Subject
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Resolution - Amending Master Fees for Community Planning and Development Services (CPDS)
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Department
Community Planning and Development Services (CPDS)
Recommendation
Staff recommends Mayor and Council adopt the proposed amendments to the Master Fee Resolution (See Attachment - Resolution to revise the schedule of various user and regulatory fees for the City of Rockville).
Discussion
Staff is proposing a minor inflationary increase in the fee schedule related to building permitting and inspections for Fiscal Year 2026. An approximate 2.5% increase to most fees is recommended, in line with the average Consumer Price Index (CPI) for calendar year 2024. Additional minor changes are proposed, mostly to align fee amounts for comparable services.
The Master Fee Resolution, which was first established in June 2011, combines various user and regulatory fees into one resolution. The City of Rockville Mayor and Council adopted Resolution No. 18-11 to revise, reorganize, and establish various user and regulatory fees based on the User Fee Analysis Report prepared by Matrix Consulting Group. One of the key recommendations of the report included guidelines on “User Fee Cost Recovery Goals” which recommends that fees are reviewed and updated on an ongoing basis to ensure that they keep pace with inflation.
Since its initial adoption, the Master Fee Resolution has been revised several times. Building fees consist mainly of building and trade-related permits, non-business licenses, fire safety permits and life safety reviews on new commercial buildings, additions, and alterations, as well as occupancy permits.
Fees administered by CPDS and Public Works have not undergone a comprehensive fee study since 2011. A Request for Proposal for a comprehensive fee study has been issued and a consultant should begin the study in the next several months. This study will be used to inform future adjustments to the Master Fee Resolution in FY 2027. The adjustments recommended for FY 2026 align with CPI inflationary adjustments and help promote the sustainability of the city’s permitting, inspection, and plan review programs
Mayor and Council History
The city’s Master Fee Resolution was comprehensively revised in June 2011. At that time, many fees were revised based on cost recovery goals as presented in Rockville’s adopted financial management policies. Permitting and inspection fees were updated in July 2018. Fee increases that staff were proposing for FY 2021 were not pursued, at the direction of the Mayor and Council, due to the pandemic. Permitting and inspection fees were updated for a 2.5% inflationary increase in February 2022. An internal fee study was conducted by staff leading up to FY 2024, which resulted in some changes to the structure of fees along with moderate increases to many fees. Permitting and inspection fees were updated for a 4% inflationary increase in July 2024.
Public Notification and Engagement
Staff will email proposed fees to all identified stakeholders, including developers, engineering firms and land use attorneys, among others. Staff will also provide this information to all homeowner associations and civic groups and publish a notice on the ISD website. Staff will also leverage the MyGovernmentOnline (MGO) platform to provide this information to all permit applicants.
Fiscal Impact
The fee adjustments in the enclosed resolution are consistent with the fee summary that was shared during the FY 2026 budget process. The fee increases will generate additional General Fund revenue estimated at approximately $70,290 for FY 2026.
Next Steps
Once adopted, staff will implement a comprehensive public outreach effort to notify our customers of the new fee schedule, which will take effect on July 1, 2025.