The Planning Division is presenting an updated fee schedule and associated resolution to the City Council. The resolution reflects increases in existing fees in an effort to cover the costs of providing services to the community. These are proposed changes to fees within the City Limits only. Any changes to fees charged by the Planning Division in the County will be subject to approval by the Board of County Commissioners. The Planning Division is proposing a 7% increase in most of its fees. The Planning Division’s overall fees were last increased in 2013. At that time, the fees were increased 4%. At the direction of the City Council, the Division is proposing fee increases on a more regular basis, or every two years, to reduce the impact of larger increases on the community and to better keep up with increases in the costs of providing these services. A 7% increase will help offset increases in operations and maintenance costs and a increases in personnel costs for the Division for FY15. Attachment 1 provides an informational sheet on the changes in fees, including a comparison between Planning's current fees and the proposed 7% increase for FY 15. Planning and Engineering both charge fees for subdivision reviews in the City and so the fee comparison also shows the change in the Planning Division portion of the total fees and then the new total fee with the Engineering portion added in. Engineering did not propose any fee changes for FY15. 

The City Council may choose to:
1. Approve the resolution to update the existing fee schedule for the Planning Division.
2. Deny the resolution to update the existing fee schedule for the Planning Division.
3. Modify the resolution to update the existing fee schedule for the Planning Division.

The proposed fees will more accurately cover the costs for the Planning Division to provide services, resulting in additional revenues for the Division when services are delivered to customers. If the fees are not set to meet the costs, the difference will need to be subsidized from other funding sources. The Division estimates about $5,000 in new revenues in FY15 under the new fee schedule based on the FY14 level of subdivision activity. The Division estimates $4,000 in new revenues in FY15 under the new fee schedule based on the FY14 level of general application and permit activity. The change in costs to customers ranges from a few dollars with some permits to a little more than $200 for subdivision applications for projects of 41 lots or larger (See Attachment 1).

The Planning Division continues to strive to provide the best customer and application review services in a cost-effective and timely manner. The City Council last increased the Planning Division’s overall fees in 2013. At that time, the fees were increased 4%. At the direction of the City Council, the Division is proposing fee increases on a more regular basis to reduce the impact of larger increases on the community and to better keep up with increases in the costs of providing these services.

The 7% fee increase proposed by the Planning Division for FY15 is in response to the ongoing and increasing costs to provide services to the development community and the community at large. The 7% increase in Planning Division fees will help offset about a 7.5% annual increase in operations and maintenance costs, and personnel costs for the Division for FY15. This 7% increase would be for the next two fiscal years - FY15 and FY16. The Division is not seeking an increase of 15% (7.5% annually for two years) due to where the Division receives some of its revenues and some one time costs incurred by the Division in FY14. These include:

• Moving Costs in 2013
• Innoprise Conversion work in 2013
• Addition of the Department Receptionist in 2013 that the Planning Division pays 1/3 of the cost for.
• Fees should only cover permit and application processing
• Staff performs other duties that are funded from the County-Wide Planning Levy and the Federal Transportation Planning Program
• 7% appears to address costs for permit/app. processing
   

The proposed changes to the fee schedules for the Planning Division have been discussed with the Billings Home Builders Association, and the public hearing has been legally advertised.