HomeMy WebLinkAbout20242200.tiffFRONT RANGE FIRE RESCUE
PO Box 130, Milliken, CO 80543
970-587-4464 / Fax: 970-587-0324
Courage* Compassion * Professionalism
Serving Johnstown, Milliken and Weld County for more than 100 years
August 8, 2024
Weld County Board of County Commissioners
1150 0 Street, PO Box 758
Greeley, CO 80631
Re: Notice of Intent to Impose Impact Fees
Dear Weld County Clerk:
RECEIVED
AUG 13 2024
WELD COUNTY
COMMISSIONERS
Pursuant to § 32-1-1002(1)(d.5)(I), C.R.S., this letter serves as the official notice of Front Range Fire
Rescue Fire Protection District's ("District") intent to adopt an impact fee schedule within the
jurisdiction of Weld County. The District's Board of Directors shall consider a Resolution to Adopt
Impact Fees to Fund Capital Facilities on October 10, 2024.
The District has identified a need to offset the cost of additional capital facilities based on new and
continuing development within the District's service area. The District has worked with a qualified
consultant to perform an impact fee study, which supports the proposed Impact Fee Schedule. The
District will impose, collect, and spend the proposed Impact Fees in accordance with applicable law,
including but not limited to C.R.S. § 32-1-1002(d.5)(I).
The Resolution shall take effect immediately upon its adoption, but the impact fees will not apply
until January 1, 2025. Any new development applications submitted on or after January 1, 2025,
would be subject to the District's Impact Fee Schedule. '
Enclosed, please find the proposed Resolution and Impact Fee Schedule. Please provide any written
comments the County has on the proposed Impact Fees before October 8, 2024, to the address at the
top of this notice.
Sincerely,
bkIc
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cc : CA 03B /Kg), PL(ER), AS R(BDIsM/oe)
08/15/24
2024-2200
RESOLUTION 2024 - 1
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
FRONT RANGE FIRE RESCUE FIRE PROTECTION DISTRICT TO ADOPT IMPACT FEES
TO FUND CAPITAL FACILITIES
WHEREAS, the Front Range Fire Rescue Fire Protection District (`District") is a political
subdivision of the State of Colorado organized pursuant to the Special District Act, C.R.S. § 32-
1-101, et seq. and
WHEREAS, § 32-1-1002(1)(d.5)(I), C.R.S., allows for the District Board of Directors ("Board") to
impose an impact fee on the construction of new buildings, structures, facilities. or improvements,
including oil or gas wells and related equipment, on previously improved or on unimproved real
property ("New Development(s)") within the District's jurisdictional boundaries pursuant to a
schedule that is (a) legislatively adopted; (b) generally applicable to a broad class of property;
and (c) intended to defray the projected impacts on capital facilities caused by the proposed
construction: and
WHEREAS, the District obtained an Impact Fee Study dated May 15.2023 to evaluate the nexus
between new development within the District's jurisdictional boundaries and the projected impact
that such development has on the District's Capital Facilities ("Nexus Study"). The Nexus Study
recommended an impact fee schedule for both residential and non-residential development at a
level no greater than necessary to defray the impacts of new development on the District's Capital
Facilities ("Impact Fee Schedule"). A copy of the Impact Fee Schedule is attached as Exhibit
A; and
WHEREAS, such impact fee shall not be imposed to remedy any deficiency in capital facilities
that exists without regard to proposed development; and
WHEREAS, no individual landowner shall be required to provide any site specific dedication or
improvement to meet the same need for capital facilities for which the impact fee is imposed; and
WHEREAS, the District has provided notice to the clerk of Weld County that includes territory that
is wholly or partly within District boundaries of the intent to adopt an impact fee schedule at least
60 days prior to the Board's consideration of this Resolution; and
WHEREAS, the Board has [not] received comments from Weld County as of the date of this
Resolution and finds that it is in the best interests of the citizens of the District for the Board to
adopt the proposed Impact Fee Schedule for collection on new developments within Weld County.
