HomeMy WebLinkAboutMemo - Mail Packet - 4/23/2024 - Memorandum From Davis Lenz Re: April 9, 2024 Work Session – Impact Fees DiscussionFinancial Services
215 N. Mason Street – 2nd Floor
PO Box 580, Fort Collins, CO 80522
Fcgov.com/finance
Page 1 of 2
MEMORANDUM
Date: April 16, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Travis Storin, Chief Financial Officer
From: David Lenz, Financial Planning & Analysis Director
Subject: April 9, 2024 Work Session – Impact Fees Discussion
BOTTOM LINE
The purpose of this memo is to document the summary of discussions during the April 9, 2024
Work Session on Impact Fees. All Councilmembers were present in person.
DISCUSSION SUMMARY
Staff provided an overview of the Capital Expansion Fee Study, Transportation Capital
Expansion Fee Study, and Utility model updates that were completed in Q4 2023. Additionally,
the preliminary work from the ongoing Water Utility 2024 updates and City and Front Range
Communities’ approaches to fee offsets were reviewed as part of the analysis and discussion.
Staff reviewed the methodologies underpinning the capital expansion fee studies, which adhere
to the standards based (incremental expansion) approach which bases fees on the existing
levels of service. Plan-based methodologies are also utilized to provide improvements for Active
Modes. Industry best practices have been utilized to show the nexus and proportionality for
each land use type. There was also discussion about the level of services provided and how
these service levels can be impacted by collecting less than the full amounts provided for in fee
study and model updates.
There was further discussion with Councilmembers about policy in relation to our impact fees.
This included discussion around state statutes and the TABOR framework. Staff provided a
review of the City’s current fee credit program that is available to qualified projects to offset
some of the impact fees. An overview of other Front Range communities’ approaches to
incentivizing affordable housing through fee reductions was also presented and discussed.
Staff also presented various options that would allow the City to expand its fee credit programs
and the estimated costs for the various options.
NEXT STEPS
Staff will continue to gather Council and community feedback related to impact fees. This will
include the discussion related to the Council Priority work plan scheduled for the May 14, 2024
DocuSign Envelope ID: 81DA5B72-E12E-4297-8C78-9CCA31405850
Page 2 of 2
Work Session as well as the ongoing Water Utility fee and modeling updates. Staff will work
with Councilmembers to determine the timing and format of additional meetings and/or
communications during 2024 for further consideration of impact fees presented.
FOLLOW-UP ITEMS
Councilmembers had questions about development review processes, fees, and operational
cost recovery. These fees are distinctly separate from the impact fees for capital that were
covered in the meeting. Currently, a team of staff meets regularly to implement process
improvements to make the development review process more predictable, efficient, and
consistent. Development review fees were analyzed and restructured in 2019 for cost recovery
and, due to COVID delays, were implemented in 2022. At this time, any anticipated increases
will be based on inflation adjustments.
There were also requests to provide a more comprehensive set of comparable fees to
benchmark other Front Range communities with the City of Fort Collins. Staff will work together
to provide Councilmembers with an updated set of comparable fees, considering the
complexities inherent with differing calculation methodologies, the number of different utility
providers within communities and impacts across different land use classes, project types and
dwelling sizes.
DocuSign Envelope ID: 81DA5B72-E12E-4297-8C78-9CCA31405850