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Loveland adopts scalable water, raw-water and wastewater impact fees; updates water-right dedication
Summary
Council voted 7–0 to adopt ordinance 6789 (second reading) and resolution R-699-2025 to change required water-right dedication and implement scalable impact fees that base charges on home square footage and lot size to better align costs with water usage and support smaller, more affordable homes.
The Loveland City Council on Dec. 16 approved on second reading ordinance 6789 and a companion resolution (R-699-2025) to change how the city calculates water-right dedication and water/wastewater/raw-water impact fees.
Utilities staff presented a new 'scalable' fee model that uses total home square footage as a proxy for indoor water demand and lot square footage as a proxy for outdoor water demand. "We wanted to develop something that was scalable and, more flexible," said Jim Lees, utility accounting manager, explaining that the change aims to distribute infrastructure costs more equitably than the existing 'one-size-fits-all' approach.
Staff said the analysis used roughly 14,000 Loveland customer data points and that the average home in Loveland is about 1,700 square feet. "The average home in Loveland is 1,700 square feet," consultant and staff presenters noted during the briefing, and staff showed charts indicating smaller homes would pay substantially lower fees and larger homes would pay more under the new schedule.
Developers and builders who spoke during public comment generally supported the change as fairer; local builder Jamie Sabin (Aspen Homes of Colorado) praised staff outreach and called the plan "a very good plan" while urging consideration of transition timing for projects already in process. Staff and the city manager said arrangements would be made case-by-case for developments far along in permitting or financing, including lock-in options for some projects.
Council asked how the scalable fees apply to multifamily units, additions and unfinished basements; staff clarified the new schedule applies to single-family impact fees and that additions or finishing of previously uncounted square footage would require payment for the additional area at the time of permit. Staff acknowledged the inclusion of basements in total square footage may raise concerns but said charging now avoids later unpermitted work and aligns Loveland with neighboring cities that include those areas.
Council approved the ordinance and resolution by roll call, seven votes to zero. Staff said the changes are intended to better match costs to expected water use, support affordable housing goals and maintain revenue stability required to fund infrastructure.
