HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/14/2011 - 2011 FEE STUDY RECOMMENDATIONSDATE: June 14, 2011
STAFF: Ann Turnquist
Steve Dush
Pre-taped staff presentation: available
at fcgov.com/clerk/agendas.php
WORK SESSION ITEM
FORT COLLINS CITY COUNCIL
SUBJECT FOR DISCUSSION
2011 Fee Study Recommendations.
EXECUTIVE SUMMARY
On March 22, 2011, the Council Finance Committee and staff met to discuss a proposed change to
the City’s cost recovery philosophy for Building Permit and Plan Check Fees and an increase to
these fees. The Committee reviewed the detailed proposal and directed staff to bring the proposal
to the full Council for review at a work session. This change of philosophy would move from a goal
of collecting 80% of the cost of the Development Review Center through fees, toward recovering
100% of the cost of fee-related services. This approach would result in an increase of 0.5% to 6.5%
in Building Permit and Plan Check fees, and yield an additional $714,098 in fee revenue to support
the Development Review Center.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Staff proposes changing the method used to calculate the portion of Development Review
Center costs which should be recovered through Plan Check and Building Permit Fees. Does
Council have questions or concerns regarding the proposed approach?
2. Staff discussed adjustments to Plan Check and Building Permit fees with the Finance
Committee approximately 2 years ago, but the Committee concluded that the timing was
inappropriate. Does the Council believe that the timing is more appropriate for
implementation in January 2012?
BACKGROUND / DISCUSSION
For many years, the City had a Land Use Code policy to recover 80% of the costs of development
through the collection of fees on development. Though this official policy was eliminated in the
adoption of a more recent Land Use Code, the organization has continued to operate with the
expectation that it should recover a similar percentage of these development-related costs. In 2008,
staff examined the City’s cost recovery performance and found that less than half of the cost of the
Development Review Center is recovered through fees. A combination of a lower number of
permits and development applications and a number of years without fee increases led to a lower
cost recovery. Adjustments to Building Permit and Plan Check fees were discussed with the Council
June 14, 2011 Page 2
Finance Committee at that time, but staff received direction to postpone any increases until the
economic situation in the community improved.
In 2010, Red Oak Consulting was engaged to review the City’s fee methodology and structure and
to compare Fort Collins’ practices to those of other communities. Following the completion of that
study in July 2010, staff began to address the issues that were identified in two phases:
Phase 1: Development Review Center fees: August 2010 – April 2011
This study phase has been completed by staff and includes analysis of the cost
recovery model for the Development Review Center.
Phase 2: Capital Expansion and Impact Fees: June 2011 – October 2011
This portion of the study will begin in June and examine the City’s Capital
Expansion fees in detail to re-evaluate their effectiveness in ensuring that new
development pays its fair share of capital and infrastructure needed to serve new
residents and businesses. Staff plans to complete this analysis prior to the next
budget cycle.
This report represents a summary of the work on Phase 1 of the project.
ATTACHMENTS
1. 2011 Fee Study—Phase I: Building Permit and Plan Check Fees, City of Fort Collins, June
6, 2011
2011 Fee Study—Phase I: Building Permit and Plan Check Fees
City of Fort Collins
June 6, 2011
Executive Summary
City Council directed staff to examine the various fees which are charged for development
related services and which support the operation of the City’s Development Review Center. This
report summarizes the findings of this analysis and recommends that City Council consider
increasing the City’s Building Permit and Plan Check fees to more effectively cover the costs of
these services. In addition, the report recommends a change in philosophy from the City’s past
goal of recovering 80% of the total cost of the Development Review Center operations toward a
goal of recovering 100% of the development related costs of the Center.
Background
For many years, the City had a Land Use Code policy to recover 80% of the costs of
development through the collection of fees on development. Though this official policy was
eliminated in the adoption of the Land Use Code in 1997, the organization has continued to
operate with the expectation that it should recover a similar percentage of these development-
related costs. In 2008, staff examined our cost recovery performance and found that we were
recovering less than half of the cost of the Development Review Center budget offer through
fees. In 2010, this recovery amount increased to slightly over half, but remains below the 80%
target. A combination of a lower number of permits and development applications and a number
of years without fee increases led to a lower cost recovery. The economic decline resulting in
reduced development activity was a factor leading staff to reduce 7.2 FTE and a total expense
reduction of over $800,000 during the 2010 Budgeting for Outcomes (BFO) process. These
reductions helped bring the Center’s costs more in line with revenues, but still indicated a gap in
cost recovery. Adjustments to fees were discussed with the Council Finance Committee in 2008,
but staff received direction to postpone any increases until the economic situation in the
community improved.
