1. Community Development Department DEVELOPMENT FEE STRUCTURE

2. Community Development Department FINAL USER FEE STUDY JUNE 2007 Surplus/Deficit Building Permits & Inspections $2,509,634.76 Fire Permits$(32,067.45) Engineering Permits$(270,739.60) Community Development $(453,684.38)

3. Community Development Department Why the Surplus?

9. Community Development Department Why the deficit? Surplus/Deficit Building Permits & Inspections $2,509,634.76 Fire Permits$(32,067.45) Engineering Permits$(270,739.60) Community Development $(453,684.38)

10. Community Development Department Why the Deficit? Adopted the Flagler County Land Development Code in 2000 and related fee schedule. City Council adopted its first Unified Land Development Code on August 19, 2008. Land Development Revenue/Expenditures Salary and Wages (FY 08): $860,021 Fees Collected (FY 08): $55,157 Percent of labor cost offset by collection of fees 6.4% Site Development Revenue/Expenditures Salary and Wages (FY 08): $598,697 Fees Collected (FY 08): 0 Percent of labor cost offset by collection of fees 0%

11. Community Development Department Land Development Code Services without Established Fees Vacation of Easement/Street/Plat Administrative Deviation of Development Standards Concurrent Application Transportation Deferral Affidavit or Evaluation Proportionate Fair Share Agreement Application Environmental, Landscape and Arborist Services Nonresidential Tree Removal Technical Review for FEMA Map Revisions and Base Flood Elevations Tree Bank Fund Site Development Application Site Development Re-Inspection Inspection fee Roadway Inspection Abated Application Binding Lot Rescission State Application Zoning Review Flood Zone Determination Letter Land Use Verification Letter Master Site Plans Subdivision Nonstatutory Pre-Application Compliance Review Land Development Resubmittal Fees Development Order Modification Development Order Extension Appeals Note: No Fee increases proposed for previously approved application types

12. Community Development Department Fee Schedule Proposal

13. Community Development Department Initial Fee Proposal to Builders The following is the proposed plan for reducing building department reserves (revenues minus expenditures) accumulated since October 2004. As of January 31, 2009 this reserve contains $6,745,990. Maintain an emergency reserve of $2 million. Set aside $2 million for construction of the building department space within a new city hall facility. Any unexpended portion of the $2 million will remain in the building department reserves. Discount building permit fees for new construction by 50% and remodeling and other ancillary building permits by 90%. These discounts are expected to reduce the reserve by more than $1 million per year. When the building department reserves reach the level needed to maintain the emergency reserve and provide the necessary funding for the construction of the building department space in city hall, then the discounts will be removed. Other fees such as development fees and engineering fees will be adjusted to reflect actual cost as determined by the rate study completed in June 2007. Depending on the amount of building permit activity, it is expected that it will take two to three years to reduce the building department reserves to the desired level.

14. Community Development Department Counter-Proposal from Homebuilders

15. Community Development Department Fee Proposal 90% Discounted Building Permit Fees Immediate Implementation January 1, 2012 Automatic Sunset Date $2 Million Dedicated Reserve –Cost of Building Division Space in City Hall –Balance for Emergency Permitting Promote as Economic Stimulus for Construction Industry with Emphasis on Home Repair, Improvements, etc… Now’s the time to build!

16. With 90% Fee Reduction

18. Community Development Department Land Development Fee Schedule No Fee Increases for Established Fees Establish Fees for Site Development Permitting (Engineering/Fire) Establish Fees for All Development Review Services... Equity Delayed Implementation for 60 Days

19. Community Development Department Residential Fee Examples Now’s the time for home improvements! Permit TypeCurrent Fee Proposed Fee Reduction Single Family Residential 1,178 117 1,060 Building Addition/Alteration 277 27 249 Swimming Pool 220 22 198 Shed 40 4 36 Fence 40 4 36

20. Community Development Department Commercial Fee Examples Now’s the time to invest! Permit TypeCurrent Fee Proposed Fee Reduction New Construction 55k s.f. Hotel 54,0875,40848,678 New Construction 11k s.f. Restaurant 7,2927296,562 Addition/Alteration Valuation $200k 2,0802081,872 Addition/Alteration Valuation $37k 58358525