Loveland: Council Approves Extra Funding for Impact Fee Study

The City Council passed an ordinance to appropriate a total of $35,800 from General Fund balance to pay for additional professional and consulting services necessary to complete the Capital Expansion Fee (CEF) Plan Based Study. Loveland charges CEFs, otherwise known as impact fees, to pay for the impact of new developments on the City’s infrastructure and services. A plan-based methodology is calculated on the proportionate share of planned infrastructure development and is different from the traditional “buy in” method currently used by the City.

The original estimated cost for the study was $85,000. The work completed so far has required more research than originally anticipated and a far higher level of interaction and participation with Boards and Commissions with an interest in the CEFs. The requested supplemental appropriation will ensure the study is completed in time for discussion during the Council’s September 22, 2015 Council study session.

Believe it or not, the Council first directed staff to study this methodology of calculating CEFs in late 2012 but the 2013 floods interrupted the project. The original plan was to have departments that rely on CEFs for capital funding update their master plans in 2013. The master plans would provide the foundation for the plans-based fees. While the Council supports the plan-based methodology, it’s not necessarily cheaper for businesses. It also requires more data and predictions.

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