County considers subdivision fee increase

Flathead County Planning and Zoning Director Jeff Harris presented a request to the county commissioners Thursday that would increase subdivision application fees by at least 20 percent. The fee increase would affect all of the different applications the Planning and Zoning Office handles.

"Our fees aren't supporting the cost to process the applications," Harris said. "The county subsidizes more than 50 percent of an application cost."

Harris estimated that subdivision processing consumed $431,300, about 60 percent of his department's budget, in fiscal year 2008. Revenue from application fees brought in $154,600, which leaves a $276,700 gap.

"We aren't covering costs," Harris said. "We aren't even close. Each year we get farther and farther out."

A comparison with Kalispell, Whitefish and other Montana counties shows that Flathead County's fees are relatively low.

For a 200-lot residential subdivision, here is how the numbers play out:

. Flathead County charges a base fee of $750 plus $80 for each of the first 20 lots and $40 for each lot beyond 20. Total cost: $9,550.

. Kalispell charges a base fee of $1,000 plus $125 for each lot. Total cost: $26,000.

. Whitefish charges a base fee of $2,970 plus $200 for each lot. Total cost: $42,970.

. Missoula County charges a base fee of $5,000 to $6,000 plus $100 for each lot. Total cost: $25,000.

. Lewis and Clark County charges a base fee of $575 plus $5 for each lot. Total cost: $1,575.

"We think there is ample evidence to tell us that we aren't charging enough," Harris said. "We would have to double the fees to cover the cost."

A 20 percent increase in county fees would create a base fee of $900, a $96 charge for the first 20 lots and $48 for each additional lot.

One reason the Planning and Zoning Office is bringing in less revenue is because of the downturn in subdivision applications. The building boom has slowed, and Harris predicted that processing subdivisions will drop from 60 percent of his department's time to 50 percent.

Although the amount of applications has gone down, the work required to process a subdivision has skyrocketed in the last few years. As more development projects have ended up in court, developers have had to provide more and more information to make a stronger case.

In spite of the work increase, the county has not raised fees in more than three years.

The Planning and Zoning Office also is in charge of numerous projects that don't bring in any revenue. The growth policy, neighborhood plans, public outreach meetings, administration duties and staff time spent on researching impact fees or data for the Transportation Plan drain resources but don't provide revenue.

Absorbing the Whitefish "doughnut area" also has been costly.

Harris said he recommended that the commissioners pass a resolution raising county fees by 20 percent, but he suggested that an even larger increase would be beneficial.

Commissioner Joe Brenneman said that with the county taking over regulation of the Whitefish doughnut, the responsible move would be to raise fees 30 to 40 percent.

The commissioners expect to decide on the fee increase next week.

Reporter Michael Richeson may be reached at 758-4459 or by e-mail at mricheson@dailyinterlake.com