HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/16/2021 - SECOND READING OF ORDINANCE NO. 143, 2021, AMENDIN Agenda Item 7
Item # 7 Page 1
AGENDA ITEM SUMMARY November 16, 2021
City Council
STAFF
Jennifer Poznanovic, Project and Revenue Manager
John Duval, Legal
SUBJECT
Second Reading of Ordinance No. 143, 2021, Amending Chapter 7.5 of the Code of the City of Fort C ollins to
Increase for Inflation the Capital Expansion Fees and the Transportation Expansion Fee.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on November 2, 2021, updates annual inflation rates
effective January 1, 2022, associated with the City’s Capital Expansion Fees and its Transportation Expansion
Fee. Inflation updates are 1.9% for the Capital Expansion Fees and 7.4% for the Transportation Expansion
Fee.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, November 2, 2021 (w/o attachments) (PDF)
2. Ordinance No. 143, 2021 (PDF)
Agenda Item
Item # Page 1
AGENDA ITEM SUMMARY November 2, 2021
City Council
STAFF
Jennifer Poznanovic, Project and Revenue Manager
John Duval, Legal
SUBJECT
First Reading of Ordinance No. 143, 2021, Amending Chapter 7.5 of the Code of the City of Fort Collins to
Increase for Inflation the Capital Expansion Fees and the Transportation Expansion Fee.
EXECUTIVE SUMMARY
The purpose of this item is to make annual inflation updates effective January 1, 2022, associated with the City’s
Capital Expansion Fees and its Transportation Expansion Fee. Inflation updates are 1.9% for the Capital
Expansion Fees and 7.4% for the Transportation Expansion Fee.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinances on First Reading.
BACKGROUND / DISCUSSION
Since the fall of October 2016, staff has worked to coordinate the process for updating all development related
impact fees that require Council approval. This resulted in the completion of two studies, the Capital Expansion
Fee Study dated August 2016 (CEF Study) for the neighborhood park, community park, fire, police and general
government capital expansion fees (CEFs) and the Transportation Capital Expansion Fee Study dated April
2017 (TCEF Study) for the transportation expansion fee (TEF).
Development related impact fees that are approved by Council are CEFs, TEFs, and five Utility plant investment
fees (Utility PIFs).
ATTACHMENT 1
COPY
Agenda Item
Item # Page 2
Previously, fee updates were presented to Council on an individual basis. However, it was determined that
updates should occur on a regular two and four-year cadence and fees update should occur together each year
to provide a more holistic view of the impact of any fee increases.
Fee coordination includes a detailed fee study analysis for CEFs and the TEF every four years. This requires an
outside consultant through a request for proposal (RFP) process where data is provided by City staff. Findings
by the consultant are also verified by City staff. For Utility PIFs, a detailed fee study is planned every two years.
These are internal updates by City staff with periodic consultant verification. In the future, fee study analysis will
be targeted in the odd year before Budgeting for Outcomes (BFO). In years without an update, an inflation
adjustment occurs.
Below is the current fee timeline:
Phase I of the fee updates included CEFs, the TEF, Electric Capacity Fees, and Raw Water/Cash in Lieu and
were adopted in 2017. Phase II included Wet Utility PIFs and step II of CEFs and the TEF, which were approved
in 2018.
Due to the concern in the development and building community around fee changes, Council asked for a fee
working group to be created to foster a better understanding of fees prior to discussing further fee updates. In
August of 2017, the Fee Working Group commenced and was comprised of a balanced group of stakeholders -
citizens, business-oriented individuals, City staff and a Council liaison. The Fee Working Group met 14 times
and was overall supportive of the fee coordination process and proposed fee updates.
The 2019 phase III update included Development Review fees, Electric Capacity fees, Water Supply
Requirement fees, Water, Sewer and Stormwater Plant Investment Fees and Step III of the 2017 Capital
Expansion Fees.
2020 fee updates (effective January 1, 2021) included: the Electric Capacity PIF; Water Supply PIF; Water,
Sewer and Stormwater PIFs; CEFs; and the TEF. All fee updates were inflation only adjustments. The CPI-U
index for Denver-Aurora-Lakewood was used for CEFs inflation (2.7%) and the Engineering News Record for
TEF inflation (0.6%). Utility PIFs inflation (3%) used a 3-year average of the Engineering News Record
Construction Cost Index.
The proposed fee updates in the Ordinance to be effective January 1, 2022, only include inflation adjustments
for the CEFs and the TEF. The inflation adjustments for the Utility PIFs are being presented to Council in a
separate agenda item at this meeting.
As provided in City Code Section 7.5-18, the CPI-U index for Denver-Aurora-Lakewood is used for CEFs inflation
(1.9%) and the Engineering News Record Construction Cost Index for TEF inflation (7.4%). Below is a summary
of the inflation adjustments for all six of these fees:
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Agenda Item
Item # Page 3
Again, please note the five Utility PIF inflation updates needing Council’s approval are being brought forward in
a separate item at the November 2 meeting along with other utility rates that are changing in 2022. Staff plans
to return to the regular two and four-year cadence for fee updates unrelated to inflation beginning next year.
