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Home My WebLink About182 - 11/18/2025 - ADOPTING THE 2026 LARIMER COUNTY REGIONAL TRANSPORTATION CAPITAL EXPANSION FEE SCHEDULEORDINANCE NO.182,2025 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE 2026 LARIMER COUNTY REGIONAL TRANSPORTATION CAPITAL EXPANSION FEE SCHEDULE A.The City and Larimer County (the “County”)previously entered into an intergovernmental agreement (the “IGA”),as amended from time to time,whereby the City collects a Regional Transportation Capital Expansion Fee (also known as a “regional road impact”fee)on behalf of Larimer County at the time of issuance of building permits, which fee raises revenue for road improvements on regionally significant roadways that are necessitated by new development. B.The City and the County have established a procedure pursuant to City Code Section 7.5-82 for the City Council to consider and approve any County-proposed changes to the Regional Transportation Capital Expansion Fee schedule (the uRegional TCEF Schedule”)to reflect changes in construction costs,or other relevant factors. C.The last changes to the Regional TCEF Schedule were accomplished by City Council’s adoption of Ordinance No.185,2024. D.On May 27,2025,after reviewing calculations and data analyzing increases in road construction costs based on an eight-quarter moving average calculated from the Colorado Construction Cost Index data compiled by the Colorado Department of Transportation,the County approved a 4.44%increase to the 2025 Regional Transportation Capital Expansion Fee,taking effect on July 1,2025. E.Under the terms of the IGA,revisions to the Regional TCEF Schedule do not take effect in the City until the City Council approves the new fee schedule. F.The City Council has determined that it is in the best interests of the City to adopt the County’s Regional TCEF adjustments,which serve the public interest of adequately funding road improvements that are necessitated by new developments along regionally significant roadways that impact the City. In light of the foregoing recitals,which the Council hereby makes and adopts as determinations and findings,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the 2026 Larimer County Regional TCEF Adjustment attached hereto as Exhibit A and incorporated herein by reference is hereby adopted and approved and shall go into effect in Fort Collins on January 1,2026,which reflects the adjustment of the Regional TCEF to the City (the “City Schedule of the 2026 Regional TCEF”) attached hereto as Exhibit B and incorporated herein by reference. Introduced,considered favora’y on first rea.ing on November 3,2025,an. approved on second reading for final passage on November 18,2025. 4,&~t Effective Date:November 28,2025 Approving Attorney:Dianne Criswell Exhibits:Exhibit A:2026 Larimer County Regional TCEF Adjustment Exhibit B:City Schedule of the 2026 Regional TCEF ATTEST:r Sr.Deputy City Cler — EXHIBIT A TO ORDINANCE NO.182,2025 LARIMER COUNTY I ENGINEERING DEPARTMENT P.O.Box 1190,Fort Collins,Colorado 80522-1190,970.498.5700,Larimcr.org MEMORANDUM TO:Board of County Commissioners FROM:Mark Peterson,County Engineer DATE:May 12,2025 RE:2025 Transportation Capital Expansion Fee (TCEF)Adjustments Since 1998,under the terms of the Land Use Code,Larimer County has been collecting Transportation Capital Expansion Fees (TCEF)from new traffic generating development.The TCEF can only be used for capacity-related improvements to Larimer County’s roadway system.Fees are based on maintaining an adequate Level of Service (LOS)on the mainline County Road system. The County’s TCEF Study was last updated in 2018.The study established a fee schedule that considered road capacity needs,development patterns,and other factors such as the construction costs of transportation improvements.Since 2018,the annual TCEF adjustments have considered construction cost inflation factors based on the direction of our Land Use Code,which stipulates,“The fees in the road fee schedule shall be updated annually by the Fee Administrator to reflect changes in road construction costs dunng the previous year.”The methodology used for the annual fee update is also specified in the Land Use Code as an & quarter moving average of the quarterly Construction Cost Index (CCI)data compiled and reported by the Colorado Department of Transportation (CDOT).The 8-quarter moving average is intended to reflect changes in road construction costs over a 2-year period to smooth out short-term cost fluctuations. Engineering Staff reviews the TCEF schedule annually and notifies the Board of County Commissioners (8CC)of the results.Last year,the 8-quarter moving average showed a need for an increase of 17.2%from the 2023 values to reflect actual road construction costs occurring in the State.The 8CC discussed rate changes in a work session on May 20,2024, and ultimately supported a 10%increase,considering the financial impacts on the development community,but also acknowledging that the loss in TCEF revenue from using the lower percentage could cause a delay in capacity-related capital projects.This year,the past 8- quarter moving average showed a 2.77%decrease,from the prior year’s 17.2%increase. However,Staff recommends a 4.44%increase to align the County with the actual