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What would a road-fee phase-in mean for a new home in New Braunfels?

A proposed phase-in would cut the first-year road fee on a new detached home in Service Area 2 from $6,884 to $3,442. The developer pays at the permit stage; the city has scheduled two November ordinance readings.

Listen to this articleComal.News narrated edition
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A curved road passes a low civic building and leads toward a dashed outline of a house, with two stacks of blank coins in the foreground.
Illustration: A road curves past a civic building toward an outlined new home, representing a proposed road fee for new construction.Original editorial illustration; not a photograph and does not depict the reported event or an exact property.Comal.News Visual Desk · Original illustration · Source ↗ · Comal.News original illustration ↗

A three-year phase-in would set the proposed Service Area 2 road fee for a new detached home at $3,442 in year one, half the $6,884 immediate rate.

For each new detached home in Service Area 2, the phase-in would reduce the first-year permit-stage charge by $3,442 relative to immediate full collection. That is a comparison of developer fees, not a calculation of a buyer's home price.

From the source record

City presentation, October 2026: proposed Service Area 2 fee for a new detached dwelling under the three-year phase-in.Immediate maximum options list $6,884 from the first year.

The city assesses roadway impact fees at platting and collects them when a building permit application is filed. The proposed choice therefore changes what a developer pays when moving a new home toward construction; it does not directly set a charge on an existing homeowner's bill.

What it costs

The city's October presentation lays out three choices for a new detached dwelling in Service Area 2. Option 1 and staff option 3 list $6,884 from the start. Option 2 begins at $3,442, rises to $5,163 in its second year and reaches $6,884 in year three and later. These are proposed schedules for an ordinance, not rates already put into effect.

Proposed road fee per new detached dwelling in Service Area 2, by option and phase-in year
OptionYear 1Year 2Year 3+
1: Immediate maximum$6,884$6,884$6,884
2: Three-year phase-in$3,442$5,163$6,884
3: Staff proposal$6,884$6,884$6,884

City October 2026 presentation. Option 3 also explores possible incentives; the table shows its stated detached-dwelling fee before any such incentive.

The second row shows the timing tradeoff. A Comal.News calculation from the city's proposed rates puts option 2 at $3,442 less per dwelling than immediate full collection in year one and $1,721 less in year two. By year three, the listed rates match. The difference is per permit, so total collections would also depend on how many qualifying homes reach the permit stage in each year.

Who pays and who benefits

The first-year benefit of a phase-in is a smaller charge to the developer at the permit stage. Immediate full collection would bring in $3,442 more per new detached dwelling in that first year. The city's financial audit describes impact-fee revenue as tied to eligible road-capacity improvements within the service area that generated it. The question for council is how quickly to collect that revenue while setting the upfront fee for new development.

Staff option 3 keeps the listed $6,884 fee while exploring possible incentives for infill or redevelopment. An incentive could change the cost for a qualifying project if council later defines and adopts one; the presentation's listed detached-home rate remains $6,884. That makes option 3 a different policy path from the across-the-board three-year schedule in option 2.

What has to go right

A lower fee on each early permit means less revenue from that permit for eligible road capacity than the immediate maximum would provide. How large that difference becomes across Service Area 2 depends on the number and timing of permits. Likewise, the value of collecting more sooner depends on when eligible projects need the money. A past audit balance cannot substitute for those forward-looking counts and schedules.

The next decision

Council ordinance readings are scheduled for Nov. 9 and Nov. 23, and the presentation recommends an April 1, 2027, effective date. The ordinance text and council outcomes will establish which schedule, if any, takes effect. Residents can compare the three choices in the city's roadway impact fee presentation before those readings.

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