DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Scott Huizenga
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Amending Fees and Establishing New Fees for FY 2021
SUMMARY:
An ordinance amending fees within the Development Services Fund as recommended in the FY 2021 Proposed Budget as presented by the City Manager to the City Council on August 6, 2020.
BACKGROUND INFORMATION:
City staff annually reviews existing revenue sources and service delivery processes in order to identify both new sources of revenue and potential changes to existing revenues. In addition the budget periodically includes changes to fees and revenues resulting from changes in State Law, local ordinance, or as the result of an audit.
The Development Services Department facilitates an efficient and effective development process that supports economic development. This includes granting authority to develop land and to construct and occupy buildings. The department recovers the cost of reviewing plans and issuing permits through charges to its customers which are accounted for in the Development Services Enterprise Fund. These fees vary depending upon various factors including the project size, complexity, and/or square footage.
The permitting process for trade permits for services such as electrical, plumbing, and mechanical (HVAC) were reviewed by the City Auditor's Office. The audit found that a portion of the permits issued did not correctly charge the client for the amount of work performed for the project. The Proposed Budget includes amending the fee schedule for these permits to charge a fee based on the area of the project under development as opposed to the number of fixtures requiring inspection. Additionally, permit and inspection fees combine all trades resulting in a more customer-focused, streamlined permitting and inspection process. The new permit fee structure is anticipated to be revenue neutral, resulting in no impact to the cost of ...
Click here for full text