ACTION REQUESTED:
Title
Communication from the City Manager with a Request to ADOPT an ORDINANCE Amending Chapter 5 of the CODE of the City of Peoria Pertaining to BUILDING PERMITS and REGISTRATION of NON-OWNER OCCUPIED PROPERTY FEES.
Body
BACKGROUND: On October 27, 2015, the City Manager presented to Council a balanced 2016-2017 Biennial Budget. As part of the budget presented, an increase in various building permit and “rental registration” fees were included. The attached ordinances reflect the increases in these fees.
During the November 24, 2015 Council meeting, several questions were raised related to this item. Responses to these questions are listed below:
• How many properties are not registered?
o We estimate that there are approximately 8,500 non-owner occupied structures in Peoria. We currently have approximately 7,200 registered properties. As such, around 85% of all potential properties are registered.
o Moving to a requirement to register each unit instead of each structure will make it easier to match the number of registered units with the number of units reported to the Census Bureau.
• What percentage of properties with violations are owned by participants in the annual Landlord Training?
o We do not have a specific number in this case. However, as the great majority of landlords attend the annual training, most of the violations would be attributed to attendees.
o While the annual training provides good information to landlords, it does not necessarily cause them to be better property owners. We have found that the strict enforcement of code violations is the best tool for reducing recidivism.
• Peoria’s rental market is already too expensive and any additional cost will be passed onto the tenants.
o The median rent in Peoria is less than Morton, Washington, Metamora, and the overall Peoria Metro area. The median rent for East Peoria is slightly less than Peoria.
o Rents in Peoria range from over $1,000 a month in the far north and north-west sections of the city, to less than $400 a month in some areas south of War Memorial Drive. The least expensive rent in the metro area is found in Peoria.
• What programs and services will the increased revenue fund, and will these enhanced services help to stabilized neighborhoods?
o With a projected $800,000 revenue stream, the following programs and services would be provided:
§ Newly created Residential Police Officer position.
§ Increased funding for vacant lot clearance. This program would remove remaining scrub trees and shrubs, old fences, remaining foundations, and other visual blight.
§ Increased frequency of City and Trustee lot cutting. By increasing the number of cuts per year, vacant lots that are maintained by the City will no longer be a visually blighting influence on neighborhoods.
§ Increase technology and tools for Code Enforcement. The use of technology to offset the reduction in Code Enforcement staff will help to increase productivity and responsiveness.
§ Increased funding for board-ups. Additional funds will not only allow for more board-ups, but will allow the City to explore the utilization of more secure and/or appropriate board-up materials, thus reducing the overall blighting influence of boarded windows and doors.
§ Increased demolition budget. Funds remaining after the above items are funded will be focused on increasing the number of demolitions of blighted properties in Peoria. The removal of properties that are beyond repair makes a significant and lasting positive impact on neighborhoods.
o We believe that these items will make a positive and visual impact on neighborhoods. Some of the items, such as the increased lot cutting and removal of scrub trees, will make an immediate impact over a large area. Other items, such as demolitions, enhanced board-ups, and the resident officer will make an impact over a longer period. The provision of enhanced pest abatement, matched with aggressive code enforcement to remove pest harborage will help to stabilize individual properties and blocks.
• Can the fee structure be modified to focus more on problem property owners and less on property owners who do not create neighborhood problems?
o The following suggested changes have been made to the fee and fine structure, and to the request to focus more on the problem property owners based on the discussion and feedback from Council.
§ The registration fee will remain at $150, with an additional $20 per unit for multi-family buildings. The cap will remain at $5,000 per property. Attendance at the annual Landlord Training will reduce the $150 fee to $75 (as opposed to the initially proposed $100)
§ The initial ticket for Environmental Code Violations will remain at $50. However, the second ticket will be increased to $200, and the third (and subsequent tickets) to $500.
§ The City will explore additional means to collect all fines levied, including collections, property taxes, and closer partnerships with the County and State on collections issues.
§ The City will aggressively implement the Chronic Nuisance Landlord Ordinance, thus focusing on the worst of the worst property owners.
§ The City will offer a voluntary “Certified Rental Program.” This program will provide (after appropriate inspection) an official certification that a rental unit meets all City habitability codes. This certification can be used to add value to the rental unit.
§ The City will implement a Tenant Training and Outreach program to complement the annual Landlord Training session. The City will also provide Landlord training on a quarterly basis.
FINANCIAL IMPACT: The increase in these fees will provide additional revenue for programming and services.
NEIGHBORHOOD CONCERNS: Citizens who participated in the Budget Challenge supported an increase in fees.
IMPACT IF APPROVED: Building permit fees would be increased as outlined
IMPACT IF DENIED: Building permit fees would not be increased
ALTERNATIVES: NA
EEO CERTIFICATION NUMBER: NA
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Grow Peoria: Businesses, Jobs, and Population
3. Choose an item.
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Keep taxes and fees competitive.
3. Choose an item.
DEPARTMENT: City Manager's Office