The City of Springfield would like feedback from members of the Springfield Contractors Association regarding upcoming development fee adjustments. The proposed development fee changes will be presented to City Council’s, Finance and Administration Committee on Wednesday, November 10th. Feedback must be submitted before Tuesday, November 9th at noon to Teresa Allen at email@example.com.
Documents & Details:
- Eval of Charges for Muni Svcs – Based on 2021 Activity DEVELOPMENT FEES ONLY
- Fee Study for Fee In Lieu of Detention – Update 102121
The policy statement and summary are on pages 4-5. In January 2020, City Council recommended a change in the methodology and calculation of the fees. The methodology change includes evaluating 1/3 of the fees every year and the remaining 2/3 would increase by the Consumer Price Index in order to keep up with inflation, until it’s next evaluation. The current year CPI calculation is 4.9%. This year, Environmental Services, Planning and Development, and some Public Works fees were evaluated. The change in calculation includes using a three-year average for direct costs and overhead and to average position cost by all positions within a job title, not just within the division or a particular person. Overtime this will cut down on fluctuations based on retirement/employee changes. Major change should only occur when there is a change in the process and/or the average time to complete a process. Labor costs are the largest part of any fee and the change in methodology did have an impact in the proposed fees (pages 6-11) along with labor cost increases since the last evaluation two years ago.
Page 11 is a new section to the fee study for fee in lieu of construction. These fee amounts were set within City Code and have not been evaluated or adjusted in several years. They are being added to the fee study to ensure they are reviewed on a regular basis. Attached is information on the evaluation of the Fee in Lieu of Detention. A similar process of analyzing recent actual project cost for the Fee in Lieu of Sidewalk was performed as well, to determine the proposed fee.
Please provide any feedback you would like to pass on to the Committee and full Council to the SCA Office or email Teresa Allen at firstname.lastname@example.org by Tuesday, November 9th at Noon.