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AGENDA #4c ` BUDGET WORKING PAPER TO: Mayor and Town Council W. Calvin Horton, Town Manager FROM: Ralph D. Karpinos, Town Attorney SUBJECT: Regulatory Fees: Possible Exemptions DATE: May 17, 2000 RESUBMITTED: June 5, 2000 The purpose of this memorandum is to respond to a question raised regarding the possibility of creating a category of development applications which would not be charged regulatory fees or would be charged a reduced rate for development permits if the Council enacted a substantial increase in such fees as part of the 2000-2001 Budget. At the request of the Council, the Planning Staff prepared a report indicating that fees for various development applications could be increased because of the staff time involved in development review and the decision by the North Carolina Supreme Court (Homebuilders v. Charlotte). Based on concerns raised by citizens, the question has been asked whether certain applications could be exempted from the increased fees. I have reviewed applicable law and consulted with the Institute of Government. It is my opinion that it would be possible to establish a classification of applicants that the Town would charge a reduced fee or no fee at all so long as the classification was reasonable. For example, it would be reasonable to create such a classification for non-profit/tax exempt applicants and/or governmental agencies. Fees for those applicants which are not in the exempt or reduced fee category would need to be based on the costs associated with the services provided and could not be increased to make up the loss in revenue. In other words, the fees not collected due to any exemptions established would need to be absorbed in the general expenses of the Town. The Planning Department has conducted a survey of several municipalities in North Carolina regarding the creating of such exemptions. Attached is a report from Michael Klein in the Planning Department with the results of that survey. |