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HomeMy WebLinkAboutMemo - Mail Packet - 11/14/2023 - Memorandum From Jill Wuertz Re: Council Park Fee QuestionsParks Department – Park Planning and Development 215 North Mason Fort Collins, CO 80524 970-416-2062 jwuertz@fcgov.com MEMORANDUM Date: November 8, 2023 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Dean Klingner, Community Services Director Mike Calhoon, Parks Director From: Jill Wuertz, Senior Manager Park Planning and Development Subject: Council Park Fee Questions The purpose of this memo is to provide information following questions from Councilmember Peel relating to Park fees and park buildout. • What are we collecting for Park Development Fees and how does the process work? • How many parks remain to be developed? Bottom Line: The City of Fort Collins provides public park facilities for the benefit of residents. The expansion of this park system is paid for by community and neighborhood park capital expansion fees. The current Parks and Recreation Plan, ReCreate 2021, outlines future parkland to be built. There are 14 future neighborhood parks and 2 community parks remaining. Over the past five years (2018 – 2022) the fees collected by the City have averaged approximately $2.5 million per year for Community Parks and $1.9 million per year for Neighborhood Parks. The capital expansion fees, as well as utility impact fees, were discussed at the October 5, 2023 Council Finance Committee (CFC) meeting and are scheduled for further discussion at the upcoming December 14, 2023 CFC meeting. DocuSign Envelope ID: A577A399-5B6C-44A1-BAB6-E6D54751A894 Capital Expansion Fee Context and History: 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 developments. Fees and charges are designed to defer the costs of current services that benefit the recipient or off-set burdens of regulation. The City regularly reviews charges and fees as a legislative or budgetary process. City Code Section 7.5-16 outlines the intent for capital expansion fees and states that said fees “shall not be used to collect more than is necessary to fund such capital improvements.” Capital expansion fees (CEFs) are collected for Fire, Police, General Government facilities, Neighborhood Parks (implemented in 1968) and Community Parks (implemented in 1996). Additionally, the City also has a similar but separate transportation capital expansion fee (TCEF) designed to recoup transportation infrastructure costs. This concept of growth paying for the impact of growth is a policy decision that past City Councils have made. In 2012 and then again in 2016/17, the City of Fort Collins contracted with consultant Duncan Associates to analyze the methodology and update the capital expansion fees. The legal framework for impact fees is explained in detail in the 2017 Capital Expansion Fee Study on pages 5-10 and it utilizes the standards-based methodology which ensures the fees are proportional to the demand that new development places on the park system. The demand for City park facilities is generated by people. However, in practice, 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 over time for a specific housing unit. The current fee assumes a household size based on census data and estimates of existing housing inventory. By dividing various housing types based on square footage by the average household size of a single-family unit, a proportionate household size is created for different housing sizes. Fees are assessed by land use type and paid upon application of a building permit by a builder/developer. The capital expansion fees are currently undergoing a study update performed by Economic & Planning Systems (EPS). Draft output from this study update was shared with the Council Finance Committee on October 5, 2023. The distribution of the full written draft report is still pending. DocuSign Envelope ID: A577A399-5B6C-44A1-BAB6-E6D54751A894 Allowable Uses for Park Fees: The fees are restricted to direct and associated costs of building and expanding parks (land and water acquisition, design, construction and project and program administration). They cannot be used for on- going maintenance or end-of-life equipment and asset replacement. We have historically restricted the use of these fees to construction of new parks. As the City experiences more in-fill development we are exploring the possibility of using the fees for expansion of existing parks. City Code Section 8-95 established the “community parkland capital expansion fee account” which is an account for the “acquisition, construction and development of capital improvements related to the provision of the community parklands.” Likewise, City Code Section 7.5-28(a) states that the fees related to this fund are imposed for the purpose of “funding capital improvements related to the provision of community parks.” The general allowable uses for fees collected for capital improvements are detailed in City Code Section 7.5-22. The City of Fort Collins has a robust, distributed public space system that seeks to provide residents with convenient access to amenities and services. The 2021 Parks and