Fort Collins adopts phased approach to update capital expansion and transportation fees

Fort Collins staff presented four options for updating capital expansion fees (CEF) and the transportation capital expansion fee on Oct. 16: keep the status quo (inflation only), adopt the full proposed schedule (17 size bands and differentiated residential categories), phase-in the higher fees over two or three years, or adopt a fractional percentage of the proposed fees (70/80/90%).

Staff explained the proposed changes aim to better align fees with the updated land‑use code and to differentiate costs by housing type (detached, attached, multifamily) while noting revenue and equity tradeoffs. Finance staff provided revenue comparisons showing that adopting the full proposed fee schedule would increase revenue modestly for some categories but could lower it for multifamily; fractional and phased options reduce near‑term revenue.

Public comments from the Home Builders Association and developers warned that higher fees could reduce housing affordability and asked the council to delay or phase increases. Staff clarified that their revenue modeling assumes 2024 construction activity levels and does not include sensitivity testing for reduced building activity in response to fee increases.

After extended council debate about methodology, legal nexus and housing impacts, council voted to adopt ordinance 168 on first reading using the two‑year phased implementation option for the fee changes; the motion passed 5 to 1 with one absent. Staff said inflation adjustments would apply during the phase‑in years and that a full updated study is planned for 2030 (with the possibility to move that schedule up if council directs).