In 2010, Red Oak Consulting was engaged to review the City’s fee methodology and structure
and to compare Fort Collins’ practices to those of other communities. Following the completion
of that study in July 2010, staff began to address the issues that were identified in two phases:
Phase 1: Development Review Center fees: August 2010 – April 2011
Phase 2: Capital Expansion and Impact Fees: June 2011 – October 2011
This report represents a summary of the work on Phase 1 of the project.
Attachment 1
2011 Fee Study
Phase 1: Building Permit and Plan Check Fees
Page 2
Approach
Staff has conducted a detailed analysis of the costs associated with the Development Review
Center. Staff particularly examined whether each specific activity should have a fee charged to
pay for those costs. For example, some activities such as plan checks, inspections, issuance of
building permits, development review, etc. are clearly activities which can be assigned to a
specific builder or developer who is conducting development activity in the community. Other
activities, such as Conceptual Review, questions at the Development Review Center counter
about zoning, development review for other entities like Larimer County, work on special
projects, or the many other types of questions or services provided do not readily lend
themselves to charging a fee.
By conducting this analysis, staff postulates that some of the costs of the Development Review
Center should be categorized as Fee Related Expenses and others as Non-fee Related Expenses.
The Fee Related Expenses include a portion of staff time in the Development Review Center,
direct expenses of providing services, and support or overhead costs for those services (e.g.
computer systems, fuel, vehicles, and equipment). Non-fee Related Expenses include the
remaining portion of staff time in the Development Review Center, and shares of the support or
overhead costs that support services not directly tied to development.
Staff’s analysis resulted in the following costs:
Development Review Center Expenses and Revenue, 2011 (projected)
Expenses 2011
Fee related Expenses
$2,292,664
Non-fee related
services/activity expenses
$1,065,333
Total Cost, Development
Review Center and
associated costs
$3,357,997
Revenue 2011
Current Fee Revenue
$1,450,566
Current General Revenue (G.F.,
Transp. Fund, etc.)
$1,001,948
Other Revenue (related offers) $ 41,385
DTS Revenue $ 150,000
Total Current Revenue (all
sources)
$2,643,899
Expenses less Revenue
<Shortfall> <$714,098>
By separating Fee Related Services from Non-fee Related Services, we can more clearly
determine the amount of revenue which should be generated by development related fees. Staff
has built into its analysis an assumption that development and construction should pay 100% of
the cost for those services which are tied directly to new construction, while general and other
revenues should cover remaining costs. With a Fee Related Service Revenue target of
$2,292,664 in 2011, current revenues fall short of paying 100% of the cost by $714,098. A
conceptual explanation of this philosophy is illustrated in Figure 1.
2011 Fee Study
Phase 1: Building Permit and Plan Check Fees
Page 3
Current: 80% of
Total Cost of
Development
Review Center
Proposed: 100%
of Fee-related
Service Expenses
Total Cost of Development Review Center
$3.358 Million
Current Revenue Gap to
80% Goal
General
Fund
Portion
80% Goal
Current Actual
Cost Recovery
(53%)
Current Revenue Gap
($714,098)
Non-fee
Related
Service
Expenses
100% Revenue goal = $2.3 Million
Cost Recovery Approach Change
Proposed June 2011
Figure 1. Cost recovery proposal
Plan Check and Building Permit Fee Recommendation
Staff recommends that the fee tables for Plan Check and Building Permits be adjusted so that
they recover 100% of the cost of Fee Related Services. To accomplish this, staff developed a
new fee table to maintain appropriate relationships between the costs of various permits and
activities (plan check, inspection, building permit, etc.) while generating additional revenue. The
fee table, which is tied to valuations of various projects and the relative cost of providing each
service becomes the formula for calculating the fee for each customer. A 2011 City of Fort
Collins Fee Table will replace the 1982 UBC Fee Table which has been in use by the
Development Review Center for many years. Though the valuations used with the 1982 UBC
Table have increased as the local market has changed, the base fee in the table has not changed
since its adoption. This proposal would result in changes to the base fee in the table, driving all
other fees up to more closely match the actual cost of providing those services.
Impact
The impact of these fee changes for Plan Check and Building Permit services will vary from
0.5% to 6.5%, depending on the valuation of the project. Examples of the impact of these
changes are included in Attachments 1A and 1B, including five sample projects which have
received a permit from the City in the recent past. A typical single family residence (2000
square feet), a small industrial warehouse, a small commercial office, a retail building and a
mixed-use building are all included to show the variation in impact on different types and
valuations of construction. See summary, Figure 2.
