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St. Cloud fee study shows city losing money on planning, zoning approvals

St. Cloud fee study shows city losing money on planning, zoning approvals

 

St. Cloud is already losing money on planning and zoning fees — and that was before Amendment 3 was approved by voters.

A community development fee study, requested by the city in October 2024 and completed by Raftelis — a consultant specializing in local government and utility management — found that St. Cloud’s rapid growth has outpaced its fee structure.

According to the study, “the existing fee schedule, though escalated periodically, no longer reflects the current cost of providing many services.”

In short, it costs the city more in staff time to review applications than it collects in fees.

The study recommends updating fees to fully cover the cost of providing services, with most increases targeting developers and commercial builders. However, some changes would directly affect residents.

Homeowners who want to put up a fence would see the application fee rise from $112 to $160. A commercial building fence permit would increase from $120 to $200. Applying for an above-ground pool — currently free — would carry a new $160 fee under the proposal. Adding a residential retaining wall would also jump from free to $200.

Temporary and directional sign requests would each increase from $110 to $230.

The study found the proposed increases would bring St. Cloud in line with fees charged by other local cities, including Kissimmee and Osceola County.

The numbers behind the study are stark. Department expenditures grew from approximately $1.32 million in fiscal year 2022 to approximately $2.6 million in fiscal year 2025 — while revenue only climbed from $782,000 to just over $1 million over the same period.

The study notes the gap means general taxpayers — not just developers and applicants — have been subsidizing the department’s operations.

The timing of the study carries added urgency. Florida Tax Watch estimates St. Cloud will lose more than $9 million in its first year under Amendment 3, with losses climbing each year steeply after.

The projected five-year impact:

  • 2027-28: $9,171,431
  • 2028-29: $17,372,863
  • 2029-30: $19,703,049
  • 2030-31: $22,389,038
  • 2031-32: $25,345,818
  • 5-Year Total Loss: $93,982,199

The study notes that given the financial pressure of potential property tax reform in Florida, “now is an ideal time for the City to consider updated fee levels to enhance the revenues of the Department and reduce future subsidizations.”

The St. Cloud City Council will discuss the study and the potential new fee schedule during its regular meeting today at 6:30 p.m.

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