AGENDA #7b
BUDGET WORKING PAPER
TO: W. Cal Horton, Town Manager
FROM: Lance Norris, Director of Inspections
SUBJECT: Recommended Fee Increases
DATE: April 27, 2005
The Citizen Budget Committee on April 11, 2005 stated its belief that the Inspections Department could generate revenue and cut costs in a manner that will result in a net positive effect on the tax rate of $50,000.
DISCUSSION
We believe that the Inspections Department is currently operating at the minimum staff needed to enforce the State Building Codes, which includes reviewing construction plans, the issuance of permits and inspections. The budget consultant, Maximus, agrees with this assessment.
The Inspections Department consist of two building inspectors, one plumbing inspector, one mechanical inspector, one electrical inspector, one permit technician, an Assistant Director and a Director. On average the Inspections Department conducts 14,637 inspections per year.
For these activities the Town of Chapel Hill is allowed by state law to charge a permit fee to defray the cost of operating the department. Our State Courts recognize that fees may be imposed to defray the cost of building code regulation so long as they are reasonable. Fees are reasonable when they are not more than the cost of providing the regulatory services.
We estimate revenues from building permit fees of $554,500 for fiscal year 2004-05. We estimate expenditures for building inspections activities excluding code enforcement activities for fiscal year 2004-05 of $645, 827 a difference of $91,327 or 16.5%.
RECOMMENDATION
To recover 100% of the Inspections Department estimated budget expenditures we recommend increasing permit fees for building, electrical, plumbing and mechanical permits by 11%, which we estimate would generate an additional $61,000.00.
We also recommend that the following new fees be established to reimburse the Town for the costs of providing the services noted below.
|
Type of Service |
Estimated # |
Fee |
Total Revenue |
|
|
|
|
|
|
Stocking Permit |
21 |
$40.00 |
$840.00 |
|
Demolition |
12 |
$65.00 |
$780.00 |
|
Change of Occupancy |
67 |
$150.00 |
$10,050.00 |
|
Occupancy Reposting |
67 |
$65.00 |
$4,355.00 |
|
Day Care Facilities |
15 |
$240.00 |
$3,600.00 |
|
Change of Contractor |
75 |
$90.00 |
$6,750.00 |
|
Temporary Certificate of Occ. |
25 |
$65.00 |
$1,625.00 |
|
Commercial Plan Review (>4000 sq. ft.) |
12 |
$150.00-1200 |
$3,200.00 |
|
|
|
|
|
|
Total |
|
|
$31,200.00 |
SUMMARY
We recommend increasing permit fees that we believe would generate an additional $61,000 in 2005-06 (see attached), and we recommend new fees that we believe would generate $31,000 in revenue.