HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/16/2014 - SECOND READING OF ORDINANCE NO. 172, 2014, AMENDINAgenda Item 6
Item # 6 Page 1
AGENDA ITEM SUMMARY December 16, 2014
City Council
STAFF
Jessica Ping-Small, Revenue and Project Manager
SUBJECT
Second Reading of Ordinance No. 172, 2014, Amending the Code of the City of Fort Collins to Increase the
Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code so as to Reflect
Inflation in Associated Costs of Services.
EXECUTIVE SUMMARY
This Ordinance, unanimously adopted on First Reading on December 2, 2014, updates the City Code, which
requires an annual adjustment to certain building permit related fees. Capital Improvement Expansion fees
and Neighborhood Parkland fees are to reflect the changes in the Denver-Boulder-Greeley Consumer Price
Index (CPI). Street Oversizing fees are adjusted by the changes posted in the Engineering News Record
(ENR). The CPI has increased 2.9% since its last adjustment and the ENR has not changed significantly
enough to warrant an adjustment.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, December 2, 2014 (PDF)
2. Ordinance No. 172, 2014 (PDF)
Agenda Item 9
Item # 9 Page 1
AGENDA ITEM SUMMARY December 2, 2014
City Council
STAFF
Jessica Ping-Small, Revenue and Project Manager
SUBJECT
First Reading of Ordinance No. 172, 2014, Amending the Code of the City of Fort Collins to Increase the
Amounts of the Capital Improvement Expansion Fees Contained in Chapter 7.5 of the Code so as to Reflect
Inflation in Associated Costs of Services.
EXECUTIVE SUMMARY
The purpose of this item is to update the City Code, which requires an annual adjustment to certain building
permit related fees. Capital Improvement Expansion fees and Neighborhood Parkland fees are to reflect the
changes in the Denver-Boulder-Greeley Consumer Price Index (CPI). Street Oversizing fees are adjusted by
the changes posted in the Engineering News Record (ENR). The CPI has increased 2.9% since its last
adjustment and the ENR has not changed significantly enough to warrant an adjustment.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
In May 1996, Council adopted Ordinance No. 051, 1996, which established capital improvement expansion
fees for Community Parkland, Police, Fire, and General Government services. The purpose for the fees is to
have new development pay a proportionate share of the capital improvements and equipment costs that will be
necessary to provide services to the development. The Code provisions approved by Ordinance No. 051,
1996, provide for the annual adjustment of the fees to keep up with inflation, using the Denver-Boulder (now
Denver-Boulder-Greeley) Consumer Price Index.
The City has imposed a Neighborhood Parkland fee for neighborhood parks since 1968. In August 1996,
Council adopted Ordinance No. 105, 1996, which aligned the Neighborhood Parkland fee to the housing size
differentials in the Capital Improvement Expansion fee ordinance, and updated the fee schedule to reflect pre-
1996 inflation. The Neighborhood Parkland fees have been adjusted for inflation in 1997 through 2014, along
with the Capital Improvement Expansion fees.
In 2013, Council adopted Ordinance No. 120, 2013, which updated the residential and commercial fees to the
current level of service. The residential fees were implemented at 100% effective October 3, 2013 and the
commercial fees were implemented in a phased approach at 60% in October, 2013, 80% in 2015 and 100% in
2016.
Based on the Denver-Boulder-Greeley Consumer Price Index for all urban consumers, the inflation level since
the last annual adjustment is an increase of 2.9% for 2015. This Ordinance adjusts the fee schedules
described in Chapters 7.5 and 23 of the City Code to account for inflation and adjusts the commercial fees to
80% of the 2013 study plus inflation. In the Ordinance, all amounts for the capital improvement expansion fees
have been rounded to the nearest dollar.
ATTACHMENT 1
Agenda Item 9
Item # 9 Page 2
In addition to the inflation update, this Ordinance reflects a correction to the Fire Protection Capital
Improvement Expansion Fee for the 701 to 1200 sq. ft. residence. In the course of preparing this Ordinance, it
was discovered that this fee was set too high in last year’s ordinance that adopted the 2014 fee schedule. It
was set at $415 instead of $333. However, the fee was nevertheless collected at the appropriate rate of $333
by staff for this past year.
FINANCIAL / ECONOMIC IMPACT
Revenue Summary
Fee Type 2012 Actual 2013 Actual 2014 Forecast 2015 Budget
Capital Expansion Fees $2,523,937 $3,178,383 $3,590,816 $2,782,000
Neighborhood Parkland Fees $1,655,835 $2,011,034 $1,962,551 $1,950,000
Street Oversizing Fees $ 3,294,063 $ 4,154,740 $5,259,585 $4,000,000
Fund Balance Overview
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.
Estimated Fund Balance as of 12/31/2014: $1,600,000
Offers Funded in 2015 Budget: $1,716,317
Offers Funded in 2016 Budget: $1,698,270
2. Community Parkland Fees: Expenditures shall be made for the acquisition, construction and development
of capital improvements related to the provision of community parklands.
Estimated Fund Balance as of 12/31/2014: $10,600,000
Offers Funded in the 2015 Budget: $8,450,000
Offers Funded in the 2016 Budget: $1,650,000
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.
Estimated Fund Balance as of 12/31/2014: $800,000. The balance is being used by PFA to pay
debt service on Station #4.
Offers Funded in the 2015 Budget: $234,354
Offers Funded in the 2016 Budget: $234,354
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.
Estimated Fund Balance as of 12/31/2014: $900,000. The balance is being used to pay debt
service on new Police Facility.
Offers Funded in the 2015 Budget: $371,058
Offers Funded in the 2016 Budget: $365,474
Agenda Item 9
Item # 9 Page 3
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.
