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EXECUTIVE SUMMARY <br />The City of Louisville retained TischlerBise to prepare an impact fee study for various infrastructure <br />categories. This report updates TischlerBise's previous Impact Fee Report prepared for the City in 2006. <br />Impact fees are one -time payments used to fund system improvements needed to accommodate new <br />development. This report documents the data, methodology, and results of the impact fee calculations. <br />The methods used to calculate impact fees in this study are intended to satisfy all legal requirements <br />governing such fees, including provisions of the U. S. Constitution and the Colorado Development <br />Impact Fee Act. The following infrastructure categories have been developed with methodologies that <br />meet the requirements to be adopted as impact fees. <br />Parks and Trails <br />Recreation <br />Library <br />Municipal Facilities <br />Transportation <br />Note: these are the same infrastructure categories for which the City currently assesses impact fees. <br />IMPACT FEE SUMMARY <br />As documented in this report, impact fees for the City of Louisville are proportionate and reasonably <br />related to the capital facility service demands of new development. The written analysis of each impact <br />fee methodology, establish that impact fees are necessary to achieve an equitable allocation of costs in <br />comparison to the benefits received. Impact fee methodologies also identify the extent to which newly <br />developed properties are entitled to various types of credits to avoid potential double payment of <br />capital costs. An impact fee represents new growth's proportionate share of capital facility needs. By <br />law, impact fees can only be used for capital improvements, not operating or maintenance costs. <br />Impact fees are subject to legal standards, which require fulfillment of three key elements: need, benefit <br />and proportionality. First, to justify a fee for public facilities, it must be demonstrated that new <br />development will create a need for capital improvements. Second, new development must derive a <br />benefit from the payment of the fees (i.e., in the form of public facilities constructed within a <br />reasonable timeframe). Third, the fee paid by a particular type of development should not exceed its <br />proportional share of the capital cost for system improvements. <br />TischlerBise documented appropriate demand indicators by type of development. Specific capital costs <br />have been identified using local data and costs. This report includes summary tables indicating the <br />specific factors used to derive the impact fees. These factors are referred to as level of service, or <br />infrastructure standards. <br />CALCULATION METHODOLOGIES <br />There are three basic methods used to calculate impact fees. The incremental expansion method <br />documents the current level of service for each type of public facility. The intent is to use revenue <br />5 <br />