Good morning.

Good morning.

Welcome to our very first Capital Improvement Advisory Committee meeting today, February twenty-fifth, twenty twenty six.

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 with the election of our officers.

So now we will open up the floor for the nomination for a chair person.

For chair.

Any other nominations?

Excellent.

Any further nominations from the floor?

All right.

Seeing none, let's vote.

All those in favor of CJ Johnson is chair, say aye.

Okay.

And we'll probably need to call the vote because 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 Cranz, how do you vote?

Aye.

Jim Tidwill, how do you vote?

Aye.

Jeremy Rains, how do you vote?

They need to extend because they're alternates.

Did you mark on your paper who said that?

Five two.

Five two.

Okay.

And then all those in favor of John Stevenson.

Um, how do you vote?

Monica.

Go through the list again.

You go through the names of again.

Jacob Forman, how do you vote?

Uh we became 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.

All right.

Then let's call the vote.

Jacob Warman, how do you vote?

Aye.

Joseph Snyder, how do you vote?

Aye.

Charles Edmonds Jr., how do you vote?

He said I.

I'm sorry.

He said I.

Aye.

John Stevenson, how do you vote?

Aye.

Clarence Johnson, how do you vote?

I.

Caroline Cranz, how do you vote?

Aye.

And Jim Twell, how do you vote?

Yes.

So it's been passes.

Seven to zero.

Excellent.

So now we have a chair and a vice chair.

Congratulations to you both.

All right.

And your 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 Warman.

Just say here.

Here.

Joseph Smider.

I know you're here.

Here.

Charles Edmonds Jr.

John Stevenson.

Here.

Clarence Johnson.

Here.

Carolyn Cranes.

Here.

Jim Twill.

Here.

And both the alternates as well.

And so Jeremy Rains.

Here.

And Ty Lambert.

Here.

Thank you.

Staff in attendance today.

We have our esteemed director, DJ Harrell.

My name is Jennifer Roberts.

I'm the assistant director of development services 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.

She is our planning assistant with the program.

And then behind me is Doug Black.

He is the city attorney, or assistant, no senior city attorney over the program.

Okay.

Next up.

Is our ethics training?

And I'll turn it over to Doug.

Sideways.

Good morning, y'all.

I heard some of you are only at 70% ethics, so we're going to try to up the game a little bit.

Ethics are dry, about as dry as my cough.

So that may be the only joke you get.

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.

But first, we're going to talk through the city's ethics code.

And I trust that you all have taken the open meetings act online.

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 the same board as the plan commission, and that is because the Texas legislature made a change back in 2025 that 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 div the numbers for it.

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 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 uh at least these four existing state laws on ethics.

I'm not going to read all that to you.

City's ethics code is in this particular section.

Questions on how that reads, what is what it means for you, just making decisions not from a personal nature, but on this on behalf of the of the city.

You're I will throw in an aside, and at the very end, I'm gonna lay out a little bit of what your role is.

Your role is very um restricted by statute.

So this is not a free thinking, 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 tell them, and that you're certainly within your rights not to.

The last the bottom one exchange and 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 and other commercial backgrounds.

We will talk through whether there's any 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.

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 simply that's really setting it impact fees, which you'll learn more about here in a few minutes.

Any questions on this slide?

Here's the definition of the substantial interest again.

We will talk through if you have uh property interests or um 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 this 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?

And 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.

Uh, otherwise, you are welcome to attend, but you would be sitting in the audience and not participating.

That is so that we could continue a quorum and and we have on our uh semi-annual 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, uh 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 it who are 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, the discussion, it can go a little bit, but if it starts to really veer off, we're gonna stop and go back to the agenda, talk on 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 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 quorum.

Umcial gatherings, don't discuss city business if you all sometimes somehow find yourself at a uh 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 CIAC.

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 I trust you know who you are and 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 risk 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 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 uh describing uh 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 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.

Uh we 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 CIAC.

Uh, most of you weren't there.

So hopefully you had a chance to look at it and um find the minutes accurate.

Um 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 who could be the vote to adopt the minutes for those of you who don't feel comfortable doing it after having reviewed the meeting or the on the video.

Just for clarity, you are we accepting meeting minutes or approving?

Just approving.

I mean, just accepting formality.

