Melbourne City Council Resolution No. 4457: Land Development Fee Changes Under HB 399 on November 10

The Melbourne City Council will consider Resolution No. 4457 on Tuesday, November 10, 2026, at 6:30 p.m. The resolution would adopt a new schedule of land development fees for the city's Engineering and Community Development Departments. City staff states the change responds to House Bill 399, a state law that takes effect January 1, 2027. If adopted, the new Community Development and Engineering fees would apply to new applications submitted on or after January 1, 2027. The item is not a public hearing. Staff recommends approval.

What Resolution No. 4457 Would Do

Resolution No. 4457 is item 17 on the Council's November 10 agenda. The City Manager's item report lists it as item C.17 from the Engineering Department, presented by City Engineer James Ennis.

According to the item report, land development fees are paid by engineers, architects, contractors, developers and property owners. They cover services from the city's Engineering and Community Development Departments. The item report states that Engineering Department application fees are now based on the estimated construction cost of a project.

The resolution would repeal Resolution Nos. 4356, 4357, 4403 and 4424 once the new fee schedule takes effect. It would then set a new schedule of development fees and permit fees. The resolution states that it does not change the police fingerprinting fee, the fire lift assist fee or the Building Division fees.

The State Law Behind the Change

House Bill 399 was passed by the Florida Legislature in 2026 and is published as Chapter 2026-7, Laws of Florida. Section 2 of that law adds a new subsection (9) to section 166.033, Florida Statutes, effective January 1, 2027. The new text states that the amount of any application fee for a development permit or development order “must reasonably relate to the direct and reasonable indirect costs associated with the review, processing, and final disposition of the application.” The fee must be published on the city's fee schedule. The law also states that the fee “may not be based on a percentage of construction costs, site costs, or project valuation.”

How the City Set the Proposed Fees

The item report states that the City Council directed staff at its July 29, 2026 budget workshop to evaluate land development fees based on full cost recovery of staff time. It states that the city's current fees are subsidized by the General Fund. It also states that they do not reflect the actual staff time spent on reviews.

Proposed Engineering Fees

The staff memo states that Engineering construction projects would be sorted into five levels based on complexity. Each level has a base fee for plan review and a base fee for inspection. Accessory fees would be added for items such as extra buildings, stormwater facilities, utility lines, roadway work, flood review and traffic studies.

The proposed base fees for construction plan review are these.

• Level 1, $1,570

• Level 2, $2,960

• Level 3, $5,110

• Level 4, $6,750

• Level 5, $8,680

The proposed base fees for construction inspection range from $1,220 for Level 1 to $6,840 for Level 5. Level 1 covers plans with no new net impervious surface, no change in stormwater management, no new habitable commercial building area and less than 1 acre of land disturbance. Level 5 covers the largest projects, including any expedited "Fast Plat" review.

The proposed schedule also lists a $110 Engineering application fee, a $530 pre-application meeting and a $250 pre-construction meeting. Plans that need more than three rounds of review would pay an added fee equal to 50 percent of the base review fee. The staff memo states that tree removal fees would be tripled for work done without a permit.

Proposed Community Development Fees

The staff memo states that the new Community Development fees include time from the review coordinator and administrative staff. It also adds accessory fees, such as mailed notice to owners within 500 feet, property posting and traffic study review. The memo states that both departments would drop separate concurrency evaluation fees for water, sewer, transportation, recreation and drainage. Those reviews would be built into the staff review fees.

The fee table in the agenda packet lists these current and proposed amounts, among others.

• First pre-application meeting per property per year, $0 now, $530 proposed

• Zoning map amendment (rezoning), $1,407 now, $2,140 proposed

• Conditional use, $1,375 now, $2,470 proposed

• Formal site plan, $2,344 now, $3,770 proposed, plus $25 per acre

• Preliminary development plan, $3,032 now, $5,960 proposed

• Preliminary plat, $2,469 now, $3,470 proposed, plus $25 per acre

• Variance for a single or two family home, $438 now, $670 proposed

• Appeal of a Planning and Zoning Board decision to City Council, $438 now, $1,200 proposed

The table shows legal advertisement fees changing from fixed amounts to an advertising fee set by the city's agreement with its media source.

Input From Builders and the Affordable Housing Committee

The item report states that staff held a workshop with the Space Coast Builders Association on October 20, 2026. It states that participants found the proposed rates acceptable and still less than private sector rates. The staff memo states that no objections were noted.

The resolution states that the Affordable Housing Advisory Committee reviewed the proposed fees at its November 3, 2026 meeting. The committee found that the higher fees would affect the cost of affordable housing, but that the effect would be minimal.

Who May Be Affected and What It May Mean for Them

Property owners, developers, builders, engineers and architects who plan to file zoning, land use, site plan, plat or engineering applications with the City of Melbourne may be affected. If the resolution is adopted, many application fees listed in the packet would be higher for new applications submitted on or after January 1, 2027. Engineering review fees would be set by project level rather than by construction cost. The item report states that the city expects an increase to the General Fund to offset the cost of staff review time.

What Happens Next

The item report lists the item as not a public hearing and not quasi judicial. It is a single vote with no second reading. The resolution states that it takes effect on adoption. The administrative fees and Building Division fees would stay as they are. The resolution also directs city staff to review these fees at least every two years after the new schedule takes effect.

The agenda advises under section 286.0105, Florida Statutes, that a person who appeals a Council decision will need a record of the proceedings. Persons with disabilities who need accommodation to take part should contact the City Clerk's Office at least 48 hours before the meeting.

The requested action in the item report is approval of Resolution No. 4457. The Melbourne City Council meets Tuesday, November 10, 2026, at 6:30 p.m., at City Hall Council Chamber, 900 E. Strawbridge Avenue, Melbourne, FL 32901.