2011 Fee Study
Phase 1: Building Permit and Plan Check Fees
Page 4
The largest percentage impact is on the single family residence with a 6.53% increase over
current fees. This reflects the valuation of $214,000. As the valuations increase over other
properties, the percentage increases are smaller because they reflect the assumption in the Fee
Table that, while the cost of providing Plan Check and Building Permit services are greater for a
larger, more complex building, they do not go up at a steady rate. A cost curve built into the
formulas reflects the reduced cost per dollar of value for more expensive buildings. An example
might be that a $200,000 house would cost $18,000 in permit fees, but a more expensive
commercial office ($1,300,000) doesn’t cost 7 times as much in development related costs. It
still only has one permit issued, one plan checked (though more complex), a few bathrooms and
electrical systems to inspect, and other similar services. Similarly, a more expensive house
might have a more expensive finish (granite countertops rather than laminate, cherry woodwork
rather than painted pine, etc.) but that increased valuation doesn’t necessarily translate to higher
permitting or inspection costs. This formula configuration is common to most jurisdictions
which issue building permits and represents an industry standard.
Staff believes that this approach to adjusting the fee table allows the City to match revenues and
expenses more closely, while not recovering fees for services which are not closely tied to a
development or building activity. The proposed increases are modest, and closely tied to the cost
of providing the services. The balance of the cost of the Development Review Center continues
to be paid through General Government revenues, reflecting the “community good” aspects of
the services provided.
In addition to analyzing the impact of the proposed fee increase on sample projects, staff has
compared Fort Collins’ fees to those of neighboring communities to evaluate the relative cost of
fees. 2010 and 2011 studies conducted by the City and Red Oak Consulting gathered data
Impact on Sample Permits
$5,308.10
$5,044.63
$4,971.94
$3,436.49
$1,154.00
$
Change
Mixed-Use $948,629.13 $953,937.23 0.56%
Retail $263,469.32 $268,513.95 1.91%
Commercial Office $123,878.89 $128,850.83 4.01%
$79,420.73 $82,857.22 4.33%
Industrial
Warehouse
$17,679.90 $18,833.90 6.53%
Single Family
Residence
%
Change
100%
Services
Recoup
2011
Permit Type Current
Figure 2. Impact of proposal on sample permits
2011 Fee Study
Phase 1: Building Permit and Plan Check Fees
Page 5
comparing development fee related costs, both for Building Permit and Plan Check Fees and
Capital Expansion Fees. In both cases, Fort Collins is near or below the median of comparable
communities in fees charged. With this data in mind, staff does not believe that the proposed fee
adjustments will significantly effect Fort Collins’ position relative to the local market for new
development costs. (See Figures 3 and 4).
Figure 3. Permit and Plan Check Fee Comparison
(Single Family Residence - 2,500 square feet with valuation of $300,000)
$1,866.00
$2,725.81
$2,747.88
$2,770.91
$3,190.00
$3,487.69
$3,487.69
$3,645.83
$3,752.19
$3,802.15
$4,510.00
$2,853.56
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000
Fort Collins-Current
Windsor
Johnstown
Larimer County
Greeley-Zone 3
Fort Collins-Proposed
Broomfield
Loveland
Longmont
Timnath
Boulder
Louisville
Jurisdictions
Amount
Permit &
Plan Check
Note: Permit and Plan Check fee estimates from current 2011 fee information checks.
2011 Fee Study
Phase 1: Building Permit and Plan Check Fees
Page 6
Figure 4. Permit Fee Regional Comparison
Includes: Permit, Plan Check, Sales & Use Tax, Non-Utility and Utility Capital Expansion Fees
(Single Family Residence - 2,500 square feet with valuation of $300,000)
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
Larimer County
Greeley-Zone 3
Johnstown-Redstone Hills
Longmont
Johnstown-Riverbend
Fort Collins-Current
Timnath-Fairview Village
Fort Collins-Proposed
Windsor
Timnath-Harmony Club
Loveland
Boulder
Louisville
Broomfield
Jurisdictions
Amount
Permit &
Plan Check
City/Cty
Sales Tax
Non-Utility
Cap. Exp
Utility Cap.
Exp.
Note: Utility and Non-Utility Capital Expansion Fee Estimates from Red Oak study (Fort Collins information updated in accordance with current fee schedules); Permit
and Plan Check fee estimates from current 2011 fee information checks.
