FISCAL IMPACT ANALYSIS TO THE CITY

Transcription

1 FISCAL IMPACT ANALYSIS TO THE CITY OF LOVELAND BRISTOL POINTE APARTMENTS LOVELAND, CO PREPARED FOR: MACY DEVELOPMENT COMPANY Economic & Market Research / Land & Development Planning Landscape Architecture / Community Planning & Design Golf Feasibility Analysis

2 FISCAL IMPACT ANALYSIS TO THE CITY OF LOVELAND BRISTOL POINTE APARTMENTS LOVELAND, CO PREPARED FOR: MACY DEVELOPMENT COMPANY JULY 22, 2013 PREPARED BY: 2953 SOUTH PEORIA STREET, SUITE 101 AURORA, COLORADO (303) PHONE (303) FAX Economic & Market Research / Land & Development Planning Landscape Architecture / Community Planning & Design Golf Feasibility Analysis

3 TABLE OF CONTENTS Executive Summary... 3 I. Introduction... 5 II. Fiscal Impact Analysis A. Development Program... 9 B. Annually Recurring Revenues Generated by the Bristol Pointe Development C. One Time Impact Fees and Capital Expansion Fee Comparison Loveland vs. Neighboring Cities D. Bristol Pointe Cost to Serve BRISTOL POINTE FISCAL IMPACT ANALYSIS 2 THK Associates, Inc.

4 EXECUTIVE SUMMARY BRISTOL POINTE Executive Summary This assessment has been prepared in response to the need to evaluate the one time impact fees (and more specifically capital expansion fees) to Loveland, Colorado that would result from the development of Macy Development s 220 unit, 12.1-acre Bristol Pointe development located at the corner of Taft Avenue and 16 th Street in Loveland. The subject 12.1-acre property is located at the southeast corner of Taft Avenue and 16 th Street and is currently owned Macy Development Company and tentatively planned for 220 high-end multi-family rental apartments. The development would be highly amenitized and is planned for a significant amount of open space that will incorporate parks and walking. THK has conducted numerous conversations with the City of Loveland Finance and Building Department officials, as well as governmental officials from Greeley, Fort Collins and Longmont to ensure accuracy for this report. Through our research THK has determined that the development of the Bristol Pointe community will result in the following financial impact to the City of Loveland at build out given current fees: A projected population of 352 persons residing in 220 apartment units. Annually recurring property tax revenues to all service providers of approximately $196,268, of which $24,742 would be collected by the City of Loveland Annually recurring sales tax revenues to the City of Loveland generated by Bristol Pointe community residents of $130,062 One-time revenues to the City of Loveland of nearly $4.3 million Additional one-time revenues to the Thompson R2-J School District, Larimer County Open Space, County Jail and County Fairgrounds of approximately $287,320 One-time capital expansion fees (CEF) to the City of Loveland of nearly $2.0 million The average total one-time revenues collected by the City of Loveland are currently $19,426 per unit, as compared to $10,793 per unit in For Collins, $12,276 in Greeley and $11,092 in Longmont. This equates to fees that are 180% higher than Fort Collins, 158% higher than Greeley, and 175% higher than Longmont. The average CEF fees in the City of Loveland are $9,007 per unit at present. This equates to 138% higher than Fort Collins ($6,517 per unit), 232% higher than Greeley ($3,879 per unit) and 236% higher than Longmont ($3,824 per unit). BRISTOL POINTE FISCAL IMPACT ANALYSIS 3 THK Associates, Inc.