NOW THEREFORE BE IT RESOLVED THE BOARD OF DIRECTORS OF THE FRONT RANGE
FIRE RESCUE FIRE PROTECTION DISTRICT THAT:
1. The District hereby adopts the Impact Fee Schedule attached hereto as Exhibit A,
which is incorporated herein by reference. The District Impact Fee shall be imposed
on the construction of New Developments within the District's jurisdictional boundaries
for which a development application is submitted to Weld County on or after January
Page 1 of 3
1, 2025. On December 31 of each year to be effective for any District Impact Fees
collected beginning on January 1 of the following year, the fees set forth in the attached
Impact Fee Schedule shall automatically be adjusted by the increase, if any, in the
Denver -Aurora -Lakewood Consumer Price Index for All Urban Consumers (CPI -U)
over the preceding year.
2. The District will update the Nexus Study no less frequently than every five to seven
years to determine if additional adjustments to the Impact Fee Schedule are
supported.
3. The impact fees collected pursuant to the Impact Fee Schedule shall be used solely
for the purpose of funding capital facilities necessary to provide fire protection, rescue,
and emergency medical services to New Development within the District.
4. The impact fees shall not be used to remedy any deficiency in capital facilities that
exist without regard to the proposed new construction, and no landowner is required
to provide any site specific dedication or improvement to meet the same need for
capital facilities for which the impact fee is imposed.
5. This Resolution shall take effect immediately upon its adoption, but the impact fees
will not apply until January 1, 2025. Any New Development applications submitted
after January 1, 2025 shall be subject to the District's Impact Fee Schedule. Collection
of the impact fees shall be at the time of building permit issuance by the respective
County.
Adopted and Approved this day of , 2024.
FRONT RANGE FIRE RESCUE
FIRE PROTECTION DISTRICT
By:
President
ATTEST:
Secretary
Page 2 of 3
EXHIBIT A
FRONT RANGE FIRE RESCUE FIRE PROTECTION DISTRICT
IMPACT FEE SCHEDULE
RESIDENTIAL
FEE
PER
DWELLING
UNIT
UNIT
TYPE
Single
Family
or Two-Family4
`
S1,354.00
Multi
-Family
$1,247.00
NON-RESIDENTIAL
UNIT
TYPE
FEE
PER
SQUARE
FOOT
Commercial
& Industrial
$1.53
No developer or landowner is required to provide any site specific dedication or improvement to
meet the same need for capital facilities for which an impact fee is imposed pursuant to this
schedule, and no impact fee will be imposed on a developer or landowner if that individual is
already required to pay an impact fee or other similar development charge for another capital
facility used to provide similar Emergency Services, or if the individual has voluntarily made a
commensurate contribution of money for such other capital facility.
**NOTE: Townhomes are defined as Single Family Homes
The 2025 Fire Service Impact Fees listed above will be adjusted in December 2024 based
on the Denver -Aurora -Lakewood Consumer Price Index for All Urban Consumers (CPl-U).
Page 3 of 3
BBC.
RESEARCH
CONSULTING
Front Range Fire Rescue
Impact Fee Study
FINAL REPORT
Final Report
May 155h, 2023
Front Range Fire Rescue
Impact Fee Study
Prepared for:
Front Range Fire Rescue
P.O. Box 130
Milliken, CO 80543
Prepared by:
BBC Research & Consulting
1999 Broadway, Suite 2200
Denver, Colorado 80202-9750
303.321.2547 fax 303.399.0448
www.bbcresearch.com
bbc@bbcresearch.com
BBC
RESEARCH
CONSULTING
•
SECTION I.
Introduction
Front Range Fire Rescue Fire Protection District (FRFR) provides fire rescue, emergency
medical, and life safety and fire prevention services in Weld and Larimer Counties, serving the
Town of Johnstown, the Town of Milliken, and parts of unincorporated Weld and Larimer
Counties, as shown in Figure I-1. FRFR's service area includes both urban and rural land uses.