Other Recommendations
The timing of charges for the Transportation Development Review Fees (TDRF) is an additional
issue that staff believes should be addressed at the same time fee increases are implemented.
Currently, virtually all of the TDRFs are charged early in the Development Review process.
These fees can be substantial, and have created financing problems for some developers working
through the process. Staff proposes that the Planning Development Review Fee and the TDRF
be combined in the fee tables, with 30% of the fee charged at application (early in the process)
and 70% of the fee charged at the time of the project’s public hearing. This should alleviate the
impact of the timing of the TDRF for developers, but it may cause the City some cash flow
issues initially because most of the fees will be delayed until much later in the development
cycle. Further analysis of current year projections will be required to identify potential delayed
revenue.
Outreach Summary
Since the Council Finance Committee met in March 2010, Staff has begun outreach with
affected interests to review the proposed change and gather feedback and questions about the
proposal. Each of the Boards which learned about the proposal asked questions that have shaped
the detail included in the Work Session materials, and plan to provide Council with written
feedback if the proposal moves forward from Work Session to First Reading. Boards contacted
to date have included:
• Affordable Housing Board
2011 Fee Study
Phase 1: Building Permit and Plan Check Fees
Page 7
• Board of Realtors
• Chamber of Commerce Local Legislative Affairs Committee
• City Building Review Board
Staff also plans to do additional community outreach regarding the proposal during the coming
weeks, if Council directs staff to bring this issue back for implementation.
ATTACHMENTS:
1A. 2011 Fee Study Summary--Impact on Sample Permits
1B. Impact of Fee Increase, All Fees Summary Graphics
Attachment 1A
Extra Revenue
Generated by Sample
Permits
$768,541
$975,098
Permit Type 2011 Current
100% Services Recoup
$750K Target % Change
94 UBC Fee Table
Unmodified % Change
Single Family Residence $17,679.90 $18,833.90 6.53% $19,178.89 8.48%
Industrial Warehouse $79,420.73 $82,857.22 4.33% $83,647.22 5.32%
Commercial Office $123,878.89 $128,850.83 4.01% $128,997.46 4.13%
Retail $263,469.32 $268,513.95 1.91% $268,615.92 1.95%
Mixed-Use $948,629.13 $953,937.23 0.56% $957,579.31 0.94%
Approx. 85.53% increase in plan check and permit revenues if we implement the unaltered 94 UBC fee table calcs + base permit
fee of $25
Note: The above presumes that the permits collected for the year being analyzed equal (in valuation) the subset of permits tested
here (2009/2010).
Permits less in valuation would result in less revenues than shown. Permits greater in valuation would result in more.
2011 Fee Study
Summary--Impact on Sample Permits
Implementation Options:
Approx. 67.41% increase in plan check and permit revenues if we implement the $750K target + base permit fee of $25.
Attachment 1A--Page 1
2011: Current Fees
$20.25 Base
100% Recoup for
Fee Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Plan Check Fee $468.33 $843.38 $955.50
Permit Fee $972.68 $1,751.63 $1,984.50
Sales/Use Tax (City and County) $4,984.89 $4,984.89 $4,984.89
Capital Expansion $9,099.00 $9,099.00 $9,099.00
Utilities $2,155.00 $2,155.00 $2,155.00
Total: $17,679.90 $18,833.90 $19,178.89
Total $ Difference: $1,154.00 $1,498.99
from 2008 #s from 2011 current from 2011 current
% Difference: 6.53% 8.48%
% change-2011 crt % change-2011 crnt
CIEs
Comm Park $1,889.00 $1,889.00 $1,889.00
Neigh Park $1,695.00 $1,695.00 $1,695.00
Fire $203.00 $203.00 $203.00
Ggov $257.00 $257.00 $257.00
Police $140.00 $140.00 $140.00
Library $0.00 $0.00 $0.00
S/O - City $2,842.00 $2,842.00 $2,842.00
S/O - County $273.00 $273.00 $273.00
