Agenda Date: 11/10/2026
Subject:
Title
2027 Fee Schedule Discussion
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
Laurie Matta, Finance Director |
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Presentations: |
Laurie Matta, Finance Director |
PURPOSE:
Council requested study sessions each year to consider fee-setting policies and approaches.
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.
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.
In 2026 the City completed a comprehensive rate study with an outside consultant for our wastewater and stormwater utility funds.
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 research after the first hour. For 2026 the maximum rate is $41.37.
BACKGROUND:
The current 2026 fee schedule was adopted by resolution on October 21, 2025.
FISCAL IMPACTS:
The following are the proposed fee changes for 2027:
Wastewater and Stormwater Utilities Fees
Proposed wastewater and stormwater fees are projected to cover capital project requirements to maintain and improve the utility systems. The fee structure and billing frequency is being updated to best practices and includes an increase in revenue of approximately 25% for wastewater and 60% for stormwater.
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 CPI for the Denver-Aurora-Lakewood Colorado area is 3.9%. This resolution would increase the fee-in-lieu by 3.9%.
Police Research fee
The police department wishes to update their research fee to match the open records fee of $40 per hour. The state maximum cost recovery fee for open records, it is currently $41.37 per hour. Staff is requesting an increase from $25/hour to $40/hour.
Additions & Other Changes
• Hauler licenses fee - $250
• EV Charging Stations - $0.22/kwh for 30 mins - $0.50/min thereafter
• Massage Parlor licensing - $150
• Home Occupation license - removed $100 to $0
• Trucked and hauled waste - annual 1 cent increase from $0.15 to $0.16 per gallon.
• Community Garden - plots and half plots/raised planters
A red-lined version of the 2027 Proposed Fee Schedule is attached as reference for comparison purposes.
STAFF RECOMMENDATION:
Staff recommends council approve a resolution in October, approving the 2027 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 2026 level, understanding the impact to current and future projects.