City of Greeley Development Impact of Fees
DATE: November 2, 2020 FROM: City of Greeley, Colorado RE: 2021 Development Impact Fees
FINANCE DEPARTMENT Memorandum
In the 2015 adoption of the Police, Fire, Park, Trails, Storm Drainage, and Transportation development impact fees, a methodology was adopted to increase fees annually. City of Greeley Code Chapter 4.64.055(b) states that the fees will be recalculated by applying the Economic Adjust Factor (EAF).
The EAF is determined on an annual basis, using six weighted data variables, considered to be representative of economic growth, the cost of materials and services associated with constructing capital projects, and general economic conditions. The variables include:
Percent change in Greeley Utility Customer Accounts – representing the growth and scope of public services;
Percent change in CDOT Construction Cost Index – representing the cost of providing transportation networks;
Percent change in Engineering News Records Construction Cost Index – representing material costs associated with capital projects;
Percent change in Engineering News Records Building Cost Index – representing labor costs associated with capital projects;
Percent change in Assessed Value of Greeley Real Property – representing growth and the economic value of real property assets; and
Percent change in Greeley MSA Employment – representing a general indicator of the economic health of the area.
The 2021 EAF was calculated using the most reliable and consistent annual data sets from the previous full year. Since the EAF is calculated in October 5, 2020 for the 2021 fee year, the percent change was calculated using year end 2019 compared to year end 2018.
For 2021, based on the methodology (applying the economic adjustment factor to the 2020 fee, rounding the result to zero decimals and comparing it to the 2020 fee), the Police, Fire, Park, Trails, Storm Drainage, and Transportation development impact fees will increase an average of 11.05%.
The Water and Sewer board establishes the Water and Sewer Plant Investment Fees (PIF), the equivalent to impact fees. These will be adopted in December.
The fee adjustment requires public notification approximately 120 days before the March 1, 2021 effective date. The fee changes by type of Development Impact Fee are presented on the attached schedule.