Many fire districts in Colorado impose development impact fees for expansion of public
infrastructure. Colorado statute and a series of United States Supreme Court decisions dictate
the amounts that districts can charge in impact fees and how they can devise, impose, and spend
them. Because of those requirements, FRFR retained BBC Research & Consulting (BBC) in 2023
to conduct a feasibility assessment and prepare a report documenting the calculation of
appropriate fees for its services. This report documents BBC's analysis and recommendations for
updating the impact fee system that would recover the proportional capital costs associated with
new development.
Figure I-1.
Front Range Fire Rescue Fire Protection District Service Area
or
Front Range Fire Rescue
Fire Protection District
a 44 It fe
LARIMER COUNTY
Berthoud
Source:
L
FRFR Station 3
Johnstown FRFR Station 1
by.
- - ,._.. -
FRFR Station 2
-
Milliken
WELD COUNTY
r
elf
Evans
E FRFR Fire Protection District
• FRFR Fire Stations
Municipalities
' - County boundaries
0
I
I
I I
4 Miles
FRFR Distnct Service Map available at
https //lift colorado.gov/district-service-map
erei L _ a --- •__ _-....r",___•
Fire districts data aggregated by the Colorado Department of Local Affairs. Downloaded from Colorado Information Marketplace, at
https://data.colorado.gov/Local-Aggregation/Fire-Districts-in-Colorado/ua3v-vcuh.
BBC RESEARCH & CONSULTING
SECTION I, PAGE 1
A. Impact Fee Requirements
Although there is no universally accepted definition of defensible impact fees, most feasibility
assessments focus on the following requirements:
One-time application, meaning that fees are a one-time payment for new development;
Restricted use, meaning that fees are only applicable to infrastructure expansion projects;
New development, meaning that fees are only applicable to new development and not
improvements to existing developments; and
Proportionality requirements, meaning that fees must be limited to the proportionate share
of the capital costs associated with providing services to the new development.
For example, Juergensmeyer and Thomas (2008) describe impact fees as:
"Fees collected through a set schedule or formula, spelled out in a local ordinance .... fees
are levied only against new development projects as a condition of permit approval to fund
infrastructure needed to serve the proposed development Impact fees are calculated to
cover the proportionate share of the capital costs for that infrastructure... "1
1. Colorado requirements. Consistent with Juergensmeyer and Thomas's (2008) description
of impact fees, Colorado law specifies the following requirements for impact fees:
Impact fees are a one-time payment levied on new development;
Funds can only be used for capital infrastructure projects:
➢ Applicable projects must have a five-year life.
> No funds can be diverted for operations, maintenance, repair, or facility replacement.
Impact fee revenue must be segregated from other revenue and used for the purposes for
which it was collected;
Fees must be imposed on all forms of development and cannot be limited to one type of
land use;
Impact fee revenue must be used for capital infrastructure expansion. No funds can be used
for correcting existing system deficiencies; and
There must be a reasonable expectation of benefit by the fee payer.
2. Supreme Court decisions. Impact fees must also be in accordance with a series of United
States Supreme Court rulings. The two most notable court decisions that speak to impact fee
requirements are often referred to as Nollan and Dolan.2 Guidance from those decisions requires
that there bean "essential nexus" between the fee and the community's interest. In Dolan v. City
of Tigard (1994), the Supreme Court held that, in addition to an "essential nexus," there must be
1 Juergensmeyer, Julian C., and Thomas E. Roberts. Land Use Planning and Development Regulatory Law. St. Paul, MN:
WestGroup, 2003; and ImpactFees.com, Duncan Associates, 20 February 2008.
2 Nollan v. California Coastal Commission, 483 U.S. 82; 1987 and Dolan v. City of Tigard (1994) 114S.Ct 2309.
BBC RESEARCH & CONSULTING SECTION I, PAGE 2
"rough proportionality" between the proposed fee and the impacts that the fee is intended to
mitigate. In Dolan, the Court further ruled that "rough proportionality" need not be derived with
mathematical exactitude but must demonstrate some relationship to the specific impact of the
project:
"We think a term such as 'rough proportionality' best encapsulates what we hold to
be the requirements of the Fifth Amendment. No precise mathematical calculation is
required, but the city must make some sort of individualized determination that the
required dedication is related both in nature and extent to the impact of the proposed
development. "3
Over the past two decades since Dolan, many fire districts have imposed impact fees, resulting in
a broad set of common practices when considering how best to reflect judicial and statutory
requirements in designing new fees.
