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18 - Development FeesItem No. 18 memorandum TO: Mayor & Council FROM: John Godwin, City Manager SUBJECT: DEVELOPMENT FEES DATE: July 12, 2019 BACKGROUND: Cities collect fees for various development related services in order to recoup the costs of the municipality for providing those services. Fees should never be used to generate revenue for the sake of bringing in more money, or to make a "profit." However, most cities make an effort to break even when it comes to development costs, the notion being that development should pay for itself. When it fails to pay for itself, those services are subsidized by taxes paid by those not benefiting directly from the services rendered. Another issue that has arisen for us is a new state law that prohibits fees from being based on the value of the property or improvements. Like many cities, we have for very many years based many of our building fees on the estimated value of the improvements, so we must make changes to our fee structure. STATUS OF ISSUE: Paris has been reticent to raise fees for many years, and as a result current fees significantly lag behind actual costs. One concern is that such fees may drive development away. However, virtually every study on development fees shows that not to be the case, especially in a city like Paris which does not even collect many of the typical charges, like impact fees, assessed on new development. To test that theory here, a few years ago we placed a moratorium on the collection of all development fees for six months. There was no impact on the number of permits requested; however, there was a loss of revenue and a greater reliance on taxes paid by existing residents. Fees that have not been updated to reflect actual costs, in some cases since the 1970s, need to be changed; and we must come into compliance with new state statutes. BUDGET: Will generate additional revenues. RECOMMENDATION: Discussion only; ordinance of adoption scheduled for September 16 as part of the overall city budget. 2019 Building Permit Fee Survey I �ni,M Dennison Comm... Mount PI - - - rt Sulphur Springs Greenville T¢xarkana Sh¢rman WATER & SEWER TAP FEE UPDATES ­­ - ­­­­­­ Accessory Builtling. -­­- -7 -77 71 ­­­- -­ $50.00 $5000 $38.60 $50.00 $75.00 ... . . $76plus .25sf ........... Mpar sqfoot After Hr. Comm $100.00 $125.00 NA $150 $100.00 $75 per trade $7,00 . "inspection - Res . ..... - - - - ______w.____"""""__.....,.._...._..._.,.... i166.00 $76.92 NA MO $100.00 $75 per trade $77.00 BOA $150.00 52130.00 $250.00 $225 $300.00 $150.00 $140.00 53,237,00 $3.260.00 S5,?J0.011 $3,940.DO $5.000.00 I $4.9115.00 $6,000,O0 Co $50.00 $100.00$20.00 $20000$20000S5o.00 $5000 Conpete '= $50.00 $35.00 $20M $75.03 $12.50 plus $20a 850.00 md Demolition $150 for Ccamnesdal $13RZT2_500 $5000 Electrical (soma as Plbg. end MI r $5000 $50.00 520.00 $50 in? $75.00 $25.00 $5100 Fame. $50.00 $50.00 520.00 $40.00 $75.00 MOD $50.00 Sis. $60.00 $55.00 $50.00 Pd.. 00 P.M. =0 $100 Public $50 Private $125.00 $250.00 II -Res . . .... . . .. $75.00 ..... . . ..... . . ........ . ... . . . MOO .......... . .... $20.00 .................. . ........................ . 110 rnh .. .... ......... 1 $7500 . $75.00 .......................... . . . . $50.00 $125.00 MOO 520.00 $50 m1n $75.00 $150 00 $50.00 $50.00 ------------ $75.00 $75.00 $5000 Pool $00.00 $130.00 $50.00 $230.00 $100-00 $125.00 $250.00 F-in - W sp Fee ............................. .... ....................................................... . ........................... ................... Uuw . ................. . ............. . . ... $125.00 $20.01 F $40.00 (1)$25 (2) $90 (3.) $100 $25.66 . ........... 550,00 Roofing $10,000 value $50.00 $80.00 $20.00 $50 $75.0 $75.00 $50.00 New Single Family 2000sf $800.00 $1.000,00 .. . .............................. $502.00 . ................................. $1,340+00 ....................................................................................... $1356.D0 . ............................. $750.00 . ................................... $90000 Sign (based On size) $1004200 $50-100 $755250 $100.00 $100.00 BigW-�irfirWi .... . . ........ - - - $150.130 $200.00 $50.00 simoo $150.00 $150.00 $140.00 $30000 $200.00 $5000 $225.00 $250.00 NA MOM Temp. Const. & Sales trallar NA 5250.00 F NA C.nt..t.rF. ... . ..... . ..... $50M$Oko ------ --------$000 - $10000 $0.00 $5000 $50.00 $100.00 $50.00 $50 $75 or .25 sq It $78 plus.25 sq It $70.00 Plan R..I- Fee. Actual 1111 NA Res NA Co.. $50 Re. NA Comm � 500Df 110% of $500.00 NA .............. ............... ............. L� mrit feeI WATER & SEWER TAP FEE UPDATES D,,ISTING I,Ol °x"SI D CHANGE WATER P I w' 1°a.3 P l IC�JI ?i :� D CHANGE 980.00.... Standard 4" Sewer Tap in dirt -same side Standard 1"Water Tap in pavement "'j '�a $ 340.00 Standard 1" Water Tap in dirt - same side _ $ 90.00 Standard 2"Water Tap in pavementi r ,, r,� $ - Standard 2"Water Tap indirt - same side q, �✓ $ Split water service in dirt - same side - I w" 'o $ 110.00 Split water service in pavement ++: : , $ 700.00 * No 2 1/2" or 3" Water Taps by city forces. ** Fee for water taps requiring bore across any street will be charged at cost for the work. +** City will not install core taps for utility construction work. Taps 4" or larger shall be installed by utility contractor with city oversight/inspection. SEWER D,,ISTING I,Ol °x"SI D CHANGE Standard 4" Sewer Tap in pavement w $ 980.00.... Standard 4" Sewer Tap in dirt -same side ,`, i,i. $ 160.00 Standard 6" Sewer Tap in pavement 1,140.00 Standard 6" Sewer Tap in dirt - same side? c' $ 240.00 Split sewer service in dirt- same side 90.00 Split sewer service in pavement $ 700.00 * Sewer taps 6" and larger require a manhole to be installed at the intersection. ** Manholes are required at any change in direction or elevation. *** Sewer taps requiring bore across any street will be charged at cost for the work. All water and sewer fees are based on local streets requiring typical pavement restoration. Where the street section is more than 6" thick, additional fees will be included for the pavement restoration.