| | | | | | | | | TO: | Finance and Citywide Projects Committee Members |
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| FROM:
| Jimmy L. Morales, City Manager |
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| | DATE: | February 22, 2019
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| | SUBJECT: | DISCUSSION REGARDING THE CREATION OF A PROCESS FOR APPLYING FUTURE CREDITS TO PREVIOUSLY PAID LAND USE BOARD FEES MORE THAN AN ESTABLISHED CAP ON PER SQUARE FOOT FEES |
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| | | | | | | | HISTORY:
On January 16, 2019, at the request of Commissioner John Elizabeth Aleman, the City Commission referred the subject discussion item to the Finance and City Wide Projects Committee (Item R9T).
On February 13, 2019 the City Commission approved, at first reading, a cap of $40,000 on the per square foot fee charged for land use board applications. Second reading / adoption is scheduled for March 13, 2019.
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| | | | | | | | ANALYSIS:
BACKGROUND / SUMMARY
Previously, the Finance Committee recommended that a framework for allowing future credits of fees paid in excess of the recently adopted cap on per square foot fees be explored. Prior to the revised fee schedule being implemented in May of 2016, there was a $10,000 cap on the per square foot fee for land use board applications. The new fee schedule that went into effect in May of 2016 removed this $10,000 cap.
The following is a list of land use board application fees paid in excess of $40,000, since the previous cap was removed in May of 2016:
Plan Case Number: Amount paid over $40,000 Cap
HPB16-0059 $ 56,132
DRB16-0054 $ 69,988
HPB17-0142 $ 44,184
HPB17-0150 $ 161,265
DRB17-0131 $ 55,457
HPB18-0200 $ 6,652
HPB18-0208 $ 38,247
HPB18-0239 $ 90,157
Total $ 522,082
The administration recommends that the Finance Committee discuss if and how credits may be applied and how far they should go back. Additionally, it should be noted that the revenue identified above spans a period of four fiscal years from May 2nd, 2016 to date. Given the sizable amount of potential credits, budgetary impacts will need to be considered.
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| | | | | | | | CONCLUSION:
The Administration has concerns with the budgetary impacts of a credit or refund of the above noted fees. Since the cap on per square foot fees is moving forward, the administration recommends that it be prospective only, and that previously paid fees not be credited or refunded.
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