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City of Melissa Texas 2015 Comprehensive Plan Update Page 9.4 Chapter 9 Implementation The Comprehensive Plan makes recommendations on the various public improvements that will be needed to accommodate growth and development envisioned for the City over the next 20 years or more. Many of the changes involve improvements that will be financed by future improvement programs. It would be desirable to invest regularly in the physical maintenance and enhancement of the City of Melissa rather than to undertake large improvement-type programs at longer time intervals. A modest amount of money expended annually on prioritized items in accordance with Plan recommendations will produce a far greater return to the City than will large expenditures at long intervals. Funding Mechanisms Budgeting and cost are primary considerations in terms of implementing Plan recommendations. Therefore a discussion of the various funding mechanisms that could be utilized by Melissa to realize these recommendations follows. It is important to note that the discussion does not represent an exhaustive list of the funding sources that may be used but includes those mechanisms that are likely to be most applicable for use within Melissa. Impact Fees A recommendation is made for consideration of impact fees in relation to water and wastewater facilities Chapter 4 and roadways Chapter 5. Chapter 395 of the Texas Local Government Code addresses the issue of developer participation in the construction of off-site facilities such as water wastewater and roadways. This state law allows cities in Texas to decide whether to assess fees for 1 water service expansion 2 wastewater service expansion and 3 roadway construction to new residential and nonresidential development. The City should investigate the feasibility of using Chapter 395 as a funding mechanism for such capital expenditures. Impact fees can be described as fees charged to new development based on that developments impact on the infrastructure system. The primary advantage to having this funding source is that it provides cities with the increased ability to plan and construct capital facilities so that the needed infrastructure system capacity is available when the market warrants. If they are not implemented new capital facilities will likely be financed through taxes e.g. ad valorem sales which are paid by existing as well as future residents. With impact fees the development community is responsible for paying its related share of the cost of growth and the impact of that growth on local infrastructure systems. However while impact fees provide financing assistance for cities they also increase the cost of development. As most costs associated with development are passed through to the consumer it can be argued that impact fees increase the cost of housing or deter economic development. In order to mitigate any negative effects of adopting impact fees on economic development opportunities the City can investigate development incentives such as waiving all or a portion of impact fees for certain areas of Melissa such as along Interstate Highway 75. It must also be noted that if the facilities and