Loading...
HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/12/2013 - CAPITAL IMPROVEMENTS EXPANSION FEE UPDATEDATE: February 12, 2013 STAFF: Jessica Ping-Small Mike Beckstead Pre-taped staff presentation: available at fcgov.com/clerk/agendas.php WORK SESSION ITEM FORT COLLINS CITY COUNCIL SUBJECT FOR DISCUSSION Capital Improvements Expansion Fee Update. EXECUTIVE SUMMARY Capital Improvement Expansion Fees were first implemented in 1996. In the fall of 2012, staff initiated a comprehensive review of the original study. The goal of the review was to ensure that the methodology first implemented was still applicable and to assess the fee structure to confirm that it was consistent with the current level of service. To assist with the review, Finance staff contracted with Duncan Associates, a nationally known firm that specializes in impact fees. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What feedback or questions does City Council have related to the draft study regarding: a. Methodology b. Fee calculations c. Factors driving fee adjustments 2. Is there additional information that City Council would like provided prior formal consideration on March 5, 2013? BACKGROUND / DISCUSSION Capital Improvement Expansion fees are used to require new developments to pay a proportionate share of infrastructure costs. The City’s Capital Improvement Expansion fees were originally prepared and adopted in 1996. The fees included in the study are: • Neighborhood Parks • Community Parks • Fire • Police • General Government Although the fees have been updated annually for inflation according to the Denver-Boulder- Greeley Consumer Price Index, there has not been a comprehensive review of the study since implementation. Staff worked with the Duncan Associates to review the methodology and update the fees. The February 12, 2013 Page 2 outcome of the study retains the basic methodology of incremental expansion but recommends minor changes to some of the inputs. The fees have all been updated based on current level of service which factors in current capital assets for all fees. Key Updates from 1996 Study • Neighborhood Parks and Community Parks: Changes have been made in this update in determining the service units for parks. A service unit is the standard measure of demand used in calculating capital expansion fees. Per the study conducted by Duncan Associates, the park fees continue to be based on population, but rather than using population directly, the number of people is translated into equivalent dwelling units, based on the average number of residents in an occupied single-family detached unit. This approach has the advantage of eliminating the need to consider occupancy rates, which can be quite variable over time. • Community Parks: A new Trail fee is included in the Community Parkland fee. The fee will provide funding to help build out our paved trail system. The City is planning to build an additional 30.7 miles of trail at an estimated cost of 24 million dollars. The Conservation Trust Fund from the state Lottery provides about 1.2 million dollars annually. Of this amount, $470,000 is allocated in the budget for new trails and $730,000 is allocated to parks and trail maintenance. The Natural Areas program also provides $350,000 annually for new trails, but this funding may not be available after 2014 because it may be needed for Natural Area operations. This means, without the Trail fee, or other new funding, it will take 50 years to complete the trail system. It should also be noted that the Conservation Trust Fund is scheduled to sunset in 2024 unless it is extended. Based on expected population growth rates, staff anticipates collecting $450,000 annually from the new Trail fee, on average. This revenue, together with the $470,000 from Conservation Trust would provide $920,000 annually for new trails. This reduces the time to build out the trail system from 50 years to 25 years. • Fire, Police and General Government: Functional Population was retained as the service unit or measure for Fire, Police and General Government. Nonresidential functional population was simplified from the previous study using a typical weekday versus separate calculations for weekends. • General Government: The Streets facilities and equipment was included as part of the infrastructure for the updated fee calculations. As the Streets facilities and equipment serve the purpose of General Government, it was appropriate to include them in the current update. Streets capital was not included in the original 1996 fee calculations. Updated Fee Structure – What is driving the increase? • Updated inventory of capital assets which includes facilities and vehicles • Current level of service has increased based on updated infrastructure information • Updated household data which resulted in less variation between small and large units then previous study February 12, 2013 Page 3 Per the updated fee study, the fees are going up almost across the board. Although the increase may seem substantial, the calculations are based on the current level of service using up to date capital asset information and housing data from the American Housing survey which was adjusted for Fort Collins. The attached study is in draft form; however, the methodologies and inputs are not likely to change significantly. Current Fund Balance Information 1. Neighborhood Parkland Fees Expenditures shall be made for approved purposes for the acquisition, development and administration of neighborhood parks, including purchases of new or replacement park site equipment and plantings. February 12, 2013 Page 4 • Fund Balance as of December 31, 2012: $5,580,000 • Offers Funded in 2013 Budget: $750,000 • Offers Funded in 2014 Budget: $1,050,000 2. Community Parkland Fees Expenditures shall be made for the acquisition, construction and development of capital improvements related to the provision of community parklands. • Fund Balance as of December 31, 2012: $8,750,000 • Offers Funded in the 2013 Budget: $1,270,000 3. Fire Protection Capital Improvement Expansion Fees Expenditures shall be made for the acquisition, construction and development of capital improvements related to the provision of fire protection services to City residents, as described in the capital improvements plan for fire protection. • Fund Balance as of December 31, 2012: $190,000. The balance is being used by Poudre Fire Authority to pay debt service on Station #4. 4. Police Capital Expansion Fees Expenditures shall be made for the acquisition, construction and development of capital improvements related to the provision of police services as described in the capital improvements plan for police services. • Fund Balance as of December 31, 2012: $960,000. The balance is being used to pay debt service on new Police Facility. 5. General Government Capital Expansion Fees Expenditures shall be made for the purpose of funding capital improvements related to the provision of general governmental services. • Fund Balance as of December 31, 2012: $6,030,000 of which $5,000,000 has been loaned to the URA for North College Marketplace and JAX, leaving only $1,030,000 in liquid investments, it was not anticipated this money was needed before the loan will be repaid. NEXT STEPS City Council will formally consider the recommended updates to the Capital Improvement Expansion Fees at the March 5, 2013 Regular Meeting. February 12, 2013 Page 5 ATTACHMENTS 1. Draft Fee Study 2. Power Point Presentation Capital Expansion Fee Study for the City of Fort Collins, Colorado prepared by February 2013 ATTACHMENT 1 Table of Contents EXECUTIVE SUMMARY ................................................................................................................ 1 Background....................................................................................................................................... 1 Methodology .................................................................................................................................... 1 Demand Factors .............................................................................................................................. 1 Comparative Fees ............................................................................................................................ 2 PARKS .................................................................................................................................................. 4 Service Units ..................................................................................................................................... 4 Cost per Service Unit ...................................................................................................................... 5 Net Cost per Service Unit .............................................................................................................. 7 Potential Fees ................................................................................................................................... 7 FIRE ...................................................................................................................................................... 9 Service Units ..................................................................................................................................... 9 Cost per Service Unit ...................................................................................................................... 9 Net Cost per Service Unit ............................................................................................................ 10 Potential Fees ................................................................................................................................. 10 POLICE .............................................................................................................................................. 12 Service Units ................................................................................................................................... 12 Cost per Service Unit .................................................................................................................... 12 Net Cost per Service Unit ............................................................................................................ 13 Potential Fees ................................................................................................................................. 14 GENERAL GOVERNMENT ....................................................................................................... 15 Service Units ................................................................................................................................... 