01/10/1979 Meeting - Laserfiche WebLink

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, if an administrative procedure could be set up for adjusting the $5,000 figure so it would represent some reasonable cut-off point. Mayor Keller proposed the exemption be raised to $20,000. He noted 44 percent ~ of the permits generate only six percent of the revenue, and seemed 111' inequitable. Ms. Miller felt the $5,000 limit seemed reasonable. Mr. Haws asked what the exemption applien to~ Manager said remodeling, additions, and garages. Ms. Benjamin said it would include anything, even swimming pools. Mr. Haws philosophically opposed exempting luxuries such as swimming pools. Ms. Benjamin said the reason for making the recommendation, even exempting a swimming pool, was that the administra- tive costs would be more than revenue recaptured. Mr. Lieuallen requested staff respond to the suggestion of ralslng the exemption limit from $5,000 to $20,000. Mr. Gilman responded the logic for exemption up to $5,000 was that averaging out the administrative costs and handling permits, this seemed to be a logical cut off. At the $20,000 level, he said there is a substantial return on the permit, i.e., around $200. He said if the exemption were that high, there would be a possibility that builders might try to find ways to get around the process to stay under that dollar valuation. Mr. Lieuallen felt if the only reason for not raising the limit to $20,000 was to generate money for the bureaucracy, then perhaps that was an unsound rationale. Mr. Haws suggested Council take the conservative approach and use the $5,000 exemption at this time. If it wished, Council could later raise the limit. Ms. Schue noted a problem with that suggestion. People who are building now and paying the fee may feel the City has been unfair if later it exempts others from paying for the same amount. She ~ would like to see Council make a decision now and stay with that decision. .., Mr. Delay requested staff respond to the work load versus revenues question raised by Mr. Lieuallen. Staff will prepare chart for Council. Manager said staff hoped Council would act on the $5,000 exemption at this time. He noted the volume of permits drops off dramatically after the $5,000 level. Between the $10-20,000 valuation, the City would receive around $200 for permits. He felt that was certainly worth while for processing. Mr. Gilman noted the small valuation permit request is more difficult to process administratively than a higher permit such as a $50,000 new home. The new home fits more into a standard pattern, while the smaller requests are more complex. Vote was taken on the motion, which carried unanimously. Mr. Delay moved, seconded by Ms. Smith, to adopt the staff's recommendation for exemption of unpaved parking areas that existed before April 10, 1978, for a three-year period. 1/10/79--14 - m