School $1,800.00 $1,800.00 $1,800.00
$9,099.00 $9,099.00 $9,099.00
Utilities
Elec: City Sales Tax $1.70 $1.70 $1.70
Elec: Comm. Rev. $44.19 $44.19 $44.19
Elec: PILOTS $2.64 $2.64 $2.64
Elec: Sec Service $813.00 $813.00 $813.00
Elec: Temp Pedestal $152.61 $152.61 $152.61
S/W Dev Rev $148.21 $148.21 $148.21
S/W PIF $992.65 $992.65 $992.65
$2,155.00 $2,155.00 $2,155.00
Single-Family Detached Residence
Valuation: $214,403.80; Square Feet - 2,068; DUs: 1
(Changed from original permit used in 2008 -- Adj valuation and sq. ft. accordingly for 2008 #s)
2011 Fee Study
Page 2
2011: Current Fees
$20.25 Base
100% Recoup for
Fee Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Plan Check Fee $2,231.46 $3,708.25 $3,757.00
Permit Fee $4,854.60 $8,349.75 $8,447.63
Sales/Use Tax (City and County) $30,225.00 $30,225.00 $30,225.00
Capital Expansion $59,287.11 $59,287.11 $59,287.11
Utilities $27,280.72 $27,280.72 $27,280.72
Total: $123,878.89 $128,850.83 $128,997.46
Total $ Difference: $4,971.94 $5,118.57
from 2008 #s from 2011 current from 2011 current
% Difference: 4.01% 4.13%
% change-2011 crnt % change-2011 crnt
CIEs
Comm Park $0.00 $0.00 $0.00
Neigh Park $0.00 $0.00 $0.00
Fire $2,838.14 $2,838.14 $2,838.14
Ggov $3,178.20 $3,178.20 $3,178.20
Police $1,974.93 $1,974.93 $1,974.93
Library $0.00 $0.00 $0.00
S/O - City $43,945.44 $43,945.44 $43,945.44
S/O - County $7,350.40 $7,350.40 $7,350.40
School $0.00 $0.00 $0.00
$59,287.11 $59,287.11 $59,287.11
Utilities
Elec: City Sales Tax $0.00 $0.00 $0.00
Elec: Comm. Rev. $0.00 $0.00 $0.00
Elec: PILOTS $0.00 $0.00 $0.00
Elec: Sec Service $0.00 $0.00 $0.00
Elec: Temp Pedestal $0.00 $0.00 $0.00
Sewer Dev Rev $128.00 $128.00 $128.00
Sewer PIF $7,100.00 $7,100.00 $7,100.00
S/W Dev Rev $749.13 $749.13 $749.13
S/W PIF $5,626.34 $5,626.34 $5,626.34
Construction Water $17.22 $17.22 $17.22
Water 6% PILOT Fees $1.03 $1.03 $1.03
Water Dev Rev $128.00 $128.00 $128.00
Water Meter $151.00 $151.00 $151.00
Water (Raw) $5,850.00 $5,850.00 $5,850.00
Water PIF $7,530.00 $7,530.00 $7,530.00
$27,280.72 $27,280.72 $27,280.72
Note: Electric fees were not
charged on permit - was billed
separately. So, not included here.
Commercial Office
Valuation: $1,300,000; Square Feet - 13,079; DUs: 0
(F&F Valuation - $60,000)
2011 Fee Study
Page 3
2011: Current Fees
$20.25 Base
100% Recoup for
Fee Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Plan Check Fee $1,573.33 $2,690.19 $2,946.94
Permit Fee $3,267.68 $5,587.31 $6,120.56
Sales/Use Tax (City and County) $20,808.75 $20,808.75 $20,808.75
Capital Expansion $27,512.00 $27,512.00 $27,512.00
Utilities $26,258.97 $26,258.97 $26,258.97
Total: $79,420.73 $82,857.22 $83,647.22
Total $ Difference: $3,436.49 $4,226.49
from 2008 #s from 2011 current from 2011 current
% Difference: 4.33% 5.32%
% change-2011 crnt % change-2011 crnt
CIEs
Comm Park $0.00 $0.00 $0.00
Neigh Park $0.00 $0.00 $0.00
Fire $1,140.00 $1,140.00 $1,140.00
Ggov $1,273.00 $1,273.00 $1,273.00
Police $779.00 $779.00 $779.00
Library $0.00 $0.00 $0.00
S/O - City $21,280.00 $21,280.00 $21,280.00
S/O - County $3,040.00 $3,040.00 $3,040.00
School $0.00 $0.00 $0.00
$27,512.00 $27,512.00 $27,512.00
Utilities
Elec: City Sales Tax $0.00 $0.00 $0.00
Elec: Comm. Rev. $0.00 $0.00 $0.00
Elec: PILOTS $0.00 $0.00 $0.00
Elec: Sec Service $0.00 $0.00 $0.00
Elec: Temp Pedestal $0.00 $0.00 $0.00
Sewer Dev Rev $128.00 $128.00 $128.00
Sewer PIF $7,100.00 $7,100.00 $7,100.00
S/W Dev Rev $1,921.75 $1,921.75 $1,921.75
S/W PIF $3,431.97 $3,431.97 $3,431.97
Construction Water $17.22 $17.22 $17.22
Water 6% PILOT Fees $1.03 $1.03 $1.03
Water Dev Rev $128.00 $128.00 $128.00
Water Meter $151.00 $151.00 $151.00
Water (Raw) $5,850.00 $5,850.00 $5,850.00
Water PIF $7,530.00 $7,530.00 $7,530.00
$26,258.97 $26,258.97 $26,258.97
Note: Electric fees were not
charged on permit - was billed
separately. So, not included here.
