Agenda Date: 09/04/2018
Subject:
Title
Amendments regarding capital facility impact fee rates for fire and transportation
Body
|
Presented By: |
Tiffany Hooten, Finance Director and Keith Reester, Public Works Director |
BACKGROUND:
Council adopted capital facility impact fees in August of 2013 (Ordinance 14, Series of 2013) and amended the fees in July of 2014 (Ordinance 17, Series of 2014). The fees are charged for residential and non-residential development in the city and fund capital improvements to address demand attributable to the new development. The impact fee categories adopted by council include: fire, museum, library, police, facilities, and transportation.
The 2014 adopted fees are:
|
Use |
Fire |
Museum |
Library |
Police |
Facilities |
Transportation |
Total |
|
Residential (per dwelling unit) |
$453 |
$515 |
$542 |
$319 |
$1,550 |
$317 |
$3,697 |
|
Non-Residential (per square foot) |
$0.227 |
$0 |
$0 |
$0.16 |
$0.775 |
$0.784 |
$1.946 |
The fees were based on the Impact Fee Design Analysis report by BBC Research and Consulting dated July 30, 2013 as updated by a supplemental memorandum dated June 5, 2014. In the adopted ordinance, the fees are to be used to fund capital improvements to address demand attributable to new development and are not to be used to fund operation, maintenance, or replacement costs or otherwise fund the general costs of government. Additionally, the impact fee applies regardless of the value of the property developed and shall be imposed in addition to other fees, taxes, or charges of the city.
Upon adoption of the impact fees by city council, BBC Research and Consulting recommended that the impact fees be periodically revisited to ensure the fees reflect capital facilities standards and are appropriately apportioned to new development. The fees have not been adjusted since 2014.
Staff has updated the Littleton street capital projects to reflect current needed street and infrastructure improvements. This update results in a recommended increase to the transportation capital facility impact fee.
Beginning in 2019, the city will be contracting with South Metro Fire Rescue for fire services; the city will no longer collect fire capital facility impact fees. The fire capital facility fee will be reduced to 0.
STAFF ANALYSIS:
The recommended impact fee change includes an update to the Littleton street capital projects and an update to reflect the number of households according to the 2016 American Community Survey report. The original growth rate of 1.5% remains the same.
The fire capital facility impact fee will be reduced to 0.
FISCAL IMPACTS:
The per dwelling residential impact fee will increase from $3,697 to $3,975 (an increase of $278 per dwelling unit or 7.5%) and the per square foot non-residential impact fee will increase from $1.946 to $3.542 (an increase of $1.596 or 82%) should city council approve the recommendations.
STAFF RECOMMENDATION:
Staff recommends an ordinance be prepared for council consideration on November 6, 2018 updating the capital facility impact fees for fire and transportation.
OPTIONS/ALTERNATIVES:
Approve proposed capital facility impact fees to allow for additional funding to address capacity needs for transportation while reducing the fire capital impact fees.
Not approve proposed capital impact fees leaving transportation capital facility impact fee the same and not eliminating the fire capital facility impact fee.