Subject
title
Resolution - Amending Master Fees for Community Planning and Development Services (CPDS) and Public Works (DPW) and Stormwater Management Monetary Contribution Rates
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Department
Community Planning and Development Services (CPDS)
Recommendation
Staff recommends that the Mayor and Council adopt the proposed amendments to the Master Fee Resolution (See Attachment 1 - Resolution To Revise the Schedule of Various User and Regulatory Fees for the City of Rockville_FY27) and to the Stormwater Management Monetary Contribution Fee Resolution (see Attachment 2 - Resolution to Establish the Rate and Schedule of Monetary Contributions for Stormwater Management_FY27).
Discussion
The Master Fee Resolution, which was first established in June 2011, combined 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.
The proposed changes to permitting/licensing, planning, forestry, and public works fees are the result of a fee analysis intended to promote cost recovery for fee-funded services. Fees administered by CPDS and Public Works (DPW) had not undergone a comprehensive fee analysis since 2011. Since its initial adoption, the Master Fee Resolution has been revised several times in order to make inflationary adjustments but never based on determining the actual city costs to provide the underlying services.
The Stormwater Management (SWM) Monetary Contribution fee resolution, first established in September 1985, separately sets the rate and schedule of developer contributions to the City’s SWM program. The City of Rockville Mayor and Council adopted Resolution No. 16-02 to amend the schedule of monetary contribution fees in response to the State of Maryland’s mandate to incorporate revisions to SWM requirements into local ordinances. The SWM fee-in-lieu has received only one minor adjustment in the time since, with a 2.5% inflationary increase made in FY2022, despite the rising cost to the City to providing equivalent SWM treatment on public land or to retrofit facilities.
During the March 9 budget work session, the Mayor and Council expressed concerns regarding the magnitude of the proposed development and regulatory fee adjustments. Staff presented revised proposed fees during the March 23 work session, which have been incorporated in the attached resolution. The revised fee schedule reflects a balanced approach that responds to Mayor and Council concerns regarding the pace of fee increases, moves the city closer to recovering the actual costs of development and regulatory services, maintains competitiveness with surrounding jurisdictions, and provides greater predictability for applicants.
In addition to revising various fees as discussed above, the draft resolution authorizes the City Manager to “promulgate administrative procedures” to approve fee reductions and waivers. While the City Manager is currently authorized to approve fee reductions and waivers, this change will allow the City Manager to establish clearer rules on when reductions and waivers are approved, which will help ensure consistency.
Mayor and Council History
The city’s Master Fee Resolution was comprehensively revised in June 2011 based on cost recovery goals as presented in Rockville’s adopted financial management policies. Since that time, CPDS and DPW fees have been updated as follows:
• FY 2019 - Updates to permitting and inspection fees were approved. Amounts of increase vary. This was the first update since the adoption of the fees in 2011 and included limited updates to planning and DPW fees and no updates to forestry fees.
• February 2022 - CPDS and DPW were approved for a 2.5% inflationary increase.
• FY 2024 - Changes were approved to the structure of some permit fees, along with moderate increases to many other permit fees based upon limited benchmarking (no increases to DPW, planning, or forestry fees).
• FY 2025 - Permitting and inspection fees were approved for a 4% inflationary increase (no increases to DPW, planning, or forestry fees).
• FY 2026 - Planning, forestry, permitting, and inspection fees were approved for a 2.5% increase (no increases to DPW fees).
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 city 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 resolutions are consistent with the fee summary information that was shared during the FY 2027 budget process. The fee increases will generate additional FY 2027 revenue estimated at approximately $360,750 for the General Fund and $286,200 for the Stormwater Management Fund.
Next Steps
Once adopted, staff will implement a comprehensive public outreach effort to notify customers of the revised fees, which will take effect on July 1, 2026.