Warehouse - Industrial
Valuation: $895,000; Square Feet - 19,000; DUs: 0
2011 Fee Study
Page 4
2011: Current Fees
$20.25 Base
100% Recoup for
Fee Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Plan Check Fee $1,909.70 $3,386.50 $3,403.08
Permit Fee $4,216.73 $7,819.88 $7,905.27
Sales/Use Tax (City and County) $25,610.32 $25,575.00 $25,575.00
Capital Expansion $97,083.13 $97,083.13 $97,083.13
Utilities $134,649.44 $134,649.44 $134,649.44
Total: $263,469.32 $268,513.95 $268,615.92
Total $ Difference: $5,044.63 $5,146.60
from 2008 #s from 2011 current from 2011 current
% Difference: 1.91% 1.95%
% change-2011 crnt % change-2011 crnt
CIEs
Comm Park $0.00 $0.00 $0.00
Neigh Park $0.00 $0.00 $0.00
Fire $3,128.92 $3,128.92 $3,128.92
Ggov $3,503.82 $3,503.82 $3,503.82
Police $2,177.27 $2,177.27 $2,177.27
Library $0.00 $0.00 $0.00
S/O - City $80,169.64 $80,169.64 $80,169.64
S/O - County $8,103.48 $8,103.48 $8,103.48
School $0.00 $0.00 $0.00
$97,083.13 $97,083.13 $97,083.13
Utilities
Elec: City Sales Tax $0.00 $0.00 $0.00
Elec: Comm. Rev. $0.00 $0.00 $0.00
Elec: PILOTS $0.00 $0.00 $0.00
Elec: Sec Service $0.00 $0.00 $0.00
Elec: Temp Pedestal $0.00 $0.00 $0.00
Sewer Dev Rev $658.00 $658.00 $658.00
Sewer PIF $31,490.00 $31,490.00 $31,490.00
S/W Dev Rev $2,151.49 $2,151.49 $2,151.49
S/W PIF $14,960.46 $14,960.46 $14,960.46
Construction Water $130.65 $130.65 $130.65
Water 6% PILOT Fees $7.84 $7.84 $7.84
Water Dev Rev $658.00 $658.00 $658.00
Water Meter $293.00 $293.00 $293.00
Water (Raw) $39,000.00 $39,000.00 $39,000.00
Water PIF $45,300.00 $45,300.00 $45,300.00
$134,649.44 $134,649.44 $134,649.44
Note: Electric fees were not
charged on permit - was billed
separately. So, not included here.
Retail Building
Valuation: $1,101,519; Square Feet - 14,419; DUs: 0
(F&F Valuation - $99,137)
2011 Fee Study
Page 5
2011: Current Fees
$20.25 Base
100% Recoup for
Fee Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Plan Check Fee $13,118.95 $14,595.75 $15,733.25
Permit Fee $27,497.48 $31,328.78 $33,833.36
Sales/Use Tax (City and County) $186,000.00 $186,000.00 $186,000.00
Capital Expansion $365,400.72 $365,400.72 $365,400.72
Utilities $356,611.98 $356,611.98 $356,611.98
Total: $948,629.13 $953,937.23 $957,579.31
Total $ Difference: $5,308.10 $8,950.18
from 2011 current from 2011 current
% Difference: 0.56% 0.94%
% change-2011 crnt % change-2011 crnt
CIEs
Comm Park $85,278.00 $85,278.00 $85,278.00
Neigh Park $76,494.00 $76,494.00 $76,494.00
Fire (Com) $2,036.11 $2,036.11 $2,036.11
Fire (Res) $9,211.00 $9,211.00 $9,211.00
Ggov (Com) $2,280.07 $2,280.07 $2,280.07
Ggov (Res) $11,590.00 $11,590.00 $11,590.00
Police (Com) $1,416.83 $1,416.83 $1,416.83
Police (Res) $6,283.00 $6,283.00 $6,283.00
Library $0.00 $0.00 $0.00
S/O - City $99,353.46 $99,353.46 $99,353.46
S/O - County $16,558.25 $16,558.25 $16,558.25
School $54,900.00 $54,900.00 $54,900.00
$365,400.72 $365,400.72 $365,400.72
Utilities
Elec: City Sales Tax $0.00 $0.00 $0.00
Elec: Comm. Rev. $0.00 $0.00 $0.00
Elec: PILOTS $0.00 $0.00 $0.00
Elec: Sec Service $0.00 $0.00 $0.00
Elec: Temp Pedestal $0.00 $0.00 $0.00
Sewer Dev Rev $2,879.00 $2,879.00 $2,879.00
Sewer PIF $156,767.00 $156,767.00 $156,767.00