Excuse me.

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 gonna 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?

Aye.

All opposed.

Abstentions.

One exp one abstention.

So the motion carries.

Motion carries.

And the vote was uh six to zero with one abstention.

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 hear and uh 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 and to go through this with us.

In this last period of time, we've had a couple of changes.

Uh 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 Plan Commission, pretty much everyone in the city planning 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 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.

All right.

So we're gonna cover quite a lot of ground, but I'm not gonna 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 semi-annual 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.

An eligible project is 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 as we annex land or um you know areas change.

So the impact fees are not exactions.

They are each assessed exactions are rough proportionality and impact fees are assessed separately.

And that's really important because not every project in the city of Fort Worth 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 you help us understand some of the terminology?

You're talking about rough proportionality and I forget what the other one was.

Exactions?

Yes or so the exactions are again in there in chapter 212 of local government code, and it's there infrastructure requirements required of a development or developer 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 if a 20-story 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, if we build that 20-story 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.

For 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 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's asked via an exaction is proportionate, um, sort of uh makes sense with what's being developed.

I'll add roughly proportionate, which is a legal term developed through case law.

Um some of you may be familiar with Flower Mound, Texas, very famous case out of Flower Mound in the years past.

So it's a we could do a presentation on rough proportionality.

It is not a it doesn't really apply to capital improvements, uh 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 and the impact fees, but as Jennifer said, the impact fees are for a region, and she'll describe the regions.

Um 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 commission.

Yes, sir.

Oh, okay.

All 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 eight, transportation impact fees.

So here are the state um legislative references.

I won't read them all, but we do, but 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 gaps.

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 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 besides state law says so, 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.

The state law also determines when the fee is to be assessed and to be collected.

That's during the building permit, is when that's collected, and 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.

And so we've had it for quite a long time, really proud of it, almost on our 20-year birthday.

So we're doing pretty good.

And the article that established this program has been amended many times.

As recently as last year with the legislative updates, re-establishing 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 the list of projects.

We determine the total cost of infrastructure, and then we establish the maximum accessible fee for each service area.

There's quite a lot of work here.

So our service areas as identified on the map.

We have 28 service areas, nine of them are no fee service areas, and they are six miles max across.

Now I know six miles is not an area, 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 challenges for regional mobility in those areas.

And just as a side note, so the ones that are gray, they are the ones that are no fee service area, and that is because the infrastructure that was contemplated within the master therapy 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 that wouldn't be every six months, that would be every five years.

If I could 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 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, 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 what is eligible for impact fee funding.

So this is based on the master therapy 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 lifts or dedicated rights, those kinds of things.

Um, this funding program, it's not a commitment to build.

Um, it's just something that we anticipate building, you know, because we can't we can't really drive collection.

Because we can't 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 accessible 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 therapy thoroughfare 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 accessible fee.

So here are the schedule one rates for 2022 in our study, and so these are the maximum rate, the schedule one rate.

Uh we don't charge Schedule One, we charge what's called Schedule 2, 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 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 and far north Fort Worth, it's uh dark purple on the map.

You know, it has the lowest at uh $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 an 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 stormwater infrastructure to support it.

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?

Oh, sorry, service unit.

Um so this 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 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.

You guys who don't know me, I live up north.

I'm one of the forgotten stepchildren.

Um that area is surrounded by EDJ, and then the donut is Hazlet, 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?

That when we're going to have to um annex these places through either development agreements or requests that now there's an 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, and 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.

But you'll notice on that map as you're absolutely right.

That is the Fort Worth city limits today, or 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 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.

It doesn't say where on 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 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 as they are ET, as our city limits expand through annexations, this map won't expand until we do our next five-year update.

So any of those changes that can be in between the five-year peers, are they administrative or do they have to be amended through this commit this uh committee here?

The annexation can take place upstairs at City Corps.

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 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 th two council votes and you know, and and then lots of going around and and uh socializing the uh the study with all of the interested parties, so neighborhood groups, HOAs, et cetera.

So while this the study or the update itself might be small, the work to to lift that and to add in 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 five-year 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 re-establish our fee.

They spend a lot of time doing that and a lot less time telling us what 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 uh free uh free leeway in this in this commission.

Right.

All right, back to the math.

