Multnomah County is proposing fee increases to its land use fees. If approved, the new fees will begin on July 1, 2025.
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Background
In fall of 2024, the Department of Community Services (DCS) completed a Land Use Planning Fee Study to assess current and historic cost recovery outcomes in the county’s Current Planning program, and to benchmark against fee structures and cost recovery strategies in other Oregon counties.
Why did we do this?
With increasing demands placed on the General Fund, a need to address increasing personnel, technology, and legal fees, and an interest in increasing applicant satisfaction, accessibility, and service in Land Use Planning, DCS wanted to identify feasible options for funding improved services while not overburdening the General Fund.
What did we find?
The study found that the county’s current cost recovery rate, 17 percent, was relatively low statewide, and far below regional rates: Clackamas County has a 30 percent recovery rate, and Washington County has a 98 percent recovery rate.
We also found that 10 out of the 11 counties in the study, likely responding to similar increases in costs overall, raised fees in the last two years, using a variety of approaches such as flat percentage increase and tying increases to the Consumer Price Index.
Proposal
To achieve a cost recovery in Land Use that is similar to our peers and frees up more General Fund to spend on essential services, and to support hiring additional staff to enhance our response and processing times, the Chair’s proposed approach to Land Use fees includes a 2-year process that raises fees and provides investment in staff and resources. Details include:
- In the Chair’s proposed budget for FY 2026, which is from July 2025 to June 2026, a 54% increase in fees and one-time funding from the General Fund, the Land Use Program will retain 1.5 positions and add 1 position. In total, Land Use Planning will be adding an additional planner.
- In FY 2027, which is from July 2026 to June 2027, a 40% increase in fees brings us to an overall cost recovery rate of 29%, which would be in alignment with Clackamas County (30%) and far below Washington County (98%). This would pay for the 1.00 FTE that was added with one-time-only in the previous year to be ongoing.
- The Chair’s proposed budget also includes funding to continue the Zoning Code Improvement Project.
How will raising fees help improve the Land Use Division?
Better Addresses Increased Operating Costs
The cost of providing development review services has risen significantly. This includes:
- Personnel Costs: Salaries and benefits for qualified planners, technical staff, and support personnel have increased. We need to attract and retain skilled professionals to ensure efficient and thorough reviews.
- Technology Upgrades: We've invested in modern software and hardware to streamline the review process, improve efficiency, and enhance online services for applicants. This technology requires ongoing maintenance and upgrades.
- Legal and Consultant Fees: Complex development proposals often require specialized expertise, such as legal counsel, environmental consultants, and other technical advisors. These costs are passed on.
Maintains and Improves Service Levels
The fee increase is crucial to maintain current service levels and avoid delays in the review process in this upcoming calendar year, and improve service in the future years. We are committed to:
- Timely Reviews: Ensuring applications are processed in a timely manner, which is essential for developers and the overall economic health of the community.
- Thoroughness and Accuracy: Conducting comprehensive reviews to ensure projects comply with all applicable regulations and standards, protecting public safety and the environment.
- Customer Service: Providing responsive and helpful assistance to applicants throughout the review process.
Better Addresses Fairness
The current fee structure does not fully cover the cost of providing services. The increase will help ensure that the costs of development review are more equitably distributed, so that:
- Applicants Pay Their Share: Those who directly benefit from the review process contribute a more appropriate portion of the costs.
- Taxpayer Burden Reduced: The financial burden on the general taxpayer is lessened.
- Proposed Fee Waiver: Staff is proposing as part of the upcoming Zoning Code Update that the County be able to waive application fees in cases in certain circumstances such as financial hardship.
Improves Long-Term Financial Sustainability
The fee adjustment is necessary to ensure the long-term financial sustainability of the Land Use Planning Department, enabling us to:
- Adequately Fund Operations: Better cover the costs of providing essential services.
- Plan for the Future: Invest in necessary resources to meet the growing needs of the community.
How to participate
On April 24th, Multnomah County Chair Jessica Vega Pederson released her FY2026 Executive Budget. Her proposed budget makes the best use of the dollars we have to serve our community’s essential needs by making sure resources are going to the people who rely on them most and whose needs we must prioritize during challenging times.
The Chair’s executive budget letter shares how she balanced the budget through hard decisions which prioritized direct services, homeless services, public safety, mental health, and substance use support services. Due to declining revenue, it required significant tradeoffs and reductions – making this year’s proposal to get to a balanced budget the most difficult in recent memory.
The Executive Budget is also the most accessible the county has ever released, with dashboards online helping everyone follow the stages of the budget, potential reductions and new program requests, as well as real-time budget monitoring of the current year FY 2025 budget.
Key dates
Prior to the Multnomah County Board of Commissioners vote on Thursday, June 12, 2025 to adopt the county budget for fiscal year 2026, we want to hear from you!
- Wednesday, May 14, 6 to 8 p.m., Multnomah Building Boardroom, 501 S.E. Hawthorne Blvd., in Portland.
- Wednesday, May 21, 6 to 8 p.m., East Multnomah Building, 600 N.E. 8th St., #300, in Gresham.
- Wednesday, May 28, 6 to 8 p.m., Virtual-only.
Find more information about the public hearings.
Learn more about how to participate.
Please consider further engagement with our budget process. Anyone can sign up to testify or leave a comment on the Chair’s Budget page as a next step.