During a recent city council meeting, officials discussed the findings of a comprehensive fee study conducted by Matrix Consulting Group, the first of its kind since 2015. The study aimed to evaluate the city's existing fee structure and ensure it accurately reflects the costs associated with various services provided to residents.

Assistant City Manager Joe Drummond introduced the presentation, emphasizing the importance of the study in guiding policy decisions regarding service fees. The study revealed that the city is currently under-recovering costs by approximately $1.3 million, operating at about 85% cost recovery. This shortfall is primarily attributed to historically subsidized planning-related services.

Khushbu Engel, Vice President of Matrix Consulting Group, outlined the methodology used in the study, which included analyzing the time required to provide services and calculating fully burdened hourly rates that account for direct and indirect costs. The study reviewed over 600 fee line items, resulting in 439 proposed fee increases, 70 decreases, and several new fees related to dark skies and temporary housing.

Engel noted that while the study provides a maximum fee structure based on actual costs, the final decision on fee adjustments rests with the city council, which may choose to charge less than the calculated amounts. The council is tasked with determining what is reasonable and appropriate for residents, a point raised during public comments.

Community members expressed concerns regarding specific fees, particularly those related to view preservation and small projects, arguing that they are excessively high and burdensome. Suggestions included creating a sliding scale for fees based on project size and establishing an ad hoc committee to streamline the permitting process.

Council members acknowledged the need for further discussion on the proposed fee schedule, clarifying that the intent of the study was not to justify fee increases but to provide a factual basis for future policy decisions. The council plans to engage in a robust conversation, incorporating public input to ensure that the fee structure is fair and transparent.