> Yes. Yes. And Kamal, great point. You're right. Usually the M andcs do cover
multiple actions. So um we'll probably >> Sorry to open this can of worms, guys. Sorry. >> No, no, good question. Thank you. >> This is good. It's >> one other question on that. Do the MNC's specify the specific projects? >> Yes. >> Thank you. >> Yes, they do.
>> Got a question too. Are there service areas that are active now that are anticipated to be no service areas when the next study is complete? I mean, that's actually something that we should be able to determine through the actual study process itself. And we
were going to be kicking that off here in the upcoming months um in anticipation of releasing the new study uh at the near the end of 2027. >> Yeah. The ones that are probably the closest to that happening are the ones
with the smallest service unit. So, um, if you dare think back to the presentation I gave, um, there was that table with all the service units in it. And so, it was like AA had an under $400, uh, service unit. So, you know, it has it's one of the most likely ones to
become no fee service areas in future. Um, F is a close behind it with under an under $800 service unit. So those with the smallest amount are the ones that are mostly complete um in their regional uh transportation mobility
infrastructure uh projects and so those are the most likely candidates. So they might not but it's contemplated that they will be >> okay. So here's a kind of an overall view of the collections that have been received
per service area uh in in addition to the the allocations and the balance that is remaining to be allocated. So for the totality of the program we have approximately 61% of the funds that have been collected to date have been
allocated and in the future when we present this report we will be able to be more fine-tuned in our presentation about the actual how much is encumbered in addition to that how much is actually expended and and um out the door so to
speak. Can I ask a quick question on that um balance to be allocated? >> Correct. >> So I'm assuming on Jennifer and DJ when we bring in the funding when the impact fees are paid we're using a first in
first out program and so none of this 102 million is anywhere close to expiring because of the 10-year. Okay. Just curious, want to make sure it's all going to be there moving forward. Okay.
>> And that's and that's our job, you know, to to work with with, you know, us as a as a team and and work with you all to be able to get this allocated and, you know, out the door to better serve the the de development community in the in the city as a whole. Um, so in in
anticipation of that, we will be, you know, again, prioritizing that in our presentations in the future. um you know to make sure that we are mitigating any sort of risk in terms of you know uh return or loss of any funds that have been collected to date um because that
would not be a good use of of city resources and public resources. Okay. And that concludes the the actual presentation itself of the um semiannual progress report.
Um, we can open it to any sort of uh discussion that might need to that that any questions that you may have. >> Any questions? >> Okay. >> I'm going to get you a couple books next time to put the mic under. So, >> I said I think the whole the whole
that's okay. >> Seeing none, I guess. Do I need to call for a vote? >> That's right. That's that's the exact next thing here. to the consideration uh of the of the report. >> Okay. I need a motion.
>> I move that the capital improvements advisory committee accept the transportation impact fee semiannual report through September 30th 25 excuse me 2025 as presented by staff. Second.
>> All in favor? I >> I >> All opposed. Motion passes. >> Okay. >> So, chair, will you adjourn the meeting? >> Let's see. Anybody want to do anything
else? Talk about anything else. >> Meeting adjourned. >> Thank you.