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Home My WebLink About5C - Building Permit Report MEETING DATE: AGENDA #: PREPARED BY: PRESENTER: AGENDA ITEM: DISCUSSION: 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT JULY 17,2010 5C JANE KANSIER, BUILDING AND TRANSPORTATION SERVICES DIR. JANE KANSIER CONSIDER APPROVAL OF THE JUNE, 2010 MONTHLY AND YEAR-TO- DATE BUILDING PERMIT REPORT Introduction The purpose of this agenda item is to consider approval of the monthly and year-to-date building permit report for June, 2010. This information is presented in a new format to provide greater detail in the building permit report. The new report still includes the number of permits and values, but we have added information related to the fees collected as part of the permits. This provides greater transparency along with a better under- standing of the purpose of the fees collected. Certain fees are within the City's control and other fees are set by other entities such as the State or the Met Council. In the future, the report will include a comparison of the fees collected in the current year with those fees collected in the previous year. You will notice the 2009 fees are marked as NA (Not Available). Prior to 2010, we did not break out the various fees in our building permit database. Beginning with the 2011 reports, we will be able to provide comparative fee data for the current and previous year. Current Circumstances The Building Permit Report includes three categories: 1. New Residential, which is broken down into single family, townhouses and multifamily units; 2. New Commercial; and 3. Additions and Alterations, which includes residential, commercial, me- chanical and miscellaneous permits. While we have tried to make this report as simple as possible, the Council should be aware there are many different types of permits. For example, each new single family residential permit includes a building permit, a plumb- ing permit, a heating and air conditioning permit, a sanitary sewer connection permit, and a fireplace permit. Addition and alteration permits can include an- ything from decks, garages, reproofing and residing to windows and swim- ming pools. Miscellaneous permits cover nearly every other type of permit. The most common miscellaneous permits are mechanical, such as water hea- ters and furnaces, but they also may include demolition permits. R\Council\2010 Agenda Reports\07 19 10\permit agenda report.doc The new report format includes a summary of the fees collected with our building permits. Just as there are many different types of permits, the fees collected as part of a building permit also have many components. These in- clude the actual building permit fees, plan check fees, state surcharges, City water, sewer and water tower charges, Metropolitan Council SAC fees, and Builders' fees and deposits. The fees are deposited into several different ac- counts, outlined below. General Fund: Permit and plan check fees are deposited into the General Fund and are used to support the general operating expenditures for the service. These expendi- tures include Building Inspection department personnel and equipment, Plan- ning, Engineering, Finance and Administration and other supporting services. Sewer & Water Fund: The fees for water meters and pressure reducers are deposited into this fund, which is allocated for the operational costs of the Water/Sewer departments and normally reserved for large capital municipal system expenses. Trunk Reserve Fund: The City collects water and sewer accessibility fees for new construction. These fees are deposited into the Trunk Reserve Fund for the purpose of re- covering trunk oversizing costs and central municipal system improvements, i.e. wells, lift stations, force mains, etc. Water Storage Fund: The water tower fee is deposited in the Water Storage Fund for purposes of constructing elevated and ground water storage facilities. Metropolitan Council SAC: This fee is dictated by the Metropolitan Council on all new construction and is used to fund the regional sanitary sewer system. While the City collects the fee, we pass it on to the Metropolitan Council. State Surcharge: This charge is similar to a sales tax on permit fees. It is passed on directly to the State. Builders' Deposits and Fees: Deposits are generally collected on new construction to ensure the comple- tion of certain work, such as landscaping, tree replacement, and driveway completion. In most cases, the deposits are returned to the builder once the project is complete. In some cases, additional fees are collected as part of a special agreement. For example, as part of each permit for new construction in the Bluffs of Northwood Meadows, the City collects $3,100 for tree re- placement and developer improvements. This fee is not returned and covers the cost of improvements that should have been completed by the developer. Not reflected separately in the fees that we are charge on building permits is the sales tax that is submitted to the State. The sales tax reduces the amount of revenue the City retains. R\Council\2010 Agenda Reports\07 19 10\permit agenda report.doc 2 Conclusion The City has collected about $900,000 in fees for 849 permits issued in the first half of 2010. Of that, approximately 32% was deposited into the General Fund, 29% was deposited in the utility-related funds (sewer and water, trunk reserve, and water storage), 21 % went to the Metropolitan Council and 1 % went to the State. The remaining 17% was made up of Builders' fees and de- posits. ALTERNATIVES: 1. A motion as part of the consent agenda to approve the June, 2010 and year-to-date Building Permit Report as submitted. 2. Take no action and provide the staff with specific direction. RECOMMENDED Alternative 1. A motion as part of the consent agenda to approve the June, MOTION: 2010 and year-to-date Building Permit Report as submitted. Reviewed by: ~/'7 ( ~D rhC Frank BOYle\, City Manager R:ICounci112010 Agenda Reportsl07 19 10lpermit agenda report. doc 3 New Residential New Commercial Additions and Alterations TOTALS New Residential New Commercial Additions and Alterations TOTALS CITY OF PRIOR LAKE BUILDING PERMIT SUMMARY JUNE 1 - JUNE 30, 2010 June 2010 June 2009 I Number of Permits Declared Value I Number of Permits 1 Declared Value I Single Family Dwellings 11 $4,222,000 5 ~ $1,107,000 Townhouses {# units) 0 $0 0 I $0 Multiple Units 0 $0 0 I $0 Indu~trlal & Commercial I 0 $0 0 I $0 1. Residential 58 $224,300 99 1 $298,900 Industrial & Commercial 5 $86.500 6 I $245.000 Miscellaneous 109 $0 74 1 $0 183 $4,532,8001. 184 1 $1,650,900 2010 Year to Date 2009 Year to Date I Number of Permits Declared Value I Number of Permits Declared Value I Single Family DwellinQs 60 $15.239,000 17 $4.346,000 Townhouses {# units) 0 $0 0 $0 Multiple Units 0 $0 0 $0 Industrial & Commercial $500,000 1 $26,000 Residential 253 $1,115,400 265 $805,600 Industrial & Commercial 18 $954,000 13 $698,500 Miscellaneous 517 $0 244 $0 '-U- fi49 $17,808,4001-'- 540 $5,876,100 Summary of Fees Collected General Fund Trunk Reserve Fund Water Storage Fund Water and Sewer Fund Metro Council SAC State Surcharge Builders Fees and Deposits TOTAL June 2010 $65,528.741 $16,500.001 $11,000.001 $8,200.00: $23,100.001 $2.293.451 $23,200.00. $149,822.191 June 2009 NA '1 NA NA NA NA NA NA NA YTO 2010 YTO 2009 $289,455.331 NA $132,000.001 NA $88,000.001 NA $42,425.00! NA $184,800.001 NA $9,102.451 NA $153,000.00. NA $898,782.78i NA (ltL