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Council weighs citywide per-acre cap or averaging to curb fee unpredictability
Summary
Staff presented two alternatives to reduce fee spikes: a citywide per-acre land-value cap and a zone-by-zone averaging approach. Council discussed revenue trade-offs, administrative complexity and how each would affect redevelopment and mature neighborhoods.
Staff presented multiple methods to reduce unpredictability in cash-in-lieu parkland fees: a citywide per-acre land-value cap that would limit assessed land values used in fee calculations, and an averaging approach that would set fees based on prior-year average developed-land values either citywide or by zone.
"If your land value exceeds X amount, that's what we would assess the fees," Baker said of the cap option, noting the cap would be adopted annually as part of the budget process. A councilmember argued a citywide average based on the prior year's developed land could retain overall revenue while smoothing spikes: "Every permit gets that charge. The city doesn't lose any revenue," the councilmember said, describing an approach that uses last year's collection to spread costs predictably across permits.
Council members debated administrative burden, the regressive effects of averaging on lower-valued property owners, and downtown competitiveness: some said a cap reduces revenue while an average preserves overall collections but requires careful property selection and frequent updates. Staff and council agreed the choice involves trade-offs between revenue stability, fairness and ease of administration; staff will produce modeling for council review.
