Developers, elected officials meet on cost recovery for inspections

Members of the PDS Council discussed the growing gap between infrastructure inspection costs and fees that are paid to cover them during their March meeting. Staff initiated a review process in May to determine what it would take to cover those costs as well as how and when to accomplish the goal. These fees were last reviewed and increased in 2008.

Subdivision inspection fees are paid by developers as they develop new subdivisions; they cover inspections primarily for earthwork, grading, and storm sewer and street construction.

“In previous years the Kenton County Planning Commission set the subdivision inspection fees that developer paid,” said Scott Hiles, CPC, Director of Infrastructure Engineering. “It would then hand those funds over to staff when they provided the required inspections. It was a cumbersome process.”

The county planning commission decided earlier this year that the task would be administered better by PDS that provides the inspections.

The first thing that staff did was to go back and do a comprehensive review of fees that were paid and compare them to the expenses that were incurred from staff doing the inspections. The fee and expense information collected dated back to 2001.

“We found that the fees were covering only 70 percent of the cost to do the work”, said Hiles. “Our directive from PDS Council was to make sure that fees paid for 100 percent.”

Subdivision inspection work performed by staff that is not covered by fees is paid for with taxpayer dollars.

Staff then formed a subdivision inspection fee committee made up of members of the Home Builders Association and elected officials to discuss their findings. They started meeting monthly beginning in May. Committee members discussed various methods for collecting fees but discussion centered on the 30 percent gap between fees and expenses.

“I don’t think it’s fair to ask the taxpayers to subsidize 30 percent of a developer’s for-profit subdivision,” said David Jansing, Mayor of Lakeside Park and one of the committee members. “We need a fee increase so that fees cover the cost to do the inspections”.

Staff hopes to conclude its work by the end of summer at which time it will forward the proposed new fee schedule to the PDS Management Board for review and approval. Hiles believes the resulting increase will probably be effective on January 1st.

The consensus of the committee agreed with Mayor Jansing and has instructed staff to propose a fee increase at the next committee meeting that would close the gap between fees and expenses. Staff is currently preparing that proposal and the next committee meeting is scheduled for July 28th at 5:30 p.m. at PDS.