City Feedback Requested on Changes to DLI Municipal Construction and Development Fee Report

March 16, 2020

Your input is critical to ensure that the new form and instructions are clear for cities and result in the consistent reporting of data.

The League is working with the Department of Labor & Industry (DLI) to address city concerns about SF 3795, which would make changes to the municipal construction and development fee revenue and expenses annual report.

The League would like to see minimal legislative changes. Instead, any changes to the form should be made based on input from subject matter experts, like city staff and officials.

Form and instructions unclear

Before this legislation was introduced, the League heard from cities that the instructions are unclear regarding the city expenses that should be reported in each category. For example, should building permit expenses or administrative expenses be reported in the development category.

What guidance would you find helpful when completing this form? This is an opportunity to get this clarity to provide better consistency among city reporting.

Draft revised form created

As a baseline, a draft revised form and associated instructions have been created. Cities have the opportunity now to make suggestions for a new form and instructions that would work better for them.

View the draft revised form and associated instructions (doc)

The changes in the draft revised form include:

  • An increase in the reporting threshold from $5,000 to $7,000.
  • A requirement for all cities to return a form to DLI — either a completed form or one with a box checked indicating the city collected less than $7,000.
  • A requirement for inspection expenses to be delineated, including: labor, transportation, office space, and other.
  • New filing categories for inspector vehicle expenses, office space costs, and any other operating expenses associated with office equipment, safety equipment, information technology, payroll, human resources, and building utilities.

Note: Input on the best way to make categories in the last two bullet points work would be most beneficial.

Please also provide answers to the following questions:

  • Is your city able to track expenses in each of the proposed categories?
  • Are there specific modifications to the categories or form instructions that would provide greater clarity and ease of accounting?
  • What other kind of guidance do you need to effectively report city costs associated with construction and development?

The League would like to provide feedback to DLI by March 18. Please send your responses to Daniel Lightfoot, LMC, at dlightfoot@lmc.org.