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CASE # 4 RATES AND CHARGES Building Permit and Plan Check Fees By: Sandra Ashley Helling, Finance Officer Background: ./'Due to the significant shortfall in building permit and plan check fees, we reviewed the criteria under which the 1991 revenue forecast was made. As the forecast was based on approximately 150 new residences, and through August of this year we have issued 122 residential permits plus additions, etc., the discrepancy was found to be the rate we have been charging for permits. Beginning in the year of 1990, and for the year of 1991 council adopted rates, fees and charges that included the following: Building permit ($70,000 home) Plan Check Fee $504.50 65% of Building Permit Thc building permit rate shown above is calculated using: Valuation: State of Minnesota Building Valuation Data, cost per square foot, dated February, 1987. Permit Fcc: Table No. 3A - Building Permit Fees - 1985 Uniform Buildine Code It has now been determined that the actual permit fees collected for 1990 and year- to-date 1991 have been calculated based upon the 1979 Uniform Building Code. The difference between the 1979 and 1985 schedule is an increase in the permit fee of approximately 47%, and the same would then be true of the plan check fee. While the rates, fees and charges adopted by council were reflected in the City's schedule, the information as to the change in the Uniform Building Code schedule was not communicated to our Building Official. He is now aware of this change and has implemented the adopted schedule. Observations: We have checked with other cities and find their residential rates based upon: City Valuation Data Table 3A Plan Check Andover 1 987 1 985 $20.00 Anoka 1987 1988 50% of Permit Blaine 1 987 1 985 $20.00 Coon Rapids 1987 1985 $20.00 Elk River - 1991 Current 88% of 1988 65% of Permit Elk River- 1992 Current 1988 65% of Permit