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Item No. 24 <br />Memorandum <br />TO: Mayor, Mayor Pro Tem and City Council <br />Grayson Path, City Manager <br />FROM: Duke McGee, MCP Building Official, Asst. Director Community Development <br />Todd Mittge, City Engineer <br />Michael Smith, Public Works Director <br />SUBJECT: Review and Update of Development Fee Schedule <br />DATE: April 22, 2024 <br />BACKGROUND <br />The City maintains a Fee Schedule in Appendix A for Development -related work the City <br />performs in the Building, Public Works, Engineering and Fire Marshall Departments. The purpose <br />of these fees is to offset public tax dollar expense directed towards development projects in town. <br />The rationale is the development project itself, and not the tax payers, should cover expenses for <br />zoning, platting, permitting, etc. While no fee schedule can ever truly account for the exact cost <br />(above or below) for each unique project, the goal is to set a reasonable fee that covers as much of <br />our cost as possible to help lessen the burden on the tax payers. <br />STATUS <br />With the above goals in mind, staff attempt to review our fees annually to determine if they are <br />appropriate and whether they need to be decreased, increased, added or deleted. We also examine <br />state legislation, such as HB 222 from this last year, to determine if changes need to be made <br />(which is the case with some platting fees). After conducting this review, which included a <br />combination of examination of state law changes, reviewing fees from some similar communities, <br />and where needed performing our own internal calculations on what it truly costs us to perform <br />certain tasks (particularly in platting), we have adjusted certain fees up and down to better reflect <br />cost. In some situations, we have also re -categorized and moved some fees from one section to <br />another. Some fees are being deleted while some new ones have been added. Again, the goal is to <br />reasonably cover our cost to avoid raising taxes to do so. <br />Significant changes include: <br />• Increasing deposit on construction meters to actual cost of meter. <br />• Reducing and capping Residential Remodel Permit Fee <br />