5 EXECUTIVE SUMMARY BRISTOL POINTE Summary Comparison of One-Time Revenues Collected by Northern Colorado Cities Projected One-Time City Name Total Revenues* Ave. Fees Per Unit Loveland $4,273,790 $19,426 Fort Collins $2,374,413 $10,793 Greeley $2,700,825 $12,276 Longmont $2,440,302 $11,092 Four City Average $2,947,333 $13,397 Loveland as % of Fort Collins 180.0% Loveland as % of Greeley 158.2% Loveland as % of Longmont 175.1% Loveland as % of Four-City Average 145.0% *Assumes 220-unit Bristol Pointe development occuring in each of the cities listed above Source: THK Associates, Inc. Summary Comparison of Capital Expansion Fees Collected by Northern Colorado Cities Projected One-Time City Name Capital Expansion Fees* Ave. Fees Per Unit Loveland $1,981,553 $9,007 Fort Collins $1,433,740 $6,517 Greeley $853,380 $3,879 Longmont $841,280 $3,824 Four City Average $1,277,488 $5,807 Loveland as % of Fort Collins 138.2% Loveland as % of Greeley 232.2% Loveland as % of Longmont 235.5% Loveland as % of Four-City Average 155.1% *Assumes 220-unit Bristol Pointe development occuring in each of the cities listed above Source: THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 4 THK Associates, Inc.

6 INTRODUCTION I. INTRODUCTION This assessment has been prepared in response to the need to evaluate the one time and annually recurring impacts to the City of Loveland, Colorado that would result from the development of Macy Development s 220 unit, 12.1 acre Bristol Pointe development located at Taft Avenue and 16 th Street in Loveland, Colorado. By applying the appropriate tax rates to the estimated assessed valuation, THK Associates, Inc. illustrates real estate property tax revenues as well as retail sales tax revenues (generated by community residents) to be received at build out by all major service providers to the proposed Bristol Pointe development. Following this analysis, THK demonstrates the one time impact fees currently being charged by other municipalities in the Northern Colorado environs, focusing on the nearby cities of Fort Collins, Greeley and Longmont. Impacts to the City of Loveland and all other municipalities have been estimated at build-out and in current dollars. In the final portion of this report, we have examined the cost that will be incurred by the City of Loveland, resulting in a calculation of surplus or deficit revenues generated from the proposed community. BRISTOL POINTE FISCAL IMPACT ANALYSIS 5 THK Associates, Inc.

7 INTRODUCTION BRISTOL POINTE FISCAL IMPACT ANALYSIS 6 THK Associates, Inc.

8 INTRODUCTION BRISTOL POINTE FISCAL IMPACT ANALYSIS 7 THK Associates, Inc.

9 INTRODUCTION BRISTOL POINTE FISCAL IMPACT ANALYSIS 8 THK Associates, Inc.

10 II. FISCAL ANALYSIS A. Development Program The proposed Bristol Pointe development is preliminarily planned for 220 multi-family rental apartments with an average value of $147,727 per unit. With an average population per household of 1.6 persons, Bristol Pointe s total population will be approximately 352 persons at build out. It is estimated that during the construction period approximately 182 construction workers will be working on the project and that by build-out there will be approximately 8 permanent jobs created. The total improved market value is expected to be $32.5 million (including a $1 million clubhouse), with an improved assessed value of $2.6 million. These calculations are shown in Table 1. BRISTOL POINTE FISCAL IMPACT ANALYSIS 9 THK Associates, Inc.

11 Approx. Current Market Current Assessed # of MF Ave. Unit Improved Market Improved Assessed Parcel # Acres Value* Value* Multi-Family Type Rental Apt. Units Value Value Value $1,003,000 $290,870 Type 1 80 $147,727 $11,818,160 $940,726 Type 2 60 $147,727 $8,863,620 $705,544 Type 3 40 $147,727 $5,909,080 $470,363 Type 4 40 $147,727 $5,909,080 $470,363 Clubhouse** Employment Impacts Financial Impacts *Most recent values per Larimer County Assessor's website **Clubhouse market value of roughly $1 million is included in the the average unit value Source: Larimer County Assessor, and THK Associates, Inc. Table 1: Summary of Bristol Pointe Multi-Family Rental Apartment Parcels Impact on the City of Loveland Total 220 $32,499,940 $2,586,995 Total Housing Units at Bristol Pointe 220 Rental Apartments Total Population at Bristol Pointe 352 Residents Estimated Construction Jobs Created 182 Construction Jobs Estimated Permanent Jobs Created 8 On-Site Permanent Jobs Annually Recurring Retail Tax Revenues to City of Loveland $130,062 Annually Recurring Property Tax Revenues to City of Loveland $24,742 Estimated One-Time Revenues to the City $4,273,790 Bristol Pointe Preliminary Plans FISCAL ANALYSIS BRISTOL POINTE FISCAL IMPACT ANALYSIS 10 THK Associates, Inc.

