You are getting ready to start your new business. You have your business plan, you came up with funding for inventory, office furniture, computers, etc. You have found some space to rent and the space needs interior changes to meet your needs. Building plans are prepared and ready to submit to the city for review. It is at that time that you learn there is a laundry list of fees to be paid in order to complete the plan review and be issued your official building permit.

City fees have been an issue with many factions of the public, from the large scale developer, to the individual property owner wishing to build a house, to the shop owner with a desire to expand his/her business. The concern is typically regarding the total amount of the fees.

In accordance with state law, a report must be prepared that provides a "reasonable" link between the fee amount and the reason for the fee itself. The report must document the need for the fee, identify the service or facility that the fee will off-set, provide the total cost of the service/facility and provide a logical means for determining the fee amount. This report must be carefully prepared to clearly demonstrate that the individual who will be paying fee will also be the receptor of the benefit provided.

The City of Carlsbad has a 30-page document devoted to identifying the fees and charges that are to be paid for Community Development Services. These fees are in conjunction with the approval process and are necessary in order to allow the development of a housing tract, build a house or remodel an existing structure. Some of the fees are to help fund public facilities such as road widening, new parks or a new fire station. However, many of the fees and charges go toward paying for the services the city provides such as project review, staff report preparation, plan review and site inspections. Based on the actual amount of time that is needed to conduct the appropriate reviews and inspections, the actual cost in man-hours can be quite expensive.

Although many fees seem high, the various development fees required by the city are necessary to help off-set the real cost of operating a city and to keep taxes lower. They are also needed so that the person or entities requiring certain city services actually pay for the services provided and the services are not subsidized by the local tax payers and existing businesses. State laws have been enacted to ensure that cities develop fee systems that are fair and reasonable, and not for the purpose of making a profit. In the long run, appropriate fee structures prepared within the parameters set forth in state law as well as within the realm of reasonableness helps provide the city with fiscal strength and the general public with a high quality of life.

Stan Weiler and his partner Mike Howes, of Howes Weiler and Associates have been involved in the preparation and processing of several master plans including: The Carlsbad Ranch Specific Plan, Bressi Ranch Master Plan and many other projects in San Diego County, Riverside County and Imperial County. For more information on their services, call them at (760) 929-2288.

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