Impact Fees

About Impact Fees

Impact Fees are authorized under Chapter 395 of the Texas Local Government Code and are defined as a charge imposed against new development to pay for the off-site construction or expansion of infrastructure facilities that are necessitated by and benefit the new development. For more information about existing impact fees, email:

2018-2019 Impact Fee Update

Chapter 395 of the Texas Local Government Code mandates that impact fees be reviewed and updated at least every five years. The City of McKinney last performed a review and update of impact fees in 2013. Accordingly, staff initiated the 2018-2019 Impact Fee Update in the Winter of 2018.

As required by state law, updating impact fees involves three components:

  • Land Use Assumptions (Approved)
  • Capital Improvements Plans (Posted)
  • Fee Setting / Adopting the Ordinance (Mid 2020)

For more information about the update process, email:

Current Impact Fees

At the February 7, 2017 meeting, City Council approved a minor amendment to the Utility Impact Fee Ordinance to modify the fee structure based on recent changes in City practice. Information about the City Council meeting is available in the meeting details.

The new fees are as follows:

Meter Size/Type Water Impact FeeWastewater Impact Fee
 3/4" simple$1,294.70$162.14
 1" simple$2,200.99$275.64
2" ultrasonic  $10,746.01$1,345.76
3" ultrasonic$21,621.49$2,707.74
4" ultrasonic $43,113.51$5,399.26 
6" ultrasonic $69,007.51$8,642.06 
8" ultrasonic $120,795.51 $15,127.66
10"- 12" ultrasonic$237,318.51$29,720.26

Current Roadway Impact Fee InformationCurrent Utility Impact Fee

Semi-Annual Impact Fee Report

On January 7, 2020, McKinney City Council approved the Semiannual Impact Fee Report. This report is filed twice per year per Chapter 395 of the Texas Local Government Code. Approved Report