Um so this would be our maximum accessible rate.

So what the state contemplates as uh 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 has 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 percent, then it's eight thousand six hundred and fifty-two dollars 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 estimate or it's an Excel spreadsheet, and in it, you put in uh 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 know, 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 your uses.

You can play it with a very narrow uh 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 we if we assess them at the same rate, kind of defeating the principle of affordable housing, because the rest of the design is uh 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, uh, which is in support of our ISDs.

Um open enrollment charter schools and private schools are also exempt through our neighborhood empowerment zone or our 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 finish outs.

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.

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 gonna give credit for right-of-way 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 right-of-way for improvements 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 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 uh 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 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 rough 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 the right-of-way cost.

That 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, that kind of thing.

All right, so things that we cannot give credit for.

So right-of-way or 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.

There's 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's the difference there.

Um sorry, Jennifer, can you go back to the previous uh question on that?

Roadways on the MTP and not in the TIFF or TRF 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, 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 proportionality includes impact fee eligible right-of-way 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 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 mixed use multimodal development discount.

So this is where we're looking at trip capture within a development, and then a small business discount so that we can help our small business owners.

What's what's considered to be a small business?

Let me move ahead.

I'm going 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, is 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 those properties if they qualify for the adequate public facilities discount.

Next up is our mixed use multimodal development discount.

And it is again about trip capture, and that is a um a variable 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 percent reduction of the bless you, uh the adopted schedule too, or that collection rate, and these are the criteria for that.

So 25 million dollars 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 or 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 either or 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 meeting these criteria.

All right.

So appeals.

As you uh 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 and emails acceptable within 30 days of levying the fee.

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 st 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 accessible, 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 plating.

The amount we're going to collect from them is variable and does step, um, and that is at building permit time.

So if they were wanted to appeal the imposition of the impact fee between plating 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 ITE trip generation land use.

So you know, a commercial location could be a restaurant, it could be a donut shop, it could be a hair salon.

And each of those businesses have a different trip trip generation profile in the ITE trip generation manual.

So we don't consider it just commercial, it's a type of commercial and the vehicles generated by that type of use.

Um also if there are discounts applicable, uh 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 you know 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, uh, information about similar developments, uh, anything about your uh your traffic distribution, maybe other sites uh for this particular development, what 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 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 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 is a misunderstanding, it's on our part 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 sometimes it's that.

Um other times it's maybe having some education around the ITE 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 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 believe that's been the approach taken.

It's not a hard and fast, it is hard and fast rules at the beginning.

But if the discussion goes through, some misunderstandings perhaps, or uh the reasonableness 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 accessible 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 high level travel through the development process at the city of Fort Worth, uh, wanted to highlight in orange where the exaction happens.

So we talked about the exaction 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 developer-led 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 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 in our adopting of our land use assumptions to review our transportation improvement program to monitor how we apply and implement and levy the funds you receive your semi-annual 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 uh 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 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 semi-annual report, and Kamal will go through a much deeper dive in a second.

Um the aim of the semi-annual report is to give you all an overview of the program, where we are, uh, what's the collections, how have we allocated those funds.

Um, we talk about um and we will include in it the recommendation that the CIAC 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 an acceptance of the report is yours is one of your statutory requirements to do her slide couple 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 to 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 role as CIAC is coming up next with the presentation of the semi-annual report and and review of that, and this is where you're gonna 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.

Right.

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 uh TRIF phone number.

Um I can't tell you how I got it, but I did.

And we also have a TRIF at Fort Worth Texas.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 you 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 Kamal to go over the semi-annual report.

Good morning, everyone.

Hopefully, it'll pick it up.

I'll speak louder.

Sorry.

So again, good morning.

I'm Kamal Cruz.

I am uh senior capital projects officer here with development services, and I also function as the transportation impact fee um administrator with um with Jennifer Roberts.

So today I'm gonna go over the actual semi-annual 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 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 you know October through to the end of September.

So we have our first segment, which is from October through March, and then the second set 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 uh 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 2022 as well.

And we covered this all already, but just kind of reiterating again for non-residential commercial.

We are current currently have a uh collection rate of 40 percent.

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 percent collection rate, and that cre increases five percent or has increased five percent each year up to uh 65 percent, which it will be as of June 1st of 2026.

