A plan to help guide future growth and development to address:

1
2007 Community Development Department Fee Study
City Council Work Session August 28, 2007
2
Background

• Last fee study conducted in 2001
• Community Development is a fee supported
  department (assume a 50,000 transfer for long
  range planning)
• Citys 5-year budget projections indicate CDDs
  revenue will not cover costs
• CDD hired MAXIMUS to conduct a fee study to
  ensure full cost recovery for its services

3
Process

• Study contains detailed methodology to evaluate
  current fees and processes, and CDD services
• Met with Andy High, COBA, to present/discuss
  study
• Conduct work session with City Council
• Conduct public meeting(s) to gain feedback on the
  study and recommended fees
• Conduct public hearing with City Council to
  present feedback from public meetings and
  consider studys recommendations

4
Findings Recommendations

• MAXIMUS finds that most jurisdictions that have
  not increased fees for 5-10 years must increase
  fees by 3 to 4 times the current rates.
• Building fees cannot support/subsidize planning
  activities.
• Costs for long-range planning not captured in
  fees.
• Customer service remains a high priority and
  requires increasingly significant amount of staff
  resources.
• Planning Division has expanded staff since 2001.

5
Findings Recommendations

• Engineering related costs have not been
  recaptured in development review fees.
• Study recommends fee increases for current and
  long range planning, and new fees for engineering
  services
• Building fees are not proposed to be increased
• Engineering fees proposed to increase and new
  fees charged for services previously provided at
  no charge
• Planning fees proposed to increase and new fees
  for new services
• Study recommends change in fee structure from
  valuation basis to square footage basis.

6
Findings Recommendations

• Current fees subsidize 100 of enterprise zone
  development review applications. Recent
  examples
• Rocky Mountain Products 4,526 waiver
• Aircraft Rubber 8,936 waiver
• Fees are not collected for pre-development or
  pre-application meetings, and none are proposed.
• Increasing complexity of development applications
  and challenging parcels require a lot more staff
  time.

7
Findings Recommendations

• High staff turnover requires continuous
  recruiting and training, and impacts efficiency
  levels.
• Fees are proposed to be consolidated in some
  cases.
• Planning Commissions agendas are full with long
  range projects. Hearings Officer must be used
  more frequently. Their fees are increasing to a
  minimum of 150/hour. Average decisions take
  25-40 hours to prepare (3,750-6,000). Current
  hearing fee is 1,500.

8
Findings Recommendations

• Hearings fees are included in several fees
  (currently they are separate). Consider
  requiring a deposit to ensure full cost recovery
  for hearings officers.
• Annual increase in fees to reflect cost of living
  adjustments.
• A long range planning surcharge is included in
  the recommended fees. The recommended fees
  assume there is no transfer from the General Fund
  for long range planning.
• The recommendations do not include establishing a
  reserve fund for the department.

9
Example Fee Increases

• Waverly Planned Unit Development 36 homes
• 2006 Fees 16,676 (463 per house cost)
• Proposed 2007 Fees 25,108 (737 per house
  cost)
• Fee Increase 9,858 (274 house unit) 59
• Sunset Ridge 16 Lot Subdivision
• 2006 Fees 4,186 (262 per house cost)
• Proposed 2007 Fees 11,499 (718 per house
  cost)
• Fee Increase 7,313 (456 per house cost) 175

10
Example Fee Increases

• Quail Meadow 40-Lot Subdivision
• 2006 Fees 4,690 (117 per house cost)
• Proposed 2007 Fees 14,152 (354 per house
  cost)
• Fee Increase 9,462 (237 per house cost) 202
• Timbers Site Plan 32 Units (4 4-plexes, 2
  duplexes)
• 2006 Fees 5,011 (157 per house cost)
• Proposed 2007 Fees 5,851 (183 per house cost)
• Fee Increase 840 (26 per house cost) 17

11
Discussion

• Building program fully supported by fees. Need
  to monitor with program changes.
• Full cost of planning and development-related
  engineering services not captured in fees.
  Recommended fee increases address this.
• Long range planning (UGB, affordable housing,
  code amendments, TGM projects, etc.) costs not
  captured in fees. Recommended surcharge
  addresses this.
• Enterprise zone program subsidized by other fees.
  Recommended fee increases address this.
• Next steps