15 Cost per Service Unit .................................................................................................................... 15 Net Cost per Service Unit ............................................................................................................ 16 Potential Fees ................................................................................................................................. 16 APPENDIX A: DEMOGRAPHIC DATA ................................................................................. 18 Average Household Size by Housing Types ............................................................................. 18 Average Household Size by Unit Size ........................................................................................ 19 Existing Housing Units by Type ................................................................................................. 21 APPENDIX B: FUNCTIONAL POPULATION ...................................................................... 22 Residential Functional Population .............................................................................................. 22 Nonresidential Functional Population ....................................................................................... 23 Total Functional Population ........................................................................................................ 24 List of Tables Table 1. Current and Updated Capital Expansion Fees ................................................................ 3 Table 2. Park Service Unit Multipliers ............................................................................................. 4 Table 3. Park Service Units, 2012 ..................................................................................................... 4 Table 4. Existing Park and Trail Facilities ....................................................................................... 5 Table 5. Neighborhood Park Development Cost per Acre .......................................................... 5 Table 6. Community Park Development Cost per Acre ............................................................... 6 Table 7. Park Cost per Service Unit ................................................................................................. 7 Table 8. Potential Park Capital Expansion Fees............................................................................. 8 Table 9. Comparative Park Capital Expansion Fees ...................................................................... 8 Table 10. Existing Fire Stations ........................................................................................................ 9 Table 11. Existing Fire Cost per Service Unit .............................................................................. 10 Table 12. Potential Fire Capital Expansion Fees ......................................................................... 10 Table 13. Comparative Fire Fees .................................................................................................... 11 Table 14. Existing Police Vehicles .................................................................................................. 12 Table 15. Existing Police Cost per Service Unit ........................................................................... 13 Table 16. Police Debt Credit ........................................................................................................... 13 Table 17. Police Net Cost per Service Unit .................................................................................. 14 Table 18. Potential Police Capital Expansion Fees ...................................................................... 14 Table 19. Comparative Police Fees ................................................................................................ 14 Table 20. Existing General Government Facilities ...................................................................... 15 Table 21. General Government Cost per Service Unit ............................................................... 15 Table 22. General Government Debt Credit ................................................................................ 16 Table 23. General Government Net Cost per Service Unit ....................................................... 16 Table 24. Potential General Government Capital Expansion Fees ........................................... 16 Table 25. Comparative General Government Fees ..................................................................... 17 Table 26. Average Household Size, 2000 and 2010 ..................................................................... 18 Table 27. Average Household Size by Housing Type, 2000 ...................................................... 18 Table 28. Average Household Size by Housing Type, 2006-2010 ............................................ 19 Table 29. Change in Average Household Size, 2000-2010 ......................................................... 19 Table 30. Current Average Household Size by Housing Type .................................................. 19 Table 31. Average Household Size by Dwelling Unit Size, Western U.S., 2011 ..................... 20 Table 32. Dwelling Units by Housing Type, Fort Collins, 2000-2010 ...................................... 21 Table 33. Dwelling Units by Housing Type, Fort Collins, 2012 ................................................ 21 Table 34. Functional Population per Unit for Residential Uses ................................................ 23 Table 35. Functional Population per Unit for Nonresidential Uses ......................................... 24 Table 36. Existing Functional Population ..................................................................................... 24 Prepared by Duncan Associates 360 Nueces St., Suite 2701, Austin, Texas 78701 (512) 258-7347 x204, clancy@duncanassociates.com Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 1 February 1, 2013 EXECUTIVE SUMMARY This study provides the analysis required to update the City’s capital expansion fees for neighborhood park, community park, fire, police and general government facilities. The City’s capital expansion fees are impact fees that assess new developments for the proportionate share of the cost of new capital facilities required to serve them at the same level of service provided to existing development. Background The City’s capital expansion fees were originally adopted in June 1996, based on a study prepared by City staff.1 The fees have been updated periodically to account for inflation, but have not been comprehensively reevaluated in 16 years. The current community park fees are about 82% higher than the ones originally calculated in 1996, while the fire, police and general government fees are about 50% higher than originally calculated. The park fees were increased by 14% in 2000 to include the cost of irrigation water and required Americans with Disabilities Act improvements. Excluding this adjustment, the park fees were increased by 68% over the 16 year period to account for inflation. By way of comparison, the Engineering News-Record Construction Cost Index increased by 66% from June 1996 to June 2012. Methodology The same basic methodology employed in the 1996 study is retained in this update. The overall methodology is known as “incremental expansion.” The incremental expansion methodology bases the fees on the existing level of service. The concept behind the incremental expansion methodology is simple: as a community grows, capital facilities and equipment will need to be expanded proportional to the growth. The existing level of service, whether measured directly in terms of cost per service unit or indirectly in terms of an intervening variable, such as acres of parkland, is assumed to be adequate to serve existing development, but with little or no excess capacity to serve growth (an exception in this update is that the new police station is estimated to have about 25% excess capacity to serve future development). Demand Factors In impact fee analysis, the demand for services generated by different types of development must be expressed in terms of a common measure, known as a service unit. For example, residential population is a commonly-used service unit for park impact fees. For each land use type, the number of service units expected to be generated by a unit of development is specified in what is often called a demand equivalency table. In this table, for example, a new single-family detached home may be determined to house an average number of residents. Some changes have been made in this update in determining the service units and demand equivalency tables. The park fees continue to be based on population, but rather than using population directly, the number of people is translated into equivalent dwelling units, based on the 1 City of Fort Collins, Capital Expansion Cost Study, May 21, 1996. Executive Summary Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 2 February 1, 2013 average number of residents in an occupied single-family detached unit. This approach has the advantage of eliminating the need to consider occupancy rates, which can be quite variable over time. Functional population is retained as the service unit for fire, police and general government fees. Functional population represents the number of people present at a land use, expressed in full- time equivalents. While the service units are relatively unchanged, the methodology used to calculate the demand equivalency tables have been modified somewhat in this update. The park fees are based on dwelling unit size, expressed in square footage and divided into five size ranges (up to 700 square feet, for example). To determine persons per unit by unit size, the 1996 study relied on census data, which does not include information on the size of the dwelling unit. Since the census does provide data on the number of bedrooms, bedrooms were used as an indicator of unit size. Building permit data were analyzed to determine the relationship between bedrooms and square footage, and regression analysis was used to determine persons by unit size ranges. This update relies on a single data source, the American Housing Survey, that provides information on both number of residents and unit size. Since the data provided by the American Housing Survey are regional (western United States), the results have been adjusted to match the overall average household size in Fort Collins. The basic functional population methodology used in the 1996 study was also used in this update. A minor change was to simplify the calculation of functional population multipliers for nonresidential land uses. The 1996 study calculated nonresidential functional population on a weekly basis, with separate calculations for weekdays