Estimated Fund Balance as of 12/31/2014: $7,400,000 of which $2,651,970 has been loaned to the
URA for RMII, leaving $4,716,283 in liquid investments, it was not anticipated this money would be
needed before the loan will be repaid.
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ORDINANCE NO. 172, 2014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING THE CODE OF THE CITY OF FORT COLLINS TO INCREASE THE
AMOUNTS OF THE CAPITAL IMPROVEMENT EXPANSION FEES
CONTAINED IN CHAPTER 7.5 OF THE CITY CODE SO AS TO REFLECT
INFLATION IN ASSOCIATED COSTS OF SERVICES
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 home rule powers of the City is the power to regulate, as a matter
of purely local concern, the development of real property within the City; and
WHEREAS, the City’s comprehensive plan shows that the rate of future growth and
development in Fort Collins will require a substantial expansion in community park, police, fire,
and general government facilities, and related capital equipment, if its level of service standards
for such facilities are to be maintained; and
WHEREAS, the City Council has determined that new development should contribute its
proportionate share of providing such capital improvements; 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, based on the foregoing, the City Council has adopted Ordinance No. 051,
1996, establishing certain capital improvement expansion fees; and
WHEREAS, City Code Section 7.5-18 provides for annual adjustment in all capital
improvement expansion fees for inflation, corresponding to the increases reflected in the Denver-
Boulder Consumer Price Index for Urban Consumers, now known as the Denver-Boulder-
Greeley Consumer Price Index for Urban Consumers (the “CPI”); and
WHEREAS, in September 1968, the City Council adopted Ordinance No. 038, 1968,
which established the original Neighborhood Parkland Fee to fund the acquisition and
development of parkland, which ordinance has since been amended on several occasions to
adjust the fee and to refine related procedures and requirements; and
WHEREAS, with the adoption in August 1993 of Ordinance No. 082, 1993, the City
Council directed the City Manager to annually review the Neighborhood Parkland Fee and
submit to the Council proposed inflation-related increases based on the CPI; and
WHEREAS, based on the Bureau of Labor Statistics’ most recent CPI, staff anticipates
the Index will reflect an inflation increase of 2.9 percent since the last annual adjustment,
effective January 1, 2015; and
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WHEREAS, the City has historically used the Engineering News Record as a reference to
determine whether the Street Oversizing Capital Improvement Expansion Fee should be
increased to account for rising construction costs; and
WHEREAS, based on the Engineering News record, the cost of constructing street
improvements has not changed significantly since the last adjustment of the Street Oversizing
Capital Improvement Expansion Fee; and
WHEREAS, for the foregoing reasons, the City Council has determined that it is
necessary in the interests of the protection of the public health, safety and welfare, that the
Capital Improvement Expansion Fees, including the Neighborhood Parkland Fee, be increased to
reflect inflation as determined by the CPI.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS AS FOLLOWS:
Section 1. That the fee schedule in Section 7.5-28(a) of the Code of the City of Fort
Collins, establishing the Community Parkland Capital Improvement Expansion Fee, is hereby
amended to read as follows:
700 sq. ft. and under $1,059.00
701 to 1,200 sq. ft. 1,359.00
1,201 to 1,700 sq. ft. 1,501.00
1,701 to 2,200 sq. ft. 1,565.00
2,201 sq. ft. and over 1,676.00
Section 2. That the fee schedule in Section 7.5-29(a) of the Code of the City of Fort
Collins, establishing the Police Capital Improvement Expansion Fee, is hereby amended to read
as follows:
700 sq. ft. and under $ 135.00
701 to 1,200 sq. ft. 171.00
1,201 to 1,700 sq. ft. 190.00
1,701 to 2,200 sq. ft. 198.00
2,201 sq. ft. and over 212.00
Commercial buildings
(per 1,000 sq ft.)
163.00
Industrial buildings
(per 1,000 sq. ft.)
39.00
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Section 3. That the fee schedule in Section 7.5-30(a) of the Code of the City of Fort
Collins, establishing the Fire Protection Capital Improvement Expansion Fee, is hereby amended
to read as follows:
700 sq. ft. and under $270.00
701 to 1,200 sq. ft. 343.00
1,201 to 1,700 sq. ft. 380.00
1,701 to 2,200 sq. ft. 395.00
2,201 sq. ft. and over 423.00
Commercial buildings
(per 1,000 sq ft.)
326.00
Industrial buildings
(per 1,000 sq. ft.)
77.00
Section 4. That the fee schedule in Section 7.5-31(a) of the Code of the City of Fort
Collins, establishing the General Government Capital Improvement Expansion Fee, is hereby
amended to read as follows:
700 sq. ft. and under $317.00
701 to 1,200 sq. ft. 406.00
1,201 to 1,700 sq. ft. 447.00
1,701 to 2,200 sq. ft. 469.00
2,201 sq. ft. and over 502.00
Commercial buildings
(per 1,000 sq ft.)
772.00
Industrial buildings
(per 1,000 sq. ft.)
181.00
Section 5. That the fee schedule in Section 7.5-71(b) of the Code of the City of Fort
Collins, establishing the Neighborhood Parkland Fee, is hereby amended to read as follows:
700 sq. ft. and under $1,249.00
701 to 1,200 sq. ft. 1,603.00
1,201 to 1,700 sq. ft. 1,771.00
1,701 to 2,200 sq. ft. 1,845.00
2,201 sq. ft. and over 1,976.00
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Introduced, considered favorably on first reading, and ordered published this 2nd day of
December, A.D. 2015, and to be presented for final passage on the 16th day of December, A.D.
2014.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading on the 16th day of December, A.D. 2014.
Mayor
ATTEST:
City Clerk