Agenda - Council Work Session - 08/23/2011

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and not having a fee /cost are all considered the same answer (zero/NA). • People interpret identical questions differently; and, people answer identical questions differently (i.e. including a partial answer or common answer rather than a factual answer). • Categories of costs were left out: fire suppression costs, irrigation requirements and several other development costs were not included in the survey. To summarize where the City of Ramsey stacks up, in terms of the cost of development, there are four major findings: (1) Generally, total development costs are marginally higher in Ramsey than other communities surveyed; although certainly not the highest. NOTE: As stated, the survey does not capture the value of developer installed and assessed fees /charges. Most cities surveyed have a higher cost of development than shown. (2) Generally, utility rates in the City of Ramsey are lower than other communities surveyed (3) Generally, the City of Ramsey's building permit fees are similar to other communities surveyed (4) Generally, other cities rely on the developer to install needed infrastructure more often than the City of Ramsey does. Staff would like to note a few of points: • Ramsey is considering an update to its comprehensive sewer and water plan on or before 2014; which, may result in adjustments to development and utility fees. • Budgeting for a future $20 million dollar water treatment facility affects multiple development fees. • Parks and Trails fees are based on both current needs and future expectations. Staff will continue to identify fees for further review and provide some very basic, broad recommendations at the meeting on Tuesday. Recommendation: (1) City staff would like to identify a list of existing development fees /charges that could be considered for either reduction or elimination to be brought back to the City Council. (2) City staff would like to develop a set development fee options to help evaluate how lowering one fee may affect other fees. NOTE: There is balancing act between utility fees and development fees. Lowering one typically results in raising the other. In 2004, the policy directive from the City Council was to pass the development costs onto the developer, thereby keeping the quarterly utility rates low. (3) City staff would like to further develop a breakdown of development and building fees into a concise document that is included with any land use application packet. Specifically, staff would like to define, evaluate and explain the purpose of each fee. Having such a list will not only help in future development costs discussions, it will help developers that have questions about development fees /charges. Funding Source: NA Council Action: Adopt staff recommendations; and, if the Council wishes, supply staff with additional direction. Executive Report Appendix Attachments