How does Key Colony Beach get away with overcharging for permits, fees, and fines?

» The FY 2022-2023 adopted budget shows $581,784 in estimated Building Department revenue but only $358,107* in 12 month expenses for more than 38% "profit."
» The collections and current balance of the city building department exceed the limits set by Florida state statute.**
» The collections and current balance of the city building department exceed the limits set by KCB city ordinance.
» Key Colony Beach Code of Ordinances Part II, Chapter 2, Article VII, Sec. 2-77 Establishment of fee schedule states:

"All fees and charges established by the city commission shall be set forth in a "fee schedule," which shall be adopted, and may be amended from time to time, by resolution of the city commission. All fees or charges in the fee schedule are adopted as a reflection of the actual cost of providing the applicable services, and are intended to recoup only the city's actual costs involved with the administration and enforcement of such services."

» Obviously city officials think setting forth the amount in the fee schedule overrules this ordinance. They are incorrect.

Florida Statutes §553.80 allows local governments to adopt a fee schedule in accordance with Fl. Stat. §166.222. These fees "shall be used solely for carrying out the local government's responsibilities in enforcing the Florida Building Code." The statute provides: The following activities MAY NOT be funded with fees adopted for enforcing the Florida Building Code: Planning and zoning or OTHER GENERAL GOVERNMENTAL ACTIVITIES ... and any program not directly related to enforcement of the Florida Building Code... The statute further makes it clear that there are no other purposes for which such fees may be used by requiring local governments to "use recognized management, accounting, and oversight practices to ensure that fees, fines, and investment earnings generated under this subsection are maintained and allocated or used solely for the purposes described in paragraph (a)."
Thus, the municipality must ensure that the fees collected pursuant to Fl. Stat. §166.222 are only used to fund the direct costs and reasonable indirect costs associated with review of building plans, building inspections, reinspections, and building permit processing; BUILDING code enforcement; and fire inspections associated with new construction.

» Obviously city officials think setting forth the amount in the fee schedule overrules the Florida Statutes. They are incorrect.
» When will KCB refund the excess fees?

» Worth noting: on April 11, 2023, the City of Marathon began refunding almost $2.2 million to homeowners who overpaid for building permits in that city. Some 3,000 applicants qualify for refunds there.

* We took a deeper dive into the salary expenses in the department budget here.

** In More Problems arise for KCB, the Florida Keys Free Press found "The city's code and building departmemts are ramping up fines and penalties... Commissioner Tom Harding, who is also KCB's Secretary/Treasurer in charge of the city budget, said by phone that excess building department revenue has been traditionally rolled over to the following year to pay other city expenses... Per Florida law, that can't be done..." (Some readers have reported difficulty with that link so we also have a local copy)