B. Fee Applicability
As noted above, fire districts can only use impact fee revenue to cover the costs of any necessary
expansion of public infrastructure that is needed to serve new development. In addition, fee
amounts can only be set in a manner that is proportional to the cost of such infrastructure
expansion.
1. Public infrastructure. Public or capital infrastructure is the physical component of public
services. Under Colorado statute, the definition of infrastructure can include all equipment that
has at least a five-year lifetime. It does not include personnel or any elements of service costs,
even in circumstances where new staff is required to operate new facilities. Public infrastructure
generally includes buildings, facilities, parking, lighting, recreation centers, or other support
facilities. Capital infrastructure generally includes streets, parks, administrative facilities,
specialized fire or police buildings, and recreational facilities.
2. Nature of infrastructure investments. Not all capital infrastructure costs are associated
with community growth or with the expansion of facility capacity. Most fire districts make
infrastructure investments not because of growth pressures but for the repair and replacement
of existing facilities. For example, fire districts often make infrastructure investments related to:
Repair and replacement of existing facilities, such as annual building maintenance or
replacing a roof;
Betterment of existing facilities, such as introducing new services or improving existing
infrastructure without increasing service capacity; and
Facilities expansions, such as expanding an existing building to accommodate growing
personnel requirements.
Fire districts are not allowed to account for such investments as part of impact fee calculations.
3 Dolan v. City of Tigard (1994) 114S.Ct. 2309
BBC RESEARCH & CONSULTING SECTION I, PAGE 3
C. Capital Standards
In designing impact fees, fire districts must determine the appropriate capital standards
applicable to each category of infrastructure. Facility standards can vary widely between
districts. Whereas some states have legislation that describes such criteria with great specificity,
other states —like Colorado —use more general standards. There are two primary approaches
for calculating capital standards.
1. Replacement value approach. Capital standards can be estimated using the replacement
value of specific capital facilities and the qualified equipment necessary for each category of
infrastructure. For example, a city of 2,500 homes with a 20,000 square foot recreation center
that has a replacement value of $5 million would have a recreation center standard of 8 square
feet per housing unit (i.e., 20,000 square feet/2,500 homes = 8 square feet per home) and a
replacement value of $250 per square foot (i.e., $5 million/20,000 square feet = $250 per square
foot). Thus, each existing residence would have an embedded recreational investment of $2,000
per home (i.e., $250 x 8 square feet = $2,000 per home), representing the community's
recreational facility standard, which is what a developer could be charged for recreational
facilities for each new unit.
If capital standards are defined using a replacement value approach, then calculations of those
standards must account for any debt that applies against the relevant infrastructure. Because
current residents are already responsible for that debt, it would be duplicative and
inappropriate to charge developers impact fees that also include that debt.
2. Plan -based approach. Fire districts can also use a plan -based approach to set capital
standards, which relies on capital improvement or other specific plans to estimate the value of
capital required to serve future development. A plan -based approach requires forecasts of
residential and commercial growth and detailed data on capital expansion plans and costs. Plan -
based approaches must focus on expansion -related projects or the expansion portion of projects
rather than betterment or replacement projects.
D. Other Considerations
Over time, some consensus has emerged on how best to ensure that impact fees comply with
state statutes and court rulings. Many of the factors that fire districts must consider in designing
fees appropriately are described above, but BBC also presents other considerations that fire
districts must make.
Allocation by land use. Courts have indicated that all forms of development that have
facility impacts —that is, residential, industrial, and commercial developments —must pay
their fair share of expansion costs. If one type of development is exempted from fees, then
fees may not be sufficient to cover expansion costs that result from new development.
Use specificity. Impact fee calculations vary between different forms and sizes of
residential development and different uses of commercial buildings and how they impact
demand for public services. When compelling evidence is available that the forms, sizes, or
uses of particular types of development will result in substantially different demands for
public services, then fire districts' impact fees should reflect that information.
