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Land-use fee study finds Multnomah County recovers about 18% of planning costs; staff outline options to improve customer service
Summary
A 2024 study presented to the board shows land-use planning fee recovery at about 18% (below a regional median of 25%); staff recommended raising permit fees, setting a cost-recovery goal and allowing limited fee waivers while also proposing additional FTE to reduce permit backlogs.
Department of Community Services Director Margie Bradway and Land Use Director Megan Gibb briefed the Board of County Commissioners on March 11 about a land-use fee study that found Multnomah County recovers approximately 18% of its land-use planning costs through permit fees.
"Our cost recovery rates at 18%," Gibb said, citing the study conducted in 2024 that compared the county with 11 other counties and Portland. The study calculated fully loaded personnel costs and found the county below the median peer cost-recovery rate of 25%.
Staff said permit applications rose 17% from 2023 to 2024 and that planners carry heavy workloads. "The average planner carries about 20 cases at a time. Our backlog now is in the 90s," a presenter said, adding that a single additional Planner I position would reduce the case load but not resolve systemic delays.
The consultant'led study identified almost 60 different permit types, noted that Multnomah County's fees are generally mid-range compared with peers, and suggested a suite of policy options: adopt a multi-year cost-recovery goal, raise permit fees incrementally or more rapidly depending on the target, authorize limited fee waivers (for hardship or specific circumstances such as tribal projects), and conduct another fee study after code updates are completed.
Staff presented an example table showing the impact of different cost-recovery targets: to maintain the current 18% recovery in the face of rising personnel costs would require roughly a 10% annual fee increase (a cumulative 61% increase over five years), whereas reaching a 25% recovery would require larger annual increases.
Commissioners urged clarity about waiver criteria, the effect of fee changes on affordable-housing development, and coordination with adjacent jurisdictions'fee schedules. Staff said they will return with more detailed proposals and continue outreach to the planning commission, neighborhood associations, and the development community. The board scheduled a broader discussion of fees during the May 6 budget schedule.
Ending: The department said it will return with a proposed fee schedule and additional community engagement, and recommended evaluating fee and code changes after the zoning code update and process improvements are complete.
