Impact Fee Adjustments
January 17, 2024
Town of Timnath Impact Fee Adjustments
Over the past year, the Town of Timnath has been evaluating development impact fees. This is to ensure growth in our community is paying its way and contributing to needed infrastructure due to growth. These fee changes will not have a financial impact on current residents nor affect current residents’ taxes.
The Town has engaged BBC Research and Consulting to complete a fee study (view here) to evaluate impact fees in relation to the expansion of public infrastructure. This study, presented to Town Council at a work session on December 12, 2023, will be considered for adoption by the Timnath Town Council at a public hearing planned for February 13, 2024, at the Council meeting starting at 6 pm at 4750 Signal Tree Drive, Timnath, Colorado. Upon adoption, Town Staff is recommending that the implementation be delayed until September 2nd, 2024, to allow time for projects to plan for the coming adjustment.
Details of the Impact Fee Adjustments
- Targeted at New Development: The fee adjustment is specifically designed to apply to new residential and non-residential developments. This ensures that the infrastructure cost related to growth is borne by those developments and not by existing residents.
- Residential Impact Fee Increase: Impact fees for new residential dwellings will be raised to $12,741 per unit, up from $7,691, to match the costs associated with public infrastructure and services necessitated by these new developments.
- Non-Residential Impact Fee Decrease: Reflecting the requirement that fees for particular infrastructure are proportional to the type of development, the impact fee for non-residential development will be adjusted down slightly while still accounting for the costs associated with public infrastructure and services necessitated by these new developments.
- No Change in Other Fees: There will be no change to the Boxelder Floodplain fee, Park Land Dedication cash in lieu, Poudre School cash in lieu, and Poudre Fire assessments, maintaining stability for other critical community services.
Public Participation and Implementation
A public hearing is set for February 13, 2024, to finalize these adjustments. The community is encouraged to provide input, with a deadline for written comments on February 5, 2024. If adopted, the new fee structure will be effective from September 2nd, 2024, granting a transition period for developers.
Impact on the Community
The Town of Timnath is committed to ensuring that the impact of growth is managed responsibly and does not fall on existing residents. These fee adjustments are an effort to balance economic development with the need to preserve Timnath’s unique community character and high quality of life.
Further Information
Residents and developers seeking clarification or wishing to express their views are welcome to contact Community Development Director Matt Blakely at [email protected]. This initiative is part of Timnath’s ongoing commitment to community-centric development and fiscal sustainability.
FAQ
What are Impact Fees?
Impact fees are charges imposed by local governments on new or proposed development projects to pay for a proportionate share of the costs of providing public services attributed to the new development. These fees are typically used to fund the construction or expansion of public infrastructure, such as police-related capital assets, public buildings, parks, open spaces, trails, and roads.
Why are Impact Fees Charged?
The rationale behind impact fees is to ensure that the costs of providing additional public services and infrastructure necessitated by new development do not fall disproportionately on existing residents. Instead, the developers or new residents who are creating the demand for these services bear a fair share of the costs.
What Can Impact Fees Be Used For?
Impact fees can be used for a wide range of public infrastructure improvements; in Timnath, this includes police-related capital assets, public buildings, parks, open spaces, trails, and roads. However, they must be used for capital projects related to the new development and cannot be used for ongoing operational costs, maintenance, repairs, or facility replacement.
Are There Any Limitations or Regulations on Impact Fees?
Yes, there are legal limitations. Impact fees must be reasonably connected to the actual impact of the new development. This means that fees must reflect the proportionate share of the capital cost of providing additional services required by the new development and cannot be used to remedy existing deficiencies in infrastructure.
How Do Impact Fees Affect Development?
Impact fees can influence development patterns. Higher fees might discourage development or lead to higher housing costs. However, they also ensure that new developments contribute their fair share to the cost of expanding public infrastructure and services.