BBC RESEARCH & CONSULTING SECTION I, PAGE 4
Redevelopment. The application of impact fees raises questions about how to deal with the
redevelopment of existing properties. The redevelopment of a residence —even if it
involves full scraping —does not lead to an increase in service demands, because it is still
one residential unit with no implications for service delivery costs or capital needs. In
contrast, the redevelopment of a larger lot into multiple homes would be assessed an
impact fee based on the net number of new residential units, because there would be clear
implications for service delivery and capital needs. Commercial redevelopment would be
subject to the same considerations.
Waivers. Fire districts should not waive fees unless the funds are reimbursed from other
sources such as the general fund or other contributions by the developer to system
expansion that exceed the calculated fees.
Timing. Fees should be assessed at the time that building permits are issued.
Updates. Impact fee calculations should be updated periodically. Most fire districts update
their fees every two or three years.
Fee design costs. The cost of fee design studies can be recovered through impact fees and
used to reimburse districts' expenditures on the studies.
BBC RESEARCH & CONSULTING SECTION I, PAGE 5
SECTION II.
Impact Fee Derivation
As described in Section I, there are several types of information that fire districts must consider
to appropriately set their development impact fees, including determining capital standards.
BBC used data from various sources to make appropriate considerations in developing updated
development impact fees for FRFR.
Capital standards. BBC used FRFR's planned future investment in facilities as the basis for
determining capital standards for its new fees based on the District's projections of future
capital requirements to serve new growth. The valuation included estimates of investments
in buildings, furniture, fixtures, and durable equipment. Calculations of capital standards
must also account for any debt that exists in connection with relevant infrastructure. FRFR
did not have any debt associated with its capital at the time this study was conducted.
Demand for services by development type. It is important for fire districts to determine
how impact fees should be allocated according to demand for services by land use so that all
forms of development pay their fair share of expansion costs. Data from the Weld and
Larimer County Assessors regarding existing building types and square footage within the
FRFR service area indicate that the large majority of existing development is single family
residential (79% single family residential, 5% multifamily residential, 8% commercial, and
8% industrial). BBC allocated FRFR's updated development impact fees accordingly,
because the mix of future development in the region is not expected to differ substantially
from current land use.
Use specificity. To the extent possible, impact fees should reflect the degree to which
different forms, sizes, and uses of particular types of development will result in different
demand for public services. However, there is no compelling evidence that suggests that
larger homes create more demand for public services than smaller homes. In addition, there
is uncertainty about the nature of future commercial development. As a result, BBC treated
all residential units equally and all commercial units equally as they relate to public service
demand.
Fee design costs: The cost of fee design studies can be recovered through impact fees, so
BBC has included the cost of this report in the fee calculations.
Proportionality: By using FRFR's planned future investment in facilities to derive capital
standards and then setting fee rates to replace the future standards of facility investment,
BBC has ensured that proportionality has been reasonably and fairly derived.
BBC RESEARCH & CONSULTING SECTION II, PAGE 1
A. FRFR Budget Overview
The FRFR Fire Protection District collects property tax revenue through an 11.642 property tax
mill in Weld and Larimer Counties. A millage rate is the tax rate used to calculate local property
taxes and represents the amount per every $1,000 of a property's assessed value that a
community would charge. In 2022, property taxes accounted for 82 percent of the FRFR total
annual revenue of $5.6 million. The remaining revenue came from plan and permit fees, specific
ownership taxes, and other revenue sources. Expenditures totaled $5.3 million in 2022,
primarily for personnel (64%) and administration (25%). Personnel costs include salaries,
benefits, and volunteer incentives.
Front Range Fire Rescue funds capital purchases through the operating budget and through a 2.0
dedicated mill to the Capital Fund. As discussed on Section I pages 3 and 4, capital investments,
in general, are used for repair and replacement; betterment of facilities and service standards;
and expansion of facilities. The dedicated mill for capital purchases is not restricted to a specific
type of capital need and has historically been used to improve the level of service for existing
residents. As such, the dedicated capital mill is not a revenue source that would offset impact
fees; instead, the property tax revenues are likely to be expended for repair and replacement of
existing infrastructure and service improvement as they are currently.
