Agenda Date: 10/21/2025
Subject:
Title
Resolution 105-2025: Adopting the 2026 fee schedule
Body
|
From: |
James L. Becklenberg, City Manager |
|
Prepared by: |
Laurie Matta, Finance Director |
|
Presentations: |
Laurie Matta, Finance Director |
PURPOSE:
Does city council support adoption of 1) the 2026 fee schedule for wastewater, stormwater, affordable housing and fee various adjustments, and 2) a Waiver of Development Fee Policy for partner government agencies.
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
Fees are charged to customers, citizens, and other parties for certain city services. The purpose of a fee is to help defray the cost of the city providing those services and not to raise revenue for general services. Fees must be evaluated to ensure that the fee is commensurate with the service provided. City Council adopts a fee schedule that details the fees that will be charged for the fiscal year period of January 1 through December 31. The fee schedule, however, does not encompass all city-wide fees such as library and museum fees or license fees such as liquor and medical/retail marijuana.
Council requested study sessions each year to consider fee-setting policies and approaches. In 2025 we completed a cost of services study to evaluate development services fees. The results of that study, along with information on all other fees, was presented in January 2025.
The City is currently undergoing a comprehensive rate study with an outside consultant for our wastewater and stormwater utility funds. At this time, staff is recommending adjustments to the wastewater and stormwater utility fees based on analysis from 2020 internal rate studies for 2026. These fees generate critical revenue for their corresponding utility systems, and having them in place for January 1, 2026, is an important revenue practice.
In 2022, council passed the Inclusionary Housing Ordinance. This ordinance includes a fee-in-lieu that developers may pay the city in-lieu of providing minimum affordable units as outlined in the ordinance. Section 4-2-4 of the Inclusionary Housing Ordinance says that the fee-in-lieu paid by developers into the Affordable Housing Fund be adjusted annually by CPI. For this reason, the IHO fee-in-lieu is also recommended for adjustment with this resolution
The State sets a maximum rate a municipality can charge for open records requests. For 2026 the maximum rate is $41.37.
Finally, staff recommends approval of a Waiver of Development Fees policy that would apply to most of our governmental agency partners. It is not uncommon for local governmental agencies to exempt each other from fees, with the rationale that we are serving the same taxpayers with shared goals for high-quality public services. During the study session about the fee schedule held on September 25th, councilmembers requested verification of reciprocal fee waiver polices from agencies to whom the City would likely pay fees, namely South Metro Fire and Rescue District (SMFRD) and South Suburban Parks and Recreation District (SSPRD). Staff has confirmed that SMFR is willing to formalize an agreement to waive fees for the City in a reciprocal fashion for the City’s waiver of development fees. For this reason, SMFRD remains on the list of agency for whom fees would be waived by policy. SSPRD has expressed interest in a discussion of a reciprocal agreement, but suggested that the topic could be taken up as part of the upcoming operating agreement discussion. For that reason, SSRPD has been removed from the list of agencies in our policy at this time, with the expectation that SSPRD may be included in the future.
BACKGROUND:
The current 2025 fee schedule was adopted by resolution on December 3, 2024.
FISCAL IMPACTS:
The following are the proposed fee changes for 2026:
Wastewater and Stormwater Utilities Fees
Annual sewer utility fees are proposed to increase by 5% for operational and capital needs of the sewer utility system. Annual stormwater utility fees are proposed to increase by 5% for operational and capital needs of the stormwater drainage system. The total impact to a single-family residence for both sewer and stormwater fee increases in 2026 is $23.10 annually, or approximately $1.93 per month.
Affordable Housing Fee-in-lieu
Section 4-2-4 of the Inclusionary Housing Ordinance says that the fee-in-lieu paid by developers into the Affordable Housing Fund be adjusted annually by CPI. The ordinance defines CPI as “United States Department of Labor 150 Statistics (Bureau of Labor Statistics) Consumer Price Index for All Urban 151 Consumers, All items, for the Denver-Aurora-Lakewood Colorado area.” The 2024 CPI for the Denver-Aurora-Lakewood Colorado area is 2.3%. This ordinance would increase the fee-in-lieu by 2.3%.
Open Records Requests
The state maximum cost recovery fee is $41.37 per hour (after the first hour) for staff time to fulfill open records requests. Staff is requesting an increase from $33/hour to $40/hour.
South Platt Renew requested an increase in formulary charges for Additional Oxygen on Demand and Total Suspended Solids as well as a trucked and hauled fee to be included in our rate schedule.
Additions & Corrections
• Tax credit application fee adjustment
• Fee for a grading permit fee.
• Library fee for color copies
• Police Research Fee
• Reductions in zoning certificate, variance administration, temporary use and home occupation permit fees
• Community Development noted a duplicate charge on the schedule
A red-lined version of the 2026 Proposed Fee Schedule is attached as reference for comparison purposes.
STAFF RECOMMENDATION:
Staff recommends approval of the resolution adopting the 2026 fee schedule.
ALTERNATIVES:
1. Adopt fees as proposed.
2. Adopt differing fees, understanding the impact to current and future projects.
3. Maintain fees at the 2025 level, understanding the impact to current and future projects.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 105-2025 adopting the 2026 Fee Schedule.