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Post Falls urban renewal agency adopts FY2027 administrative fee tied to operating expenses
Summary
The Post Falls Urban Renewal Agency voted July 16 to replace a flat administrative fee with a new fee tied to projected operating expenses, producing a proposed per-district FY2027 fee of $49,833 (5.3% of projected increment revenues).
Director Johns presented and the Post Falls Urban Renewal Agency approved a change to the agency’s annual administrative fee calculation on July 16, moving from a flat fee to a method tied to projected operating expenses.
The agency’s proposal, presented by Director Johns, subtracts projected interest income from total projected operating expenses to calculate the balance to be funded by administrative fees. For FY2027, Johns said projected operating expenses total $198,499 and estimated interest income is $49,000, yielding a balance of $149,499. Dividing that balance by the number of districts produces a per-district annual administrative fee of $49,833; expressing the balance as a share of projected increment revenues results in an agency administrative fee of 5.3%.
The change is intended to increase transparency and sustainability, Johns said, creating a clearer relationship between operating expenses and the agency’s revenue needs and improving long-term budgeting forecasts. "It is a simple annual calculation. It's easy to explain to proponents, participants," Johns said when outlining the proposal.
Commissioners discussed the proposal briefly and signaled support. One commissioner described the plan as "very fair and very well thought out and easy to explain." The commission moved to approve the revised fee methodology and associated figures; a roll call vote was recorded and the motion carried.
The fee calculation will be computed annually as part of the budget process and presented for ratification with the agency’s annual budget in August. The change is framed as a method to reduce the agency’s dependence on the number of districts and to preserve the general fund as a reserve to offset expenses for underperforming districts and potential agency projects.
Next steps: the administrative fee percentage and per-district amounts will be included in the agency’s FY2027 budget materials presented at the August budget meeting.