CITY FINANCIAL IMPACTS
Fee updates will result in an increase to fee payers.
Fees Effective January 2022
Land Use Type Unit N'hood Park
Comm.
Park Fire Police Gen. Gov't TCEF Total
Total
% Δ
Residential, up to 700 sq. ft. Dwelling $1,941 $2,741 $475 $266 $647 $2,523 $8,594 3.5%
Residential, 701-1,200 sq. ft. Dwelling $2,599 $3,669 $643 $360 $873 $4,686 $12,830 3.9%
Residential, 1,201-1,700 sq. ft. Dwelling $2,838 $4,007 $699 $391 $953 $6,085 $14,973 4.1%
Residential, 1,701-2,200 sq. ft. Dwelling $2,867 $4,048 $711 $397 $968 $7,115 $16,106 4.3%
Residential, over 2,200 sq. ft. Dwelling $3,196 $4,513 $791 $442 $1,077 $7,626 $17,645 4.2%
Commercial 1,000 sq. ft. 0 0 $599 $335 $1,637 $9,285 $11,855 6.2%
Office and Other Services 0 0 $599 $335 $1,637 $6,840 $9,411 5.9%
Industrial/Warehouse 1,000 sq. ft. 0 0 $140 $78 $386 $2,208 $2,811 6.2%COPY
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ORDINANCE NO. 143, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 7.5 OF THE CODE OF THE CITY OF FORT
COLLINS TO FOR INFLATION THE CAPITAL EXPANSION FEES AND THE
TRANSPORTATION EXPANSION FEE
WHEREAS, the City is a home rule municipality having the full right of self-government
in local and municipal matters under the provisions of Article XX, Section 6 of the Colorado
Constitution; and
WHEREAS, among the City’s home rule powers is the power to regulate, as a matter of
purely local and municipal concern, the development of real property within the City and establish
impact fees for such development; and
WHEREAS, the City Council has determined that new development should contribute its
proportionate share of providing the capital improvements that are typically funded with impact
fees; and
WHEREAS, the City Council has broad legislative discretion in determining the
appropriate funding mechanisms for financing the construction of public facilities in the City; and
WHEREAS, Article II of City Code Chapter 7.5 imposes as an impact fee on new
development capital expansion fees for community parkland, police, fire protection and general
government (collectively, “CEFs”) and a transportation expansion fee (the “TEF”); and
WHEREAS, Article V of City Code Chapter 7.5 imposes as an impact fee on new
development a capital expansion fee for neighborhood parkland (the “Neighborhood Parkland
CEF”); and
WHEREAS, City Code Section 7.5-18 provides that the CEFs and the TEF are to be
increased or decreased annually for inflation; and
WHEREAS, the CEFs are to be increased or decreased annually according to the Denver-
Boulder Consumer Price Index for Urban Consumers, as published by the Bureau of Labor
Statistics (the “CEF Inflation Factor”); and
WHEREAS, the TEF is to be increased or decreased annually according to the Engineering
News Record Denver Regional Construction Cost Index (the “TEF Inflation Factor”); and
WHEREAS, the CEF Inflation Factor increased by 1.9% in 2021 and the TEF Inflation
Factor increased by 7.4% in 2021; and
WHEREAS, the City Council has determined that it is in the best interest of the City and
its residents and necessary for the protection of the public’s health, safety and welfare, that
effective January 1, 2022, the CEFs and the Neighborhood CEF should be increased for inflation
by 1.9% and the TEF should be increased for inflation by 7.4%, as hereafter provided.
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NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That Section 7.5-28(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-28. - Community parkland capital expansion fee.
(a) There is hereby established a community parkland capital expansion fee which shall be
imposed pursuant to the provisions of this Article for the purpose of funding capital
improvements related to the provision of community parks, as such improvements may be
identified in the capital improvements plan for community parkland. Such fee shall be payable
prior to the issuance of any building permit for a residential structure. The amount of such fee
shall be determined per dwelling unit as follows:
2021 As of
January 1, 2022
Resid., up to 700 sq. ft. $2,690.00 $2,741.00
Resid., 701 to 1,200 sq. ft. 3,601.00 3,669.00
Resid., 1,201 to 1,700 sq. ft. 3,932.00 4,007.00
Resid., 1,701 to 2,200 sq. ft. 3,973.00 4,048.00
Resid., over 2,201 sq. ft. 4,429.00 4,513.00
In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit
shall be based upon the average size of the dwelling units contained within each such structure.
Section 3. That Section 7.5-29(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-29. - Police capital expansion fee.
