TOWN OF MILLIKEN TOWN BOARD AGENDA MEMORANDUM To
TOWN OF MILLIKEN TOWN BOARD AGENDA MEMORANDUM
To:
Mayor Lichtfuss and Board of Trustees
From: Steve House, Community Development Director Via:
Meeting Date: Wednesday, April 28, 2010
Jim Burack, Town Administrator
Agenda Item #
Action: Discussion: Information: X Agenda Title: Consideration of Building Permit Fee and Tax Rebate to Homeowners and Extension of Building Permit Fees & Taxes Deferral Deadline Attachments: Building Permit Fees for Typical Single Family Home Valued at $170,000 Greeley Tribune Article-Windsor Considering Rebate Ordinance #613 – Fees & Taxes Deferral
PURPOSE To consider the partial rebating of building fees to new homebuyers and extension of the deadline (June 30, 2010) for building fees deferral. BACKGROUND During the March 24, 2010 meeting there was discussion of waiving a portion of the building fees as an incentive to stimulate new home construction. No action was taken at that meeting, but the issue was left open for further discussion. In October of 2009 the Town Board approved Ordinance #613 that allowed home builders to defer building fees for twelve months, or until issuance of a Certificate of Occupancy, whichever comes sooner. BUDGET IMPLICATIONS If a policy to rebate fees is implemented the revenue lost would be the fee/tax amount rebated times the number of new homes built. On a single case basis a typical new home valued at $170,000 would have approximately $3120.00 in fees/taxes eligible for a rebate.
STAFF RECOMMENDATION Staff recommends that $1000 of the building fees/taxes be rebated to homebuyers and that the fee/taxes deferral ordinance deadline be extended to December 31, 2010. Staff further recommends that a ‘Milliken Bucks’ idea be implemented, similar to the ‘Windsor Bucks’ incentive being considered by the Town of Windsor. The incentive program should be a simple reimbursement to the homebuyer based on receipts received and include a sunset date. SUGGESTED MOTION “I move that $1000 of the building fees and sales taxes collected on each new single-family home building permit be rebated to the new homebuyer commencing immediately and for a period ending on December 31, 2010, and that the reimbursement period extend to December 31, 2011 for any new home permit issued in 2010” “I move that Ordinance #613 be amended to extend the deadline for deferral of building permit fees and taxes to December 31, 2010.”
Estimated Fees for $170,000 Home with $150,000 Construction Value Settler Village, Centennial Farms, Colony Pointe Subdivisions Fee Description
Amount
Amount Remaining After Reimbursements and Consulting Fees
Building Permit Fee Electrical Fee Construction Meter Plan Review Fee Building Permit Admin. Fee
$1273.75 $150.00 $50.00 $382.13 $185.59
$764.25 $90.00 $50.00 $229.28 $111.35
Use Tax (2.5%)
$2041.47 $1875.00 $1875.00 $1875.00
Park Fee Trails/Open Space Fee Public Facilities Infrastructure Fee Street Fee Drainage Fee Police Infrastructure Fee Administrative Infrastructure Fee Water Administration Fee
$600.00 $350.00
$150.00 $350.00
$325.00
$325.00
$1000.00 $525.00 $260.00
$250.00 $525.00 $260.00
$210.00
$210.00
$44.00
$44.00
Water Meter Fee Water Tap Supplemental Water Tap Fee Sewer Tap Fee Sewer Tap Supplemental
$275.00 $81.00
$275.00 $81.00
$9000.00 $4000.00 $177.00
$9000.00 $4000.00 $177.00
$3314.00
School Fee
Total
$13533.00 $791.00 $0.00
Amount Dedicated to Impact and Enterprise Funds
NonDedicated Fees Remaining
$1244.88
$1244.88
$1875.00
$1875.00
$2114.00
$2114.00
$13533.00
$13533.00
$791.00
$0.00
$21,554.47
$18,766.88
F:\SHARED\COMMUNITY DEVELOPMENT\BUILDING\Estimated Fees for $170k Home.doc
$15,647.00
$3119.88
Waiver of Building Permit Fees Survey – March, 2010 Town Evans Loveland
Waiver 50% Remodel fees only
Dacono
None
Greeley
None
Windsor
None
Johnstown
None
Platteville
None
Ft. Lupton
None
Kersey
None
Considering Waiver NA NA No No Considering rebate No Maybe if large project No Considered a rebate to homeowner
ORDINANCE NO. 613 ORDINANCE NO. 613 AMENDING CHAPTER 18. ARTICLE 1, PAYMENT OF FEES, OF THE TOWN OF MILLIKEN MUNICIPAL CODE. Section 1: WHEREAS, the Town of Milliken Municipal Code established rules and regulations for payment of building and development fees, and; WHEREAS, building and development fees are a significant component of the total cost of new construction, and; WHEREAS, the timing of the payment of the building and development fees can have an effect on new construction starts, and; WHEREAS, the Town Board of Trustees of the Town of Milliken desires to amend, Section 18-1-30 of the Town of Milliken Municipal Code,
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF MILLIKEN, WELD COUNTY, COLORADO: Section 2: Section 18-1-30, Payment of Fees of the Milliken Municipal Code shall be amended as follows; Deferral of fees and taxes for all new residential construction within the Town of Milliken for a period from October 15, 2009 through June 30, 2010 1.
