Commission reviews proposed franchise, utility, permit and fire-assessment increases to shore up FY2027 revenues

City finance staff presented a package of proposed fee and rate changes intended to strengthen FY2027 revenues and reduce reliance on ad valorem taxes.

Melissa Burns, finance director, said staff will recommend targeted increases across several revenue sources. Key staff recommendations included: raising the sightseeing-vehicle franchise fee from 4% to 4.5% (permitted by existing agreements to adjust a half percentage point every three years); a 3.5% rate adjustment for water and sewer; a 4.2% CPI-based increase to stormwater and residential/commercial solid-waste collection rates; and a phased reduction of the outside-city utility surcharge from 12% to 7% with eventual elimination in 2029.

Burns also discussed special-fee proposals: a recommended fire-assessment increase (the fee is charged per square foot) intended to bring the assessment toward a target of recovering 50% of the fire department’s assessable budget, and proposed short-term rental permit fee changes. "Our analysis recommended a 4.29% increase for short-term rental permits, bringing the base rate to $315.51 and a per-bedroom charge of $82.85," Burns said.

Commissioners pressed for detail and legal context. The city attorney (on-record in the workshop) confirmed that building permit fees are intended to recover only the cost of enforcement and cannot be charged for profit; Burns added that House Bill 803 (2026) will change building-permit fee calculations and that a resolution on permit fee updates will be provided later.

Springfield (commissioner) and others requested a single table that shows the combined effect of all proposed fee and rate changes on an average household (example used: a $350,000 taxable house) and on typical water/sewer, stormwater and waste bills. Commissioners also asked for the rationale and supporting data for specific items: the 3.5% utility adjustment (lower than CPI), the decline in sightseeing-vehicle revenues (about $200,000 over 2023–2026), and clarity about which revenue sources are state-controlled versus locally adjustable.

No fees were adopted at the workshop; staff said complete proposals and resolutions will be returned in August along with the requested impact tables and an FAQ for public distribution.