S/W Dev Rev $1,200.53 $1,200.53 $1,200.53
S/W PIF $7,486.60 $7,486.60 $7,486.60
Construction Water $400.70 $400.70 $400.70
Water 6% PILOT Fees $24.04 $24.04 $24.04
Water Dev Rev $2,879.00 $2,879.00 $2,879.00
Water Meter $372.76 $372.76 $372.76
Water (Raw) $144,669.07 $144,669.07 $144,669.07
Water PIF $39,933.28 $39,933.28 $39,933.28
$356,611.98 $356,611.98 $356,611.98
Note: Electric fees were not
charged on permit - was billed
separately. So, not included here.
Mixed-Use Building
Valuation: $8,000,000; Square Feet - Square Feet 47,696 (Residential) & 9,383 (Commercial); DUs:
61
(F&F Valuation - $203,342)
2011 Fee Study
Page 6
1
Impact of Fee Increase on
Sample Permits
June 2011
Attachment 1B
2
2011 Fee Study: Single-Family
$17,679.90 $18,833.90 $19,178.89
Single-Family Detached Residence
(Value: $214K; Sq. Ft.: 2,068; DUs: 1)
12% 12% 12%
51% 48% 47%
28% 27% 26%
6% 9% 10%
3% 4%
5%
$0.00
$3,000.00
$6,000.00
$9,000.00
$12,000.00
$15,000.00
$18,000.00
$21,000.00
2011: Current Fees
$20.25 Base
100% Recoup for Fee
Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Options
Amounts
Utilities Capital Expansion Sales/Use Tax (City and County) Permit Fee Plan Check Fee
Attachment 1B
3
2011 Fee Study: Commercial Office
Commercial Office
(Value: $1.3M; Sq. Ft.: 13,079; DUs: 0)
22% 22% 21%
47% 46% 46%
25% 23% 23%
4% 6% 7%
2% 3% 3%
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
$140,000.00
2011: Current Fees
$20.25 Base
100% Recoup for Fee
Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Options
Amounts
Utilities Capital Expansion Sales/Use Tax (City and County) Permit Fee Plan Check Fee
$123,878.89 $128,850.83 $128,997.46
4
2011 Fee Study: Warehouse
$79,429.73 $82,857.22 $83,647.22
Warehouse
(Value: $895K; Sq. Ft.: 19,000; DUs: 0)
33% 32% 31%
35% 33% 33%
26% 25% 25%
4% 7% 7%
2% 3% 4%
$0.00
$15,000.00
$30,000.00
$45,000.00
$60,000.00
$75,000.00
$90,000.00
$105,000.00
2011: Current Fees
$20.25 Base
100% Recoup for Fee
Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Options
Amounts
Utilities Capital Expansion Sales/Use Tax (City and County) Permit Fee Plan Check Fee
5
2011 Fee Study: Retail
Retail
(Value: $1.1M; Sq. Ft.: 14,419; DUs: 0)
50% 50% 50%
37% 36% 36%
10% 10% 10%
1% 1% 1%
2% 3% 3%
$0.00
$40,000.00
$80,000.00
$120,000.00
$160,000.00
$200,000.00
$240,000.00
$280,000.00
2011: Current Fees
$20.25 Base
100% Recoup for Fee
Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Options
Amounts
Utilities Capital Expansion Sales/Use Tax (City and County) Permit Fee Plan Check Fee
$263,469.32 $268,513.95 $268,615.92
6
2011 Fee Study: Mixed-Use
$948,629.13 $953,937.23 $957,579.31
Mixed-Use
(Value: $8M; Sq. Ft.: 47,696-Res/9,383-Comm; DUs: 61)
37% 37% 37%
39% 39% 38%
20% 19% 19%
3% 3% 4%
1% 2% 2%
$0.00
$150,000.00
$300,000.00
$450,000.00
$600,000.00
$750,000.00
$900,000.00
$1,050,000.00
2011: Current Fees
$20.25 Base
100% Recoup for Fee
Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Options
Amounts
Utilities Capital Expansion Sales/Use Tax (City and County) Permit Fee Plan Check Fee
1
1
2011 Fee Study
Recommendations
June 14, 2011
2
Questions
• Does Council agree with the proposed
change in the cost recovery method for
Plan Check and Building Permit Fees?
