Impact Fees

Impact Fees are a way to fund new roadways, water and sewer infrastructure that are needed for growth and new development in the City of Sherman. These fees are a one-time charge assessed to new development; existing development will not be assessed impact fees. Fees are assessed to new residential, commercial, and industrial development based on their future impact to the roadway, water, and wastewater systems. Roadway impact fees are collected when new development applies for a building permit. Water and wastewater fees are assessed when new development applies for a water meter. The fee amount varies by land use category and water meter size. See the Impact Fee Calculator link below to see the rates.

Impact Fee Service Areas

The service area for impact fees are a geographic area in which the collected impact fees must be used on improvements within that same service area. For Roadway Impact Fees, the City is divided into four Service Areas. For Water and Wastewater, the service area comprises of portions of the City and the City’s Extra Territorial Jurisdiction (ETJ). Service Area Maps

Impact Fee Schedule

Ordinance No. 6326 was amended on September 6th, 2022 (Ord. No. 6522). The effective date for collecting Impact Fees in the City of Sherman is June 7, 2021. The new Collection Rate established by City Council on September 6th, 2023 will be effective January 1, 2023.

Impact Fee Calculator
2020 Roadway, Water, and Wastewater Impact Fee Study (Update)
Ordinance No. 6522 (Updated Ordinance)
Ordinance No. 6326 (Original Ordinance)