Council declines immediate fee-study authorization for building-permit rates; vote 3-4

The City’s building official and staff proposed an independent permit-rate fee study to align building-permit fees with actual department costs, arguing inflation and increased complexity have widened a fee-vs-cost disconnect.

Presenters said permit fees are user fees (not general-tax revenue) intended to cover plan review, inspections, staff technology and overhead, and that a third-party study would allocate full costs, produce service-based pricing and reduce legal risk from over- or under-charging. Staff recommended engaging an independent consultant to perform the study; they estimated the work would take 30 to 60 days but did not provide a firm cost estimate at the meeting.

Council questioned timeline and cost and requested details. The motion to proceed with the independent fee study failed on the recorded vote, with the clerk announcing yeas 3, nays 4; the motion was not adopted.

Staff noted the building department’s approximate budget was around $2,000,000 for the last fiscal year and said the next steps would include scope, data-gathering, and consultant selection if council later approves funding for the study.