Community Development Department DEVELOPMENT FEE STRUCTURE.

Community DevelopmentDepartme

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DEVELOPMENT FEE STRUCTUREDEVELOPMENT FEE STRUCTURE


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FINAL USER FEE STUDYJUNE 2007

Surplus/Deficit

Building Permits& Inspections

$2,509,634.76

Fire Permits $(32,067.45)

Engineering Permits $(270,739.60)

Community Development

$(453,684.38)


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Why the Surplus?Why the Surplus?

$5,329,978

$4,300,389

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Revenues Expenditures

Building Division Revenue/ExpenditureFiscal Year 2004

*Planned Revenues for Building Division Start-Up Costs

$1,029,588

Building Division Staffing

0 5 10 15 20 25 30 35 40

2009

2005

Number of Staff

20 Inspectors

6 Inspectors

Building Off icial

Building Off icial

3 Plans Examiners

3 Plans Examiners

7 Permit Techs

4 Permit Techs

3 Supervisors

2 Supervisors

Administrative Assistant

Data Clerk

Technical Capabilities - 43 Inspector/Examiner Licenses

Investment in Cross Training

$5,413,488

$2,392,501

$5,350,970

$2,351,981

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Sept. 30, 2005 Sept. 30, 2006

Fiscal Year Ending

Building Division Revenue/Expenditure

Revenues

Expenditures

*Fastest Grow ing City/County in the United States*

$489,000*

$940,000

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

Revenues Expenditures

Building Division Revenue/ExpenditureFiscal Year 2009 Year-to-Date

*Fee Reduction 7/15/08

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Sept. 30, 2004 Sept. 30, 2005 Sept. 30, 2006 Sept. 30, 2007 Sept. 30, 2008

Fiscal Year Ending


Revenues

Expenditures

$1.02 M*

$3.0 M$3.02 M

$98 K - $186 K*

*Planned Revenues for Start-Up Costs

*Fee Reduction 7/15/08


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Why the deficit?

Surplus/Deficit

Building Permits& Inspections

$2,509,634.76

Fire Permits $(32,067.45)

Engineering Permits $(270,739.60)

Community Development

$(453,684.38)


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Why the Deficit?• Adopted the Flagler County Land Development Code in 2000 and related fee schedule.• City Council adopted its first Unified Land Development Code on August 19, 2008.

Land Development Revenue/Expenditures • Salary and Wages (FY 08): $860,021• Fees Collected (FY 08): $55,157• Percent of labor cost offset by collection of fees 6.4% Site Development Revenue/Expenditures• Salary and Wages (FY 08): $598,697• Fees Collected (FY 08): 0• Percent of labor cost offset by collection of fees 0%


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Land Development Code Services without Established Fees

• Vacation of Easement/Street/Plat• Administrative Deviation of

Development Standards• Concurrent Application• Transportation Deferral Affidavit

or Evaluation• Proportionate Fair Share

Agreement Application• Environmental, Landscape and

Arborist Services• Nonresidential Tree Removal• Technical Review for FEMA Map

Revisions and Base Flood Elevations

• Tree Bank Fund• Site Development Application• Site Development Re-Inspection

• Inspection fee• Roadway Inspection• Abated Application• Binding Lot Rescission• State Application Zoning Review• Flood Zone Determination Letter• Land Use Verification Letter• Master Site Plans• Subdivision Nonstatutory• Pre-Application Compliance

Review• Land Development Resubmittal

Fees• Development Order Modification• Development Order Extension• Appeals

Note: No Fee increases proposed for previously approved application types


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Fee Schedule ProposalFee Schedule Proposal


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Initial Fee Proposal to Builders

• The following is the proposed plan for reducing building department reserves (revenues minus expenditures) accumulated since October 2004. As of January 31, 2009 this reserve contains $6,745,990.

• Maintain an emergency reserve of $2 million.• Set aside $2 million for construction of the building department space

within a new city hall facility. Any unexpended portion of the $2 million will remain in the building department reserves.

• Discount building permit fees for new construction by 50% and remodeling and other ancillary building permits by 90%. These discounts are expected to reduce the reserve by more than $1 million per year. When the building department reserves reach the level needed to maintain the emergency reserve and provide the necessary funding for the construction of the building department space in city hall, then the discounts will be removed.

• Other fees such as development fees and engineering fees will be adjusted to reflect actual cost as determined by the rate study completed in June 2007.

• Depending on the amount of building permit activity, it is expected that it will take two to three years to reduce the building department reserves to the desired level.


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Counter-Proposal from Homebuilders


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Fee Proposal• 90% Discounted Building Permit Fees• Immediate Implementation• January 1, 2012 Automatic Sunset Date• $2 Million Dedicated Reserve

– Cost of Building Division Space in City Hall– Balance for Emergency Permitting

• Promote as Economic Stimulus for Construction Industry with Emphasis on Home Repair, Improvements, etc…

Now’s the time to build!

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Sept. 30,2004

Sept. 30,2005

Sept. 30,2006

Sept. 30,2007

Sept. 30,2008

Sept. 30,2009

Sept. 30,2010

Sept. 30,2011

Fiscal Year Ending


Revenues

ExpendituresProjected

With 90% Fee Reduction

Building Division Fund Surplus

Operating Reserves

Capital Reserves

Surplus

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Sept. 30, 2004 Sept. 30, 2005 Sept. 30, 2006 Sept. 30, 2007 Sept. 30, 2008 Sept. 30, 2009 Sept. 30, 2010 Sept. 30, 2011

Fiscal Year Ending

With 90% Fee Reduction


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Land Development Fee Schedule

• No Fee Increases for Established Fees• Establish Fees for Site Development

Permitting (Engineering/Fire)• Establish Fees for All Development

Review Services. . . Equity• Delayed Implementation for 60 Days


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Residential Fee Examples

Now’s the time for home improvements!

Permit Type CurrentFee

ProposedFee

FeeReduction

Single Family Residential

1,178 117 1,060

Building Addition/Alteration

277 27 249

Swimming Pool 220 22 198

Shed 40 4 36

Fence 40 4 36


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Commercial Fee Examples

Now’s the time to invest!

Permit Type CurrentFee

ProposedFee

FeeReduction

New Construction 55k s.f. Hotel

54,087 5,408 48,678

New Construction 11k s.f. Restaurant

7,292 729 6,562

Addition/Alteration Valuation $200k

2,080 208 1,872

Addition/Alteration Valuation $37k

583 58 525

Community Development Department DEVELOPMENT FEE STRUCTURE.

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