Pleasanton City Council Unanimously Votes to Explore an Increase in Development User Fees

Information submitted by City of Pleasanton:

The Pleasanton City Council voted 5-0 last night to explore an increase in development user fees to bring them into alignment with a General Plan policy of self-sustainment for such fees. Per the General Plan mandate, the building and development permit fees should cover the costs of plan review, engineering associated with site development, fire prevention, inspections, and other costs incurred in the building development process.

Most California cities have been collecting full 100% cost recovery for development related services. Pleasanton, which deferred an increase in 2011 to allow time for the economy to recover, has collected just 48% of such fees annually since the 1980’s.

“With the upswing in the economy, now is a good time to start a discussion that will align the development fee schedule with City policies,” said Pleasanton City Manager Nelson Fialho. “For decades the City has subsidized a balance on development permit costs. We feel that the time is right to make this necessary adjustment,” he added.

In last night’s presentation by former City Finance Director Emily Wagner, now on special assignment for this and other complex City financial projects, the City Council heard a recommendation that would boost Pleasanton’s cost recovery rate to 79%. That would translate to approximately $2.7 million annually in additional fee revenues that would reduce the City’s subsidy of such funds, and be applied to the General Fund for use on amenities such as a new library, parks, and youth/senior programs. Annual increases beginning on January 1, 2017 would progress the City towards a goal of 100% cost recovery of development fees. Fees would further be reviewed every two years as part of the City’s two year budget process.

Upon the Council vote to move forward, next steps will include presenting the recommendations to the Pleasanton Chamber of Commerce and the City’s Economic Vitality Committee to elicit their input.

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