City staff told the council Tuesday that the city’s building‑permit fee schedule has not been updated in line with industry benchmarks and that a review is warranted to ensure fee revenue covers the building department’s direct and allowable indirect costs.
Community Development staff explained the city’s current valuation‑based fees trace to a 2008 International Code Council (ICC) evaluation table; staff demonstrated that a conservative projection of next fiscal‑year revenues would leave the building fund short of operating costs. The department and finance recommended updating the ICC valuation table and re‑examining flat fees that may not reflect plan‑review and inspection labor (for example, detached accessory structures and repeated inspections), and adding a fee for certain labor‑intensive processes such as temporary certificates of occupancy.
Staff presented side‑by‑side comparisons with recent actions by nearby jurisdictions: the Village of Estero and the City of Fort Myers both updated fee schedules using more recent ICC data. Staff’s sample adjustments still left the city competitive with neighboring fees while narrowing the gap between revenue and operating costs.
Council discussed timing and statutory limits. Staff noted Florida law restricts the city from increasing building‑related fees for up to 180 days following a declared emergency, a consideration if a storm declaration occurs. Staff also reminded council that when a building permit fund accumulates a surplus above statutory carry‑forward limits the city must rebate or use those funds for permitted purposes (technology, training or rebates).
Council voted to direct staff to prepare a draft resolution and bring back an updated fee schedule, including an ICC table update (contemplating the most recent ICC data), a set of recommended flat‑fee adjustments and comparative analyses to Collier County/Naples and adjacent Lee County jurisdictions. The motion passed by roll call.
Why it matters: Building‑permit fees fund plan review and inspection services; inadequate fees shift costs to the general fund and taxpayers. Updating the fee schedule aligns payments to the users of the permitting system and helps maintain inspection and plan‑review capacity.
Next steps: Staff will prepare a draft resolution and comparative analysis with Collier County variants and nearby cities and return to council for adoption. The council asked that staff perform annual reviews as part of the budget process.