And then it will stop with the five percent increase.

Yes, 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 has 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 uh an effort.

But um Jennifer, do you want to do that?

So it can really only change every five years.

So this is good through 2027.

All right.

I'm gonna 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 uh 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 uh where um maybe 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 five percent increase that was supposed to stop in June of 2025.

Yes, sir, and it does stop that, and that step 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 and correct me if I was wrong, 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 put in the put a pin in this particular slide here.

Um the collection rates in the fuel service areas, which is um AAD and F and PI are actually uh 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 roadshow, 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 deemed 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 gonna 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.

It's uh 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 out cost a dollar twenty-five.

That's right.

Right.

And so I we're getting further and further behind.

A few years ago, we presented to city council that we were about 3.1 billion dollars in the hole with regard to our ultimate build out 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 quantify that, but um, I mean it's it's a good question.

I I think at times when we set the rate lower, it was because we didn't want to like originally back at 08 and Doug may remember this, right?

When and and Joe Snyder is here, he may be 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 councils always try 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 uh 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?

We 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 five year update, and uh, but I wasn't here in 2008.

I've been here a long time, but not then.

Um so but the but TJ's right.

What the the city council makes the political decision as to how much to collect the this body has the the opportunity to recommend a collection rate.

The study that the consultants will present to you in the next year or so uh as we prepare for the 27 update, uh, we'll recommend maximum accessible rates, and the city council has no problem with establishing a maximum accessible of 100 percent, 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 the the election the if the collection rates too high, then they would stymie 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 percent and at what success rate these guys are developing as opposed to Fort War?

So 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 afield in Texas.

There are um I want to say trophy club, but there's a couple that collect 100 percent, 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 uh McKinney, you know, they're they're two different characters, two different sizes, um, you know, that kind of thing.

You know, Dallas doesn't have an impact fee program, they would be probably the most logical group to compare us to, but uh they don't have the program.

Uh but Austin does.

Um 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.

Okay.

If I could just make a quick comment.

Um 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 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 fungible 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 uh Joe's comment.

Um it's I can see where it's gonna be a balancing act, actually.

Um where we could reach a manageable level of development, responsible development, and uh encourage developers.

But I saw just to give you one more at a 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.

That'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 because we've had that conversation too about what portion of development costs are related to city fees inclusive of transportation impact fees.

So uh 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 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 uh 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 and 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 develop 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 Mound, 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 the city of Fort Worth was right at the mean for you know development cost, right?

Uh, but it also showed the proportion of development cost 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 before we move on.

Um I'll just note that um what we are here talking about, the semi-annual 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, uh there has been uh seven full purpose annexations that have occurred.

Um 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 you as you can see here the land uses range from residential to institutional uh on to uh 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 uh 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 and 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 recommendations, which we're going to step through right now.

So recommendation 1A from the study was to work with our transportation and public works department and our chief financial officer to use the transportation impact fees to pay allowable eligible project costs, which could be the retroactive expenses and also expenses going forward.

So progress to to to date on this front includes that we've worked with our TPW folks, our friends, in addition to our financial management services FMS group.

And we are, and there have been some changes to processes that have, in particular, our capital expenditures and improvement policy that have prioritized the expending of the transportation impact fee funds 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 people who who assess were assessed those particular fees.

So with that, the internal process has been updated to make sure that those funds are now being um expen expended first before uh we um charge to the bonds or other sources.

Recommendation one B.

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 date we have not um had to return any of these any of these funds.

Um but as you'll see later, we are we have collected a good amount of fees that we need to allocate and get expended and out the door, and we want to make sure that we are uh expanding these in a timely fashion.

So uh we uh would like to uh in to develop a formal uh standard operating procedures, we call it a SOP in City Speak uh to be able to track that.

So we're currently uh working on that as well.

So recommendation one C.

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 quantities that were allocated, but also spent and out the door.

So 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 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 semi-annual 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 the 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 all still be fresh in your minds.

Okay, I I won't spend too much time on this because I feel like we've addressed some of this um all already, but um in the 89th Texas legislature, uh it passed two bills that impacted our our particular program.

Uh that was Senate Bill, SB 1883, which added a requirement for uh financial audit that had to be completed.