and weekends, while this update uses a daily approach based on a typical weekday. Comparative Fees Current and updated capital expansion fees are shown in Table 1. As noted, this is the first comprehensive update of the City’s capital expansion fees in 16 years. All of the inputs into the calculation of fees were updated. This update included an inventory of existing capital facilities, determination of current costs and identification of existing levels of service. Changes in costs and levels of service, however, would cause fees to go up or down uniformly for all land use types. Changes to inputs that would affect fees differently by land use type are related to the demand equivalency tables discussed above. Changes to residential fees by unit size for all the fee types are the result of utilizing a more direct data source for linking residents and unit size. This resulted in less variation between the number of residents in the smallest and largest size ranges than was found in the 1996 study. Consequently, the updated fees for smaller units increase more than fees for larger units. Fire and police tend to increase less for nonresidential than for residential units, while the opposite is true for general government fees. This reflects changes in the functional population multipliers. While the calculation of residential functional population is simple and unchanged from the previous study, the calculation of nonresidential functional population requires many inputs, including trip generation rates, average vehicle occupancy, employee density and average time spent at a land use. Since the 1996 study did not specify what inputs were used, it is not possible to determine precisely what input changes were responsible for the residential/nonresidential variability in the updated fees compared to the current fees. Executive Summary Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 3 February 1, 2013 The total of all five fees is higher than current fees for all land uses except for the largest residential units. It should be kept in mind while that the percentage increases for nonresidential look high, the nonresidential fees are relatively low. For example, the 89% increase for commercial equates to only $0.56 more per square foot. Table 1. Current and Updated Capital Expansion Fees N'hood Comm. Gen. Land Use Type Unit Park Park Fire Police Gov't Total Current Fees Residential, up to 700 sq. ft. Dwelling $920 $1,023 $110 $74 $139 $2,266 Residential, 701-1,200 sq. ft. Dwelling $1,302 $1,451 $157 $107 $197 $3,214 Residential, 1,201-1,700 sq. ft. Dwelling $1,531 $1,704 $183 $127 $231 $3,776 Residential, 1,701-2,200 sq. ft. Dwelling $1,759 $1,961 $211 $145 $267 $4,343 Residential, over 2,200 sq. ft. Dwelling $2,142 $2,385 $257 $177 $324 $5,285 Commercial 1,000 sq. ft. $0 $0 $225 $157 $252 $634 Industrial 1,000 sq. ft. $0 $0 $62 $43 $70 $175 Updated Fees Residential, up to 700 sq. ft. Dwelling $1,181 $1,475 $260 $128 $300 $3,344 Residential, 701-1,200 sq. ft. Dwelling $1,515 $1,893 $331 $162 $384 $4,285 Residential, 1,201-1,700 sq. ft. Dwelling $1,674 $2,091 $366 $180 $423 $4,734 Residential, 1,701-2,200 sq. ft. Dwelling $1,744 $2,179 $381 $187 $443 $4,934 Residential, over 2,200 sq. ft. Dwelling $1,868 $2,333 $408 $200 $475 $5,284 Commercial 1,000 sq. ft. $0 $0 $314 $154 $730 $1,198 Industrial 1,000 sq. ft. $0 $0 $75 $37 $171 $283 Change Residential, up to 700 sq. ft. Dwelling $261 $452 $150 $54 $161 $1,078 Residential, 701-1,200 sq. ft. Dwelling $213 $442 $174 $55 $187 $1,071 Residential, 1,201-1,700 sq. ft. Dwelling $143 $387 $183 $53 $192 $958 Residential, 1,701-2,200 sq. ft. Dwelling -$15 $218 $170 $42 $176 $591 Residential, over 2,200 sq. ft. Dwelling -$274 -$52 $151 $23 $151 -$1 Commercial 1,000 sq. ft. $0 $0 $89 -$3 $478 $564 Industrial 1,000 sq. ft. $0 $0 $13 -$6 $101 $108 Percent Change Residential, up to 700 sq. ft. Dwelling 28% 44% 136% 73% 116% 48% Residential, 701-1,200 sq. ft. Dwelling 16% 30% 111% 51% 95% 33% Residential, 1,201-1,700 sq. ft. Dwelling 9% 23% 100% 42% 83% 25% Residential, 1,701-2,200 sq. ft. Dwelling -1% 11% 81% 29% 66% 14% Residential, over 2,200 sq. ft. Dwelling -13% -2% 59% 13% 47% 0% Commercial 1,000 sq. ft. n/a n/a 40% -2% 190% 89% Industrial 1,000 sq. ft. n/a n/a 21% -14% 144% 62% Source: Current fees from City of Fort Collins, Annual Report of Development Impact Fees, Reported as of June 30, 2012; updated fees from Table 8 (parks), Table 12 (fire), Table 18 (police) and Table 24 (general government). Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 4 February 1, 2013 PARKS The City provides a number of public park facilities for the benefit of residents. This section calculates updated community and neighborhood park capital expansion fees. Service Units The demand for City park facilities is generated by people. However, it is preferable to base the service unit on housing units, since the number of housing units can be more easily determined than the number of people, which is affected by highly variable occupancy rates. The proposed service unit for the park impact fee update is an equivalent dwelling unit or EDU. An EDU represents the average number of people living in a single-family detached dwelling unit. A single-family home is by definition one park service unit. The number of service units associated with other types and sizes of dwelling units is determined by dividing average household size of that housing type by the average household size of a single-family unit. The resulting service unit multipliers are presented in Table 2. Table 2. Park Service Unit Multipliers Average Single-Family EDUs/ Housing Type Unit HH Size Avg. HH Size Unit Single-Family Detached Dwelling 2.76 2.76 1.00 Multi-Family Dwelling 1.85 2.76 0.67 Residential, up to 700 sq. ft. Dwelling 1.86 2.76 0.67 Residential, 701-1,200 sq. ft. Dwelling 2.38 2.76 0.86 Residential, 1,201-1,700 sq. ft. Dwelling 2.62 2.76 0.95 Residential, 1,701-2,200 sq. ft. Dwelling 2.73 2.76 0.99 Residential, over 2,200 sq. ft. Dwelling 2.93 2.76 1.06 Source: Average household size from Table 30 and Table 31 in Appendix A; EDUs/unit is average household size divided by single-family average household size. The existing number of service units can be determined by multiplying the estimated number of housing units by the service unit multipliers for each housing type and summing. Existing service units (EDUs) in the City of Fort Collins are calculated in Table 3. Table 3. Park Service Units, 2012 Existing EDUs/ Existing Housing Type Unit Units Unit EDUs Single-Family Detached Dwelling 35,838 1.00 35,838 Multi-Family Dwelling 25,846 0.67 17,317 Total 53,155 Source: Existing units from Table 33 in Appendix A; EDUs per unit from Table 2. Parks Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 5 February 1, 2013 Cost per Service Unit The City of Fort Collins provides a variety of parks and recreation facilities for it residents. Existing park and trail facilities are summarized in Table 4. Table 4. Existing Park and Trail Facilities Park Facility Type Number Acres Developed Community 6 507.65 Developed Neighborhood 27 352.48 Developed Pocket 11 14.83 Total Developed Acres 874.96 Undeveloped Parks/Natural Features 75.75 Total Park Acres 950.71 Trails 4 121.24 Source: City of Fort Collins Park Planning, December 4, 2012 and January 8, 2013. The cost per acre to develop a neighborhood park is shown in Table 5. Table 5. Neighborhood Park Development Cost per Acre General conditions, mobilization $60,000 Site survey and plat $7,000 Traffic control $7,000 Envirionemntal studies $10,000 Adjacent street improvements $15,000 Landscape architecture firm $6,000 Access drive and parking lot $20,000 Architect $30,000 Domestic water system $17,000 Engineering firm $15,000 Sanitory sewer system $25,000 Soils evaluation/testing $8,000 Demolition $7,000 Irrigation design $6,000 Topsoil management $25,000 As-built stormwater survey $5,000 Storm drainage improvements $15,000 Stormwater analysis/floodplain $15,000 Earthwork $70,000 Subtotal, Consultant Fees $102,000 Electrical service $15,000 Underground irrigation system $70,000 Lined irrigation pond $65,000 Street oversizing and local $5,000 Irrigation pump house and pumps $85,000 Light & Power charges $7,000 Raw water delivery system $15,000 Water plant investment fee $15,000 Restroom $200,000 Raw water fee $10,000 Picnic shelter(2) $55,000 Sewer plant investment fee $3,500 Playground infrastructure $25,000 Plan check and permit fees $2,000 Playground equipment/surface $70,000 Stormwater drainage fees $6,000 Sidewalks - concrete $20,000 Subtotal, Development Fees $48,500 Plaza area $20,000 Special feature - multi-use pad $35,000 Ballfield $30,000 Administration $80,000 Site lighting $5,000 Park mainteance facility $30,000 Landscape, trees, etc. $45,000 APP $11,781 Soil prep, and seeding $45,000 Raw water for irrigaiton $80,000 Bike racks, picnic tables, etc. $10,000 Total Development Cost $1,530,381 Contingency and change orders $107,100 ÷ Acres 6.8 Subtotal, Construction $1,178,100 Development Cost per Acre $225,056 Source: City of Fort Collins Park Planning, December 4, 2012 (2011 pricing). Parks Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 6 February 1, 2013 The cost per acre to develop a community park is shown in Table 6. Table 6. Community Park Development Cost per Acre General conditions $250,000 Bike racks, picnic tables, entry, etc. $250,000 Traffic control $10,000 Signage $50,000 Adjacent street improvements $100,000 Maintenance facility $200,000 Access drive and parking lots $840,000 Contingency and change orders $783,800 Domestic water system $60,000 Subtotal, Construction $7,338,000 Sanitary sewer system $55,000 Demolition $40,000 Site survey and plat $10,000 Topsoil removal/replacement $50,000 Environmental studies $15,000 Earthwork $475,000 Landscape Architecture firm $300,000 Strom drainage improvements $100,000 Architecture $80,000 Electrical & telecomm. service $300,000 Engineering firm $100,000 Underground irrigation system $500,000 Soils engineer site evaluation $35,000 Lined irrigation pond $60,000 Soils eningeer construction testing $40,000 Irigation pumphouse & pump $80,000 Irrigation design $70,000 Raw water delivery system $25,000 As-built survey w/stormwater need $15,000 Restrooms $470,000 Stormwater analysis $10,000 Picnic shelter (4) $350,000 Subtotal, Consultant Fees $675,000 Playground infrastructure $300,000 Playground equipment $500,000 Street oversizing and local $70,000 Sidewalks concrete/gravel paths $220,000 Light & Power charges $140,000 Plaza areas $163,000 Water plant investment fee $5,000 Special features, bike trials, etc. $10,000 Raw water fee- domestic $7,000 Ballfield (2) $80,000 Sewer plant investment fee $2,500 Skate park $200,000 Plan check and permit fees $45,000 Dog park with pond $120,000 Public R.O.W. inspection