HomeMy WebLinkAboutMemo - Mail Packet - 11/04/2024 - Memorandum from David Lenz re October 22, 2024 Work Session – Impact Fee DiscussionFinancial Services
215 N. Mason Street – 2nd Floor
Fort Collins, CO 80522
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CC: Randy Reuscher, Lead Rate Analyst – Utilities; Marc Virata, Engineering
WORK SESSION MEMORANDUM
Date: October 29, 2024
To: Mayor and City Councilmembers
Through: Kelly DiMartino, City Manager
Travis Storin, Chief Financial Officer
From: David Lenz, Director, Financial Planning & Analysis
Subject: October 22, 2024 Work Session – Impact Fee Discussion
BOTTOM LINE
The purpose of this memo is to document the summary of discussions during the October 22,
2024 Work Session on Impact Fees. All Councilmembers, with the exception of Tricia Canonico,
were present in person.
DISCUSSION SUMMARY
Staff provided an updated overview of the Capital Expansion Fee Study and Transportation
Capital Expansion Fee Study that were completed in Q4 2023, including a comparison of
potential 2025 fees with the actual 2023 and 2024 fee schedules. The results of the Utility model
updates that were completed last year were also reviewed, along with proposed fee changes for
2025.
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.
A sampling of different project types was presented to illustrate the impact fee costs by different
property size and land use type, as well as a comparison of capital expansion fees across
several neighboring communities. Differences in levels of service and how items are paid for in
other communities were discussed.
Councilmembers expressed continued concern over rising costs impacting the affordability of
housing and non-residential developments, as well as a desire to better understand what other
levers staff might have to address these concerns. There was also continued discussion about
Council priorities, study methodologies and existing Colorado law, and the challenge of aligning
values-based approaches within the legal constraints. Additional information was requested on
the inputs/assumptions used in the study as well as the 2017 task force work that led to updates
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that year. Clarity was also provided to Council in response to questions about how
redevelopment projects are subject to the various impact fees.
Staff also presented an overview of the timeline for future fee study and model updates.
NEXT STEPS
The impact fee adjustments for 2025 are scheduled for 1st reading with Council on November
19. In response to Council input, staff will bring forward:
Options for consideration, including inflation-only adjustments to the fee schedules.
Background information on 2017 efforts and the task force
Inputs/assumptions used in the study
Options for updates in advance of the next regularly-scheduled update in 2027
FOLLOW-UP ITEMS
A separate Work Session is scheduled in Q1 2025 to address the larger issue of affordable
housing fee credits and other topics in conjunction with Council’s priority in this area.
Additionally, staff will continue to monitor the data environment for warranted adjustments to
methodologies, timing, and magnitude related to impact fee adjustments.
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