Building development fees and taxed for all new residential construction may be deferred at the option of the property owner or property owner’s authorized agent if all of the following conditions are met: a. Fee and tax deferral will be for a maximum time beginning when a building permit is issued: a. To the time of certificate of occupancy permit is requested, or; b. Twelve (12) months from the date of application for the deferral of fees and taxed, whichever occurs first. b. The property owner of the property owner’s authorized agent shall pay the required filing fee and allow the Town to file a lien. Such lien shall be against the lot, block and parcel for which fees and/or
taxes were deferred and shall have priority over all liens, except general taxes and prior special assessments. c. Payment at the time the building permit is issued of $125.00 (onehundred twenty five dollars) for the cost of administering the deferral. 2.
If the amount deferred is not paid at the end of the deferral, final inspection and/or upon a request for a certificate of occupancy, no certificate of occupancy shall be issued nor shall the building be occupied or used, and a penalty assessment shall be charged at the rate of fifteen percent (15%) per annum on the unpaid balance retroactive to the date the deferral was granted. Further, the Town may collect the unpaid fees by foreclosing the lien filed pursuant to Paragraph (1) (b) above, and the lien may be certified by the Director of Finance to the County Treasurer to be placed upon the tax list for the current year, to be collected in the same manner as other taxes are collected, with a tenpercent penalty to defray the cost of collection, as provided by state law.
3.
If the property owner or property owner’s authorized agent had previously not timely paid the deferred fees for any property as required by Subsection (2) above or allowed a building on any property to be used or occupied prior to the issuance of a certificate of occupancy, the Town shall not allow such property owner or agent to defer fees on any future building permit for any property, regardless of a change of business name or ownership of the property owner or agent.
4.
Subject to the provisions of Subsection (3) above, the property owner may authorize, in writing, an agent for the property owner regarding authorization to enter into the deferral of fees and taxes permitted by this Section. Any authorized agent of the property owner should be subject to all the terms and conditions of this Section. Any authorized agent of the property owner is subject to all the terms and conditions of this Section. Any agent for the property owner shall only be accepted upon the property owner’s written authorization on forms provided by the Town. In any and all events, the property owner remains fully liable to the Town for the payment of all fees and taxed deferred, including but not limited to penalties and interest, and shall pay the required fee to remove the lien from the property.
5.
The following fees may not be deferred: construction meter and school fee.
6.
New construction shall be that construction for occupancy for residential buildings only.
7.
This section will be automatically repealed on June 30, 2010, except for water and sewer tap fees, which may be deferred after the June 30, 2010 repeal date for a maximum time beginning when a building permit is issued:
a. To the time of certificate of occupancy permit is requested, or; b. Twelve (12) months from the date of application for the deferral of fees and taxed, whichever occurs first.
