Title
A Resolution of the City Council of the City of Colorado Springs, Colorado rescinding Resolution No. 77-23 and establishing fees and charges for land development applications administered by the Planning Department. (Legislative)
Presenter:
Kevin Walker, Planning Director, Planning Department
Body
Summary:
Representative: City of Colorado Springs Planning Department
Location: City-wide
The City’s Planning Department is recommending changes to the fees and charges collected for the review and processing of land development and building permits applications for developments of all types throughout the City of Colorado Springs. The proposed fees and charges have been adjusted based on cost of service, capacity analysis and level of service programming for the respective divisions of the Planning Department which is the managing City agency for land development and building permit applications.
Background:
The Land Use Review (LUR) and Urban Planning (UPD) Divisions of the of the City Planning Department are financially supported by the City’s General Fund. Fees and charges collected by LUR and UPD therefore go directly to the City’s General Fund. With LUR and UPD overseeing all land development applications to control land uses, land development, and the impacts of land use and development through the reasonable administration and interpretation of the City’s Unified Development Code, the fees and charges collected by these Divisions support the broader suite of planning programs and services administered by City Planning. The proposed Land Development Fee Schedule ensures that development pays a reasonable share of the costs associated with services provided by the LUR and UPD Divisions of the Planning Department.
The recommended fees and charges have been calibrated based on current and forecasted costs of service, capacity analysis, and level of service programming.
Cost of Service: A cost of service and capacity analysis for the proposed land development and building permit application fees was completed. This analysis provided data on the full spectrum of service programming provided by each Division to implement designated processes and tasks. The fees and charges collected by the LUR and UPD divisions support the Planning Department’s administration of land development applications as well as the legislative and quasi-judicial actions that are made by various decision-making bodies.
To understand the spectrum of variables impacting cost of service, staff tracked time and resources required to complete the review of each application. The data showed that the previously set fees were not sufficient to balance forecasted revenue projections with anticipated expenditures. The recent volatility of the building and development industry which is further compounded by federal funds rate decisions has made it difficult for City staff to reasonably predict revenue and expenditures overages and shortfalls. While the recommended fees and charges do not achieve a100% cost recovery rate, the Planning Department is evaluating with agency partner whether to establish of more frequent or regularly scheduled audits and adjustment of fees.
Capacity of Service: A capacity of service analysis was conducted. This analysis was critical to support City staff’s methodologies for the proposed fees and charges adjustments as many of the regulatory parameters for development and building permit applications were refined as a result of the City’s recently codified Unified Development Code (UDC). Furthermore, the Planning Department is now in it’s second year of implementation of the Accela “Planning” module which was a technological solution that has decreased overall review times and refined staff workloads. The efficiencies and improvements that were anticipated as a result of the refined regulatory environment and technological enhancements were diminished by the recent freezing of positions within the Planning Department. The Department’s management team continues to evaluate and implement opportunities to adjust and improve our service capacity.
Level of Service: The overall level of customer service and customer need was evaluated. In general, this analysis focused on review and inspection times, front counter staff availability to answer calls and customer inquiries, and service programming changes stemming from recent regulatory changes. It should be noted that during the period of analysis applications within all the Divisions are stable, the year-over-year trend is a slight increase. Over the past few years position levels in the Planning Department’s divisions have also been in a state of flux due to budget constraints, anticipated rate of employee turnover and other factors. Through a refined regulatory environment, technological enhancements and organizational adjustments, the Planning Department has been able to navigate uncertainty and make modest improvements to plan and permit review procedures, inspections, and customer service.
Review Criteria:
There are no set criteria for determining the appropriate fees and charges for land development and building permit applications. Per UDC Section 7.5.404 Fees, all “Application fees are established by City Council...”. Similar to the analysis above, prior fee and charge adjustments have been based on costs of service, capacity, and level of service analysis for the respective divisions of the Planning Department.
Previous Council Action:
In May 2023, City Council approved Resolution No. 77-23 which set the current land development application fees.
Financial Implications:
For further reference, side-by-side comparisons of the Land Development Fee Schedule current and proposed fee rates and structure are attached.
City Council Appointed Board/Commission/Committee Recommendation:
N/A
Recommended Action
Proposed Motions:
Adopt a Resolution rescinding Resolution No. 77-23 and establishing fees and charges for land development applications administered by the Planning Department.