HomeMy WebLinkAbout2025-070 Capital Improvement Advisory CommitteeSeptember 12, 2025 Report No. 2025-070
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Capital Improvements Advisory Committee
SUMMARY:
SB 1883 was approved as part of the 89th Legislative Session, amending several sections of Texas
Local Government Code (TLGC) Chapter 395 relating to the collection of impact fees and
establishment of a Capital Improvements Advisory Committee (CIAC). The purpose of this
Informal Staff Report is to provide a summary of provisions in TLGC Chapter 395, specifically
the requirements surrounding establishment of a CIAC that existed prior to the 89th legislative
session, the City of Denton’s current CIAC, and changes needed as a result of the 89th Legislative
Session and recent amendments to the State Statute.
BACKGROUND:
TLGC Chapter 395 authorizes the collection of impact fees to be charged to new developments to
offset the costs of capital improvements related to water, wastewater, and roadway improvements.
In order to assess impact fees, Chapter 395 requires the establishment of a Capital Improvements
Advisory Committee to review and comment on land use assumptions, capital improvement plans,
and proposed impact fees. Section 395.058 sets forth the requirements for the establishment and
composition of the CIAC. Due to recent passage of SB 1883 regarding the composition of the
CIAC, staff will be bringing forth a work session item to seek direction from City Council
regarding establishment of a new Capital Improvement Advisory Committee (see Exhibit 1).
Prior to the 89th Legislative Session, TLGC Section 395.058(b) specified the CIAC be composed
of not less than five members appointed by the governing body of the political subdivision. Of this
body, not less than 40 percent of the CIAC membership was required to be representatives of the
real estate, development, or building industries who are not employees or officials of a political
subdivision or governmental entity. Section 395.058(b) also allowed for cities with a Planning and
Zoning Commission, to utilize the Commission as the CIAC provided the Commission included
at least one representative of the real estate, development, or building industry who is not an
employee or official of a political subdivision or governmental entity. Furthermore, in cities where
impact fees were applied to areas within the extraterritorial jurisdiction (ETJ), a representative of
this area was required to be included in the CIAC.
The City of Denton has implemented impact fees for water and wastewater infrastructure since
1998, and for roadway improvements since 2016. With the implementation of water and
wastewater fees in 1998, and the subsequent updates, the City of Denton utilized the Planning and
Zoning Commission as the CIAC.
In 2018, as a requirement before updating impact fees, the City Council approved Ordinance 18-
411 appointing the Planning and Zoning Commission, plus one ad hoc member from the ETJ, as
September 12, 2025 Report No. 2025-070
the Capital Improvement Advisory Committee pursuant to Texas Local Government Code 395.058
(see Exhibit 2).
The TLGC and the adopting ordinance specify the roles of the CIAC are to:
• Advise and assist the City Council in adopting land use assumptions;
• Review the capital improvements plans and file written comments;
• Monitor and evaluate implementation of the capital improvements plan;
• File semiannual reports with respect to the progress of the capital improvements plan and
reports to the political subdivision any perceived inequities in implementing the plan or
imposing the impact fee; and
• Advise the City Council of the need to update or revise the land use assumptions, capital
improvements plan, and impact fee.
Given the above-mentioned responsibilities of the CIAC, the Committee currently meets twice a
year to review the semiannual reports on the progress of the capital improvements plan. The
Committee may be asked to increase meeting frequency when the City is reviewing and updating
impact fees.
SB 1883 went into effect September 1, 2025 and amends several sections of TLGC 395, including
Section 395.058(b) by removing language within the subsection which authorizes the use of the
Planning and Zoning Commission as the CIAC. Furthermore, 395.058(b) was also amended to
specify that a minimum of 50 percent of the membership of the CIAC shall be comprised by a
representative of the real estate, development, or building industries. Representatives may not be
employees or officials of the political subdivision. These changes necessitate the establishment of
a new CIAC for the City of Denton.
Requirements specified in SB 1883 will also affect how frequently the CIAC may need to meet,
particularly when evaluating new impact fees. SB 1883 amends TLGC 395 by adding Section
395.059 which requires cities to conduct an independent financial audit prior to the adoption of a
new impact fee for services areas where a fee had previously been adopted. This report must be
performed by an independent auditor, certified by the Texas State Board, and not previously
employed by the political subdivision in the last 12 months. Section 395.05(c) details the
components the independent audit must detail, including but not limited to, fees collected, fees
assessed, proposed capital improvements or facility expansions financed from fees collected, and
fees collected but not yet spent. The findings of this audit must be presented to the CIAC prior to
the increase of an existing impact fee or adoption of a new one.
STAFF RECCOMENDATIONS AND DIRECTION NEEDED:
As part of the work session discussion on September 30, 2025, staff will be seeking direction from
City Council regarding the establishment of a new CIAC, including feedback and directives on the
following staff recommendations:
• Given the requirements that a minimum 50 percent of the membership of the CIAC be
comprised by a representative of the real estate, development, or building industries and
that these representatives may not be employees or officials of any political subdivision,
September 12, 2025 Report No. 2025-070
staff recommends creating a new Committee to serve as the CIAC and does not recommend
appointing an existing body to serve in this capacity.
