City Council proposes major updates to engineering and planning permit fee structures

Spokane Valley's City Council is poised to implement significant updates to its permit fee structure, aiming to enhance efficiency and generate additional revenue for the city. During a special budget workshop on June 10, 2025, city officials discussed a comprehensive evaluation of the current fees associated with engineering, planning, and building permits, which have not kept pace with the costs incurred by the city.

The proposed changes could potentially generate up to $1 million in revenue, addressing the city's need to hire additional staff, including a right-of-way inspector, to manage the growing number of permits. Currently, the city charges between $23 and $39 for grading permits, which require extensive review and inspection time—often exceeding 30 hours. This has resulted in a significant shortfall, with revenues from these permits ranging from $8,000 to $15,000 annually, far below the actual processing costs.

City officials highlighted that neighboring jurisdictions, such as Spokane and Liberty Lake, have more robust fee structures that include additional charges for stormwater reviews and hourly rates for inspections. Spokane Valley's proposed updates aim to align its fees more closely with these regional standards, introducing tiered pricing based on project complexity and the time required for processing.

In addition to engineering fees, the council discussed adjustments to planning fees, which are currently among the lowest in the region. Proposed increases for various planning permits could generate an estimated $190,000, reflecting the time-intensive nature of these processes. The council also considered a new technology fee for building permits, projected to raise approximately $110,000 to support the city's permitting software.

The council's discussions underscore a commitment to ensuring that the city's fee structure is fair for both developers and the city itself, while also addressing the need for adequate funding to support city services. As these proposals move forward, they are expected to enhance the efficiency of the permitting process and improve the city's financial sustainability.