In 1993, the City of Plano adopted a Park Fee program, with a fee of $467.47 per single-family unit and $323.96 per multi-family unit.

In 2019, City Council approved a revised park fee, raising the fee to $2,065.43 for single-family units and $1,443.66 for multi-family units.

In 2025, per ordinance, and in conjunction with the City’s Fiscal Roadmap effort, the Parks and Recreation Department initiated a review of current fees to assess efficacy.

On July 15, 2025, the Parks and Recreation Planning Board reviewed staff’s proposed revised fees of $5,691.41 per single-family unit and $4,359.86 per multi-family unit. The Board voted 8-0 in favor of forwarding the proposed fees to City Council for consideration and adoption. Additionally, on July 15, the Board recommended staff review the Park Fee amounts within 24 months to ensure efficacy and to periodically review the methodology used to determine the fee to ensure applicability.

In 1993, the City of Plano adopted a Park Fee program. The Park Fee program charges a one-time fee for each new residential unit.  The purpose of the fee is to provide supplemental funding for the acquisition of park land and the construction of park improvements to serve individuals and families residing in these new units.  The Fee distinguishes between single-family units and multifamily units (apartments), with a specific fee for each.  The fee does not apply to existing residential units.

Since the Park Fee program is designed to provide for the park and open space needs of payees, certain constraints are built into the program.

For example, the program segments the city into 14 sectors or zones (Exhibit A).  Per ordinance, the collected fee can only be used within the zone from which it is collected.  This requirement ensures a more direct benefit to Park Fee payees.  Additionally, the fee can only be used to buy or develop two categories of parks: neighborhood parks and linear parks.  These two park types or categories serve smaller, more specific service areas, generally a neighborhood where residents live within a one-half-mile radius or 10-minute walk from park amenities.

In 2019, the City Council adopted the current Park Fee rate of $2,065 for single-family units and $1,443 for multi-family units.  The ordinance requires a review every five years.  It is staff’s recommendation that City Council consider updating the Park Fee to meet existing conditions based on two factors: 1) Plano’s development status (only 4% of Plano remains undeveloped) and 2) the passage of Senate Bill (SB) 840.

• Development: Plano is a very desirable destination for individuals, families, and businesses. It is routinely ranked as one of the best places to live, work, and play.  With only 4 percent undeveloped land remaining, land values in Plano will continue to rise, making the acquisition of park land more expensive and cost-prohibitive.
• Senate Bill 840: Legislation allows multifamily housing to be constructed in commercial areas throughout Plano.  It reduces the City’s ability to regulate density, parking, height, lot coverage and setbacks.  The Legislation also reduces the City’s ability to require open space in new multifamily housing developments.  As a result, we expect to see more multifamily homes with a higher demand for public parks in commercial areas.

The Park Fee calculation methodology incorporates best practices from other Texas communities, as well as those highlighted in academic research.  The methodology was adopted by the city in 2019, following a review by an outside consultant.

Plano uses appraised values, as provided by an independent party, to determine the fair market value.  Land valuation is a crucial factor in determining the fee setting.  A broadly accepted goal is to attain fair market value of the land acquisition cost.  Staff received a Market Study of neighborhood and linear parks land sales in August 2024 from CBRE that provides park land acquisition values.  Staff also reviewed internal actual costs for developing neighborhood parks and linear parks over the past five years to develop a full cost to acquire and build parks.  It is notable that land costs have increased dramatically in North Texas over the last five years.

• Appraised land value increases
  • Neighborhood parkland up 240%
    • 2018: $164,131/acre
    • 2024: $393,318/acre
  • Linear parkland up 455%
    • 2018: $75,935/acre
    • 2024: $393,318/acre
• Actual construction cost increases
  • Neighborhood park costs up 22%
    • 2018: $1,500,000
    • 2024: $1,837,077
  • Linear park costs up 31% 
    • 2018: $2,500,000
    • 2024: $3,267,750

 For these reasons, City staff is recommending a Park Fee increase to $5,691 for single-family units and $4,359 for multi-family units.

Approval of this item will increase revenues to the Park Service Area Fees Fund.  The total amount of the increase will be based on the number of new single-family and multifamily units and is therefore indeterminable.

Approval of this fee increase will support the City's Strategic Plan Critical Success Factor of being an Excellent, Innovative, and Accountable City Government.