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Lcityof <br />Louisville <br />COLORADO • SINCE 1882 <br />UTILITIES DEPARTMENT <br />STATEMENT OF DEPARTMENTAL POLICY & PROCEDURE <br />Title: Modeled Tap Fees <br />Effective Date: May 1, 2021 <br />Purpose & Scope <br />The purpose of this statement is to set the written rules, policies, and procedures, which <br />authorized the use of Tap Fee Projections for the Water fund within the Utility Rate Model. <br />Policies & Procedures <br />Modeled Tap Fees are derived from a multidepartment approach between Finance, Planning and <br />Public Works. On an annual basis, Planning will make projections of potential new and renovated <br />properties for the City. Public Works will assign a tap fee value for each identified development <br />and summarizes for an annual total tap fee projection. Finance will review this process and <br />ensures consistent and accuracy. <br />In addition, a minimum tap fee calculation was developed for years of uncertainly in projected <br />development. The minimum tap fee is based on a 4-year rolling average of existing redeveloped <br />properties that excludes new construction and singular abnormal or outlier charges in excess of <br />$200,000. <br />Calculation of Minimum Tap Fee <br />The prior four years of tap fees (excluding new builds) will be totaled and divided by four to <br />determine average and then rounded for simplicity. <br />Example Calculation for 2021 <br />Water Tap Fee Revenue (redevelopment only) <br />2017: $18,300 <br />2018: $133,994 <br />2019: $491,777 <br />2020: $27,698 (1 outlier removed) <br />4-Yr Total: $671,769 <br />Average: $167,942 = $168,000 <br />26 <br />