Additional property tax and specific ownership tax revenues that fund FRFR's operating budget
will continue to be dedicated to ongoing expenses and will not likely be sufficient to fund the
required level of growth -related capital expansion.
If the FRFR FPD chooses to instate impact fees of the type calculated later in this analysis, it
would retain an independent and equitable source of revenue for capital expenditures required
to serve new growth. With impact fees, new development pays only their equitable pro rata
share of new infrastructure required to serve them while existing taxpayers will not subsidize
growth. At the same time, FRFR's capital and operating funds will be reserved for fiscally
appropriate, non -growth -related uses.
BBC RESEARCH & CONSULTING SECTION II, PAGE 2
B. Impact Fee Calculations
BBC's calculations of updated development impact fees for FRFR includes the following steps:
1. Quantify the infrastructure investment needed to maintain current level of service given
projected growth;
2. Develop estimates of current patterns of building development within the FRFR service
area; and
3. Calculate the fire protection infrastructure costs per unit of development (per household or
per square foot of nonresidential development).
1. Projected growth and planned future investment. BBC's estimates of household
growth rates in FRFR's service area are based on growth projections by the North Front Range
Metropolitan Planning Organization (NFRMPO). The existing ratio of single family residential to
multifamily residential development within the service area is assumed to remain consistent.
BBC used employment projections from the NFRMPO to estimate new non-residential building
development in FRFR's service area. The existing ratios of commercial and industrial building
space per job within the service area is assumed to remain consistent.4 The forecast period for
the impact fee calculations is through 2045.
Figure II -1 displays the growth projections for FRFR's service area through 2045. Over the 22 -
year planning horizon, development in the FRFR service area is projected to produce 12,440 new
residential units (11,594 of which are single family and 847 of which are multifamily). Non-
residential development is projected to produce 990,000 square feet of additional commercial
and retail space and 968,000 square feet of additional industrial space.
Figure 11-1.
FRFR Service Area Growth Projections
Existing'
Development
(2023)
Future Development=g
Grovuth Rate Total
owth
New Gr
Single family (units)
Multifamily (units)
Commercial (square feet)
Industrial (square feet)
7,738 4.2%
565 4.2%
1,277,669 2.6%
1,248,701 2.6%
19,332 11,594
1,412 847
2,268,003 990,334
2,216,582 967,881
Sources: Front Range Fire Rescue, Weld County Assessor, Larimer County Assessor, North Front Range Metropolitan Planning Organization, and BBC
Research & Consulting.
FRFR's current Capital Improvement Plan details significant investments in facilities and
equipment necessary to serve new growth, as shown in Figure II -2. This figure also shows the
4 In 2023, for each estimated job in the service area there are 111.1 square feet of commercial building space and 108.9 square
feet of industrial building space.
BBC RESEARCH & CONSULTING
SECTION II, PAGE 3
portion of the facilities and equipment expense that is eligible to be included in the impact fee
calculation.
Figure 11-2.
