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What does the Impact fee initiative do?
Helps ensure that growth does not result in shortages, overburdened city facilities and environmental degradation.
Development impact fees are important because new development brings new expenses to the city. For example, as the city grows, we may need new roads, new stoplights, or a bigger rec center. We want to make sure the developer pays their share of fees so that the taxpayers are not unfairly burdened with new expenses.
Louisville currently imposes impact fees for capital facilities including the library, transportation, and parks and trails. Our ordinance would expand those capital facilities fees to include: open space, recreation, emergency services, municipal buildings, water, wastewater, sewer, flood control, and affordable housing.
The initiative would require the city to conduct an impact fee study by June 1, 2026. and will require studies every five years by an impartial third party. Council would be required to form an impact fee liaison committee to advise city and staff and consultants during the development of the study.
What WILL the Ballot say?
Shall the City of Louisville adopt an initiated ordinance amending Chapter 3.18 of the Louisville Municipal Code to increase the categories of capital facilities for which impact fees are imposed in connection with new development (specifically including library, transportation, parks and trails, open space, recreation, emergency services, municipal buildings, water, wastewater, sewer, flood control, and affordable housing); require a new impact fee study by June 1, 2026 and updated studies every five (5) years thereafter by outside consultants; and require the formation of an Impact Fee Liaison Committee to advise City staff and consultants?
YES__X___
NO _____
MORE FAQ
Why vote YES on 301?
Voting YES on ballot question 301 guarantees that developers pay a proportionate share for infrastructure directly related to their development so the burden does not fall solely on Louisville residents.
What are development Impact Fees?
Development impact fees are financial charges on new construction. New development in a community creates additional demands on public facilities provided by our local government. If more houses are built without increasing the capacity of public facilities and infrastructure, the quality of public services will deteriorate for everyone. Impact fees are regulated by state and federal law so that new development pays no more than their fair share. Impact fees can be calculated based on the number of housing units or by square footage.
Why do we need a new impact fee study?
As the city grows, we may need a bigger rec center, new roads, stoplights, city services and upgraded facilities. Adequate impact fees will ensure the city can make these improvements without increasing taxes.
When the last impact fee study was completed in 2017, the Impact Fee Liaison Committee determined the city was near buildout and it made sense for the city to consider funding capital facilities through transportation fees, property tax increases, or other alternatives. At that time, the number of impact fee categories was reduced.
Currently, the draft comprehensive plan envisions approximately 70% residential growth. If rezoning follows as planned, residential will be allowed on all Louisville property except open space, parks, and land with public facilities. With this much projected growth, we will need new infrastructure funding. Unfortunately many communities have difficulty passing tax increases to fund infrastructure. We need to plan ahead so development pays its own way.
Will the impact fees make it too expensive to build in Louisville?
The proposed ordinance doesn’t necessarily increase fees—it requires a study and update. Right now, Louisville only collects impact fees in a few limited categories, which means taxpayers end up subsidizing the real costs of new development. Expanding categories to cover areas like open space, recreation, emergency services, and affordable housing simply ensures growth pays its fair share.
These fees are common across Colorado cities, and Louisville’s current rates are low compared to regional standards. Developers often claim that any added cost will drive projects elsewhere, but in reality, businesses and residents choose communities for quality of life, amenities, and infrastructure—not just the cheapest fees. By making sure new growth funds the services it relies on, Louisville avoids burdening existing residents and keeps the city strong and sustainable.
Will fees make housing less affordable?
Some affordable housing advocates worry that developers' fees will get passed on to buyers or renters, making homes less affordable. But, developers price homes and rentals based on what the market will bear. This competitive pressure keeps prices in check.
They may also worry that higher fees could make some projects financially unviable, slowing the production of new housing, including workforce housing. But, other factors—land prices, labor, material costs, tariffs, interest rates, financing costs, and market demand—have a much bigger effect on development than impact fees. Finally, metro district taxes at Redtail Ridge will impact the viability of residential projects much more than a one-time impact impact fee.
Finally, the impact fee study will include fees for affordable housing. These fees will create a fund to support housing construction that brings a more diverse population to Louisville.
What did we hear from residents when collecting signatures for the initiative?
The majority of residents do not want Louisville to become the next Boulder. The build-up there has caused bottle-necked traffic flow, and left a nearly $400 million backlog in their infrastructure.
Who is opposed?
Nationally, impact fees are commonly opposed by builders, developers, Chambers of Commerce, Home Builders Associations, and real estate advocacy groups. Who should pay for growth? The developers making millions in profits, or you?
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