(a) There is hereby established a police capital expansion fee which shall be imposed pursuant to
the provisions of this Article for the purpose of funding capital improvements related to the
provision of police services, as such improvements may be identified in the capital
improvements plan for police services. Such fee shall be payable prior to the issuance of any
building permit for a residential, commercial or industrial structure. The amount of such fee
shall be determined as follows:
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2021 As of
January 1, 2022
Resid., up to 700 sq. ft. $261.00 $266.00
Resid., 701 to 1,200 sq. ft. 353.00 360.00
Resid., 1,201 to 1,700 sq. ft. 384.00 391.00
Resid., 1,701 to 2,200 sq. ft. 390.00 397.00
Resid., over 2,200 sq. ft. 434.00 442.00
Commercial buildings (per 1,000
sq. ft.) 329.00 335.00
Industrial buildings (per 1,000 sq.
ft.) 76.00 78.00
In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit
shall be based upon the average size of the dwelling units contained within each such structure.
Section 4. That Section 7.5-30(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-30. - Fire protection capital expansion fee.
(a) There is hereby established a fire protection capital expansion fee which shall be imposed
pursuant to the provisions of this Article for the purpose of funding capital improvements
related to the provision of fire services, as such improvements may be identified in the capital
improvements plan for fire protection services. Such fee shall be payable prior to the issuance
of any building permit for a residential, commercial or industrial structure. The amount of
such fee shall be determined as follows:
2021 As of
January 1, 2022
Resid., up to 700 sq. ft. $466.00 $475.00
Resid., 701 to 1,200 sq. ft. 631.00 643.00
Resid., 1,201 to 1,700 sq. ft. 686.00 699.00
Resid., 1,701 to 2,200 sq. ft. 697.00 711.00
Resid., over 2,200 sq. ft. 776.00 791.00
Commercial buildings (per 1,000 sq. ft.) 588.00 599.00
Industrial buildings (per 1,000 sq. ft.) 137.00 140.00
In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit
shall be based upon the average size of the dwelling units contained within each such structure.
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Section 5. That Section 7.5-31(a) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-31. - General governmental capital expansion fee.
(a) There is hereby established a general governmental capital expansion fee which shall be
imposed pursuant to the provisions of this Article for the purpose of funding capital
improvements related to the provision of general governmental services, as such
improvements may be identified in the capital improvements plan for general governmental
services. Such fee shall be payable prior to the issuance of any building permit for a
residential, commercial or industrial structure. The amount of such fee shall be determined as
follows:
2021 As of
January 1, 2022
Resid., up to 700 sq. ft. $635.00 $647.00
Resid., 701 to 1,200 sq. ft. 857.00 873.00
Resid., 1,201 to 1,700 sq. ft. 935.00 953.00
Resid., 1,701 to 2,200 sq. ft. 950.00 968.00
Resid., over 2,200 sq. ft. 1,057.00 1,077.00
Commercial buildings (per 1,000 sq.
ft.) 1,606.00 1,637.00
Industrial buildings (per 1,000 sq.
ft.) 379.00 386.00
In the case of duplexes and multi-family structures, the amount of the fee for each dwelling unit
shall be based upon the average size of the dwelling units contained within each such structure.
Section 6. That Section 7.5-32 of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-32. - Transportation expansion fee.
There is hereby established a transportation expansion fee which shall be imposed pursuant to the
provisions of this Article for the purpose of funding transportation improvements related to the
provision of transportation services. Such fees shall be payable prior to the issuance of any building
permit for a residential, commercial or industrial structure. These fees shall be deposited in the
“transportation improvements fund” established in § 8-87. The amount of such fee shall be
determined as follows:
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TRANSPORTATION EXPANSION FEE SCHEDULE
2021 As of
January 1, 2022
Resid., up to 700 sq. ft. $2,349.00 $2,523.00
Resid., 701 to 1,200 sq. ft. 4,362.00
4,686.00
Resid., 1,201 to 1,700 sq. ft. 5,664.00 6,085.00
Resid., 1,701 to 2,200 sq. ft. 6,623.00 7,115.00
Resid., over 2,200 sq. ft. 7,099.00 7,626.00
Commercial 8,642.00 9,285.00
Office and Other Services 6,367.00 6,840.00
Industrial/Warehouse 2,055.00 2,208.00
Section 7. That Section 7.5-71(b) of the Code of the City of Fort Collins is hereby
amended to read as follows:
Sec. 7.5-71. - Neighborhood parkland capital expansion fee.
(b) The amount of the fee established in this Section shall be determined for each dwelling unit
as follows:
2021 As of
January 1, 2022
Resid., up to 700 sq. ft. $1,905.00 $1,941.00
Resid., 701 to 1,200 sq. ft. 2,550.00 2,599.00
Resid., 1,201 to 1,700 sq. ft. 2,785.00 2,838.00
Resid., 1,701 to 2,200 sq. ft. 2,814.00 2,867.00
Resid., over 2,200 sq. ft. 3,136.00 3,196.00
Introduced, considered favorably on first reading, and ordered published this 2nd day of
November, A.D. 2021, and to be presented for final passage on the 16th day of November, A.D.
2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk
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Passed and adopted on final reading on the 16th day of November, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
Interim City Clerk