• Does the Council believe that the timing
is appropriate for implementation in
January 2012?
ATTACHMENT 2
2
3
Issue: Building Permit and Plan Check
Fees
• Building Permit and Plan Check Fee Formula has
not changed since 1982 (1982 UBC)
• City Council Finance Committee reviewed
updates to the fees in 2009—Deferred action
because of economic conditions
• Staff reviewed proposed changes with Finance
Committee in March
4
Proposal
• Change the method used to calculate the
portion of Development Review Center costs
which should be recovered through Plan Check
and Building Permit Fees.
• Update fees to cover Development Review
Center Costs
3
5
Shift of Philosophy
• Current: recover 80% of total cost of
Development Review Center Costs by fees
• Proposed: Cover 100% of cost of Fee-related
Services
6
Total Cost, Development $3,357,997
Review Center and
associated costs
Non-fee services/activity $1,065,333
expenses
Fee related Expenses $2,292,664
Expenses 2011
Expenses less Revenue <$714,098>
<Shortfall>
Total Current Revenue $2,643,899
DTS Revenue $ 150,000
Other Revenue (related $ 41,385
offers)
Current General $1,001,948
Revenue
Current Fee Revenue $1,450,566
Revenue 2011
Revenue v. Expenses
4
7
Developing the Fee Table
8
Figure 3. Permit and Plan Check Fee Comparison
(Single Family Residence - 2,500 square feet with valuation of $300,000)
$1,866.00
$2,725.81
$2,747.88
$2,770.91
$3,487.69
$3,487.69
$3,645.83
$3,752.19
$3,802.15
$4,510.00
$3,190.00
$2,853.56
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000
Fort Collins-Current
Windsor
Johnstown
Larimer County
Greeley-Zone 3
Fort Collins-Proposed
Broomfield
Loveland
Longmont
Timnath
Boulder
Louisville
Jurisdictions
Amount
Note: Permit and Plan Check fee estimates from current 2011 fee information checks.
5
9
Permit Fee Comparison
Includes: Permit, Plan Check, Sales & Use Tax, Non-Utility and Utility Capital Expansion Fees
(Single Family Residence - 2,500 square feet with valuation of $300,000)
$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000
Larimer County
Greeley-Zone 3
Johnstown-Redstone Hills
Longmont
Johnstown-Riverbend
Fort Collins-Current
Timnath-Fairview Village
Fort Collins-Proposed
Windsor
Timnath-Harmony Club
Loveland
Boulder
Louisville
Broomfield
Jurisdictions
Amount
Permit &
Plan Check
City/Cty
Sales Tax
Non-Utility
Cap. Exp
Utility Cap.
Exp.
Note: Utility and Non-Utility Capital Expansion Fee Estimates from Red Oak study (Fort Collins information updated in accordance with current fee
schedules); Permit and Plan Check fee estimates from current 2011 fee information checks.
10
Impact on Sample Permits
Mixed-Use $948,629.13 $953,937.23 0.56%
Retail $263,469.32 $268,513.95 1.91%
$123,878.89 $128,850.83 4.01%
Commercial
Office
$79,420.73 $82,857.22 4.33%
Industrial
Warehouse
$17,679.90 $18,833.90 6.53%
Single Family
Residence
%
Change
100%
Services
Recoup
2011
Permit Type Current
6
11
2011 Fee Study: Single-Single -Family
$17,679.90 $18,833.90 $19,178.89
Single-Family Detached Residence
(Value: $214K; Sq. Ft.: 2,068; DUs: 1)
12% 12% 12%
51% 48% 47%
28% 27% 26%
6% 9% 10%
3% 4%
5%
$0.00
$3,000.00
$6,000.00
$9,000.00
$12,000.00
$15,000.00
$18,000.00
$21,000.00
2011: Current Fees
$20.25 Base
100% Recoup for Fee
Services
$25.00 Base
94 UBC Table
(Unmodified)
$25.00 Base
Options
Amounts
Utilities Capital Expansion Sales/Use Tax (City and County) Permit Fee Plan Check Fee