FRFR Facilities and Capital Investment Plan
Facilities: Stations
Station 1
Station 2
Station 3
Station 4
Station 5
Training Grounds
Two Rivers Training
Logistics Center
Fire Apparatus
$6,650,000 0% 10
$455,000 0% $0
$200,000 0% $0
$8,000,000 100% $8,000,000
$8,350,000 100% $8,350,000
$850,000 0% $0
$180,000 0% $0
$50,000 0% $0
2006 2500 gallon Tender (Replacement) $450,000 0% 10
2008 Ford Brush Truck (Station 4) $200,000 100% $200,000
2010 3500 gallon Tender (Replacement) $450,000 0% $0
2013 Dodge Brush Type 6 (Replacement) $200,000 0% 10
2015 Pierce PUC Engines (Replacement) $750,000 0% 10
2015 Pierce PUC Engines (Replacement) $750,000 100% $750,000
2019 Chevy Brush Type 6 $14,000 0% $0
2024 Ladder Truck TBD $1,700,000 100% $1,700,000
2028 Engine (Station 4?) $750,000 100% $750,000
Staff Vehicles
2006 Chevy Pickup (Replacement) $100,000 0% $0
2016 Chevy Tahoe (Replacement) $120,000 0% $0
2016 Ford Explorer (Replacement) $120,000 0% $0
2018 Chevy Colorado (Replacement) $50,000 0% 10
2019 Chevy Silverado 1500 (Replacement) $125,000 0% $0
2021 Ford F 150 BC Truck (Replacement) $125,000 0% $0
2022 Ford F 150 DC Truck $120,000 0% 10
2023 LSB Inspector $50,000 100% $50,000
2023 Emergency Mgmt. $50,000 100% $50,000
2024 OPS BoT LT $120,000 100% $120,000
2025 LSB Inspector $50,000 100% $50,000
Equipment
2021 SCBA (Replacement) $400,000 0% $0
SCBA (Station 4) $90,000 100% $90,000
PPE $490,000 0% $0
TIC $300,000 0% $0
Fitness Equipment - Station 5 $33,000 100% $33,000
Fitness Equipment - Station 4 $25,000 100% $25,000
Other $15,000 0% $0
Station Furniture (Station 4) $300,000 100% $300,000
Station Furniture (Station 5) $300,000 100% $300,000
Extrication Equipment (Station 4) $100,000 100% $100,000
Communications & IT
Radios Replacement
Radios (Station 4)
Office PCs
Impact Fee Study
Subtotal
Subtract Impact Fee Fund Balance
Total
$250,000 0% 10
$42,000 100% $42,000
$10,000 0% 10
$12,000 100% $12,000
$20,922,000
$1,168,749 100% $1,168,749
$19,753,251
Source: Front Range Fire Rescue Capital Improvement Plan 2023 and discussions with FRFR staff.
BBC RESEARCH & CONSULTING
SECTION II, PAGE 4
FRFR projects it will need more than $33 million in capital projects to maintain its existing level
of service at buildout, including approximately $20 million of capital attributable to new growth.
The capital plan includes two fire stations (#4 and #5), each with a built cost of approximately
$8 million. Stations 4 and 5 will serve future growth and are therefore 100 percent eligible to be
included in the fee calculation. Corresponding equipment and apparatus for the two stations are
also included in the fee calculation. Together, the capital required to serve new growth accounts
for 60 percent of the total planned investment dollars, all of which are eligible for inclusion in
the fee study.
The other 40 percent of the investment outlined in Figure II -2 is not eligible to be included in the
fee calculation because the improvements are necessary to maintain the current level of service
for existing residents rather than to serve future growth. Repair and renewal of existing
stations —as well as the purchase of replacement fire apparatus, vehicles, and equipment —are
not eligible to be included in the fee calculation for this same reason.
2. Current distribution of development types. This report utilizes the current distribution
of development in the FRFR service area as the basis for allocating eligible infrastructure
expansion costs over different types of land uses. This approach is consistent with the Colorado
Municipal League's recommendation that cost allocation be based on a measure of land use.
The existing mix of residential and non-residential building square footage is shown in Figure II -
3 and is based on data from the Weld County Assessor and the Larimer County Assessor. By
square footage, the existing built area in FRFR's service area is 79 percent single family
residential, 5 percent multifamily residential, 8 percent commercial, and 8 percent industrial
space.
Figure II -3.
Land Uses within FRFR Service Area (% of total built square feet)
Note: Out buildings, roadways, agricultural buildings, mobile homes, schools, churches, and other categories are excluded from the impact fee
calculation.
Sources: Front Range Fire Rescue and BBC Research & Consulting.
BBC RESEARCH & CONSULTING
SECTION II, PAGE 5
3. Impact fee calculation. Figure II -4 uses FRFR's capital improvement plan costs to
determine appropriate single family residential, multifamily residential, commercial, and
industrial impact fees. BBC used the existing distribution of development (Figure II -3) as a proxy
for service demand and assigned costs to each type of development accordingly.
