Finance Committee Agenda and Packet 2016 07 18

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EXECUTIVE SUMMARY The City of Louisville retained TischlerBise to prepare an impact fee study for various infrastructure categories. This report updates TischlerBise's previous Impact Fee Report prepared for the City in 2006. Impact fees are one-time payments used to fund system improvements needed to accommodate new development. This report documents the data, methodology, and results of the impact fee calculations. The methods used to calculate impact fees in this study are intended to satisfy all legal requirements governing such fees, including provisions of the U. S. Constitution and the Colorado Development Impact Fee Act. The following infrastructure categories have been developed with methodologies that meet the requirements to be adopted as impact fees. • Parks and Trails • Recreation • Library • Municipal Facilities • Transportation Note: these are the same infrastructure categories for which the City currently assesses impact fees. IMPACT FEE SUMMARY As documented in this report, impact fees for the City of Louisville are proportionate and reasonably related to the capital facility service demands of new development. The written analysis of each impact fee methodology, establish that impact fees are necessary to achieve an equitable allocation of costs in comparison to the benefits received. Impact fee methodologies also identify the extent to which newly developed properties are entitled to various types of credits to avoid potential double payment of capital costs. An impact fee represents new growth's proportionate share of capital facility needs. By law, impact fees can only be used for capital improvements, not operating or maintenance costs. Impact fees are subject to legal standards, which require fulfillment of three key elements: need, benefit and proportionality. First, to justify a fee for public facilities, it must be demonstrated that new development will create a need for capital improvements. Second, new development must derive a benefit from the payment of the fees (i.e., in the form of public facilities constructed within a reasonable timeframe). Third, the fee paid by a particular type of development should not exceed its proportional share of the capital cost for system improvements. TischlerBise documented appropriate demand indicators by type of development. Specific capital costs have been identified using local data and costs. This report includes summary tables indicating the specific factors used to derive the impact fees. These factors are referred to as level of service, or infrastructure standards. 5 FINAL VERSION 11