12 B. Annually Recurring Revenues Generated by the Bristol Pointe Development Ad valorem property taxes are a major income source of revenue to the various providers of service in the impact area. The value of improvements is the basis for estimating the amount of property tax revenue distributed to each district/provider of service. In the State of Colorado, residential properties are currently taxed at approximately 7.96% of market value and commercial properties are taxed at 29.0%. Tables 2 through 4 show the calculations associated with determining annually recurring property tax revenues to each of the major service providers, with a focus on the City of Loveland. The Thompson R2-J School District will be the largest benefactor from the development, while Larimer County Government will also benefit significantly. THK projects that the project will generate over $196,268 in annually recurring property tax revenues to the major service providers including $24,742 to the City of Loveland. Table 4 also shows the retail sales tax revenues that will be generated within the local City of Loveland community by Bristol Pointe residents. It is THK s estimate that 25% of annual expenditures will be allocated towards monthly rent and with an average projected monthly rent at the Bristol Pointe community of $1,275 per unit, this yields annual rent of $15,300, or annual income of $61,200. Regarding retail expenditures THK then extracted 46% of total income of $61,200 to equate to $28,152 annual retail expenditures per Bristol Pointe unit. We then multiplied this by the total number of occupied housing units (220) at Bristol Pointe to obtain the $6.2 million of total expenditures in the community, although only 70% of these retail expenditures would be spent within the City limits ($4.3 million). With a city sales tax rate of 3.0%, annual recurring retail sales tax revenues from community residents would be $130,062. Total one-time revenues from permit fees, plan check fees, traffic impact fees, and miscellaneous fees to the City of Loveland have also been calculated. THK has had multiple discussions with the City of Loveland Building/ Public Works Division and Finance Department to ensure accuracy of these projections. THK projects one-time revenues that will go directly to the City of Loveland will be in the amount of approximately $4.27 million, as shown at the bottom of Table 4. Furthermore, nearly $300,000 will be generated in one-time revenues towards the Thompson R2-J School District and Larimer County Open Space, Larimer County Jail and Larimer County Fairgrounds. BRISTOL POINTE FISCAL IMPACT ANALYSIS 11 THK Associates, Inc.

13 Table 2: Sales Tax Rates Comparison by Municipality Location City Sales Tax* City of Loveland 3.00% City of Fort Collins 3.85% City of Greeley 3.46% City of Longmont 3.275% Average 3.40% *excludes state and other sales tax (this is for city only) Source: City Finance/Budget Departments and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 12 THK Associates, Inc.

14 Table 3: Service Providers Imposing a Mill Levy at the Bristol Pointe Development - Parcel # Projected Annually Recurring Property Tax Revenues Service Provider Mill Levy at Buildout* Thompson R2-J School District $105,767 Larimer County $58,259 City of Loveland $24,742 Thompson Valley Health Services District $4,545 Larimer County Pest Control $367 Northern Colorado Water Cons District $2,587 TOTAL $196,268 *Assumes market value for the Bristol Pointe development of $32.5 million Source: Larimer Co. Assessor and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 13 THK Associates, Inc.

