Minnesota Law requires municipalities to report expenses associated with construction and development fees. Direct costs associated with permit fees, engineering fees, and planning and zoning fees are readily attainable in most accounting systems. However, when it comes to allocating indirect expenses associated with the construction or development project such as depreciation, allocation of overhead, and cross departmental participation, few systems can easily capture this information.

It is important to provide accurate cost allocation as courts continue to challenge past, present and potential development fees.

We help cities with cost allocation requirements by conducting complete cost allocation studies, reviewing completed internal studies, or offering guidance and advice in setting up internal processes to track costs on a consistent basis.