Section 3:
Effective Date
The Board of Trustees has determined pursuant to its duty to protect the fiscal stability of the Town of Milliken recognizes that lack of building permits jeopardizes the Town’s fiscal stability, and therefore declares that an emergency exists and this Ordinance shall become effective upon its passage. INTRODUCED, READ, ADOPTED, APPROVED, SIGNED AND ORDERED PUBLISHED IN FULL BY THE BOARD OF TRUSTEES OF THE TOWN OF MILLIKEN, THIS ___ DAY OF ___, 2009. Town of Milliken:
L. Jane Lichtfuss, Mayor ATTEST:
________________________________ Beatriz Rangel, Town Co Clerk
Published: __________________, 2009
Approved as to form: ________________________________ R. B. Fickel II, Attorney
To:
Mayor Lichtfuss and Board of Trustees
From: Steve House, Community Development Director Via:
Meeting Date: Wednesday, April 28, 2010
Jim Burack, Town Administrator
Agenda Item #
Action: Discussion: Information: X Agenda Title: Consideration of Building Permit Fee and Tax Rebate to Homeowners and Extension of Building Permit Fees & Taxes Deferral Deadline Attachments: Building Permit Fees for Typical Single Family Home Valued at $170,000 Greeley Tribune Article-Windsor Considering Rebate Ordinance #613 – Fees & Taxes Deferral
PURPOSE To consider the partial rebating of building fees to new homebuyers and extension of the deadline (June 30, 2010) for building fees deferral. BACKGROUND During the March 24, 2010 meeting there was discussion of waiving a portion of the building fees as an incentive to stimulate new home construction. No action was taken at that meeting, but the issue was left open for further discussion. In October of 2009 the Town Board approved Ordinance #613 that allowed home builders to defer building fees for twelve months, or until issuance of a Certificate of Occupancy, whichever comes sooner. BUDGET IMPLICATIONS If a policy to rebate fees is implemented the revenue lost would be the fee/tax amount rebated times the number of new homes built. On a single case basis a typical new home valued at $170,000 would have approximately $3120.00 in fees/taxes eligible for a rebate.
STAFF RECOMMENDATION Staff recommends that $1000 of the building fees/taxes be rebated to homebuyers and that the fee/taxes deferral ordinance deadline be extended to December 31, 2010. Staff further recommends that a ‘Milliken Bucks’ idea be implemented, similar to the ‘Windsor Bucks’ incentive being considered by the Town of Windsor. The incentive program should be a simple reimbursement to the homebuyer based on receipts received and include a sunset date. SUGGESTED MOTION “I move that $1000 of the building fees and sales taxes collected on each new single-family home building permit be rebated to the new homebuyer commencing immediately and for a period ending on December 31, 2010, and that the reimbursement period extend to December 31, 2011 for any new home permit issued in 2010” “I move that Ordinance #613 be amended to extend the deadline for deferral of building permit fees and taxes to December 31, 2010.”
Estimated Fees for $170,000 Home with $150,000 Construction Value Settler Village, Centennial Farms, Colony Pointe Subdivisions Fee Description
Amount
Amount Remaining After Reimbursements and Consulting Fees
Building Permit Fee Electrical Fee Construction Meter Plan Review Fee Building Permit Admin. Fee
$1273.75 $150.00 $50.00 $382.13 $185.59
$764.25 $90.00 $50.00 $229.28 $111.35
Use Tax (2.5%)
$2041.47 $1875.00 $1875.00 $1875.00
Park Fee Trails/Open Space Fee Public Facilities Infrastructure Fee Street Fee Drainage Fee Police Infrastructure Fee Administrative Infrastructure Fee Water Administration Fee
$600.00 $350.00
$150.00 $350.00
$325.00
$325.00
$1000.00 $525.00 $260.00
$250.00 $525.00 $260.00
$210.00
$210.00
$44.00
$44.00
Water Meter Fee Water Tap Supplemental Water Tap Fee Sewer Tap Fee Sewer Tap Supplemental
$275.00 $81.00
$275.00 $81.00
$9000.00 $4000.00 $177.00
$9000.00 $4000.00 $177.00
$3314.00
School Fee
Total
$13533.00 $791.00 $0.00
Amount Dedicated to Impact and Enterprise Funds
NonDedicated Fees Remaining
$1244.88
$1244.88
$1875.00
$1875.00
$2114.00
$2114.00
$13533.00
$13533.00
$791.00
$0.00
$21,554.47
$18,766.88
F:\SHARED\COMMUNITY DEVELOPMENT\BUILDING\Estimated Fees for $170k Home.doc
$15,647.00
$3119.88
Waiver of Building Permit Fees Survey – March, 2010 Town Evans Loveland
Waiver 50% Remodel fees only
Dacono
None
Greeley
None
Windsor
None
Johnstown
None
Platteville
None
Ft. Lupton
None
Kersey
None
Considering Waiver NA NA No No Considering rebate No Maybe if large project No Considered a rebate to homeowner
ORDINANCE NO. 613 ORDINANCE NO. 613 AMENDING CHAPTER 18. ARTICLE 1, PAYMENT OF FEES, OF THE TOWN OF MILLIKEN MUNICIPAL CODE. Section 1: WHEREAS, the Town of Milliken Municipal Code established rules and regulations for payment of building and development fees, and; WHEREAS, building and development fees are a significant component of the total cost of new construction, and; WHEREAS, the timing of the payment of the building and development fees can have an effect on new construction starts, and; WHEREAS, the Town Board of Trustees of the Town of Milliken desires to amend, Section 18-1-30 of the Town of Milliken Municipal Code,
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF MILLIKEN, WELD COUNTY, COLORADO: Section 2: Section 18-1-30, Payment of Fees of the Milliken Municipal Code shall be amended as follows; Deferral of fees and taxes for all new residential construction within the Town of Milliken for a period from October 15, 2009 through June 30, 2010 1.
