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Council reviews new fee schedule options, staff defends cost study and urges measured reductions to protect budget
Summary
Staff presented a new fee schedule and offered 10% and 25% reduction scenarios for commercial and site-plan fees; council discussed competitiveness, specific line items (ADU fee, work meeting fee), and budget implications, and asked staff to return with refined numbers.
City staff presented a proposed fee schedule that would generally raise certain planning and permitting fees while also including optional 10% and 25% reduction scenarios aimed at encouraging business development.
Presenter (S1) outlined the options: for example, a preliminary site plan for 0–3 acres would be $2,000 under the proposed schedule, $1,800 at a 10% reduction and $1,500 at a 25% reduction (with per-acre surcharges); the draft final site-plan fee and large commercial site-plan fees were shown with parallel reduction figures.
Sherry, a city staff member, said the proposed fees were based on a cost analysis that counted staff time for planning review and related processes. "You have to have something to back your fees," she said, adding that the study tracks hours and people so the city can justify charges. Staff emphasized the fees reflect internal costs rather than direct comparisons with other cities because each city’s staffing and review processes differ.
Council members welcomed options to reduce business fees but raised competitive concerns about publishing maximum fees and about some specific line items. One council member pressed on an internal accessory dwelling unit (ADU) fee that appeared in earlier documents; staff corrected the figure to $119.32 and confirmed that some fees were actually reduced from prior levels. Another member questioned why a work-meeting fee was rising significantly and sought clarifications on which line items might be adjusted without materially affecting the budget.
Sherry told the work group that the community-development department has been operating in the red for years but that the recent staffing and fee study made the department nearer to break-even; she said raising fees can fund needed staff to speed reviews and help developers complete projects more quickly. Council members noted midyear budget adjustments could be used if the council chose to reduce selected fees after adoption.
No formal fee increases were adopted at the meeting; staff will refine the proposed schedule, correct line-item discrepancies, and return to the council with updated figures.
