City Council Communication

Date Agenda No. Subject

8/20/2013 7(c) Ordinance on Second Reading to Amend the City Code of Littleton to Implement a Capital Facility Impact Fee System

Presented By: Glen Van Nimwegen, AICP, Community Development Director

POLICY QUESTION: Does Council support the adoption of an impact fee ordinance which would have new development pay a pro rata share of the development’s capital impact in the community? BACKGROUND: Since the first reading was held on July 16, Council submitted to staff additional questions about the implementation of the proposed ordinance. Staff also made corrections to the ordinance since it was reviewed at first reading. The questions, answers and corrections are attached to this report as Supplement to Staff Report: Questions and Changes since First Reading. The city recently contracted with BBC Research and Consulting to evaluate the cost of expanding city facilities for fire, police, museum, library, parks, facilities, and transportation. An impact fee system is predicated on the ideal that future growth should pay to expand these facilities as needed. An impact fee system must adhere to the following requirements: • Impact fees are a one-time payment levied on new development; • The fees can only be used for future capital infrastructure projects, not for maintaining existing infrastructure; • Fees must be applicable to all land uses; and • There must be a rough proportionality between the fee charged and the expected impact of new development. Ford Frick of BBC Research and Consulting presented findings of the study at the July 9, 2013 Council Study Session. Since the Study Session, the report has been updated and a revised version (dated July 30, 2013) is attached to this city council communication. STAFF ANALYSIS:

The proposed ordinance provides an equitable system to collect fees from new residential and non-residential development to pay for new facilities needed because of growth. Key components of the ordinance are as follows: 11-7-3(A): 11-7-3(C): The fees will be paid at the time of building permit issuance. 11-7-3(D): This section describes how the fee will be calculated for new structures; replacing a nonresidential building with a larger building; expanding an existing building; changing the use of a structure or adding new residential units. For expansions and replacements, an applicant is given credit for the existing building. The city is not assessing a fee to additions to residential structures,