15 Table 4: Summary of Annually Recurring and One-Time Revenues to Major Service Providers and the City of Loveland from the Buildout of the 220-Unit Bristol Pointe Apartment Complex PARCEL # Recurring Annual Revenues Annual Recurring Annual Recurring Property Tax Property Tax Number of Community Ave. Unit Market Assessed Revenue to Revenue to Units Population Value Buildout Value City of Loveland All Service Providers Annual Property Taxes MF Rental Apts* $147,727 $32,499,940 $2,586,995 $24,742 $196,268 Annually Recurring Revenues to the City of Loveland from Bristol Pointe Residents (*Based on New Lake Vista McWhinney Project at Centerra $61,200 Median Household Income at Bristol Pointe* - Lake Vista Charges Average Monthly Rent of $1,275 $28,152 Household Retail Expenditures Per Month or $1.40 Per Square Foot $6,193,440 Annual Total Retail Expenditures from All Bristol Pointe Households Gallery Flats in Downtown Loveland is another MF $4,335,408 Annual Retail Expenditures in the City of Loveland from Bristol Pointe Households complex that is currently UC) 3.0% City of Loveland Sales Tax Rate $130,062 Annually Recurring Sales Tax Revenues to City of Loveland from Bristol Pointe $24,742 Annually Recurring Property Tax Revenues to City of Loveland from Bristol Pointe $154,804 Total Annual Recurring Revenues to City from Bristol Pointe One Time Revenues to City of Loveland Units Valuation Per Unit/Sq. Ft. Valuation Per Unit 220 Rental Apts 220 $147,727 $32,499,940 $147,727 Building Permit Fee** $85,196 $387 Site Plan Check/Review Fee $55,378 $252 Mehcanical/Elecitrical/Plumbing Fee $55,220 $251 Plant Investment Fee $279,400 $1,270 Water System Impact Fee $442,200 $2,010 Wastewater/Sewer/Stormwater/Irrigation Fee $472,218 $2,146 Loveland Fire Fee $111,540 $507 Water and Power Plant Investment Fee $358,600 $1,630 City Use Tax $410,486 $1,866 Capital Expansion Fees*** Fire $135,740 $617 Police $133,760 $608 General Gov't $165,660 $753 Cultural Services $92,180 $419 Parks and Recreation $539,440 $2,452 Recreation $240,240 $1,092 Trails $80,520 $366 Open Lands $135,080 $614 Library $110,440 $502 Streets $348,493 $1,584 Cap Expansion Fees Total $1,981,553 $9,007 Misc/Other Fees $22,000 $100 Total One Time Revenues $4,273,790 *Includes clubhouse market value of roughly $1,000,000 **Assumes construction costs of approximately $110 per square foot ***3 recent apartment projects in the City of Loveland have had their capital expansion fees either waived (Gallery Flats by Brinkman) or reduced by roughly 60% (Lake Vista and the Greens at Van de Water) Source: City of Loveland Building/Public Works/Planning/Finance Departments, and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 14 THK Associates, Inc.

16 Table 4A: Building Permit Fee Calculation $110 Construction Cost Per Square Foot 207,316 Square Feet $22,804,760 Construction Valuation $5,609 First $1,000,000 in Valuation $3.65 for every $1,000 thereafter $21,804,760 Remaining after first $1M $21,805 After dividing by $1,000 per $1,000 $85,196 Building Permit Fee Total $387 Per Unit Building Permit Fee $252 Per Unit Plan Review Fee $1,866 Per Unit City Use Tax Fee 50% of 3.6% of Valuation) Source: City of Loveland Building Permit Fee Schedule and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 15 THK Associates, Inc.

17 C. One Time Revenues and Capital Expansion Fee Comparison Loveland vs. Neighboring Cities In the following tables, THK compared the one time revenues and capital expansion fees (CEF) for the City of Loveland to other northern Colorado cities, namely Fort Collins, Greeley, and Longmont. Total one-time impact fees for the City of Loveland are roughly $19,426 per unit. As shown in Table 9, the City of Loveland s one time total revenues are 145% higher than the average of the three other neighboring cities in the analysis. Specifically, Loveland is approximately 180% higher than Fort Collins, 158% higher than Greeley, and 175% higher than Longmont. Furthermore, in Table 9A, the City of Loveland is collecting on average 155% more Capital Expansion Fees (CEF s) than its neighboring communities. Total capital expansion fees for the City of Loveland are roughly $9,007 per unit. When comparing to each municipality, the City of Loveland collects approximately 138% more in CEF s than Fort Collins, 232% more than Greeley, and 236% more than Longmont. BRISTOL POINTE FISCAL IMPACT ANALYSIS 16 THK Associates, Inc.

