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Council adopts higher building-permit fees to cover inspection costs and speed service
Summary
Council approved a revised fee schedule to increase permit revenues so the town can support more frequent inspections and reduce existing delays; the ordinance passed 5-0. Staff said current permit fees (last set in 2021) do not cover the real cost of plan review, recordkeeping and contracted inspections.
The Town Council approved a revised building and permitting fee schedule on Sept. 17 to better align permit fees with the town's cost to process, review and inspect work. The resolution (2025-75) passed unanimously.
Key points - Staff said current fees (many established under prior contracts in 2021) under-recover the town's actual permit-processing costs. Sample calculations presented at the meeting showed commonly issued permits (porches, impact windows, roof replacements and small remodels) were producing little or no net revenue after plan review, records and inspection costs. - Inspections: The town relies on contracted inspectors. Staff reported that rising contractor inspection costs and limited inspector days contributed to inspection delays. The town currently schedules inspections three days a week and pays roughly $100 per inspection; several proposals for inspection services were higher. - Fee structure change: Staff proposed and council approved a value-based fee structure for larger permits (fee as a percentage of project valuation, with graduated rates by size) and newly consistent administrative/filing charges to capture processing costs. The ordinance also implements the state-required private-provider (third-party inspector) discount in the town's fee schedule.
Why it matters: Staff said higher fees will let the town support more frequent onsite inspections (goal: expand inspections beyond three days per week), reduce scheduling delays and improve enforcement/compliance. The council adopted the fees after reviewing peer municipalities and concluding the town had been well below typical regional fees.
Outcome: The fee schedule resolution passed 5-0 (resolution 2025-75). Staff will implement the new schedule, update permit processing workflows to shorten wait times, and return with performance metrics on inspection turnaround times.
Quote from staff: Community standards director said the town is "not collecting enough money to provide the service" and presented examples where permits produced net negative revenue under the current fee schedule.
Next steps: Staff will implement the updated fee ordinance, solicit competitive inspection proposals where appropriate, and report back to council with inspection turnaround metrics and a budgetary update on revenue from the new fees.
