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File #: 18-1010    Version: 1
Type: Ordinance Status: Passed
File created: 11/19/2018 In control: City Council
On agenda: 12/4/2018 Final action: 12/4/2018
Title: Conduct the first reading on an ordinance amending Article E (Annexation Fees), F (Development, Zoning and Subdivision Fees) and H (Fees for Construction and New Development) of Chapter 9 (Municipal Finances) of the Naperville Municipal Code.
Attachments: 1. Fee Update Ordinance
CITY COUNCIL AGENDA ITEM

ACTION REQUESTED:
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Conduct the first reading on an ordinance amending Article E (Annexation Fees), F (Development, Zoning and Subdivision Fees) and H (Fees for Construction and New Development) of Chapter 9 (Municipal Finances) of the Naperville Municipal Code.
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DEPARTMENT: Transportation, Engineering and Development

SUBMITTED BY: Allison Laff, AICP, Deputy Director

BOARD/COMMISSION REVIEW:
Not required.

BACKGROUND:
At the November 13, 2018 budget workshop, City Council inquired as to the status of the requested update to the City's building and entitlement fees. Staff noted that due to current staffing levels, high permit volumes, and other pending projects (e.g., e-permitting, 5th Avenue Development, and other special projects), the fee update has not yet proceeded forward. However, based on comments received at the workshop, staff completed a preliminary analysis of costs vs. revenues related to building and entitlement fees and, based on the findings of that analysis, is recommending a phased approach to the fee update project, as further described below.

DISCUSSION:
Background Regarding Current Fee Structure
While the building permit fees were last updated in 1998 and entitlement fees in 2002, staff has regularly reviewed each set of fees in the years that have followed to understand the relationship between the fees collected and the costs expended for these services. Specific to building permit fees, the fee structure has been established with the goal of this service being cost-neutral, i.e., the fees collected cover 100% of the costs related to these services, including plan review, inspections, permit processing, etc. As of the last formal analysis of building permit costs vs. revenue in 2015, this cost-neutral goal was being achieved. A quick analysis of our revenues and costs for 2017 showed that it was still cost-neutral.

With entitlement fees, partial cost recapture (but not cost-neutrality) is estab...

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