• Staff further recommends submittal of a resume to be required prior to an individual being
appointed to the CIAC to assist in monitoring compliance with the specific membership
requirements of this body.
• While the minimum required membership for the CIAC is five members, staff recommends
appointing a body of seven members, allowing each member of City Council to have an
at-large appointee. It is important to note that the CIAC must include one representative
from the ETJ. This member will be ad hoc member and serve in addition to the seven
standing members.
• Staff recommends four-year term lengths for CIAC members and suggests staggering terms
so that odd number places (Places 1, 3, 5, and 7) end on Augst 31st of odd ending years and
even number places (Places 2, 4, and 6) and the ad hoc member’s term end on August 31st
of even ending years.
ATTACHMENTS:
Exhibit 1 – SB 1883
Exhibit 2 – Ordinance No. 18-411
STAFF CONTACT:
Angie Manglaris, AICP
Development Review Manager, Development Services
angie.manglaris@cityofdenton.com
Lauren Thoden
City Secretary, Office of the City Secretary
lauren.thoden@cityofdenton.com
REQUESTOR: Staff Initiated
STAFF TIME TO COMPLETE REPORT: 3 hours
PARTICIPATING DEPARTMENTS: City Manager’s Office, Development Services
Department, City Secretary’s Office, City Attorney’s Office
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1) advise and assist the City Council in adopting land use assumptions;
2} review the capital impravements plans and file written comments;
3) manitor and evaluate implementation of the capital improvements plan;
4) file semiannual reports with respect to the progress of the capital
improvements plan and report to the political subdivision any perceived inequities
in implementing the plan or imposing the impact fee; and
5} advise the City Council of the need to update or revise the land use
assumptions, capital improvements plan, and impact fee; and
WHEREAS, the City Council desires that the Planning and Zoning Commission of
the City of Denton, Texas, consisting af seven (7) members, act as the advisory committee
since the Commission has mare than one (1) representative af the real estate, development,
or building industry wha are not employees ar officials of a political subdivision or
governmenial entity; which Commission shall constitute a portion af the membership of
the Capital Impravements Advisory Committee as provided by law; and
WHEREAS, the City Council desires that any authorized impact fees be applied in
the extraterritarial jurisdiction of the City of Denton, Texas; therefore ane (1) additional ad
hoc vating member af the Capital Improvements Advisory Committee must be selected
from the extraterritorial jurisdiction of the City of Denton; and NOW THEREFORE:
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The recitations which are set forth above in this Ordinance are
expressly incorporated by reference herewith, as if made a part of this Ordinance.
SECTION 2. The City Council establishes the Denton Capital Improvements
Advisory Committee pursuant to Texas Local Government Code §395.058 as a prerequisite
of authorizing impact fees.
SECTION 3. The Denton Capital Improvements Advisory Committee shall consist
of eight members; seven shall be the members of the City of Denton Planning and Zoning
Commission and one shall be appointed ad hoc from the extraterritorial jurisdiction of the
City of Denton, Texas. All eight (8) members of the Capital Improvements Advisory
Committee shall be voting members thereo£ The terms of the members shall parallel those
terms of the City of Denton Planning and Zoning Commission, except that the ad hoc
member from the extraterritorial jurisdiction of the City of Denton, Texas shall serve a term
of two (2) years and shall be appointed in odd-numbered years.
SECTION 4: Robin Harris, P.E., a person residing in the extraterritorial jurisdiction
of the City of Denton, Texas, is well-qualified to serve, and is accordingly appointed as an
ad hoc voting member of the Capital Improvements Advisory Committee.
SECTION 5. It is understood that the ad hoc member from the extraterritorial
urisdiction of j the City of De c:, °";, appointed in Section 3 above, shall have no
authority to serve or deliberate a.i r 1,° of the Planning and Zoning Commission of the
City of Denton, and shall serve only as a member of the Capital Improvements Advisory
Committee.
S}^°"N f 1 ' The duties of the Capital Improvements Advisory Committee shall
consist of the requirements listed in Texas Local Government Code §395.058(c) and (d) as
currently written, and any other duties as may be required by amendment of that statute.
f p i J, The City Council designates procedural rules for the Capital
Improv "a vi ry Committee to follow in carrying out its duties by requiring it to
follow the City Council Rules of Procedure as set forth in Section 2-29, Code of
Ordinances, City of Denton, as amended, and adopting those procedural rules as the rules
of the Advisory Committee.
SECTION 8. This ordinance shall become effective immediately upon its passage
and approval.
PASSED AND APPROVED this the %a r day of March, 2018,
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CHRI a S, MAYOR
ATTEST:
P 1 f l'"L,l.. WALTERS, CITY SECRETARY
BY
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n
f '' A '1`( LEGAL FORM:
AARON LEAL, CITY TTORNEY
BY: _ ..__ . , .
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