Um so there's some requirements here that you know added 120 days to overall public comment period.

Uh and 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, 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 mixed use or multifamily 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 uh uh uh uh MNC uh 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 also you know amended uh chapter two, article one in general, uh regarding the the character and makeup of the board.

So this is what the action that actually made those required changes.

So now the funds.

I'll step in for just a second.

And M and C for those of you unfamiliar is the mayor and council communication.

It is the cover memo that is um staff direct staff rights, then is the agenda item.

That particular M and C that was referenced contained an ordinance that this council adopted, uh which I referenced in my presentations which established the positions and did a bunch of other things to comply with state law to make the changes.

But M and C 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, uh 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 interests less refunds.

So we're gonna 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 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 totaled to 21.9 million dollars.

Uh that brings our grand total through the beginning of the program to September 30th, 2025, up to 265.3 million dollars in collections.

And here we can see how those are actually dispersed across the the service areas, you know, with our highest uh service area uh being C with uh 42.64 million dollars that have been collected to to date.

Hey, come on, real quick.

Uh 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 roadway infrastructure, uh and 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 overall view.

Uh we have a the 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 2008, um, you know, there are a number of service areas that have collected well over 12 million dollars.

That includes A, B, C D, 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 greatest um collections uh is service area Z with 4.5 million dollars 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 inclusive inclusive of reconciliations.

We call that the FAR, FAR.

And so um so the total FAR uh total uh fund allocations to date is 163.4 million dollars that have been allocated.

And again, you can see in 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 uh a number of of projects that have uh occurred, but uh in addition to that, there's been uh if we look at um this 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 uh 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 second on the allocation inclusive of reconciliation for on the reporting N and C.

It appears that it applies to all council or five, six, eight, ten, and eleven.

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 and z, but those service areas uh 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 areas.

And and to further kind of expound upon that, you know, there were actions that were taken in this single M and C that were in multiple service areas.

So you see, whoops, excuse me.

Um and Z identified here, um, but the the funds that were reallocated or are allocated as a part of this action all stayed within the same service area.

You see here that um for a particular uh service area N, I have identified that there was uh approximately six hundred thousand dollars 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 uh our council districts, the maps um have changed, so uh changed four years ago now, so we went you know from nine to eleven.

Um and as those maps change, though those maps are drawn um without any concern to the impact fee program because it's you know one of so many programs in the city that um kind of 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 council district 10 is in multiple or is covered by multiple service areas.

Right, but on the map 10 is only covered by AAA B C and D.

I'm looking at the map today.

And as 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.

It's how we're moving the you've discovered a typo force.

Thank you very much.

Okay, we'll we'll correct that.

And I have the same question on the bottom one, how you and T could it 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 and C 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 and C in totality.

So in future we can distill it down to just the ones that are impacted by this particular action.

Well that 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 come all great point.

You're right.

Usually the MNCs do cover multiple actions.

So um we'll probably sorry to open this can of worms, guys.

So no, no, good questions.

Thank you.

This is good.

It's one other question on that.

Do the MNCs specify the specific projects?

Yes.

Thank you.

Yes, they do.

I had 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're gonna be kicking that off here in the upcoming months 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 it you know, it has it's one of the most likely ones to become no fee service areas in future.

Um F is uh 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 then so those are the most likely candidates.

So they might not, but it it's contemplated that they will be okay.

Perfect.

So here's a kind of an overall view of the collections that have been received per service area uh 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.

And so none of this hundred and two million is anywhere close to expiring because of the 10-year okay.

Just curious, want to make sure it's all gonna be there as we move forward.

Okay, and that's and that's our job, you know, to to work with you know us as a as a team and and and work with you all to be able to get this allocated and you know out the door to better serve the the development community and the in the city as a whole.

Um so in uh 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 semi-annual 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 gonna get you a couple books next time to put the mic under so you can see 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.

So 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 semi-annual report through September 30th, 25, excuse me, 2025 as presented by staff.

I move that the Capital Improvements Advisory Committee accept the transportation impact fee semi-annual report through September 30th 25 excuse me 2025 as presented by staff all in favor aye all opposed motion passes by 50 zone personal so chair will you adjourn the meeting let's see anybody want to do anything else talk about anything else meeting adjourned without