ACTION REQUESTED:
Title
Communication from the City Manager and Community Development Director with a Request to ADOPT an ORDINANCE Amending Chapter 5 of the CODE of the City of Peoria Related to FEES.
Body
BACKGROUND: When the Council adopted a simplified building permit fee schedule in 2016, the formula did not take into consideration that the permit fee for high cost projects would not align closely with the actual cost to the City for the review and supervision of the construction project.
This recommendation creates a tiered formula that will result in an appropriate nexus between the fee charged and the cost to the City. The fee for the first $5 million in construction value will remain at .008. However, for the value over $5 million, the fee shall be reduced to .002. As an example, under the current schedule, a $10 million construction project would result in an $80,000 fee ($10 million x .008). This fee exceeds the cost to the City. Under the proposed schedule, the same $10 million project would result in a $50,000 fee ($40,000 for the first $5 million in value, $10,000 for the next $5 million in value). In this scenario, the $50,000 fee represents a reasonable cost to the City. The recommendation also clarifies the ordinance language to prevent construction projects from being charged twice for the same work.
FINANCIAL IMPACT: This would result in a reduction in overall permit fees. However, very few construction projects exceed the base fee amount, therefore the overall reduction in revenue would be minimal.
NEIGHBORHOOD CONCERNS: NA
IMPACT IF APPROVED: A new fee schedule would be put in place.
IMPACT IF DENIED: The current fee schedule would stay in place.
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 Po...
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