New regulations passed by the 2023 Texas Legislature will reduce the city of Austin's authority to administer parkland dedication fees and require new formulas for calculating them, according to a city press release.

Signed into law June 10, the state bill requires changes to Austin’s regulations for new developments starting next year. It "reduces the City’s authority to administer parkland dedication fees, prescribes new formulas for parkland dedication and fees in lieu, and places caps on the amount of parkland that can be required and fees that can be charged," according to the release.

The city's parks and recreation department estimates that fees per dwelling unit will be 40 percent to 70 percent lower as a result of the new law. The law also prevents the city from placing parkland requirements on commercial development, overriding amendments the Austin City Council approved last year.

The city will also need to set new boundaries to designate its central business district and urban and suburban as defined by the new state rules and will hold a public hearing to get input on the matter at its October 19 city council meeting. 

Current fees support parkland at 9.4 acres per 1,000 residents. The state changes that to 0.075 acres per 1,000 residents in the Central Business District, 0.75 acres per 1,000 in the urban area, and 3 acres per 1,000 in the suburban area.

The city says the changes may limit the its ability to meet parkland dedication targets, most likely in areas designated CBD and urban.