Plano staff propose phased fee increases for building, planning and engineering; council signals general support

Plano City Council members on Monday heard a detailed update on a citywide cost-recovery effort for building inspections, planning and engineering and indicated general alignment for staff to proceed toward a formal fee ordinance.

Deputy City Manager Shelley Seemer told the council the intent of the cost-recovery framework is to “recoup costs for programs and services that do charge fees” and to place each fee on a continuum from wholly tax-supported to fully fee-supported. Seemer said the city used a consulting firm, MGT, and benchmarking to develop proposed “year 1” targets that staff plans to phase in over three years, with a follow-up formal ordinance expected this November and an effective date being proposed for Jan. 1 (date to be finalized in the ordinance).

The proposal presented several department-level figures: overall cost recovery today for the three development services departments is about 58.7%; building inspections currently recovers about 84.4% of its costs, engineering about 22.8% and planning about 20.4%. Staff’s combined year-1 proposal would increase overall recovery to roughly 73.5%, with Building Inspections moving to about 88.6%, Engineering increasing toward roughly 56% (varies by fee), and Planning rising to about 46.7% under the year‑1 targets.

Why it matters: City staff said the phased approach is intended to reduce general‑fund pressure while keeping the city competitive with benchmark communities. Seemer said the program will follow a recurring review schedule;…