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Wellington amends impact‑fee and raw‑water rules: transition period for approved developments, NPIC yield increase and quarterly cash‑in‑lieu updates approved
Summary
Trustees approved Ordinance 04-2026 (clarifying how updated capital investment fees apply to pipeline developments, with prior fees honored through 03/31/2030) and Ordinance 07-2026 (raising credited yield for NPIC shares to 2.2 AF/share, discontinuing CBT units for dedication, and establishing a board‑approved market-based cash‑in‑lieu methodology with quarterly updates). Developers praised predictability; trustees pressed staff on safeguards to ensure cash is used to secure water.
Trustees approved two ordinances adjusting how Wellington handles impact fees and raw-water dedications.
Ordinance 04-2026 clarifies the application of capital investment (impact) fees adopted 04/01/2026 for developments that had achieved a substantial progress threshold (final plat recorded, development agreement executed, or a complete building-permit application submitted) before the effective date. The ordinance establishes a defined transition period during which eligible pipeline developments continue paying the prior capital-investment fees through 03/31/2030, beginning the transition to updated fees on 04/01/2030. Developer Darren Roberson (Sage Homes) told the board predictability is crucial to encourage investment.
Ordinance 07-2026 amends Chapter 13 of the municipal code to update the town’s raw-water dedication framework. Key elements adopted by the board: increase the credited yield for North Poudre Irrigation Company (NPIC) shares from 2.0 to 2.2 acre-feet per share (reflecting updated assumptions and a new allocation type), discontinue acceptance of Colorado Big Thompson (CBT) units for raw-water dedication, and establish a board-approved, market-based cash‑in‑lieu (CIL) calculation methodology tied primarily to verified NPIC transaction data and the town’s actual costs to acquire, develop, permit and convey future water supplies. Staff will review CIL quarterly and document changes in a calculation memorandum filed with the town clerk; the board retains authority to change the methodology or rate by resolution or ordinance.
Trustee Cannon reiterated concerns about simply accepting cash rather than wet-water dedications and urged safeguards so CIL funds are used to acquire water to meet the legal nexus the rate is based on. Staff responded that the municipal code already allows CIL administratively in certain cases (for example, fractional shares in commercial projects), that CIL will be calculated using market data and acquisition-cost inputs, and that staff already pursues share purchases when feasible. The board recorded unanimous roll-call approvals for both ordinances.
Staff will provide an annual summary of CIL updates and continue analysis to balance the town’s long-term water-acquisition strategy.