18 Table 5: Multi-Family Apartment Development One Time Impact Fees Rate Comparison - Loveland Building Permit Fee Irrigation System Impact Fees $382 Per Unit $387 Per Unit Site Plan Check/Review Fee Loveland Fire Impact Fee $507 Per Unit $252 Per Unit Mechanical Permit Fee $74 Per Unit Electrical Permit Fee Water and Power Plant Investment Fee $1,630 Per Unit $74 Per Unit Capital Expansion Fees (CEF) Plumbing Permit Fee Fire $617 Per Unit $103 Per Unit Police/Law $608 Per Unit General Government $753 Per Unit City Use Tax Cultural Services (Museum) $419 Per Unit $1,866 Per Unit Parks and Recreation $2,452 Per Unit Recreation $1,092 Per Unit Trails $366 Per Unit Open Lands $614 Per Unit Library $502 Per Unit Streets $1,584 Per Unit Total CEF Fees $9,007 Per Unit Plant Investment Fee (Electric) Misc./Other Fees $100 Per Unit $1,270 Per Unit System Impact Fees (Water) All Fees Per Unit Total $19,426 Per Unit $2,010 Per Unit Stormwater Impact Fees Total Fees to City of 220 units $4,273,790 $144 Per Unit Wastewater/Sewer System Impact Fee $1,620 Per Unit Source: City of Loveland Public Works/Building Department and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 17 THK Associates, Inc.

19 Table 5A: Multi-Family Apartment Development Fees Comparisons for the City of Loveland Fee Name Definition/Explanation of Service Provided Building Permit Fee $387 Per Unit pays for part of review and the rest goes back to GF Site Plan Check/Review Fee $252 Per Unit general fund Mechanical Permit Fee $74 Per Unit general fund Electrical Permit Fee $74 Per Unit general fund Plumbing Permit Fee $103 Per Unit general fund City Use Tax $1,866 Per Unit Plant Investment Fee (Electric) $1,270 Per Unit electric plant facility and associated expenses System Impact Fees (Water) $2,010 Per Unit water plant fund for facility and expenses Stormwater Impact Fees $144 Per Unit stormwater infrastructure fund Wastewater/Sewer System Impact Fee $1,620 Per Unit wastewater/sewer facilities and associated expenses Irrigation System Impact Fees $382 Per Unit Loveland Fire Impact Fee $507 Per Unit fees for fire sprinkler, alarm, permits Water and Power Plant Investment Fee $1,630 Per Unit water and power plant infrastructure and expenses Capital Expansion Fees (CEF) Fire $617 Per Unit fire protection service, protection, equipment Police/Law $608 Per Unit police service and law enforcement General Government $753 Per Unit Cultural Services (Museum) $419 Per Unit museum and related services Parks $2,452 Per Unit parks and park activities Recreation $1,092 Per Unit city recreation and recreation center Trails $366 Per Unit trails Open Lands $614 Per Unit Library $502 Per Unit library and related services Streets $1,584 Per Unit street maintenance and street expansion Total CEF Fees $9,007 Per Unit Misc./Other Fees $100 Per Unit All Fees Per Unit Total $19,426 Per Unit Total Fees to the City of 220 units $4,273,790 Source: City of Loveland Public Works/Building Department and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 18 THK Associates, Inc.

