Amend Portland Permitting & Development fee schedules to improve cost recovery and service levels for customers

Portland Permitting & Development (PP&D) collects fees under various fee schedules to fund inspections, plan review, permit issuance, land use review, customer assistance, and other functions. Most bureau programs have the goal to be self-supporting, while three programs receive General Fund support. Of the three programs receiving General Fund Support, two (Neighborhood Inspections and Noise) are affected by this ordinance.PP&D maintains a strong commitment to provide excellent programs and services while operating in a fiscally responsible manner. This commitment, coupled with recent decreases in demand for services and increasing costs, is resulting in proposed increases for most fees in FY 2025-26. PP&D continues to strive to use its resources efficiently and keep costs as low as possible.While the bureau recognizes the impact of increased fees on its customers, fee increases will be necessary to improve service levels, respond to current and future service level demands, and to operate closer to cost recovery. PP&D is therefore proposing fee schedule changes to increase estimated collections to most programs by approximately 5%.

As PP&D is funded 98% through fees and charges for service, the bureau must set fees at a level which cover the costs of providing services. Costs are rising due to:increased personnel costs from union labor agreements,cost-of-living adjustments,merit and step pay increases,health & benefits increases,mandatory PERS contribution increases,costs associated with implementing technology and process improvement work, andmaterials and services inflation. The fees charged by PP&D support the staff time associated with services, including responding to customer inquiries, providing early assistance, plan review, and inspection of buildings, and are necessary to ensure a stable, experienced workforce. These fee changes allow PP&D to retain 15 FTE positions that will need to be cut should fee changes not be approved.PP&D underwent layoffs in winter 2023/24 of 72 FTE or approximately 19% of the workforce. Any additional staff reductions will impede the bureau’s present and future ability to provide services. Services would be cut, permitting timelines would be impacted heavily, and PP&D would be in the position of not being able to support the demands of the development industry when permitting activity increases again.The 2017 Government Accountability Transparency Results (GATR): Strategies for Accelerating Housing Development Report, determined PP&D fees are not a major factor in project feasibility. The negative economic effect of longer permitting timelines is outweighed by the minor increase in project costs from these proposed fee increases.

PP&D has been proactive in keeping customers and stakeholders informed regarding these proposed fee changes. The bureau has published information about the proposed fee increases on its website. Additionally, division managers have reached out to appropriate industry organizations and committees.The bureau knows these changes affect its customers’ work and their willingness to do business in this area. PP&D’s interests are in delivering excellent levels of service and increasing its effectiveness on both its customers’ and the community’s behalf.

Proposed fee increases are expected to result in the following estimated changes to annual program collections:ProgramEstimated Collection IncreasesPercentDollar (Full-Year)Accessory Short-Term Rentals5%$ 33,967Building/Mechanical Program5%$ 980,308Cannabis Licensing Program2%$ 32,376Electrical Program5%$ 266,822Environmental Review Program5%$ 307,417Facility Permit Program5%$ 256,764Field Issuance Remodel Program5%$ 146,563Land Use Services Program5%$ 488,896Neighborhood Inspections Program5%$ 81,983Noise Program5%$ 7,912Plumbing Program5%$ 184,162Sign Program5%$ 10,229Site Development ProgramZoning Enforcement Program5%5%$ 73,108$ 98,938Transportation Review Program5%$ 168,647Urban Forestry Review Program5%$ 88,679Water Review Program5%$ 70,705Total5%$ 3,297,476Estimated collection increases are aggregated, however percentage change to individual fees may vary. This ordinance does not amend the PP&D budget.This legislation does not create, eliminate, or re-classify positions now or in the future. Additional staff time required is limited to performing outreach, preparing the revised fee schedules, and this subsequent legislation. Existing PP&D staff will implement and administer the revised fee schedule as part of the existing workload. There is no change to demographic impacts or changes in staffing. The legislation does not result in a new or modified financial obligation or benefit, including IAs, IGAs, MOUs, grants, contracts, or contract amendments.

Not applicable.