fees $45,000 Tennis courts $80,000 Storm drainage fee $15,000 Basketball courts $120,000 Subtotal, Development Fees $329,500 Splash park complete $150,000 Site features, walls, etc. $240,000 Administration $160,000 Site trail bridges, culverts, etc. $90,000 Art in Public Places $95,000 Site fencing $100,000 Raw water $300,000 Site lighting: ball fields, tennis, etc. $300,000 Total Development Cost $8,897,500 Landscape, trees, etc. $500,000 ÷ Acres 74.6 Soil prep and seeding $400,000 Development Cost per Acre $119,269 Source: City of Fort Collins Parks Department, December 2012 (2011 pricing). The existing level of service can be expressed in terms of the current cost per service unit, as shown in Table 7. The total cost represents the expenditure that would be required to acquire the amount of existing developed park land and to develop that land as parks and trails at today’s prices. The total cost is divided by the existing number of service units to determine the cost per service unit to provide the same level of service to future residents. Parks Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 7 February 1, 2013 Table 7. Park Cost per Service Unit Neighborhood/ Community Pocket Parks Parks/Trails Developed Acres 367.31 507.65 x Development Cost per Acre $225,056 $119,269 Existing Park Facility Cost $82,665,319 $60,546,908 Total Acres 367.31 628.89 x Land Cost per Acre $30,000 $30,000 Existing Park Land Cost $11,019,300 $18,866,700 Miles of Trails na 34.00 x Construction Cost per Mile na $1,104,626 Existing Trail Cost na $37,557,284 Total Existing Facility Cost $93,684,619 $116,970,892 ÷ Existing EDUs 53,155 53,155 Cost per EDU $1,762 $2,201 Source: Developed and total acres from Table 4; development cost per acre from Table 5 and Table 6; land cost per acre, miles of trails and trail cost per mile from Park Planning, December 5, January 18, 2013 and February 1, 2013; existing EDUs from Table 3. Net Cost per Service Unit Impact fees should be reduced in order to account for other types of revenues that will be generated by new development and used to fund capacity-expanding improvements of the same type as those to be funded by the impact fees. Cases in which such a credit is warranted include funding of existing deficiencies and outstanding debt payments on existing facilities. Since the fees are based on the existing level of service, there are no deficiencies. The City has no outstanding debt on past park improvements. Consequently, no credits against the park impact fee are required based on these criteria, and the net cost per service unit is the same as the cost per service unit calculated above. Potential Fees The maximum neighborhood and community park capital expansion fees that may be adopted by the City based on this study are determined by multiplying the number of service units generated by a dwelling unit by the net cost per service unit. The resulting fee schedules are presented in Table 8. Parks Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 8 February 1, 2013 Table 8. Potential Park Capital Expansion Fees EDUs/ Net Cost/ Net Cost/ Land Use Type Unit per Unit EDUs Unit Neighborhood Parks Residential, up to 700 sq. ft. Dwelling 0.67 $1,762 $1,181 Residential, 701-1,200 sq. ft. Dwelling 0.86 $1,762 $1,515 Residential, 1,201-1,700 sq. ft. Dwelling 0.95 $1,762 $1,674 Residential, 1,701-2,200 sq. ft. Dwelling 0.99 $1,762 $1,744 Residential, over 2,200 sq. ft. Dwelling 1.06 $1,762 $1,868 Community Parks Residential, up to 700 sq. ft. Dwelling 0.67 $2,201 $1,475 Residential, 701-1,200 sq. ft. Dwelling 0.86 $2,201 $1,893 Residential, 1,201-1,700 sq. ft. Dwelling 0.95 $2,201 $2,091 Residential, 1,701-2,200 sq. ft. Dwelling 0.99 $2,201 $2,179 Residential, over 2,200 sq. ft. Dwelling 1.06 $2,201 $2,333 Source: EDUs per unit from Table 2; net cost per EDU is cost per EDU from Table 7. The updated park fees are compared to current fees in Table 9. In general, the updated fees are higher for smaller units and lower for larger units. This reflects the fact that this study found that larger units have fewer residents than was found in the 1996 study. Table 9. Comparative Park Capital Expansion Fees Current Fee Updated Fee Percent Land Use Type Unit per Unit per Unit Change Neighborhood Parks Residential, up to 700 sq. ft. Dwelling $920 $1,181 28% Residential, 701-1,200 sq. ft. Dwelling $1,302 $1,515 16% Residential, 1,201-1,700 sq. ft. Dwelling $1,531 $1,674 9% Residential, 1,701-2,200 sq. ft. Dwelling $1,759 $1,744 -1% Residential, over 2,200 sq. ft. Dwelling $2,142 $1,868 -13% Community Parks Residential, up to 700 sq. ft. Dwelling $1,023 $1,475 44% Residential, 701-1,200 sq. ft. Dwelling $1,451 $1,893 30% Residential, 1,201-1,700 sq. ft. Dwelling $1,704 $2,091 23% Residential, 1,701-2,200 sq. ft. Dwelling $1,961 $2,179 11% Residential, over 2,200 sq. ft. Dwelling $2,385 $2,333 -2% Total Parks Residential, up to 700 sq. ft. Dwelling $1,943 $2,656 37% Residential, 701-1,200 sq. ft. Dwelling $2,753 $3,408 24% Residential, 1,201-1,700 sq. ft. Dwelling $3,235 $3,765 16% Residential, 1,701-2,200 sq. ft. Dwelling $3,720 $3,923 5% Residential, over 2,200 sq. ft. Dwelling $4,527 $4,201 -7% Source: Current fee from City of Fort Collins, Capital Improvement Expansion Fees, Effective January 2, 2012; updated fees from Table 8. Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 9 February 1, 2013 FIRE Fire protection and rescue service is provided in Fort Collins by the Poudre Fire Authority. The City owns the fire stations and apparatus that are located within the city limits. This section calculates updated fire capital expansion fees. Service Units The two most common methodologies used in calculating public safety (fire and police) service units and impact fees are the “calls-for-service” approach and the “functional population” approach. The 1996 study used the functional population approach, and this update retains this methodology. This approach is a generally-accepted methodology for both fire and police impact fee types, and is based on the observation that demand for public safety facilities tends to be proportional to the presence of people. This approach generates service unit multipliers that are similar to those based on call data, but are more stable over time.2 The service unit is functional population. The description of the functional population methodology, the calculation of the service unit multipliers and the determination of existing fire and police service units are presented in Appendix B. Cost per Service Unit The cost per service unit to provide fire protection to new development is based on the current level of service provided to existing development. The level of service is quantified as the ratio of the replacement cost of existing fire capital facilities to existing fire service units. The existing fire stations within the city limits are summarized in Table 10. Table 10. Existing Fire Stations Building Building Facility Address Acres Sq. Feet Cost Fire Station #1 Peterson 505 0.54 8,516 $1,672,835 Fire Station #2 S. Bryan 415 0.31 4,376 $729,125 Fire Station #3 Mathews 2000 0.55 6,500 $688,295 Fire Station #4 1945 W. Drake 3.54 15,380 $2,616,461 Fire Station #5 Hogan 4615 1.18 8,773 $1,431,268 Fire Station #6 Donella Ct. 2511 1.69 11,603 $1,635,268 Fire Station #7 N. Overalnd Trail 2817 0.24 5,627 $706,413 Fire Station #10 Vermont 2067 0.62 9,830 $1,213,549 Fire Station #12 E. Country Club Rd. 321 1.09 9,800 $1,308,246 Fire Station #14 2109 Westchase Rd. 0.89 10,800 $1,236,189 Total 10.65 91,205 $13,237,649 Source: City of Fort Collins and Poudre Fire Authority, December 3 and 5, 2012. 2 See Clancy Mullen, Fire and Police Demand Multipliers: Calls-for-Service versus Functional Population, proceedings of the National Impact Fee Roundtable, Arlington, VA, October 5, 2006 http://growthandinfrastructure.org/proceedings/ 2006_proceedings/fire%20police%20multipliers.pdf Fire Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 10 February 1, 2013 The fire stations and equipment serving existing development in Fort Collins have a total estimated replacement cost of $31 million, as summarized in Table 11. Dividing the total cost of existing capital facilities and equipment by the existing functional population results in a cost of $208 per service unit. Table 11. Existing Fire Cost per Service Unit Fire Facility Building Replacement Cost $13,237,649 Fire Facility Land Cost $319,500 Fire Vehicle Replacement Cost $17,607,388 Total $31,164,537 ÷ Existing Functional Population (24-Hour) 149,740 Net Cost per Functional Population $208 Source: Existing building cost from Table 10; land cost based on acres from Table 10 and $30,000 cost per acre; vehicle replacement cost from City of Fort Collins, December 5, 2012; existing 24-hour functional populaiton from Table 36. Net Cost per Service Unit Impact fees should be reduced in order to account for other types of revenues that will be generated by new development and used to fund capacity-expanding improvements of the same type as those to be funded by the impact fees. Cases in which such a credit is warranted include funding of existing deficiencies and outstanding debt payments on existing facilities. There are no existing deficiencies, since the fees are based on the existing level of service. The City does not have any debt on existing fire stations or capital leases on fire vehicles. Consequently, the net cost per service units is the same as the cost per service unit calculated above Potential Fees The maximum fire capital expansion fees that may be adopted by the City based on this study are determined by multiplying the number of service units generated by a unit of development by the net cost per service unit. The resulting fee schedule is presented in Table 12. Table 12. Potential Fire Capital Expansion Fees Func. Pop. Net Cost/ Net Cost/ Land Use Type Unit per Unit Func. Pop. Unit Residential, up to 700 sq. ft. Dwelling 1.25 $208 $260 Residential, 701-1,200 sq. ft. Dwelling 1.59 $208 $331 Residential, 1,201-1,700 sq. ft. Dwelling 1.76 $208 $366 Residential, 1,701-2,200 sq. ft. Dwelling 1.83 $208 $381 Residential, over 2,200 sq. ft. Dwelling 1.96 $208 $408 Commercial 1,000 sq. ft. 1.51 $208 $314 Industrial/Warehouse 1,000 sq. ft. 0.36 $208 $75 Source: Functional population per unit from Table 34 and Table 35 in Appendix B; net cost per functional population is cost per functional population from Table 11. Fire Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 11 February 1, 2013 Table 13 compares the current fire fees with the updated fire fees. The updated fees increase more for residential than for nonresidential uses, and more for smaller residential units than larger ones. Table 13. Comparative Fire Fees Current Fee Updated Fee Percent Land Use Type Unit per Unit per Unit Change Residential, up to 700 sq. ft. Dwelling $110 $260 136% Residential, 701-1,200 sq. ft. Dwelling $157 $331 111% Residential, 1,201-1,700 sq. ft. Dwelling $183 $366 100% Residential, 1,701-2,200 sq. ft. Dwelling $211 $381 81% Residential, over 2,200 sq. ft. Dwelling $257 $408 59% Commercial 1,000 sq. ft. $225 $314 40% Industrial/Warehouse 1,000 sq. ft. $62 $75 21% Source: Current fees from City of Fort Collins, Capital Improvement Expansion Fees, Effective January 2, 2012; updated fees from Table 12. Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 12 February 1, 2013 POLICE The City provides police protection throughout the town. This section calculates updated police capital expansion fees. Service Units The two most common methodologies used in calculating public safety (fire and police) service units and impact fees are the “calls-for-service” approach and the “functional population” approach. The 1996 study used the functional population approach, and this update retains this methodology. This approach is a generally-accepted methodology for both fire and police impact fee types, and is based on the observation that demand for public safety facilities tends to be proportional to the presence of people. This approach generates service unit multipliers that are similar to those based on call data, but are more stable over time. The service unit is functional population. The description of the functional population methodology, the calculation of the service unit multipliers and the determination of existing fire and police service units are presented in Appendix B. Cost per Service Unit The cost per service unit to provide police protection to new development is based on the existing level of service provided to existing development. The level of service is quantified as the ratio of the replacement cost of existing police capital facilities to existing police service units. The replacement cost of existing police vehicles is shown in Table 14. Table 14. Existing Police Vehicles Vehicle Type Number Unit Cost Total Cost Bearcat 1 $233,554 $233,554 Car 24 $22,000 $528,000 Mini-Bus 1 $77,313 $77,313 Motorcycle 3 $20,841 $62,523 Patrol Car 105 $33,845 $3,553,725 Patrol Pickup 1 $75,845 $75,845 Patrol SUV 28 $40,025 $1,120,700 Patrol Van 13 $32,950 $428,350 Pickup 6 $26,923 $161,538 Police Car 1 $18,967 $18,967 Police Van 1 $29,125 $29,125 SUV 14 $37,727 $528,178 Van 9 $29,125 $262,125 Total 207 $7,079,943 Source: City of Fort Collins, December 5, 2012. The City’s recently-completed new police station was built with some excess capacity to serve future growth. According to the City, approximately 25% of the building represents excess capacity. Consequently, only 75% of the cost will be included in determining the current level of service (cost per service unit) for existing development. Including vehicles and equipment, the portion of the City’s existing police facilities serving existing development has a total estimated replacement cost of Police Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 13 February 1, 2013 $34.7 million, as summarized in Table 15. Dividing the cost of existing capital facilities and equipment serving existing development by existing service units results in a cost of $231 per functional population. Table 15. Existing Police Cost per Service Unit Police Station Building Square Feet 99,878 Police Station Land Acres 7.53 Police Station Building/Land Value (75%) $20,294,687 Police Firing Range Value $351,930 Police Facility Contents Value $6,937,981 Police Vehicle Replacement Value $7,079,943 Total Police Facility/Equipment Value $34,664,541 ÷ Existing Functional Population (24-Hour) 149,740 Police Cost per Functional Population $231 Source: Building square feet, acres and replacement values from City of Fort Collins, December 5, 2012 (75% of police station deemed to serve existing development); existing functional population from Table 36. Net Cost per Service Unit Impact fees should be reduced in order to account for other types of revenues that will be generated by new development and used to fund capacity-expanding improvements of the same type as those to be funded by the impact fees. Cases in which such an offset is warranted include funding of existing deficiencies and outstanding debt payments on existing facilities. Since the updated fees are based on the existing level of service, there are no existing deficiencies. The City has some outstanding debt on the police station, as well as outstanding capital lease payments on some vehicles. A relatively simple way to calculate a credit for outstanding debt is to divide the debt by the number of existing service units. This places new development on an equal footing with existing development in terms of the proportion of their costs that are funded through debt. Since 25% of the new police station represents excess capacity available to serve, only 75% of the debt is eligible for credit. The other 25% of the debt represents the cost of facilities that will serve future development, and this portion of the debt service could be retired with police capital expansion fees. As shown in Table 16, the police debt credit is $129 per functional population. Table 16. Police Debt Credit Outstanding Debt on Police Station (75%) $18,900,000 Outstanding Vehicle Capital Lease Payments $453,578 Total Police Facility Debt $19,353,578 ÷ Existing Functional Population (24-Hour) 149,740 Police Debt Credit per Functional Population $129 Source: Outstanding debt and capital lease payments as of December 31, 2012 from City of Fort Collins, December 3, 2010; existing functional population from Table 36 in Appendix B. The credit for outstanding debt is subtracted from the cost per service unit to determine the net cost per service unit (see Table 17 below). Police Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 14 February 1, 2013 Table 17. Police Net Cost per Service Unit Police Cost per Functional Population $231 – Police Debt Credit per Functional Population -$129 Net Police Cost per Functional Population $102 Source: Cost per functional population from Table 15; debt credit from Table 16 Potential Fees The maximum police capital expansion fees that may be adopted by the City based on this study is the product of the number of service units generated by a unit of development and the net cost per service unit calculated above. The resulting fee schedule is presented in Table 18. Table 18. Potential Police Capital Expansion Fees Func. Pop. Net Cost/ Net Cost/ Land Use Type Unit per Unit Func. Pop. Unit Residential, up to 700 sq. ft. Dwelling 1.25 $102 $128 Residential, 701-1,200 sq. ft. Dwelling 1.59 $102 $162 Residential, 1,201-1,700 sq. ft. Dwelling 1.76 $102 $180 Residential, 1,701-2,200 sq. ft. Dwelling 1.83 $102 $187 Residential, over 2,200 sq. ft. Dwelling 1.96 $102 $200 Commercial 1,000 sq. ft. 1.51 $102 $154 Industrial/Warehouse 1,000 sq. ft. 0.36 $102 $37 Source: Functional population per unit from Table 34 and Table 35 in Appendix B; net cost from Table 17. Table 19 compares the current police fees with the updated fees. The updated fees are higher for residential uses and lower for nonresidential uses. Table 19. Comparative Police Fees Current Fee Updated Fee Percent Land Use Type Unit per Unit per Unit Change Residential, up to 700 sq. ft. Dwelling $74 $128 73% Residential, 701-1,200 sq. ft. Dwelling $107 $162 51% Residential, 1,201-1,700 sq. ft. Dwelling $127 $180 42% Residential, 1,701-2,200 sq. ft. Dwelling $145 $187 29% Residential, over 2,200 sq. ft. Dwelling $177 $200 13% Commercial 1,000 sq. ft. $157 $154 -2% Industrial/Warehouse 1,000 sq. ft. $43 $37 -14% Source: Current fees from City of Fort Collins, Capital Improvement Expansion Fees, Effective January 2, 2012; updated fees from Table 18. Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 15 February 1, 2013 GENERAL GOVERNMENT The City provides a number of administrative facilities that will need to be expanded as the community grows. To ensure that new development pays its fair share of the cost of these facilities, the City charges a general government capital expansion fee. This section calculates updated general government capital expansion fees. Service Units One of the most common methodologies used in calculating general government impact fees is the “functional population” approach. This allocates the cost of growth to different types of new development based on the presence of people at the site of the land use. The description of the functional population methodology, the calculation of the service unit multipliers and the determination of existing general government service units are presented in Appendix B. Cost per Service Unit The City’s existing general government facilities and replacement costs are summarized in Table 20. Table 20. Existing General Government Facilities Land Building Building Facility Address Acres Value Sq. Feet Cost City Hall 300 Laporte Ave 2.00 $60,000 31,553 $8,968,435 Main Administration Bldg. 281 N. College 0.75 $22,500 37,603 $6,689,347 City Office Building 215 N. Mason 2.00 $60,000 71,500 $12,731,810 OPS Service Facility 2.50 $75,000 26,564 $5,647,145 Streets Storage 625 Ninth St 3.24 $97,200 48,400 $4,125,256 Streets Office/Shop 625 Ninth St 8.48 $254,400 14,287 $763,936 Total 18.97 $569,100 229,907 $38,925,929 Source: City of Fort Collins, January 4, 2013 (land value based on $30,000 per acre). The existing level of service (cost per service unit) is determined by dividing the replacement cost of existing facilities by the existing service units being served by those facilities. As shown in Table 21, the cost per service unit for general government facilities is $328 per functional population. Table 21. General Government Cost per Service Unit Building Replacement Value $38,925,929 Land Value $569,100 Vehicle/Equipment Value $9,753,022 Total Replacement Cost $49,248,051 ÷ Existing Functional Population (16-Hour) 150,354 Cost per Functional Population $328 Source: Building and land replacement costs from Table 20; vehicle- equipment value is sum of original costs from City fixed asset listings, January 2, 2013; existing functional population from Table 36 in Appendix B. General Government Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 16 February 1, 2013 Net Cost per Service Unit Impact fees should be reduced in order to account for other types of revenues that will be generated by new development and used to fund capacity-expanding improvements of the same type as those to be funded by the impact fees. Cases in which such an offset is warranted include funding of existing deficiencies and outstanding debt payments on existing facilities. Since the updated fees are based on the existing level of service, there are no existing deficiencies. The City has some outstanding debt on the main administration building. A relatively