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Council adopts ordinance changing engineering and development fees after state law change
Summary
City Council unanimously approved an ordinance restructuring land-development fees and establishing new engineering inspection fees after a state law limited prior fee methodologies; the ordinance includes new grading-permit and right-of-way fees and raises after-hours inspection rates.
The Murphy City Council on March 4 unanimously approved an ordinance that restructures development-related fees to comply with a recent change in state law and to establish new engineering inspection and grading-permit charges.
City staff said House Bill 3492 (as cited in the staff presentation) altered how municipalities may recover costs for inspecting public improvements. Previously, the city charged a 4% construction-inspection fee on the cost of installing public improvements; staff said that methodology is no longer permitted under the new state rule. To comply, council approved renaming the related fee section to “engineering fees” and implementing a new schedule that includes base fees plus per-lot or per-acre charges to cover inspection costs.
Key ordinance elements approved by the council include: - Grading permits (new): a proposed fee of $100 for permits allowing dirt and grading work before a full building permit is issued. - Construction inspection (single-family residential): a $1,000 base fee plus $500 per platted lot. - Construction inspection (nonresidential): a $1,000 base fee plus $1,000 per platted acre. - Increased right-of-way/encroachment fee from $50 to $75. - After-hours inspection rate increased from $50/hour to $75/hour with a two-hour minimum, subject to staff availability.
Staff explained the new fee structure was developed from an internal time-and-materials analysis of inspection tasks; staff said the new schedule approximates inspection costs but does not fully replace revenue previously generated by the 4% method. Council members asked about comparability with neighboring cities, the frequency of after-hours inspections given staffing constraints, and whether grading permits had previously been issued without a fee; staff said grading permits were being issued and that adding a fee makes the process consistent and easier for customers.
The ordinance passed by unanimous vote. Staff said details and the redline ordinance appear in the meeting packet.
Ending: The council adopted the ordinance and the item was closed without further amendment.