TCEF rate ‘I IMER a- EXHIBIT A TO ORDINANCE NO.182,2025 that would have been achieved had the full 17.2%increase been adopted last year,based on the adopted 8-quarter moving average,rather than the 10%that was implemented.Figure 1 below shows a graph depicting the annual and cumulative TCEF adjustments since the fee’s inception. The procedure spelled out in the Land Use Code states,“if the change in fees is less than or equal to 5%,the new fees become effective without further action by the 8CC.If the fee change is greater than 5%,the 8CC shall determine the percentage to be used to update the fees.”Staff is considering the 2025 TCEF rate change to be 7.22%,based on the current CDOT e ght-quarter moving average showing a -2.77%decrease and the proposed +4.44% increase.Although we are proposing only a 4.44%increase from the current fee schedule,we are still seeking input from the 8CC since the total rate change (7.22%)is greater than 5%. As an example,a 4.44%TCEF rate increase for a new single-family home (between 1,801 SF and 2,400 SF)would increase the fee by $294,from $6,628 (2024)to $6,922 (2025).Table 1 below shows the change in TCEF amounts for all categories,considerng a 4.44%increase from the 2024 Fee Schedule. Staff Recommendation and Request for Direction: The Engineering Department recommends that the Commissioners consider adopting a 4.44% increase to the 2024 TCEF Fee Schedule.This adjustment aligns the TCEF with the rate that would have been implemented last year had the full increase been applied,based on the adopted 8-quarter moving average methodology.The proposed increase reflects the rising road construction costs experienced in our capital projects and will help maintain the current level of service.It ensures adequate funding is available to expand road capacity in response to increased vehicle trips generated by new development. Another consideration is that our TCEF program is being restudied this year in conjunction with our 2025 Transportation Plan update.The TCEF structure is being re-analyzed using updated development and traffic predictions and current cost data.The Engineering Department Staff plan to present the results of the updated TCEF Study to the 8CC by the fourth quarter of 2025.The revised TCEF Study will establish an accurate baseline considering the most up-to- date data to support the fee,such as development trends,trip generation rates,average vehicle miles traveled,existing and future road capacity needs,and current road construction costs.This will provide another opportunity for the County to ensure the fee structure supports maintaining an adequate level of service while accommodating additional vehicle trips generated by new development. Based on the input given,staff will provide a 2025 TCEF Schedule for adoption at an upcoming Administrative Mailers meeting.The adopted fee schedule will be effective on July 1,2025, consistent with the specified annual effective date listed in the Land Use Code.The effective date also aligns with the annual cost-of-living adjustments and impact fees for other Community Development services. May 12,2025 Transportation Capital Expansion Fee Adjustments Page 2 LAR TM KR p a 2025 TCEF ADJUSTMENT LU C,z-C= U zz -C ~0-1 Di-’0i Di CD D -< Dio o U’z C-, 0) •0 -p0) Itx ~0 Di D “I C ‘1 CD ID 0~ C UI ‘-p 3 ID In 250% 22.5% Calculated ~nnua ClWnge ~Cumulative Change.Calculated (%l 0.0%0 Cum~~~a~e Change-Calculated 202.1.20Th2024AdopiedChange(%} 202$Deficiency ~—Cumulative Change -2024 Adopled (%) 17.5%Proposi~d 2025 Ca;chup ~%)202-I Deficiency (%}—0-—Cumulative Change-Proposed 2025 Catchup (%} 15.0% 12.5% 10.0% 7.70% 2.B0% 23% 2.35% OS -2.5% -290%188% -5.0% .5.00% -2.5% uJ (2z -Cr U In > I- -J -C D C) 2024 Detidency 7.211%) N C I Pr~poied 3025~ -v C C - 2j A L ‘1 (0 C a P.) 0 UI -I C-) Ill ‘1 0C-. C Cl) -l Illz -I 3S’% 67 5% 600% 515% 450% 37 5% 300% 22 5% 150% 7.5% o trs .1 5% -IS 0% -22 S It -4 -40 0 C z >z C-)m z p -& P.) “3 0P.) (‘I 2008 200~2010 2011 2015 2016 201 20l~2020 2021 [YEAR I I EXHIBIT A TO ORDINANCE NO.182,2025 Table 2:Proposed TCEF Rate Structure with 4.44%Increase Residential TCEF Finished Living Space per Dwelling 2024 TCEF 2025 TCEF Change (Square Feet)(Current)(with 4.44%Increase) 900 or less $3350 $3,498 $148 901-1300 $4,700 $4,909 $209 1301-1800 $5,662 $5,912 $350 1801-2400 $6,628 $6,922 $294 2401-3000 $7436 $7,766 $330 3001-3600 $8,094 $8,453 $359 3601 or more $8,653 $9,038 $385 Non-Residential TCEF Non-Residential Use 2024 TCEF 20245 TCEF Change (per 1,000 SF of Floor Area)(Current)(with 4.44%Increase) Industrial $2,059 $2,150 $91 Commercial $8,683 $9,069 $386 Office &Other Services $5 110 $5,337 $227 May 12,2025 Transportation Capital Expansion Fee Adjustments Page 4 L’RIMER I.%COIJWIV EXHIBIT B TO ORDINANCE NO.182,2025 City Implementation Schedule of the 2026 Regional TCEFS Effective January 1,2026 2025 Regional Road TCEF 2026 Regional Road TCEFDevelo•ment T . Increase or Decrease Residential (per Dwelling)by Square Feet of Finished Living Space 900 orless $256 $268 901 to 1300 $360 $376 1301 to 1800 $437 $457 1801 to2400 $511 $535 2401 to 3000 $572 $600 3001 to 3600 $621 $653 3601 or more $666 $698 Nonresidential (per 1,000 Square Feet of Floor Area) Commercial $672 $702 Office &Other Services $396 $414 Industrial $158 $165 n :11;