KILLEEN, Texas — The Killeen City Council is moving forward with an impact fee ordinance after a vote of 4-3 at council Tuesday night.
Council members Menking, Fleming, Johnson and Mayor Segarra voted for the measure while Kilpatrick, Nash and Harris voting against.
Harris later said he only voted against the current ordinance because he wanted the fees implemented over three years instead of five but was supportive of it moving forward.
Impact fees would shift some of the costs of infrastructure improvements near new developments from the City of Killeen, and tax payers in general, to builders and in some cases developers.
According to the ordinance the city is drafting, "Impact fees shall be collected at the time of application for and in conjunction with the issuance of a building permit. The city reserves the right to enter into an agreement with a developer for a different time and manner of payment of impact fees in which case the agreement shall determine the time and manner of payment."
Who's saving money?
The impact fees are intended to help with projects near new developments without the city needing to raise additional revenue though taxes.
A council presentation stated Texas allows impact fees for water, wastewater, roadway and drainage improvements. Residents already living in expanding areas would benefit from that money without having to pay any additional fees.
The city of Killeen has more than 40 road projects alone that would benefit from the impact fees.
"It's coming to the citizens every single time, and at some point in time we have to stop," Councilman Steve Harris said at Tuesdays Council meeting.
Who's paying the fees?
Impact fees will be paid by builders when they are issued a building permit.
In some situations, the city of Killeen could enter into an agreement with a developer where the developer pays the fees, according to Killeen spokeswoman Hilary Shine.
Some council members believe builders will simply pass the fee cost on the home buyer or customers.
"The retailers or the customers just pay the extra price because that's how America is," Councilman Jim Kilpatrick said. "That's simple economics."
New home buyers in expanding areas of Killeen would see a markup in prices, but the council didn't say how much. Councilman Harris suggested it should be under 10%.
Still, a study by Kimley-Horn and Associates, Inc. stated that the City of Killeen would save $4,271,039 in wastewater projects alone over ten years.
The Killeen City Council will vote on whether to pass the final impact fee ordinance on Dec. 17.
If passed, the fees would start to go into effect after one year. The first year, only 20% of the fees would be assessed. For the next five years, the amount would increase 20% each year.
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