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<br />~~~~:r;jgroup develops sample building fee schedule
<br />
<br />At the request of several metropolitan
<br />area cities, the L~.;!~iMi!mes9t;t..
<br />Cities (LMe) and the AssoQ.~on 2f
<br />=-=..=.====--=-~--~~"""'<'-====-
<br />Metropolitan Municipalities (AMM)
<br />c_on~e!~~_~~~ectifig of ~~-
<br />6fficiaIS,COimntmiry deVelopment
<br />dlrectors,-al1:cninance d~;"'t9.
<br />----=---------==~-------"".-===
<br />cliScUss the lack of a modeifee
<br />schedule in the recently adopted state
<br />building code.
<br />The meeting resulted in the
<br />creation of a smaller working group
<br />of city officials to consider various
<br />methodologies for updating the 1997
<br />building fee schedule. After three
<br />meetings, the working group reported
<br />back to the larger group, which
<br />adopted its reconunendations.
<br />
<br />The report below recommends a
<br />sample fee schedule that cities may use
<br />as a guide in setting building permit fees
<br />and expresses support for a new
<br />process for inspecting certain minor
<br />installations, such as water heaters and
<br />water softeners. The sample fee schedule
<br />was developed using the 1997 UnifoU11
<br />Building Code (DEe) fee schedule as
<br />a base and applying a Consumer Price
<br />Index (CPI) adjustment.
<br />If you have any questions or if
<br />your city is planning to adopt the
<br />updated building fee schedule, please
<br />contact Gene Ranieri,ANIM, at (651)
<br />215-4001 or Laura Offerdahl, LMC,
<br />at (651) 281-1260 or lofferdah1@
<br />lmnc.org.
<br />
<br />Additional recommendations
<br />1. When considering the sample fee
<br />schedule, individual cities need to
<br />evaluate the cost of administering
<br />the state building code in their
<br />conununity. Minnesota Statute
<br />16B.685 requires all cities that
<br />collect more than $5,000 in
<br />construction and development-
<br />related fees a year to alU1Ually
<br />report all fees collected from
<br />developers, builders, and subcon-
<br />tractors and the corresponding
<br />expenses for which fees were
<br />collected.
<br />2. Cities should also consider the
<br />impact of valuation increases when
<br />
<br />Continued on page 9
<br />
<br />LMC/AMM Building Permit Fees Working Group Report
<br />(November 2003)
<br />The following is a sample fee schedule that cities may use as a guide in setting local building permit fees. The
<br />sample fee schedule was developed using the 1997 Uniform Building Code (UBe) fee schedule as a base and
<br />applying a Consumer Price Index (CPI) adjustment.
<br />
<br />Value Range
<br />$1 - $500
<br />
<br />$500 - $2,000
<br />
<br />$2,001 - $25,000
<br />
<br />$25,001 - $50,000
<br />
<br />$50,001 - $100,000
<br />
<br />$100,001 - $500,000
<br />
<br />$500,001 - $1,000,000
<br />
<br />$1,000,001 and up
<br />
<br />1997 UBC
<br />$23.50
<br />
<br />$23.50 for the first $500
<br />
<br />$3.05 / additional $100
<br />
<br />$69.25 for the first $2,000
<br />$14.00/ additional $1,000
<br />
<br />$392.25 for the first $25,000
<br />$10.10/ additional $1,000
<br />
<br />$643.75 for the first $50,000
<br />$7.00 / additional $1,000
<br />
<br />$993.75 for the first $100,000
<br />$5.60 / additional $1,000
<br />
<br />$3,233.75 for the first $500,000
<br />$4.75 / additional $1,000
<br />
<br />$5,608.75 for the first $1,000,000
<br />$3.65 / additional $1,000
<br />
<br />2003 Recommended
<br />$25.00
<br />
<br />$25.00 for the first $500
<br />
<br />$3.25 / additional $100
<br />
<br />$73.50 for the first $2,000
<br />$14.75/ additional $1,000
<br />
<br />$415.75 for the first $25,000
<br />$10.75/ additional $1,000
<br />
<br />$682.50 for the first $50,000
<br />$7.50 / additional $1,000
<br />
<br />$1,053.50 for the first $100,000
<br />$6.00/ additional $1,000
<br />
<br />$3,427.75 for the first $500,000
<br />$5.00/ additional $1,000
<br />
<br />$5,945.25 for the first $1,000,000
<br />$4.00 / additional $1,000
<br />
<br />Unlike previous versions of the state building code, the code adopted in 2003 did not contain a sample
<br />fee schedule; therefore, members of the~e~~e an~ developed the fee schedule listed above with
<br />information provided by the State Building Codes and Standards Division.
<br />
<br />
<br />Page 8
<br />
<br />lMC Cities Bulletin
<br />
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