Recreation Plan defines both population-based and access standards by amenity to ensure our level of service is maintained. You may observe differences in the condition of amenities, and the era of code, based on when the park was built. Standards change over time and increase building requirements. For instance, after 1990 you will see large differences in design due to codes related to ADA (Americans with Disabilities Act), playground safety standards established in 1993, International Building Codes adopted after 2000 and even water conservation policies like hydrozoning. To maintain standards over time and bring amenities up to current codes and guidelines, a sustainable funding source is necessary. The November sales tax ballot issue is one such proposal to fill that gap. DocuSign Envelope ID: A577A399-5B6C-44A1-BAB6-E6D54751A894 Current Capital Expansion Fees: Over the past five years (2018 – 2022), the fees collected by the City have averaged approximately $2.5 million per year for Community Parks and $1.9 million per year for Neighborhood Parks. The detail for all capital expansion fees collected by the city over this timeframe is summarized below: The existing capital expansion fee rate schedule is highlighted below: This schedule and more information related to capital expansion fees is available online at https://www.fcgov.com/finance/capitalexpansion. DocuSign Envelope ID: A577A399-5B6C-44A1-BAB6-E6D54751A894 Remaining Parks to be Built: The current Parks and Recreation Plan, ReCreate 2021, outlines future parkland to be built. Not including Dovetail Park (formerly called Bucking Horse Park), which was opened at the end of September 2023, there are 14 future neighborhood parks and 2 community parks remaining including: • Bacon Neighborhood Park (land acquired, funded in BFO 23-24) • Eastridge/Mosaic Neighborhood Park (land and water acquisition funded in BFO 23-24) • East Community Park (land acquired) • Richard’s Lake Neighborhood Park (land acquired) • Ironhorse Neighborhood Park (land being acquired via Dedication of land in lieu of fee) • Interstate Neighborhood Park • Fossil Lake Neighborhood Park • Northeast Community Park & Maintenance Facility • Sunflower Neighborhood Park • Poudre Plains Neighborhood Park • Old Town Neighborhood Park • Elizabeth Street Neighborhood Park • Parkwood Neighborhood Park • Wheaton Neighborhood Park • Morningside Neighborhood Park • Shields Neighborhood Park • Heron Neighborhood Park Sequencing of park construction is determined by several factors, including available funding from park impact fee revenues, the level of completed development around the park site, neighborhood park needs/prioritization city wide, raw water availability/agreements, and opportunities for partnership/efficiencies with other City projects. For this reason, it is difficult to script an exact timeframe for development of parks outside of the BFO budgeting process. DocuSign Envelope ID: A577A399-5B6C-44A1-BAB6-E6D54751A894 H O R S E T O O T H R E S E V O I R F O S S I L L A K E T a f t H i l l R d T i m b e r l i n e R d L e m a y A v e I - 2 5 I - 2 5 C o l l e g e A v e Mulberry St Vine Dr Harmony Rd Horsetooth Rd Trilby Rd Drake Rd Prospect Rd H O R S E T O O T H R E S E V O I R F O S S I L L A K E T a f t H i l l R d T i m b e r l i n e R d L e m a y A v e I - 2 5 I - 2 5 C o l l e g e A v e Mulberry St Vine Dr Harmony Rd Horsetooth Rd Trilby Rd Drake Rd Prospect Rd 194 / Fort Collins Parks and Recreation Master Plan Guidelines for Parks and Facilities / 195 RProposed Park, Land Acquired Focus Area Overlay 01/212 Miles The map above is an overlay of the new amenity focus areas from both the walking and driving access standards maps. By overlaying these focus areas, several patterns emerge. First, the location of the proposed community parks in both the northeast and east parts of the city are appropriately located and will provide amenities to parts of the city that will grow significantly over the next twenty years. The other pattern that emerges is that a need for a new park or parks exists in the southern part of the city. Based on the level of service analysis and the focus area overlay the Parks and Recreation Master Plan recommends building 12 new parks and completing 7 of the parks that are currently planned. The recommended parks fill in gaps in the service areas and provide amenities to residents who currently have to travel to reach them. The recommended parks should be built and classified based on their surroundings and amenities. Recommended Future Park/Facility Sites 0 1 2 Miles Proposed ParksProposed Park, Land Not Acquired Recommended Community/Neighborhood Centers 0 1 2 Miles Eastridge Park NE Community Park Fossil Lake Park R R R Elizabeth Street Park Poudre Plains Park Old Town Park Shields Park Sunflower Park Morningside Park Heron Park Wheaton Park Parkwood Park Interstate Park Richards Lake ParkRichards Lake Park Bucking Horse ParkBucking Horse Park E Community ParkE Community Park Trailhead ParkTrailhead ParkIronhorse ParkIronhorse ParkLegacy ParkLegacy Park Bacon ParkBacon Park DocuSign Envelope ID: A577A399-5B6C-44A1-BAB6-E6D54751A894