Fort Collins is at a pivotal point. The decisions our City Council is making right now about Capital Expansion Fees (CEFs) and Transportation Expansion Fees (TEFs) will directly shape how our city grows, how affordable new homes will be, and whether new neighborhoods will continue to enjoy the same quality of services—roads, parks, community centers, police, and fire protection—that current residents have.
What Are Expansion Fees and Why Do They Matter?
In simple terms, these are one-time fees paid by developers when they build new homes or commercial properties. The city uses those funds to expand infrastructure and services so that new residents receive the same level of amenities existing residents already have.
The formula Fort Collins uses takes the total value of all city-owned assets—parks, roads, fire stations, etc.—and divides it by the current population. The resulting figure represents the cost, in today’s dollars, for each resident to enjoy that same level of service. That cost is then passed on to builders and, ultimately, to new homeowners.
What It Looks Like in Practice
Take the Bloom development for example—1,700 planned homes on the northeast side. Hartford Homes, the developer, estimates that they’ll pay over $40 million in fees alone before construction is complete. On top of that, Bloom will have its own metro district charging residents to help fund amenities like a community park. In effect, homeowners there could be paying for the same park twice: once through the metro district and again through city fees.
Why This Moment Matters
Council is split. Everyone agrees Fort Collins is a special place and that our infrastructure and amenities are part of what makes it great. But with rising costs—materials, labor, tariffs, and land—our city is wrestling with a big question:
Should we keep building at the same high standard when affordability is already one of our biggest challenges?
At the October 21st council meeting, members discussed four options for adjusting these fees for residential development:
- Status Quo (Option 1) – Keep fees growing with inflation only.
- Full Update (Option 2) – Implement the full new 2023 study immediately.
- Phased-In Approach (Option 3) – Gradually move to full fees over time, then track inflation.
- Fractional Approach (Option 4) – Apply a percentage of the full study’s fees (essentially splitting the difference).
The council voted 5–1 (with Emily Francis opposed) to move forward with the proposal to increase fees with the majority thinking Option 3 is the best path forward, the phased-in approach. This means fees will gradually rise, helping to fund infrastructure while giving builders time to adjust.
The Bigger Picture
If the city doesn’t collect enough through these fees, future developments could be underfunded, leading to lower levels of infrastructure in our developing areas. On the other hand, higher upfront costs make new homes more expensive—worsening the affordability issue already pushing many would-be buyers out of the market.
In short, Fort Collins is balancing two competing values:
- Maintaining our exceptional level of service,
- Keeping housing attainable for the next generation.
Looking Ahead
A new fee study is expected around 2028–2030, which will likely update data and methodology to reassess both costs and service levels. For now, though, this decision sets the tone for how we’ll grow over the next few years.
As someone who’s lived here my whole life and helped hundreds of families make Fort Collins home, I can say this conversation hits close to home. We all want a city that continues to deliver the quality we love—but we also need a community that remains accessible to the teachers, firefighters, nurses, and young families who make Fort Collins what it is.