20 Table 6: Multi-Family Apartment Development One Time Impact Fees Rate Comparison - Fort Collins Water Plant Investment Fee (including tap fee) Water $510 Per Unit Water $0.27 per sq. ft. of lot Water Meter $ meter per building Water Review $43 Per Unit Capital Expansion Fees**** Community Parkland $1,477 Per Unit Site Plan Review Fee Neighborhood Parkland $2,181 Per Unit Planning* $33 Per Unit Street Oversizing Capital Expansion $2,162 Per Unit Transportation** $29 Per Unit Fire $236 Per Unit General Gov't Services $298 Per Unit Electrical Permit Fee Police $163 Per Unit $10.95 Per Unit Total CEF fees $6,517 Per Unit Wastewater Permit Fee Plant Investment Fee $2,410 Per Unit Development Review $43 Per Unit Misc./Other Fees $100 Per Unit Stormwater Permit Fee Plant Investment Fee $279 Per Unit Development Review $57 Per Unit Building Permit Application Fee Residential $198 Per Unit Total $10,793 Per Unit Total Fees to City of Ft 220 units $2,374,413 Source: City of Fort Collins Public Works Department and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 19 THK Associates, Inc.

21 Table 7: Multi-Family Apartment Development One Time Impact Fees Rate Comparison - Greeley Water and Sewer Fees Water $5,050 Per Unit Sewer $2,450 Per Unit Water Tap Fee* $57 Per Unit Sewer Tap Fee** $7.95 Per Unit Capital Improvement Fees Transportation $1,436 Per Unit Site Plan Review Fee Fire and Rescue $192 Per Unit Site Plan Review $42 Per Unit Trails $139 Per Unit Park Development $2,019 Per Unit Police $93 Per Unit Stormwater Fee Total CEF fees $3,879 Per Unit Residential $234 Per Unit Building Permit Application Fee Misc./Other Fees $100 Per Unit Residential $457 Per Unit Total $12,276 Per Unit Source: City of Greeley Public Works Department and THK Associates, Inc. Total Fees to City of 220 units $2,700,825 Table 8: Multi-Family Apartment Development One Time Impact Fees Rate Comparison - Longmont Irrigation Fee (common area irrigation) Water System Development Fee $590 Per Unit Water Development Fee* $961 Per Unit Site Plan Review Fee Capital Improvement Fees Residential $263 Per Unit Electric*** $3 Per Unit Mechanical, Electrical, Plumbing $263 Per Unit Parks Improvement Fee $2,193 Per Unit Public Building $1,057 Per Unit Storm and Wastewater Fee Transportation $437 Per Unit Stormwater Drainage Fee $201 Per Unit Street Improvement Fee $134 Per Unit Wastewater Plant Improvement Fee $563 Per Unit Total CEF fees $3,824 Per Unit Building Permit Application Fee Residential** $4,227 Per Unit Misc./Other Fees $100 Per Unit Use and Occupancy Permit Fee Residential $100 Per Temp. CO Total $11,092 Per Unit Source: City of Longmont Public Works Department and THK Associates, Inc. Total Fees to City of 220 units $2,440,302 BRISTOL POINTE FISCAL IMPACT ANALYSIS 20 THK Associates, Inc.

22 Table 9: Summary Comparison of One-Time Revenues Collected by Northern Colorado Cities Projected One-Time City Name Total Revenues* Ave. Fees Per Unit Loveland $4,273,790 $19,426 Fort Collins $2,374,413 $10,793 Greeley $2,700,825 $12,276 Longmont $2,440,302 $11,092 Four City Average $2,947,333 $13,397 Loveland as % of Fort Collins 180.0% Loveland as % of Greeley 158.2% Loveland as % of Longmont 175.1% Loveland as % of Four-City Average 145.0% *Assumes 220-unit Bristol Pointe development occuring in each of the cities listed above Source: THK Associates, Inc. Table 9A: Summary Comparison of Capital Expansion Fees Collected by Northern Colorado Cities Projected One-Time City Name Capital Expansion Fees* Ave. Fees Per Unit Loveland $1,981,553 $9,007 Fort Collins $1,433,740 $6,517 Greeley $853,380 $3,879 Longmont $841,280 $3,824 Four City Average $1,277,488 $5,807 Loveland as % of Fort Collins 138.2% Loveland as % of Greeley 232.2% Loveland as % of Longmont 235.5% Loveland as % of Four-City Average 155.1% *Assumes 220-unit Bristol Pointe development occuring in each of the cities listed above Source: THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 21 THK Associates, Inc.

