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Gilbert proposes major update to development services fees and valuation table; May 6 hearing planned
Summary
Staff presented a comprehensive, consultant‑assisted update to development‑services fees and the building valuation table (last updated 1999); changes would take effect July 1 after a 60‑day notice and a May 6 public hearing was proposed.
Development‑services staff, led by Joseph with Kyle and others on the team, presented a nine‑ to ten‑month study of building and plan‑review fees. Joseph said the town’s building valuation table had not been updated since 1999 and the overall fee schedule had last been updated in 2013; a 2019 effort was paused and the department resumed the review this year with a consultant.
Staff explained their approach: process mapping (“swim lanes”) to capture personnel time and costs for each permit/review task, comparison with neighboring jurisdictions, and a strategic view to keep some fees competitive and some intentionally lower (for example, to encourage pre‑application meetings). The study found a structural gap in development‑services revenues versus expenses — roughly $5,000,000 historically — driven by market changes, a shift in project mix and reduced greenfield development.
Examples: the updated valuation table increases per‑square‑foot valuations (a sample multifamily valuation rose from $59 to $148 per square foot in one comparison), triggering higher fees in some categories while a few other fees were reduced. Staff proposed updating the valuation table annually (February) with an effective date of July 1. The recommended process: 60‑day notice of intent, stakeholder outreach (homebuilders, chamber), a May 6 council public hearing and adoption timed to July 1 effective date.
Council questions focused on timing, stakeholder outreach and whether the town could build an automatic or regular update cadence; several council members urged annual reviews tied to an index or the ICC valuation table. Staff said they would propose a mechanism for periodic review and stakeholder outreach ahead of the May hearing.
Why it matters: fee changes affect development costs and the town’s cost‑recovery for reviewing and inspecting new projects. Staff framed the update as both technical (process‑based fee calculation) and strategic (competitive rates against neighboring jurisdictions).