Building development fees and taxed for all new residential construction may be deferred at the option of the property owner or property owner’s authorized agent if all of the following conditions are met: a. Fee and tax deferral will be for a maximum time beginning when a building permit is issued: a. To the time of certificate of occupancy permit is requested, or; b. Twelve (12) months from the date of application for the deferral of fees and taxed, whichever occurs first. b. The property owner of the property owner’s authorized agent shall pay the required filing fee and allow the Town to file a lien. Such lien shall be against the lot, block and parcel for which fees and/or
taxes were deferred and shall have priority over all liens, except general taxes and prior special assessments. c. Payment at the time the building permit is issued of $125.00 (onehundred twenty five dollars) for the cost of administering the deferral. 2.
If the amount deferred is not paid at the end of the deferral, final inspection and/or upon a request for a certificate of occupancy, no certificate of occupancy shall be issued nor shall the building be occupied or used, and a penalty assessment shall be charged at the rate of fifteen percent (15%) per annum on the unpaid balance retroactive to the date the deferral was granted. Further, the Town may collect the unpaid fees by foreclosing the lien filed pursuant to Paragraph (1) (b) above, and the lien may be certified by the Director of Finance to the County Treasurer to be placed upon the tax list for the current year, to be collected in the same manner as other taxes are collected, with a tenpercent penalty to defray the cost of collection, as provided by state law.
3.
If the property owner or property owner’s authorized agent had previously not timely paid the deferred fees for any property as required by Subsection (2) above or allowed a building on any property to be used or occupied prior to the issuance of a certificate of occupancy, the Town shall not allow such property owner or agent to defer fees on any future building permit for any property, regardless of a change of business name or ownership of the property owner or agent.
4.
Subject to the provisions of Subsection (3) above, the property owner may authorize, in writing, an agent for the property owner regarding authorization to enter into the deferral of fees and taxes permitted by this Section. Any authorized agent of the property owner should be subject to all the terms and conditions of this Section. Any authorized agent of the property owner is subject to all the terms and conditions of this Section. Any agent for the property owner shall only be accepted upon the property owner’s written authorization on forms provided by the Town. In any and all events, the property owner remains fully liable to the Town for the payment of all fees and taxed deferred, including but not limited to penalties and interest, and shall pay the required fee to remove the lien from the property.
5.
The following fees may not be deferred: construction meter and school fee.
6.
New construction shall be that construction for occupancy for residential buildings only.
7.
This section will be automatically repealed on June 30, 2010, except for water and sewer tap fees, which may be deferred after the June 30, 2010 repeal date for a maximum time beginning when a building permit is issued:
a. To the time of certificate of occupancy permit is requested, or; b. Twelve (12) months from the date of application for the deferral of fees and taxed, whichever occurs first.
Section 3:
Effective Date
The Board of Trustees has determined pursuant to its duty to protect the fiscal stability of the Town of Milliken recognizes that lack of building permits jeopardizes the Town’s fiscal stability, and therefore declares that an emergency exists and this Ordinance shall become effective upon its passage. INTRODUCED, READ, ADOPTED, APPROVED, SIGNED AND ORDERED PUBLISHED IN FULL BY THE BOARD OF TRUSTEES OF THE TOWN OF MILLIKEN, THIS ___ DAY OF ___, 2009. Town of Milliken:
L. Jane Lichtfuss, Mayor ATTEST:
________________________________ Beatriz Rangel, Town Co Clerk
Published: __________________, 2009
Approved as to form: ________________________________ R. B. Fickel II, Attorney