23 D. Bristol Pointe Development Cost to Serve Table 10 on the following page illustrates the current 2013 City of Loveland population, households, median household income, and general fund for the 2013 budget. At present, there are 71,146 persons in the city living in nearly 28,623 households, with an average of 2.49 persons per household. The 2013 median household income for the city is approximately $54,677. With a 2013 general fund budget of approximately $65.19 million per the City of Loveland Finance Department, the city s general fund has expenditures of roughly $916 per person. The lower portion of Table 10 compares Bristol Pointe projected population and households and calculates the estimated cost to serve that the city will incur from the development. Due to the development s higher density multi-family apartment units, the projected persons per household (1.60) is lower than the overall City of Loveland average of The projected median household income for the development is $61,200, which is slightly higher than the overall city average. Profiled below is a summary of Table 10: Projected community population of 352 residents in 220 housing units for an average of 1.60 persons per household Community median household income of $61,200, approximately 11% higher than the City of Loveland s median household income average Projected cost to serve of $191,862 annually Table 11 shows the per capita analysis of the Cost to Serve in the 2013 budget. Items such as legislative, legal, finance, human resources etc, are set at zero because the Bristol Pointe development won t affect these services. Even though the proposed development will have its own parks, the Parks and Rec expenditures were left in the analysis; although an argument can be made that they could be reduced or even eliminated. Based on 220 new units with an average of 1.6 persons per household, the proposed development will house 352 residents. The annual taxes generated from the proposed development will be $154,804. The additional Cost to Serve these residents each year from the city s general fund will be $191,862. The difference between the taxes generated and the additional expenditures is $37,058 per year. However, it should also be emphasized that the estimated one-time revenues of $4.27 million for the proposed Bristol Pointe development will cover this annual deficit for years. BRISTOL POINTE FISCAL IMPACT ANALYSIS 23 THK Associates, Inc.

24 Table 10: Summary of Bristol Pointe Population and Households City of Loveland 2013 Population 71,146 City of Loveland 2013 Households 28,623 City of Loveland Persons Per Household 2.49 City of Loveland Median Household Income $54,677 General Fund Expenditures 2013 Budget $65,192,070 General Fund Expenditures Per Person $916 General Fund Expenditures 2013 Budget Items $41,138,760 Affected by Bristol Pointe Development General Fund Expenditures Per Person $578 Affected bt Bristol Pointe Projected Bristol Pointe Population at Buildout 352 Projected Bristol Pointe Households at Buildout 220 Projected Persons per Household at Bristol Pointe 1.60 Projected Bristol Pointe Median Household Income $61,200 Source: City of Loveland Finance Department and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 24 THK Associates, Inc.

25 Table 11: Bristol Pointe Revenues and Expenditures Generated FISCAL ANALYSIS Bristol Pointe Retail Tax Revenues Generated $130,062 Bristol Pointe Property Tax Revenues Generated 24,742 Bristol Pointe Total Tax Revenues Generated $154,804 to the City of Loveland Additional General Fund Expenditure Created by Bristol Pointe Legislative $0 Executive/Legal $0 Cultural Services $8,392 Development Services $14,816 Economic Development $0 Finance $0 Fire and Rescue* $0 Human Resources $0 Info and Technology $0 Library $14,077 Parks and Recreation $46,428 Police $84,273 Public Works $23,876 Water and Power* $0 Non-Departmental $0 Internal Charges $0 Transfers $0 Total Annual Additional Expenditures Created $191,862 Annual Surplus/Difference to General Fund ($37,058) From Bristol Pointe Development One Time Revenues $4,273,790 Years that Impact Fees Would Cover Annual Deficit *Bristol Pointe residents will use these services but they are covered outside of the general fund **As of Fiscal Year End 2012 the Capital Expansion Fund had an ending balance of roughly $39.8 million Source: City of Loveland 2013 Budget and THK Associates, Inc. BRISTOL POINTE FISCAL IMPACT ANALYSIS 25 THK Associates, Inc.