simple way to calculate a credit for outstanding debt is to divide the debt by the number of existing service units. This places new development on an equal footing with existing development in terms of the proportion of their costs that are funded through debt. As shown in Table 22, the police debt credit is $5 per functional population. Table 22. General Government Debt Credit Outstanding Debt on Main Administration Bldg. $745,745 ÷ Existing Functional Population (16-Hour) 150,354 Cost per Functional Population $5 Source: Outstanding debt from City of Fort Collins, December 3, 2010; existing functional population from Table 36 in Appendix B. The credit for outstanding debt is subtracted from the cost per service unit to determine the net cost per service unit, as shown in Table 23. Table 23. General Government Net Cost per Service Unit Cost per Functional Population $328 – Debt Credit per Functional Population -$5 Net Cost per Functional Population $323 Source: Cost per functional population from Table 15; debt credit from Table 16 Potential Fees The maximum general government capital expansion fees that may be adopted by the City based on this study is the product of the number of service units generated by a unit of development and the net cost per service unit calculated above. The resulting fee schedule is presented in Table 24. Table 24. Potential General Government Capital Expansion Fees Func. Pop. Net Cost/ Net Cost/ Land Use Type Unit per Unit Func. Pop. Unit Residential, up to 700 sq. ft. Dwelling 0.93 $323 $300 Residential, 701-1,200 sq. ft. Dwelling 1.19 $323 $384 Residential, 1,201-1,700 sq. ft. Dwelling 1.31 $323 $423 Residential, 1,701-2,200 sq. ft. Dwelling 1.37 $323 $443 Residential, over 2,200 sq. ft. Dwelling 1.47 $323 $475 Commercial 1,000 sq. ft. 2.26 $323 $730 Industrial/Warehouse 1,000 sq. ft. 0.53 $323 $171 Source: Functional population per unit from Table 34 and Table 35 in Appendix B; net cost per functional population from Table 23. General Government Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 17 February 1, 2013 Table 25 compares the current general government capital expansion fees with the updated fees. The updated fees increase more for nonresidential than for residential uses, and more for smaller residential units than larger ones. Table 25. Comparative General Government Fees Current Fee Updated Fee Percent Land Use Type Unit per Unit per Unit Change Residential, up to 700 sq. ft. Dwelling $139 $300 116% Residential, 701-1,200 sq. ft. Dwelling $197 $384 95% Residential, 1,201-1,700 sq. ft. Dwelling $231 $423 83% Residential, 1,701-2,200 sq. ft. Dwelling $267 $443 66% Residential, over 2,200 sq. ft. Dwelling $324 $475 47% Commercial 1,000 sq. ft. $252 $730 190% Industrial/Warehouse 1,000 sq. ft. $70 $171 144% Source: Current fees from City of Fort Collins, Capital Improvement Expansion Fees, Effective January 2, 2012; updated fees from Table 24. Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 18 February 1, 2013 APPENDIX A: DEMOGRAPHIC DATA Average Household Size by Housing Types A key input into impact fee analysis is the average number of people residing in different types of dwelling units. This statistic, known as average household size, is the ratio of household population to households (which is the same as occupied dwelling units). The most reliable data on average household size comes from the decennial census counts. However, these 100%-count data are only available for all housing units, with no distinction by housing type. Overall, the trend between the 2000 and 2010 census was one of a slight decline in overall average household size, as can be seen in Table 26. Table 26. Average Household Size, 2000 and 2010 Total Occupied Household Average Housing Type Units Units Population HH Size All Housing Types, 2000 47,755 45,882 112,597 2.45 All Housing Types, 2010 60,503 57,829 136,901 2.37 Source: 2000 and 2010 US Census for Fort Collins, CO, SF1 (100% counts). The 2000 census provided data on average household size by housing type for a 1-in-6 sample (about 17%). Those data are shown in Table 27. Table 27. Average Household Size by Housing Type, 2000 Total Occupied Household Average Housing Type Units Units Population HH Size Single-Family Detached 26,706 25,941 73,943 2.85 Single-Family Attached 3,613 3,464 7,031 2.03 Multi-Family 16,163 15,190 28,522 1.88 Mobile Home 1,267 1,216 2,840 2.34 RV/Other 17 17 40 2.35 Total 47,766 45,828 112,376 2.45 Multi-Family/SF Attached 19,776 18,654 35,553 1.91 Source: 2000 US Census for Fort Collins, CO, SF-3 data (1-in-6 sample) Unfortunately, the Census Bureau has discontinued providing robust sample data as part of the decennial census, and instead conducts annual data from 1% samples, which has been aggregated into a 5% sample for the 2006-2010 period. These data are based on a much smaller sample than the 2010 census, and also collapse single-family detached and attached housing into the same category. They are shown in Table 28. Appendix A: Demographic Data Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 19 February 1, 2013 Table 28. Average Household Size by Housing Type, 2006-2010 Total Occupied Household Average Housing Type Units Units Population HH Size Single-Family, Det./Att. 38,434 36,779 96,923 2.64 Multi-Family 19,441 17,747 31,168 1.76 Mobile Home 1,414 1,350 3,383 2.51 Other 13 13 21 1.62 Total 59,302 55,889 131,495 2.35 Source: US Census Bureau, 2006-2010 American Community Survey data (5% sample), Fort Collins, CO. Comparing the data from 2000 and 2006-2010, it is clear that the decline in average household size is not due to a change in the mix of housing, but rather to a more general decline in household size among all housing types. While mobile home units show an increase, the sample sizes are too small for this housing type for the results to be reliable. Table 29. Change in Average Household Size, 2000-2010 Percent Housing Type 2000 2006-10 Change Single-Family, Detached/Attached 2.75 2.64 -4.00% Multi-Family 1.88 1.76 -6.38% Mobile Home 2.34 2.51 7.26% Total 2.45 2.35 -4.08% Average HH Size Source: Table 27 and Table 28. An estimate of current average household size by housing type starts with the data from the 2000 census, since these numbers are based on the most robust sample. The average household sizes from the 2000 census are adjusted downward for all housing types by the overall decline, as shown in Table 30. Table 30. Current Average Household Size by Housing Type Ratio of Avg. HH Size 2010/2000 Current Housing Type 2000 Census Avg. HH Size Avg. HH Size Single-Family Detached/MH 2.85 0.9673 2.76 Multi-Family/SF Attached 1.91 0.9673 1.85 Total 2.45 0.9673 2.37 Source: 2000 average household size from Table 27; ratio derived from Table 26. Average Household Size by Unit Size In the 1996 study, average household size by dwelling unit size was estimated using census microdata for Larimer County to determine average household size by bedrooms, and City building permit data to determine average dwelling unit size by bedrooms using linear regression analysis. The two results were combined to estimate average household size by dwelling unit size. While the approach used in the original study has the advantage of relying solely on local (city and county level) data, its weakness is that it is indirect – neither the census data nor the building permit data contain information on both the number of persons in the unit and the size of the unit. Appendix A: Demographic Data Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 20 February 1, 2013 Consequently, the 1996 analysis had to utilize an intervening variable of the number of bedrooms in the unit. A simpler and more direct approach is to utilize national data from the American Housing Survey, sponsored by the U.S. Department of Housing and Urban Development and conducted by the U.S. Census Bureau. The most recent survey was done in 2011. This survey provides data on the number of residents and the square footage of a sample of individual housing units. The data from the Western Census Region, which includes Colorado, was used. Average household sizes by dwelling unit size from the western U.S. were converted to Equivalent Dwelling Units (EDUs), with one EDU representing the average number of persons residing in an occupied single-family detached unit. These EDU multipliers were then multiplied by the average household size of a single-family unit in Fort Collins to estimate local average household sizes by dwelling unit size, as summarized in Table 31. Table 31. Average Household Size by Dwelling Unit Size, Western U.S., 2011 Ft. Collins House- Avg. EDUs/ Avg. HH Housing Type/Size Sample HH Pop. Holds HH Size Unit Size 0-700 sf 4,726 3,943,814 2,046,482 1.93 0.675 1.86 701-1,200 sf 11,845 13,908,874 5,631,663 2.47 0.864 2.38 1,201-1,700 sf 8,570 11,753,334 4,320,515 2.72 0.951 2.62 1,701-2,200 sf 6,218 8,824,060 3,112,727 2.83 0.990 2.73 2,200 sf + 7,686 11,545,664 3,793,080 3.04 1.063 2.93 All Units 39,045 49,975,747 18,904,467 2.64 0.923 n/a All Single-Family Det. 23,453 34,517,546 12,053,378 2.86 1.000 2.76 American Housing Survey, 2011 Source: U.S. Department of Housing and Urban Development, American Housing Survey, 2011, Western Census Region; Fort Collins average household size by unit size based on average household size for a single-family detached unit in Fort Collins from Table 30 and EDUs/unit from the American Housing Survey. The updated average household sizes confirm the tendency of larger units to have more residents, but the difference between the smallest and largest units is less pronounced than it was found to be in the 1996 analysis, as illustrated in Figure 1. Figure 1. Average Household Size by Unit Size, 1996 and 2012 Appendix A: Demographic Data Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 21 February 1, 2013 Existing Housing Units by Type The mix of housing units by type in Fort Collins has not changed significantly over the last decade, as shown in Table 32. Because of its larger sample size, the housing shares from the 2000 census will be used. Table 32. Dwelling Units by Housing Type, Fort Collins, 2000-2010 Housing Type 2000 2006-10 2000 2006-10 Single-Family Detached 26,706 33,525 55.9% 56.5% Single-Family Attached 3,613 4,909 7.6% 8.3% Multi-Family 16,163 19,441 33.8% 32.8% Mobile Home 1,267 1,414 2.7% 2.4% RV/Other 17 13 0.0% 0.0% Total 47,766 59,302 100.0% 100.0% Single-Family Det./Mobile Home 27,973 34,939 58.6% 58.9% Total Units % of Total Units Source: 2000 data from 2000 US Census, SF3 (1-in-6 sample); 2006-2010 data from US Census, American Community Survey (5% sample). The current number of dwelling units in Fort Collins by housing type is estimated based on the total number of units enumerated in the 2000 census, the share of units by housing type from the 2000 census, and the number of building permits issued over the last two years, as shown in Table 33. Table 33. Dwelling Units by Housing Type, Fort Collins, 2012 Housing Est. 2010 2010-2011 Est. 2012 Housing Type Share Units Permits Units Single-Family Detached/MH 58.6% 35,432 406 35,838 Multi-Family/SF Attached 41.4% 25,071 775 25,846 Total 100.0% 60,503 1,181 61,684 Source: Housing share based on 2000 Census from Table 32; 2010 total units from 2000 Census (Table 26), 2010 units by housing type based on housing share; 2010-2011 permits are number of permits issued by City in 2010 and 2011 calendar years from City of Fort Collins, December 3, 2012. Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 22 February 1, 2013 APPENDIX B: FUNCTIONAL POPULATION A common methodology used in calculating public safety (fire and police) and general government service units and impact fees is the “functional population” approach. This approach is a generally- accepted methodology for these impact fee types and is based on the observation that demand for public safety and general government facilities tends to be proportional to the presence of people at a particular site. Functional population is analogous to the concept of “full-time equivalent” employees. It represents the number of “full-time equivalent” people present at the site of a land use, and it is used for the purpose of determining the impact of a particular development on the need for facilities. For residential development, functional population is simply average household size times the percent of time people spend at home. For nonresidential development, functional population is based on a formula that factors trip generation rates, average vehicle occupancy and average number of hours spent by visitors at a land use. Two types of functional population are used in impact fee analysis: “24-hour” functional population and “daytime” functional population. 24-hour functional population is most appropriate for services, like fire and police protection, that operate on a 24-hour per day basis. Daytime functional population is more appropriate for general government facilities, which do not operate around the clock. Residential Functional Population For residential land uses, the impact of a dwelling unit on the need for capital facilities is generally proportional to the number of persons residing in the dwelling unit. This can be measured for different housing types in terms of either average household size (average number of persons per occupied dwelling unit) or persons per unit (average number of persons per dwelling unit, including vacant as well as occupied units). In this analysis, average household size is used to develop the functional population multipliers, as it avoids the need to make assumptions about occupancy rates. Determining residential functional population multipliers is considerably simpler than the nonresidential component. It is estimated that people, on average, spend 16 hours, or 67 percent, of each 24-hour weekday at their place of residence and the other 33 percent away from home. For daytime functional population, a 16-hour day is used, and it is estimated that people spend half of the 16-hour day at home. The functional population per unit for residential uses is shown in Table 34. Appendix B: Functional Population Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 23 February 1, 2013 Table 34. Functional Population per Unit for Residential Uses Average Housing Type Unit HH Size 24-Hour Daytime 24-Hour Daytime Single-Family Detached Dwelling 2.76 0.67 0.50 1.85 1.38 Multi-Family Dwelling 1.85 0.67 0.50 1.24 0.93 Residential, up to 700 sq. ft. Dwelling 1.86 0.67 0.50 1.25 0.93 Residential, 701-1,200 sq. ft. Dwelling 2.38 0.67 0.50 1.59 1.19 Residential, 1,201-1,700 sq. ft. Dwelling 2.62 0.67 0.50 1.76 1.31 Residential, 1,701-2,200 sq. ft. Dwelling 2.73 0.67 0.50 1.83 1.37 Residential, over 2,200 sq. ft. Dwelling 2.93 0.67 0.50 1.96 1.47 Occupancy Func. Pop. Per Unit Source: Average household size from Table 30 (housing type) and Table 31 (unit size). Nonresidential Functional Population The functional population methodology for nonresidential land uses is based on trip generation and employee density data. Functional population per 1,000 square feet is derived by dividing the total number of hours spent by employees and visitors during a week day by 24 hours (16 hours for daytime functional population). Employees are estimated to spend 8 hours per day at their place of employment, and visitors are estimated to spend one hour per visit. The formulas used to derive the nonresidential functional population estimates are summarized in Figure 2. Figure 2. Nonresidential Functional Population Formulas 24-HR FUNCPOP/UNIT = (employee hours/1000 sf + visitor hours/1000 sf) ÷ 24 hours/day Where: Employee hours/1000 sf = employees/1000 sf x 8 hours/day Visitor hours/1000 sf = visitors/1000 sf x 1 hour/visit Visitors/1000 sf = weekday ADT/1000 sf x avg. vehicle occupancy – employees/1000 sf Weekday ADT/1000 sf = one-way avg. daily trips (total trip ends ÷ 2) DAILY FUNCPOP/UNIT = (employee hours/1000 sf + visitor hours/1000 sf) ÷ 16 hours/day Where: Employee hours/1000 sf = employees/1000 sf x 8 hours/day Visitor hours/1000 sf = visitors/1000 sf x 1 hour/visit Visitors/1000 sf = weekday ADT/1000 sf x avg. vehicle occupancy – employees/1000 sf Weekday ADT/1000 sf = one-way avg. daily trips (total trip ends ÷ 2) Appendix B: Functional Population Capital Expansion Fee Study duncan|associates City of Fort Collins, Colorado 24 February 1, 2013 Using this formula and information on trip generation rates, vehicle occupancy rates from the National Household Travel Survey and other sources and assumptions, nonresidential functional population estimates per 1,000 square feet of gross floor area are calculated in Table 35. Table 35. Functional Population per Unit for Nonresidential Uses Trip Persons/ Employee/ Visitors/ Land Use Unit Rate Trip Unit Unit 24-Hour Daytime Retail 1,000 sq. ft. 21.47 1.96 1.02 41.06 2.05 3.08 Office 1,000 sq. ft. 5.51 1.24 2.31 4.52 0.96 1.44 Industrial 1,000 sq. ft. 3.48 1.24 1.05 3.27 0.49 0.73 Warehouse 1,000 sq. ft. 1.78 1.24 0.43 1.78 0.22 0.33 Func. Pop. Per Unit Source: Trip rates based on one-half of average daily trip rate from ITE, Trip Generation, 8th ed., 2008 (retail based on shopping center, office based on general office, industrial based on light industrial); persons/trip is average vehicle occupancy from Federal Highway Administration, Nationwide Household Travel Survey, 2009; employees/unit from U.S. Department of Energy, Commercial Buildings Energy Consumption Survey, 2003; visitors/unit is trips times persons/trip minus employees/unit; functional population/unit calculated based on formula from Figure 2. Total Functional Population The total functional population of Fort Collins is determined by multiplying the number of existing units of development by the functional population per unit, as shown in Table 36. Table 36. Existing Functional Population Existing Land Use Unit Units 24-Hour Daytime 24-Hour Daytime Single-Family Detached Dwelling 35,838 1.85 1.38 66,300 49,456 Multi-Family Dwelling 25,846 1.24 0.93 32,049 24,037 Commercial/Institutional 1,000 sq. ft. 32,533 1.51 2.26 49,125 73,525 Industrial/Warehouse 1,000 sq. ft. 6,295 0.36 0.53 2,266 3,336 Total Functional Population 149,740 150,354 Func. Pop./Unit Functional Pop. Source: Existing dwelling units from Table 33; existing nonresidential building square footage from Larimer County Assessor’s Office, December 4, 2012; functional population per unit from Table 34 and Table 35 (commercial/institutional is average of retail and office; industrial/warehouse is average of industrial and warehouse). 1 Capital Improvement Expansion Fee Update City Council Work Session February 12, 2013 2 Capital Improvement Expansion Fee Overview • Background • Definitions • Methodology • Fee Overview • Fees by type • Revenue Analysis • Public Outreach • Conclusions 3 Fees Included in Update • Neighborhood Parks • Community Parks • Fire • Police • General Government 4 Background • Capital Improvement Expansion Fees are used to require new developments to pay a proportionate share of infrastructure costs • First implemented at the City of Fort Collins in 1996 • Fees updated annually according to the Denver- Boulder-Greeley Consumer Price Index • In 2012, City contracted with Duncan Associates to:  Analyze methodology  Update Fees  Draft Study – Basis for presentation 5 Definitions • Incremental Expansion: Methodology used for calculating capital expansion fees based on current level of service • Level of Service (LOS): Ratio of the replacement cost of existing facilities to existing service units • Service Unit: A common or standardized measure of the demand for the type of facility in question • Functional Population: The number of people present at a land use expressed in full time equivalents – the service unit used for fire, police and general government • Equivalent Dwelling Unit (EDU): The ratio of the average household size of a dwelling type to the average household size of the typical single-family detached unit – the service unit used for parks 6 Methodology • Largely unchanged from 1996 study – retained incremental expansion approach • Continued use of functional population for Police, Fire and General Government but simplified formula • Updated Park fees to be based on average # of residents in a dwelling unit vs. population directly – eliminates need to consider vacancy rates • Updated household size data • Updated all formula inputs including current asset info Current update retains overall methodology of 1996 study. 7 Fees – Overview What’s Driving the Changes? • Inputs to the calculations that include:  Updated inventory of existing capital facilities  Updated determination of current costs  Updated identification of existing levels of service • Updated data source for household size which resulted in less variation between small and large units than previous study Although methodology remains similar – the inputs to fee calculations changed, resulting in a variation in updated fees – both positive and negative. 8 Fees – Overview • Neighborhood and Community Park fees are increasing for smaller units and decreasing for larger units • Fire, Police and General Government fees are increasing • Net residential fees increasing except for largest units • Net Commercial/Industrial fees are increasing 9 Updated Fee Schedule • Parks fees have been updated since the January 14th Council Finance Meeting • Trail portion of fees have been updated to include:  Design  Engineering  Construction Management  Land acquisition • Cost per acre of raw parkland has been updated from $20K per acre to $30K per acre • Updated fees changing from a 5% average increase to a 15% average increase. 