Development permit fee analysis: a guide and templates
Municipalities in Tennessee are continuing to experience growth and development that in some instances is unprecedented placing significant demands on municipalities in the areas of plan review, permitting and inspection services. Often municipalities are not periodically reviewing fee schedules to ensure they are current and providing sufficient fee revenues to cover related expenditures for plan review, permitting, and inspection services. Municipal leaders desiring to ensure development is paying sufficient fees to generate revenues that cover related expenditures need an objective methodology for performing the necessary financial analysis to determine what, if any, adjustments may be necessary to generate sufficient revenues along with having tools to organize the often scattered and obscure adopted fees into a more comprehensive compilation that can be efficiently and periodically reviewed and amended as needed. A guide has been prepared that outlines an objective process for preparing a financial analysis to evaluate plan review, permitting, and inspection fee revenues to corresponding expenditures. Templates and a sample ordinance are provided to assist consultants with preparing the various tabulations, exhibits and ordinance documentation. Example fee schedules from studies completed for Shelbyville, Signal Mountain, and Lakesite are included to demonstrate how the templates were utilized and customized to fit the specific fee structures of each municipality. MTAS consultants should work collaboratively with municipal staff to prepare the financial analysis and if sufficient disparity between revenues and expenditures exists, to prepare a comparative exhibit of the existing fee schedule with an adjusted fee schedule that can provide the opportunity for increasing permit revenues. Where significant disparities may exist, a phased or incremental approach is suggested where adjustments may be spread over an extended period of time.
Revenue sources--Fees and charges Community development Urban development |