Figure II -4 presents fee calculations for each development type. The cost of fire capital
infrastructure eligible to be included in the impact fee calculation is presented in the top row of
Figure II -4 (and is identical to the last row of Figure II -2).
The first step in calculating the impact fees was to allocate the total value of future fire
capital infrastructure eligible to be included in the impact fee calculation to each type of
development based on its proportion of built area as a percent of the total. Thus, BBC
allocated 79 percent, or $15.7 million, to single family residential development; 5 percent,
or $1.1 million, to multifamily residential development; 8 percent, or $1.5 million, to
commercial development; and 8 percent, or $1.5 million, to industrial development.
Next, BBC allocated infrastructure costs for each development type to the units of future
development, based on future growth projections. For residential development, costs were
allocated to each unit and for commercial and industrial development, costs were allocated
to each square foot. The resulting figures represent the maximum allowable impact fee that
can be charged to each unit of new development.
The result of allocating costs in the manner described above resulted in full cost recovery impact
fees, which, as shown in the last three rows of Figure II -4 are $1,354 per single family unit,
$1,247 per multifamily unit, $1.53 per commercial square foot, and $1.53 per industrial square
foot. This is compared to the existing maximum allowable FRFR impact fees of $1,553 per single
family unit, $989 per multifamily unit, and $0.88 per non-residential square foot. FRFR can
choose to charge less than this amount, but discounts must be uniformly applied to all land use
categories.
BBC RESEARCH & CONSULTING SECTION II, PAGE 6
Figure 11-4.
Full Cost Recovery Impact
Fees for FRFR
Sources:
Front Range Fire Rescue and BBC Research &
Consulting.
Calculation of Impact Fees
Value of Future Fire Infrastructure $19,753,251
Building Type Distribution (by square feet)
Single family
Multifamily
Commercial
Industrial
Costs by Building Type
Single family
Multifamily
Commercial
Industrial
Future Development through 2045
Single family (in dwelling units)
Multifamily (in dwelling units)
Commercial (in square feet)
Industrial (in square feet)
Impact Fee by Land Use (rounded)
Single family (per dwelling unit)
Multi -family (per dwelling unit)
Commercial (per square foot)
Industrial (per square feet)
79%
5%
8%
8%
$15,698,788
$1,055,818
$1,516,514
$1,482,131
11,594
847
990,334
967,881
$1,354
$1,247
$1.53
$1.53
BBC RESEARCH & CONSULTING SECTION II, PAGE 7
SECTION III.
Summary and Recommendations
The development impact fees of $1,354 per single family residential dwelling unit, $1,247 per
multifamily residential dwelling unit, and $1.53 per square foot of commercial and industrial
development that BBC recommends for FRFR's consideration represent maximum allowable
amounts, and we recognize that the District may choose not to adopt fees below these amounts.
BBC also offers the following recommendations for implementing the updated fees:
FRFR should continue to maintain its impact fee fund separate and distinct from its
general fund and make withdrawals from the former only to pay for growth -related
infrastructure.
FRFR should adhere to a written policy governing its expenditure of monies from
its impact fee fund. The District should not fund operational expenses with impact
fees under any circumstance, including the repair and replacement of existing
infrastructure not necessitated by growth. In cases when FRFR expects new
infrastructure to partially replace existing capacity and to partially serve new
growth, cost sharing between its general fund (or capital fund) and its impact fee
fund should be considered on a proportional basis as determined by the board.
FRFR's impact fees should be updated annually at the start of each year based on
the U.S. Bureau of Labor Statistic's Western Information Office's consumer price
index for the West Region.5
• FRFR should continue to conduct impact fee review studies periodically as it invests
in additional infrastructure beyond what is listed in this report or if the service area
population or inventory of non-residential square footage changes substantially.
https://www.bls.gov/regions/west/news-release/consumerpriceindex_westhtm
BBC RESEARCH & CONSULTING SECTION III, PAGE 1
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