10 Fee Overview N'hood Comm. Gen. Land Use Type Unit Park Park Fire Police Gov't Total Current Fees Residential, up to 700 sq. ft. Dwelling $920 $1,023 $110 $74 $139 $2,266 Residential, 701-1,200 sq. ft. Dwelling $1,302 $1,451 $157 $107 $197 $3,214 Residential, 1,201-1,700 sq. ft. Dwelling $1,531 $1,704 $183 $127 $231 $3,776 Residential, 1,701-2,200 sq. ft. Dwelling $1,759 $1,961 $211 $145 $267 $4,343 Residential, over 2,200 sq. ft. Dwelling $2,142 $2,385 $257 $177 $324 $5,285 Commercial 1,000 sq. ft. $0 $0 $225 $157 $252 $634 Industrial 1,000 sq. ft. $0 $0 $62 $43 $70 $175 Updated Fees Residential, up to 700 sq. ft. Dwelling $1,181 $1,475 $260 $128 $300 $3,344 Residential, 701-1,200 sq. ft. Dwelling $1,515 $1,893 $331 $162 $384 $4,285 Residential, 1,201-1,700 sq. ft. Dwelling $1,674 $2,091 $366 $180 $423 $4,734 Residential, 1,701-2,200 sq. ft. Dwelling $1,744 $2,179 $381 $187 $443 $4,934 Residential, over 2,200 sq. ft. Dwelling $1,868 $2,333 $408 $200 $475 $5,284 Commercial 1,000 sq. ft. $0 $0 $314 $154 $730 $1,198 Industrial 1,000 sq. ft. $0 $0 $75 $37 $171 $283 Change Residential, up to 700 sq. ft. Dwelling $261 $452 $150 $54 $161 $1,078 Residential, 701-1,200 sq. ft. Dwelling $213 $442 $174 $55 $187 $1,071 Residential, 1,201-1,700 sq. ft. Dwelling $143 $387 $183 $53 $192 $958 Residential, 1,701-2,200 sq. ft. Dwelling -$15 $218 $170 $42 $176 $591 Residential, over 2,200 sq. ft. Dwelling -$274 -$52 $151 $23 $151 -$1 Commercial 1,000 sq. ft. $0 $0 $89 -$3 $478 $564 Industrial 1,000 sq. ft. $0 $0 $13 -$6 $101 $108 Percent Change Residential, up to 700 sq. ft. Dwelling 28% 44% 136% 73% 116% 48% Residential, 701-1,200 sq. ft. Dwelling 16% 30% 111% 51% 95% 33% Residential, 1,201-1,700 sq. ft. Dwelling 9% 23% 100% 42% 83% 25% Residential, 1,701-2,200 sq. ft. Dwelling -1% 11% 81% 29% 66% 14% Residential, over 2,200 sq. ft. Dwelling -13% -2% 59% 13% 47% 0% Commercial 1,000 sq. ft. n/a n/a 40% -2% 190% 89% Industrial 1,000 sq. ft. n/a n/a 21% -14% 144% 62% 11 Neighborhood & Community Park Fees • Key Factors:  Service Units based on housing units or equivalent dwelling units (EDU) – the average # of people in a dwelling unit  Fees are increasing for smaller units  Fees are decreasing for larger units due to findings that larger units have fewer people than 1996 study • Trails – included in fee calculations which is a change from original study Basing fee structure on equivalent dwelling units eliminates the need to consider occupancy rates which are variable. 12 Neighborhood/Community Park Fees Change in number of people in larger units driving down fees. Current Fee Updated Fee Percent Land Use Type Unit per Unit per Unit Change Neighborhood Parks Residential, up to 700 sq. ft. Dwelling $920 $1,181 28% Residential, 701-1,200 sq. ft. Dwelling $1,302 $1,515 16% Residential, 1,201-1,700 sq. ft. Dwelling $1,531 $1,674 9% Residential, 1,701-2,200 sq. ft. Dwelling $1,759 $1,744 -1% Residential, over 2,200 sq. ft. Dwelling $2,142 $1,868 -13% Community Parks Residential, up to 700 sq. ft. Dwelling $1,023 $1,475 44% Residential, 701-1,200 sq. ft. Dwelling $1,451 $1,893 30% Residential, 1,201-1,700 sq. ft. Dwelling $1,704 $2,091 23% Residential, 1,701-2,200 sq. ft. Dwelling $1,961 $2,179 11% Residential, over 2,200 sq. ft. Dwelling $2,385 $2,333 -2% Total Parks Residential, up to 700 sq. ft. Dwelling $1,943 $2,656 37% Residential, 701-1,200 sq. ft. Dwelling $2,753 $3,408 24% Residential, 1,201-1,700 sq. ft. Dwelling $3,235 $3,765 16% Residential, 1,701-2,200 sq. ft. Dwelling $3,720 $3,923 5% Residential, over 2,200 sq. ft. Dwelling $4,527 $4,201 -7% 13 Fire Capital Improvement Fees • Two most common methodologies:  Calls for Service  Functional Population – current and recommended method • Fees increasing for both residential and commercial units • Service Unit calculated by dividing total cost of existing facilities and equipment by functional population or $208 per service unit Fees increasing due to updated inputs to functional population calculations and updated asset information. 14 Proposed Fire Fees Fee Comparison Func. Pop. Net Cost/ Net Cost/ Land Use Type Unit per Unit Func. Pop. Unit Residential, up to 700 sq. ft. Dwelling 1.25 $208 $260 Residential, 701-1,200 sq. ft. Dwelling 1.59 $208 $331 Residential, 1,201-1,700 sq. ft. Dwelling 1.76 $208 $366 Residential, 1,701-2,200 sq. ft. Dwelling 1.83 $208 $381 Residential, over 2,200 sq. ft. Dwelling 1.96 $208 $408 Commercial 1,000 sq. ft. 1.51 $208 $314 Industrial/Warehouse 1,000 sq. ft. 0.36 $208 $75 Current Fee Updated Fee Percent Land Use Type Unit per Unit per Unit Change Residential, up to 700 sq. ft. Dwelling $110 $260 136% Residential, 701-1,200 sq. ft. Dwelling $157 $331 111% Residential, 1,201-1,700 sq. ft. Dwelling $183 $366 100% Residential, 1,701-2,200 sq. ft. Dwelling $211 $381 81% Residential, over 2,200 sq. ft. Dwelling $257 $408 59% Commercial 1,000 sq. ft. $225 $314 40% Industrial/Warehouse 1,000 sq. ft. $62 $75 21% 15 Police Capital Improvement Fees • Functional population methodology retained –same as Fire • Fees increasing for residential with a slight decrease for commercial and industrial units • Service Unit calculated by dividing total cost of existing facilities and equipment by functional population or $102 per service unit • Facility assets assumes 25% excess capacity for police facility Fees increasing due to updated inputs to functional population calculations and updated asset information. 16 Proposed Police Fees Fee Comparison Func. Pop. Net Cost/ Net Cost/ Land Use Type Unit per Unit Func. Pop. Unit Residential, up to 700 sq. ft. Dwelling 1.25 $102 $128 Residential, 701-1,200 sq. ft. Dwelling 1.59 $102 $162 Residential, 1,201-1,700 sq. ft. Dwelling 1.76 $102 $180 Residential, 1,701-2,200 sq. ft. Dwelling 1.83 $102 $187 Residential, over 2,200 sq. ft. Dwelling 1.96 $102 $200 Commercial 1,000 sq. ft. 1.51 $102 $154 Industrial/Warehouse 1,000 sq. ft. 0.36 $102 $37 Current Fee Updated Fee Percent Land Use Type Unit per Unit per Unit Change Residential, up to 700 sq. ft. Dwelling $74 $128 73% Residential, 701-1,200 sq. ft. Dwelling $107 $162 51% Residential, 1,201-1,700 sq. ft. Dwelling $127 $180 42% Residential, 1,701-2,200 sq. ft. Dwelling $145 $187 29% Residential, over 2,200 sq. ft. Dwelling $177 $200 13% Commercial 1,000 sq. ft. $157 $154 -2% Industrial/Warehouse 1,000 sq. ft. $43 $37 -14% 17 General Government Fees • Retained Functional Population methodology • Service Unit calculated by dividing total cost of existing facilities and equipment by functional population or $323 net cost per service unit (includes existing debt credit) • Fees increasing for both residential and commercial • Streets capital inventory included in updated fee study Fees increasing more for commercial and smaller residential units. 18 Proposed General Government Fees Fee Comparison Func. Pop. Net Cost/ Net Cost/ Land Use Type Unit per Unit Func. Pop. Unit Residential, up to 700 sq. ft. Dwelling 0.93 $323 $300 Residential, 701-1,200 sq. ft. Dwelling 1.19 $323 $384 Residential, 1,201-1,700 sq. ft. Dwelling 1.31 $323 $423 Residential, 1,701-2,200 sq. ft. Dwelling 1.37 $323 $443 Residential, over 2,200 sq. ft. Dwelling 1.47 $323 $475 Commercial 1,000 sq. ft. 2.26 $323 $730 Industrial/Warehouse 1,000 sq. ft. 0.53 $323 $171 Current Fee Updated Fee Percent Land Use Type Unit per Unit per Unit Change Residential, up to 700 sq. ft. Dwelling $139 $300 116% Residential, 701-1,200 sq. ft. Dwelling $197 $384 95% Residential, 1,201-1,700 sq. ft. Dwelling $231 $423 83% Residential, 1,701-2,200 sq. ft. Dwelling $267 $443 66% Residential, over 2,200 sq. ft. Dwelling $324 $475 47% Commercial 1,000 sq. ft. $252 $730 190% Industrial/Warehouse 1,000 sq. ft. $70 $171 144% 19 Single-Family Building Permit Data Larger unit permits have steadily declined in the last 10 years. 20 Annual Revenue Impact Analysis – 10 yr. Avg. Unit Type* Current Fees Based on 10 Year Permit Average Proposed Fees Based on 10 Year Permit Average Percent Change Residential, up to 700 sq. ft. $28,098 $41,465 48% Residential, 701‐1,200 sq. ft. 755,932 1,007,832 33% Residential, 1,201‐1,700 sq. ft. 1,046,707 1,312,264 25% Residential, 1,701‐2,200 sq. ft. 692,274 786,479 14% Residential, over 2,200 sq. ft. 873,082 872,916 0% Commercial 271,292 512,632 89% Industrial 4,249 6,872 62% Total $3,671,637 $4,540,463 24% *Units include both single and multifamily dwellings for residential 21 Annual Revenue Impact Analysis – 2012 Actuals Unit Type* Current Fees Based on 2012 Permit Data Proposed Fees Based on 2012 Permit Data Percent Change Residential, up to 700 sq. ft. $0 $0 0% Residential, 701‐1,200 sq. ft. 1,099,188 1,465,470 33% Residential, 1,201‐1,700 sq. ft. 1,989,952 2,494,818 25% Residential, 1,701‐2,200 sq. ft. 929,402 1,055,876 14% Residential, over 2,200 sq. ft. 317,100 317,040 0% Commercial 10,398 19,647 89% Industrial 21,829 35,301 62% Total $4,367,869 $5,388,152 23% *Units include both single and multifamily dwellings for residential 22 Fee Comparison – Residential pp Neighborhood and Community Park fees are the most common and substantial of the Capital Expansion fee mix in Northern Colorado. *Fort Collins Fees based on a 1201-1700 sq. ft. unit $‐ $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Loveland Longmont Fort Collins Proposed* Windsor Fort Collins Current* Greeley Boulder Neighborhood Park Community Park Fire Police General Government 23 Fee Comparison - Commercial/Industrial* Commercial Per 1,000 sq. ft. Industrial Per 1,000 sq. ft. $‐ $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 General Government Police Fire $‐ $50 $100 $150 $200 $250 $300 $350 $400 General Government Police Fire *Longmont’s General Government fee is a flat $375 *Commercial/Industrial fees approximated based on varied multipliers and unique city classifications 24 Fund Balance Analysis Fund Balance As of 12/31/12 Neighborhood Parks $5,580,000* Community Parks $8,750,000** Fire $190,000 Police $960,000 General Government $6,030,000*** *Neighborhood Parks - $1.8M in offers funded in the 2013-2014 budget **Community Parks - $1.3M in offers funded in the 2013-2014 budget ***General Government - $5.0M on loan to the URA for N. College Marketplace and JAX 25 Public Outreach ENTITY DATE Council Finance Committee January 14 Chamber of Commerce January 25 Affordable Housing Board February 7 Board of Realtors February 12 Economic Advisory Committee February 20 Building Review Board February 28 Homebuilders Association TBD* City Council Regular Meeting – March 5 *Working with Homebuilders on preferred level of outreach 26 Conclusions • Fee update retains basic methodologies of original study • Inputs to formula and asset information updated for all fees • Reduction household size driving partial fee change • Staff will recommend codifying comprehensive review every 3-5 years